Smooth Transition: The Importance of a Comprehensive Property Management Checklist

Finding the right management for your building can be challenging — and once you’ve committed to a new direction, it isn’t always easy to make a smooth transition. To help ensure that, it’s essential that your new manager has all the records, files and documents for your co-op or condo. Without them, things can go awry very quickly. For example, if vendor billing addresses are not updated during a transition, it could trigger a domino effect: monthly invoices go unpaid, which can affect the building’s insurance policy, maintenance contracts and utility accounts. Other potential risks include missed tax filings or non-compliance with code requirements.

Transition Risks 

Case in point: A Manhattan condo nearly lost its tax abatement when it changed property managers and the outgoing management failed to complete the critical tax filing. “A couple of months later we received a notice in the mail that the building did not file this abatement and they were in danger of losing it,” says Stephen Wilson, vice president at Blue Woods Management. The tax abatement scare prompted him to create a master checklist to ensure that every document is produced, categorized and filed so the transition can proceed problem free.

A Line-Item Manual

There are dozens of items, policies and agreements that need to be identified and reviewed when a co-op or condo pivots from one management company to another. Wilson’s comprehensive checklist includes the rent roll, ownership shares, the block and lot numbers for the building and the certificate of incorporation. Then there are insurance policies, and compliance filings for the facade inspection and safety program, Local Law 87, and Local Law 133. “The list is extensive, but we need everything applicable to manage the building effectively,” Wilson says. Alternate addresses should be gathered for unit-owners or shareholders who sublet or have a primary residence elsewhere but still need to be reached. Another key item is startup funds from the building. “Typically we ask for $10,000 just to start paying bills on day one,” Wilson says. 

Gathering the Intel

Getting the needed information often comes down to persistence with the outgoing management. However, Wilson acknowledges that “when you give an outgoing agent their walking papers, what little service you did have goes to zero.” Seasoned, long-serving board members may have the important papers in hand. “A lot of the younger or newer board members tend to be more tech savvy and so have maybe set up cloud drives,” Wilson says. Either way, a key document is the building’s financial statement, which can provide clues for incoming management about service contracts, thereby ensuring month-to-month billing does not get interrupted. “Fortunately, we have a lot of existing relationships with vendors that may be serving the building,” Wilson says. In that case, he can then speak with them directly to get the necessary information. 

Going Digital

Switching property managers is often the result when a co-op or condo board feels neglected. If you are having trouble with your property manager, Wilson advises addressing the issue head on. “If the relationship or the service doesn't improve, then you should look elsewhere. Problems don't age well, so it's better you have the right person managing your building than ignoring the problem,” he says. A management transition can also be the trigger needed for a board to take advantage of online residential property management software and start a digital storage of maintenance reports or annual meeting minutes. This can streamline any future transition to new management, as well as incoming board members, since it can be helpful to have easy access to past agreements and procedures and figure out necessary changes. “With digital storage they can go back and easily check that,” Wilson adds, “especially if management has changed and the previous agent wasn't always good about keeping files.”  

—Emily Myers