Buyer's Guide to Self Managed Condos and Co-ops in NYC: https://www.hauseit.com/self-managed-condo-co-op-apartment-building-nyc/
NYC Buyer Closing Cost Calculator: https://www.hauseit.com/closing-cost-calculator-for-buyer-nyc/
What is a self-managed building in NYC?
A self-managed building is a condo or co-op apartment building which does not pay for the services of a third party 'Managing Agent' to run the day-to-day operations of the building. Self-managed buildings are typically very small and have less than 15 units.
If a co-op or condo is self-managed, it means that the individual apartment owners take responsibility for running the operations of the building. Such responsibilities include: collecting monthly maintenance or common charge fees from unit owners, bookkeeping, routine maintenance, paying bills and handling capital projects.
Apartments in a self-managed building usually have lower than average monthly charges for unit owners. This is because the building saves $1,000-$2,000/month by not having to pay a managing agent.
Common Charges vs. Monthly Maintenance Fees in NYC: https://www.hauseit.com/condo-common-charges-vs-co-op-maintenance-fee-nyc/
What are the pros of a self-managed co-op in NYC?
The key benefit of living in a self-managed co-op or condo is that the monthly maintenance (or common charges) is lower than average. If the Managing Agent charges $1,500/month and there are only 10 apartments, being self-managed would save each apartment owner around $150/month.
You might be asking, isn't it worth paying an extra $150/month so that I don't have to spend all day managing my apartment building? Surprisingly, the decision for a building to become 'self-managed' isn't always a financial one. The challenge with smaller buildings in NYC is that they simply cannot afford to hire one of the more professional and established managing agents.
What are the cons of a self-managed condo or co-op in NYC?
The main downside of buying into a self-managed building is the risk that you'll end up having to dedicate a disproportionate share of your time to building matters. While being involved in running your building can be very rewarding, you may grow tired of having to pick up the slack for your neighbors.
What extra due diligence is required when buying into a self-managed building?
Requesting an inspection prior to contract signing is a great idea if you are buying into a self-managed building. Although inspections are uncommon in NYC for standard condo or co-op apartments, it's warranted for a self-managed building because you simply don't know if the building has been staying current on routine maintenance and capital improvement projects.
Established in 2014, Hauseit is New York City's largest Buyer Agent Commission Rebate and For Sale by Owner Company.
NYC Buyer Closing Cost Calculator: https://www.hauseit.com/closing-cost-calculator-for-buyer-nyc/
