As everyone now realizes, the board will be increasing our monthly maintenance by 3.6% and instituting an assessment to replenish our capital reserves in the near future. We recognize that our board has done a great job keeping our maintenance low over the last several years and we commend all of their hard work.
However, instead of implementing these increases, we have a better idea. We contacted several reputable and highly regarded NYC condo managers. Based on our due diligence, market management fees for a building of our size (i.e. 57 units) is $500 per unit, or a total of $28,500. This is not a guess. This is a verified number that has been provided by multiple sources. Our current manager is being paid an annual fee of $50,000, which equates to an excess of $21,500 above market. That excess, if eliminated, would eliminate practically all of the 3.6% increase.
Why are we being charged in excess of market? The answer is very simple. Our current manager has 2 out of 5 seats on the board, and is conflicted. This situation needs to change.
Folks, this is real money for all of us. Let’s make sure we rectify this at the June 21 annual meeting.
As always, please feel free to drop us a note with any comments.