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Our co-op (condop)initiated fees payable to the co-op and to the managing company for any alterations in one's unit. I think the managing company is double dipping. Their fee is paid via monthly maintenance and now directly from any alterations. Why does the managing company needs to be paid on alterations wanted by a shareholder? Greed besets.
remember, the management co. wants YOU as a client. keep the fees as low as possible. like $100 for a simple decoration agreement (painting etc), $300 for a more in-depth one. etc.
It seems like I didn't word my original message correctly. You mean I, as a shareholder, have to pay the management company, for example, $100 to paint within my own unit? I am not talking about common areas.
Dear Anon,
You probably have to fill out a form stating your intentions (to paint), and to indicate that you (or your contractor) have adequate insurance.
The management company then has to verify and file the information. That work is typically done by someone besides the property manager. You're paying for that person's time.
You'll ask, Aren't I already paying their time?
Nope. The management company charges its lower possible rate to get your condop as a client. Extra services are paid by the individual who wants the extra services done.
If you wanted a management company that didn't charge for special services, your board would pay a higher annual fee to the management company, which the board would then pass on to you in the form of an increased common charge or maintenance fee.
Charging the individual keeps the monthly fee low for those residents who don't do extra work.
In most cases this is not double dipping. Read the management contract, most likely it will be in there that the management company shall charge for alteration agreements, project management as well as closings. Most management companies do. This is a way to supplement the low management fee they charge per month.
Pgrech
As some other posters put it, Management contracts are written to keep the management companies rates low. in doing so, many services are not included into the contract. Most of these include Alteration, Sales, Sublet application and agreements, closings and refinancing. Therefore, when these services do arise, the management company rightfully charges for them.
~AR
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First please attach some name when posting (Mary, Bob, Jane, not annon). I am aware of Coops charging a fee for alteration agreements (this is for the preperation work involved/or additional work involved, such as reviewing the agreement, faxing, sending copies to the architect etc, and is a one off charge). This does happen.
Fat Nickie.
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