A Management Chief's Plain Talk and Good Advice for Co-op / Condo Boards
Martha Goupit
June 6, 2014 — Which qualities do responsible co-op and condo boards possess? What things can boards pursue that genuinely increase apartments' market value? What are some of the specific challenges boards faces today, and where boards can find support and information?
Rarely has anyone answered the above questions in as succinct and straightforward a manner as Martha Goupit, Halstead Management's managing director and executive vice president. In an insightful interview with Keat Foong, executive editor of Multi-Housing News, she offers the kind of plainspoken facts and wisdom that, ironically, the less-than-expert board at my very own condominium complex seems not to want to believe. If others readers out there have similarly recalcitrant boards, maybe her words will be a wakeup call: "You don't believe me? Fine. Would you believe her saying the same things?"
Among the top things a responsible board should offer residents, Goupit says, is "transparency when it comes to what is going on in their own community and how it affects them both financially and in their day-to-day quality of life. Communication is a given but effectively sharing information with your [residents] via newsletters, memorandums, email blasts via wireless devices and in person — an open-door policy so to speak — circumvents discord."
New Ways of CNYCC'ing
She also sees in general that "boards are becoming savvier" because they take advantage of "a number of publications targeting co-op and condominiums that write informational stories to help the board members become familiar with a number of different issues that may occur in the building, and serve as a guide for handling these situations. Additionally, boards can join the Council of New York Cooperatives and Condominiums (CNYCC), where members have access to a host of great information and consistently get new and relevant information" and can attend the annual weekend conference.
The need to keep up with
amenities competition and
find ways to tap into unused
common areas is paramount.
Some of the worst boards, she feels, are those that micromanage, and places part of the blame for that on property managers who let boards do so. "There are ways to redirect how a board member or 'the board' is communicating, and the same is true for boards that are too hands-off. It is the manager's responsibility to elicit board involvement and to educate them on the importance of their contribution…. Finding a way to deflect and encourage response is the manager's challenge in order to strike a balance that works for both the board and their manager."
Capital Plans and Amenities
And in addition to advocating such basics as "anticipating capital repairs and securing an appropriate reserve fund for emergencies" and having a five-year capital plan, Goupit stresses that in order to maintain let alone increase apartments' market value, buildings must stay competitive with amenities.
"Amenities have and continue to be sought after in today's market," she notes. "The standard storage and laundry rooms no longer cut it. The lure of pools, media rooms, gyms, basketball courts, wine storage, children and adult entertainment rooms are vying with existing buildings lacking these amenities. The need to keep up with all of the competition and find ways when feasible to tap into unused common areas is paramount. These spaces need to be considered both for their income-generating possibilities as well as for their desirability in today's market and will, when implemented appropriately, enhance those properties needing a boost in value."
Read the complete interview at Multi-Housing News.
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