Understanding the Responsibilities of Your Property Manager NYC
A Guide for Co-op and Condo Owners and Boards
If you own or serve on the board of a cooperative or condominium in NYC, you might feel unsure about what each person's roles and responsibilities are. This includes your staff, board members, and especially your property manager. Knowing who does what is really important for being a good neighbor and for boards to keep your building running smoothly.
Your property manager has a lot of different jobs and wears a lot of hats. They are not only responsible for making sure everything works day-to-day but are also responsible for managing money, staff, and regulations. The property manager is also the one who is dealing directly with tenants and their various complaints. Let's explore these roles together, so you can understand how everything fits together in managing your building effectively.
Who’s responsible: The condominium board or the property manager?
Ensuring the seamless operation and maintenance of a condominium building in New York City requires a harmonious collaboration between two key entities: property managers and condominium boards. It matters not whether you live in Brooklyn or Manhattan; both entities play pivotal roles in upholding the integrity and functionality of the property, yet their responsibilities and focus areas differ significantly.
Responsibilities of a Condominium Board:
Similar to governments and elected officials, the condominium board is voted in by the owners in the mandatory, and often dreaded, annual meeting. From shaping policies governing daily life to meticulously overseeing the building’s structural and financial health and legal matters, the board serves as the cornerstone of governance. The board’s responsibilities include:
Policy Making: The condominium board plays a critical role in setting policies that govern the overall management and operations of the condominium. From determining rules for common areas, also known as house rules, to establishing procedures for decision-making, these policies shape the daily life of residents within the community. By carefully crafting and enforcing these policies, the board helps maintain order and promote a harmonious living environment for all.
Financial Oversight: With a keen eye on the financial health of the condominium, the board takes charge of overseeing budgets, reserve funds, and financial planning initiatives. They meticulously allocate resources, monitor expenses, and ensure that financial decisions align with the long-term goals of the community. Through prudent financial management, the board strives to safeguard the financial stability and sustainability of the condominium for future generations.
Legal Matters: Acting as guardians of the condominium's legal interests, the board tackles various legal matters ranging from disputes and lawsuits to enforcing rules and bylaws. They work closely with legal counsel to navigate complex legal issues, resolve disputes amicably, and uphold the integrity of the condominium's governing documents. By addressing legal challenges promptly and decisively, the board protects the rights and interests of all residents.
Long-Term Planning: Looking beyond the present, the condominium board engages in strategic long-term planning to ensure the continued maintenance, improvement, and sustainability of the community. They develop comprehensive plans for capital projects, renovations, and infrastructure upgrades, taking into account the evolving needs of residents and changing market conditions. Through forward-thinking planning initiatives, the board lays the groundwork for a vibrant and resilient condominium community for years to come.
Communication: Facilitating open and transparent communication channels, the board actively engages with residents, conducts meetings, and seeks feedback on important issues affecting the condominium. They provide timely updates, address concerns, and foster a sense of community cohesion through effective communication strategies. By listening to residents' voices and fostering a culture of inclusivity, the board strengthens trust and collaboration within the condominium community.
Hiring and Oversight: In their role as stewards of the condominium's management team, the board takes charge of hiring and supervising the property manager and other service providers. They ensure that these professionals fulfill their duties effectively, adhere to ethical standards, and act in the best interests of the community. Through diligent oversight and regular performance evaluations, the board maintains accountability and professionalism in the management of the condominium.
From time to time, we get asked by condo owners and co-op shareholders whether there’s any conflict of interest for an owner to be the super or property manager. Our answer to that question is that it depends. If the building prefers to pay an owner to be the super or property manager, that’s fine. They also need to attend board meetings, just like a hired super or property manager. However, allowing them to vote can be construed as a conflict of interest.
Responsibilities of Property Manager (Managing Agent):
The property managers play a pivotal role in ensuring the seamless functioning and well-being of condominium communities. From overseeing day-to-day operations to managing financial matters and maintaining regulatory compliance, property managers serve as the linchpin of building management. With a keen eye on vendor coordination, tenant relations, and emergency preparedness, property managers uphold the safety, satisfaction, and overall quality of life for residents. Their responsibilities include:
Daily Operations: Property managers oversee the day-to-day operations of the building, ensuring that maintenance, repairs, and tenant communications run smoothly. While they may not directly perform these tasks, they supervise the building's staff responsible for these duties, maintaining efficiency and effectiveness in operations.
Financial Management: Property management firms handle financial matters such as maintenance or common charge collections, budgeting, and payment of all bills and utilities. They maintain accurate financial records, track expenses, and assist boards in creating budgets to ensure the financial stability of the building.
Compliance: Property managers ensure compliance with local laws, building codes, and regulations, as well as adherence to the building's bylaws and rules. They stay updated on any changes in regulations and implement necessary measures to maintain compliance.
Vendor Management: Coordinating with vendors and contractors, property managers oversee maintenance and repair work to ensure the building remains in good condition. They negotiate contracts, supervise work quality, and ensure timely completion of projects.
Tenant Relations: Property managers maintain positive relationships with tenants, addressing complaints, inquiries, and requests promptly and professionally. They handle lease agreements, renewals, and tenant screenings to ensure a harmonious living environment.
Emergency Response: Property managers are responsible for managing emergencies and ensuring the safety and security of residents. They develop emergency response plans, coordinate with emergency services, and provide timely communication to residents during crises.
Reporting to the Condominium Board: Property managers report to the condominium board, providing updates, recommendations, and insights on building operations. While they offer guidance and expertise, the board remains ultimately accountable to unit owners for their decisions and actions, ensuring transparency and accountability in governance.
During our conversations with numerous cooperative and condominium board members, a common question that we get regarding the potential liability of property managers for incidents within their buildings. Whether it pertains to faulty installation of building systems or inadequate maintenance of aging infrastructure resulting in damage, it's best to refer to the agreement with your property management firm. This document delineates the specific responsibilities of the property manager for your building, providing clarity on potential areas of accountability.
Understanding the roles and responsibilities within a cooperative or condominium in NYC is essential for effective building management. This guide explores the duties of both property managers and condominium boards, emphasizing the collaborative effort required to ensure the smooth operation and maintenance of residential buildings. From policy-making to financial oversight, legal matters, and long-term planning, each entity plays a vital role in upholding the integrity and functionality of the property.
In the intricate ecosystem of property management, the collaborative efforts of property managers and condominium boards are indispensable for maintaining the well-being and satisfaction of residents. By delineating their respective responsibilities and fostering open communication channels, both entities contribute to the creation of a harmonious and thriving living environment. Whether navigating day-to-day operations, overseeing financial matters, or planning for the future, their shared commitment to excellence ensures the continued success and sustainability of cooperative and condominium communities in the vibrant landscape of New York City.
Have questions about your property manager's responsibilities or need assistance in optimizing your building's management? Contact The Folson Group today for personalized consulting services tailored to your co-op or condo board's needs!