I know that I've taken over a few properties that were either initially self managed or had been playing with that for a while. I think that your ability to self manage will take into account a few different variables. If this is a larger property, the amount of work and detail needed for all of the items that come up (Shareholder/Resident issues as well as financial items) are staggering. You'll need to ensure that the people who are on the Board and willing to do this (assuming you're not hiring a "manager") and will have the time to devote to it.

If this is a smaller building that is less than 30 units, the issues will not come as often but you'll find more detail will be needed in the financial end of managing the property.

Depending on the size of the building that you have, a small or mid-size management firm will be able to give you professional management services form soup to nuts for less than $400 per unit. This small fee is certainly worth the expense to ensure that you are properly managed and are abiding by all of the laws and requirements of the city and state. Although the bigger firms could cost $600 per year per unit, there's no need to go that large for a smaller property.

I am an accountant by trade working with a very large non-union pension fund. My biggest suggestion for you is to make sure you have dual controls over the cash / accounting functions. I would strongly suggest hiring an accountant to handle the cash record keeping (both maintenance collection and bill paying). I use a program called MAS 90 however Quick Books could also work. Then have the Board Treasurer & President (or Treasurer / Accountant) dual sign the checks. You don't want to get into a situation where the co-op shareholders are getting into disagreements over who has control of the cash or worse, missing cash.

Thanks to each of you for taking the time to respond to my inquiry.

We are also looking into self-mang...anyone have any experience with AKAM?
Thanks...

I don't recommend self management, because you always have to make sure the jobs get done. since no one is getting paid they don't feel a strong responsibility to get the job done. The key is to have a very strong and conscientious manging agent that doesn't break the bank...
we are extremely satisfied with our agent.

Who is your Mang agent... We too are changing. Any recomendations welcome. We have about 90 units... Uper-middle income building...
HG

We use The company David Eisenstein Real Estate. They are terrific, down to every detail. All of our requests are quickly responded to, the building is immaculate. We have peace of mind knowing that our building is in good hands. Give Harry a call at: 212-582-9080

Our building is over 400 units and we have been "self-managed" since inception. However we are self-managed in the sense that we hire our own professional staff rather than using a property management firm. To do so we have a dedicated office staffed with two full time employees and a part time bookkeeper.

Our reasons for doing so are several but primarily this type of self-management gives us close control and high quality on-site customer service. We also save some money; however the savings are not significant enough to be the primary reason for our ongoing decision. Our employees are highly experienced in the management and real estate field so we are not sacrificing any quality.

I don't know how large your building is; however if you contemplating self-management by your board of directors rather than directly hiring your own employees I cannot recommend it. For any of you who have read my posts before, you know that I am a strong advocate of using professionals to do a professional's job. I believe that relying on a volunteer board that may change from year to year is a mistake. Successful management of a building requires attention to a myriad of details and no matter how well-intentioned, a volunteer board is more likely to make mistakes and may make decisions for political, rather than logical reasons.

So far our story has been a success but I am open minded. As president for a number of years, I am deeply involved on a daily basis - our manager and I work closely together as a team with me providing the direction and our manager providing the execution and valued advice. Both roles are key and they have to fit together well. Of course I am not irreplaceable, but my successor will need a similar commitment to be successful. If our manager were to leave, I would seriously consider all options, including a professional management firm.

Self-direction provides a level of service and control that you might not otherwise achieve, but it's not for everyone.