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Self management: Is it Right for You?

A Cautionary Tale for Co-ops and Condos

When it comes to the topic of Self Managing a building, I am biased. When looking to accomplish a detailed, time consuming task with significant financial and well being ramifications it’s best to look to an expert. Any expert.

That said, if you have ample time to manage the day-to-day operations in addition to emergencies that seem to arise regularly while you’re busy elsewhere or on vacation, self management may be your best option. The issue boils down to time and money. If you have the time and lack the resources to hire a specialist, you can become one yourself.

The degree to which you actually manage is up to you as a board or owner. Hiring employees to remove trash, replace bulbs and clean hallways can remove stress (or possibly create it) within small communities where members know one another. These tasks usually fall to a competent super and their staff.

Also, similar to large institutions that self insure, at a large enough size, it can make sense to bring the entire operation in house. Tudor city did this years ago and later offered management services to others for a fee with mixed results.

These seem to be the basic requirements before considering self-management:

• Competent and responsive board

• Shareholders who are available and willing to substitute their volunteer time for paid full-service managing agent’s time

• Super must be skilled, responsive, self-starting, resourceful and manageable.

• Building must be in good physical shape, with all major projects completed.

• Over 70 % of the units should be owner-occupied and the reserve fund should equal several months of maintenance.

• There should be no assessments in place or forecasted

• No sponsor-owned rentals serviced by the building’s managing agent (in condos or coops)

• Importantly, the ideal self-management candidate enjoys great shareholder relations. This includes no dissident factions, no illegal sub-lets, no illegal renovations/alterations, etc.

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