Stiemann, Home Owner in Upper East Side, New...

what are the current maintenance trends in coops?

Asked by Stiemann, Upper East Side, New York, NY Mon May 2, 2011

Help the community by answering this question:

Answers

10
Jenet Levy’s answer
Stiemann,
The trend in co-ops in maintenance is, unfortunately, always up. There are many reasons. As mentioned below, rising fuel costs is one. Rising salaries of building employees is another. The biggest factor, though, is real estate taxes. When the real estate taxes rise, which they have been doing, the building must pass the cost on to the shareholders. Some buildings like to keep large reserves, others play it closer. Those with large reserve funds can absorb some increases without frequent maintenance increases, others can't. Another factor is Local Law 11. The exterior of buildings are periodically inspected by the city. That often results on work on the facade. That could be handled as a temporary assessment or, if reserves are low, a board may opt to increase the maintenance to have a cushion for the future after the work. The same goes for upgrades of lobbies, hallways, common areas, etc. They can cause an assessment or a maintenance raise.
Every building is different in how conservative or risky they play it with the reserves. Those that play it fast and loose, and I certainly know some that do (and they are not only small buildings) are more prone to increases if theunexpected hits.

Hope this helps.

Jenet Levy
Halstead Property, LLC
jlevy@halstead.com
212 381-4268
http://www.jenetlevy.halstead.com for all NYC listings
2 votes Thank Flag Link Mon May 2, 2011
THe simple answer is, what goes up, must come down, except when it comes to taxes, maintenance, and food prices! The reasons for perhaps seeing that maintenance is not on the rise really depends on each individual building's board. I can say that my boyfriend's building had a freeze on their maintenance from rising until last year, when they had to be increased due to higher heating oil prices.

If you should have any additional Real Estate related questions, I am happy to help. My name is Lindsey Newman, a Licensed New York Real Estate Salesperson, specializing in working with buyers as a dedicated Buyer's Broker. Here is a link to my most Frequently Asked Questions Page: http://www.manhattan-condos-for-sale.com/Q___A.New-York-Apar…

I look forward to hearing from you.

Sincerely,
Lindsey Newman
Senior Real Estate Sales Associate
1 vote Thank Flag Link Fri Jan 13, 2012
Like everything else over time, co-op maintenances and condo common charges will increase. Regular occurrences that impact maintenances and common charges are increases in staff salaries; fuel, electricity, and water increases; increased real estate taxes; and a co-op taking a second mortgage on the building. In addition, special expenses might be incurred if the roof needs repair or the boiler needs replacing, or a pipe burst and caused extensive flooding. The costs to address such problems will affect maintenances if there is not enough money in the Reserve Fund to pay for repairs. When a prospective purchaser decides to buy a co-op, the buyer's attorney visits the managing agent and examines the Minutes to the Meetings of the Board, and other internal documents, to estimate whether one of these big expenses might be coming up in the near future; to determine the soundness of the building's finances; and to check whether the Reserve Fund is adequate. The buyer's attorney can then advise his client that a maintenance increase is likely to occur soon, or on the otherhand, maintenances are likely to stay stable for a while.
0 votes Thank Flag Link Mon May 2, 2011
Hi Stiemann,

It all depends, what area you are referring to, size of apartment, are you speaking "5th ave coops" or like 2nd or 3rd aves, or west end/amsterdam vs central park west/south.....

Please feel free to email me with further questions at Laura@kwnyc.com

Best,
Laura
0 votes Thank Flag Link Mon May 2, 2011
I would also add that the City of New York is considering a significant tax hike mid-2011 on co-ops that many boards have already factored into the current year's maintenance increase (effecting January 2011) as a hedge. And if the tax increase does not get approved, it's doubtful those boards will provide relief back to the the shareholders.

Once maintenance goes up, it tends to stay that way...

Eddie
Web Reference: http://nextperfecthome.com
0 votes Thank Flag Link Mon May 2, 2011
There are really no "maintenance trends" aside from up, up, up; like gas, groceries, etc. But how much they go up is always anyone's guess.

These "maintenance trends" in co-ops have a mulitude of factors to consider; how many staff are emlpoyed, is it a high end building, are you up for a land lease renewal, etc. All these factors will bring up the cost of your co-op maintenance. So it is really building specifric and hard to generalize as a trend.

Jennifer A. Chiongbian
SVP/ Associate Broker
Rutenberg Realty NYC
127 E. 56th St., NY. NY 10022
917-250-2284
212-688-1000 x 189
0 votes Thank Flag Link Mon May 2, 2011
Keep in mind that maintenance will vary from complex to complex; if interested in a particular complex, work with an agent, he.she can provide any necessary information.
0 votes Thank Flag Link Mon May 2, 2011
With rising fuel costs and union increases, coop maintenances, for the most part, have been increased 4%-8%.
Corinne Pulitzer
Executive Vice President
Associate Broker
Prudential Douglas Elliman
cpulitzer@elliman.com
0 votes Thank Flag Link Mon May 2, 2011
Due to the heavy increases in heating fuel and increases in real estate taxes, the trend is currently upward. This year has seen increases almost across the board so hopefully the next couple of years will be steady.
0 votes Thank Flag Link Mon May 2, 2011
It really varies. Many buyers are under the impression that co-op maintenance fees are exorbitant, but here are just some of the expenses and services co-op maintenance payments cover that justifies the cost, for example heat, hot water, cooking gas, garbage pick up, maintenance workers salaries, pest control, building cosmetic up keep etc.
0 votes Thank Flag Link Mon May 2, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer