Choosing the Right NYC Property Management Company
About a year ago, we got a panicked and desperate call from John, the co-op board president of an 87-unit New York City property. We had a hard time believing what he told us, but after a bit of research, what we found was shocking. Hopefully your property isn’t in nearly the crisis that John’s was, but if it is, we can help you “simplify ownership” too.
The Worst Case Scenario and Our Solutions
Again, sometimes even we find it hard to believe what we found at John’s property. As a property management company offering services throughout NYC, we thought we’d seen it all. We were wrong.
The building had been managed by a nationally-known, nationally-ranked property management company. It should have been fine, but, and we can’t emphasize this enough, as the property management client, you need to ask questions, get involved, and act as the partner of your new property management company. We found:
Two years and $200K of unpaid water bills, with no vendor payments since 2012
We immediately made payment arrangements and negotiated settlements with the NYC DEP and other vendors. Although we are still in the payment process, we have reduced expenses in other areas to decrease the overall length of restitution. Once we contacted many of the vendors, they were unable to provide documentation showing what work they did (if at all), and we successfully convinced many of them to waive 100% of the past-due amounts.
Post negotiation, we average 65¢ on the dollar and have substantially reduced the building’s exposure to litigation.
$157K in unpaid, delinquent rent
It had been years since rent was collected on time, and honestly, many of the tenants refused to pay because of the disrepair of the building. We immediately established a level playing field and treated all tenants the same way. This created a new atmosphere of trust, accountability, and caretaker-ship.
After only 6 months, we reduced the unpaid rent by 50%.
Broken, inoperable boiler for 4 consecutive years
Based on the winter we had in 2014, it is completely unacceptable to have a broken boiler! The old property management company told the co-op board that the only solution was to buy a new boiler, and was pushing for the board to approve a loan through the property management’s sister company to the tune of $300K.
In addition, the boiler, when it was functional, used an illegal oil and had been unlicensed since 2007. In fact, every time the building superintendent had to reset the boiler, the property management company added $100 the monthly management bill.
We attacked the boiler problem on day #1, brought in one of our trusted, expert vendors, and reduced the expected repair expense by more than $280K.
Here’s the Proof
How do I know that what we do works? It’s simple. When we took over John’s building, the co-op’s bank account was empty. The balance was $0. Now, after a full year and a lot of hard work, we have decreased the building’s overall expenses and their account is comfortably sitting at $104K. For the first time, the building has a cash reserve.
Let US Help YOU
Still feeling a bit overwhelmed? We offer property management services for clients throughout the New York City metropolitan area including Manhattan, Bronx, Queens, and Brooklyn. Please contact us via our website or directly at CONTACT US for a personalized quote and walk-through.