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Newlt elected board pres and vp, both of which were vp and treasurer have permitted the managing agent to assemble the agenda and run the building as if presiding, resulting in nothing but BS and now reasonable and rational policies that served the corp well for many years are being reviewed, changes proposed to benefit themselves and their interests. How does one stop/slow it down?
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There are good and bad Management companies, but the bottom line is that the Management company works for and takes direction from the Board. Legally the Board will be held responsible for the decisions made, contracts signed and monies spent.
The Board/Shareholders have a financial interest/investment in the building -- which is not shared by the Management. If the costs go up, maintenance raised -- or your assets mismanaged, the Shareholders pay -- not the agents.
Again, ultimately the Board is responsible: This article in the Times (a 7million loss for the coop) is not about a bad management Co. – but (as they admit) lazy Board members – which seem to be where you are heading:
http://www.nytimes.com/2005/10/30/realestate/30cov.html
The Email Trail: Email/the Internet, is changing the accountability of both Board members and management Companies. Never forget, this is your money, your investment:
Transparency works. This will not make you popular but start the Email Trail by documenting: EVERYTHING! Do not accuse anyone of anything or make personal slights – but ask business-like questions.
Store Emails. The Email trail will protect you and Board members who care -- from being accused or sued. (Use a Gmail account, in that your Emails are easily retrieved, and will be stored) Also, collect the Email addresses of other concerned Shareholders and keep them informed.
If you are told Board discussions are secret and should not be shared with the S/H -- this is one of your biggest clues that something is wrong. (Certain personal or financial discussions are confidential)
Be Informed: Get a copy of the Building/Management contract. Although it was forbidden in the contract, we discovered that large checks were being written without board approval – (Catch 22) since no one objected – they did have board approval.
LL11/Major repairs: Although Board members are generally not engineers/architects – common sense is often more valuable: While reviewing the engineers recommendation/report for a major repair of the façade ( with a walk-though), we discovered big-cost items we did not need, and overlooked work that was visible to the naked eye. (After you begin the Job, a “Change of Order” adds up to big bucks).
Also, don’t necessarily rely on the expertise of ONE board member. This “rely on the expert”, cost the Coop in the Times article millions. Another Coop discovered that the resident expert Board member (an architect) – had included in the cost of LL11, the steel structures for a greenhouse to be built onto his terrace. This was discovered by non-professional Board members reading the reports/engineer recommendations. Common sense works!
REVIEW (vendors, engineers etc) Contracts and start going over the financials --especially payroll. For Example: After a year with a new agent we discovered a payroll increase of appox 50,000: the new Management did not keep a (legal) pool of non-union workers to fill in for vacations, sick leave etc -- and we were paying full union wages/benefits for overtime. Keeping this pool is extra work for the Agent. Cost are going up, but check out the building supplies – especially if there was a change in vendors or the way supplies are bought. If something does not sound right – plumbing cost, replacement of windows etc.etc. – dont be embarrased --- ask questions -- its YOUR money.
The Property Agent/Management Co. is as good as the Board demands: Property Agents are generally honest, but are overworked/underpaid and don’t have time for personal attention.
We are on our way to recovery, it has not been easy but we now have an involved Board and a Management Company that is working with/for us. VP
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Board Talk members who registered prior to March 9th, 2016 will need to reset their password.