Tag Archives: resident co-ops

Five Keys for Tenant Screening

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Inform the Applicants about Tenant Screening

Before starting off with tenant screening, it is important to inform applicants that screening is compulsory. Just learning that there is a screening process is sure to eliminate potentially bad tenants, thus saving you valuable time.

Screen Consistently

A comprehensive and systematic tenant screening process for all your potential tenants will protect you in case an applicant makes claims that you have made violations against the Fair Housing Act.

Deciding Minimum Qualification

As the owner of a property in NYC, you are expected to pick a tenant who will give you no trouble with regards to payment of rent or other issues. Decide whether you want tenants who have criminal records, or if such applicants must refrain from applying regardless of how long back they were arrested for whatever reason. Think in detail what kind of tenant you would like before starting with the screenings.

Credit Checks

Once your applicants have met your prior requirements, run a credit check to ensure that they will be able to meet rent and bill payments on time. Get the report directly from the applicant’s credit reported to make sure that there are no shenanigans.

 

Check References

Calling the present or past landlords of an individual will help you determine whether or not an applicant is worthy of your space. Personal and employment references will help you know more about the person, thus enabling you to make an informed decision regarding the outlet of your rental space.

Having an Annual Meeting

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We’re in the midst of the annual meeting cycle for co-ops and condominiums as most associations hold their meeting in May or June.  This is a good time to look at some aspects of the gathering while it is fresh in the minds of the boards and residents who have just met and for those preparing for theirs.

The co-op or condo annual meeting is much like that of public companies when shareholders, both big and small, gather to hear about the company’s performance and its future prospects from the chairman and president and vote on board members and other issues.  These meetings, on which many companies spend considerable time and expense, are usually held in the spring of the year for companies whose fiscal year ends on December 31.

While far from as elaborate or attention-grabbing as the meetings of the public companies, the annual meetings of co-op and condos are for many of the shareholders and unit-owners at least of equal importance.  For many, the investment in their home is their largest asset. While each meeting has its own rhythm and tone, the basic structure and requirements are similar, and, in fact, mirror to a great extent the corporate sessions.

Annual meetings help inform shareholders and unit owner

There are three main purposes for the annual meeting: to update shareholders and unit-owners on the operations and finances of the property; elect the board as well as vote on other issues, such as amendments to the building’s by-laws; and provide an opportunity for residents to ask questions.

The annual meeting, as with all regulations and rules in a co-op or condominium, is governed by the building’s by-laws. While these are unique to each building, they all call for an annual meeting according to Business Corporate Law of New York State, which govern co-ops and condominiums.

Most meetings follow a standard agenda.  A management report is given, usually by the president or managing agent, describing operations in the past year and specific changes and improvements that were made as well as current issues and future plans.   The treasurer, and or accountant, describes the financial condition of the building and the accountant presents the audit report certifying that the financial records are in order.  The treasurer, president or managing agent also may discuss capital improvement requirements and whether these can be funded from the reserve fund or will require a special assessment or other financial arrangement.

Some co-ops and condominiums require a vote on capital improvements, and some, mainly smaller ones, require a vote on the annual budget.

Why are the meetings usually scheduled in May and June, when most fiscal years end on December 31? One reason is that it takes the accountants time to review and certify the financial statements.  As we all know, accountants are usually immersed in taxes through April, and May and June are the earliest they can complete the financial statements.

The financial reports should be provided to the shareholders or unit-owners sufficiently in advance of the meeting for them to review the document.  They should also receive the text of items to be voted on, if any, and any potential rules changes.

The managing agent usually organizes and sets the agenda for the annual meeting in conjunction with the board president and in some cases directions from the by-laws. 

Attendance varies from building to building and we at Matthew Adam Properties make certain we collect proxies from those who will not attend, or are uncertain, so a quorum is guaranteed.  By the way, a quorum is needed only for votes, so meetings can start on time and votes taken when more residents arrive and a quorum is achieved.

We’re in the midst of the annual meeting cycle for co-ops and condominiums as most associations hold their meeting in May or June.  This is a good time to look at some aspects of the gathering while it is fresh in the minds of the boards and residents who have just met and for those preparing for theirs.

The co-op or condo annual meeting is much like that of public companies when shareholders, both big and small, gather to hear about the company’s performance and its future prospects from the chairman and president and vote on board members and other issues.  These meetings, on which many companies spend considerable time and expense, are usually held in the spring of the year for companies whose fiscal year ends on December 31.

While far from as elaborate or attention-grabbing as the meetings of the public companies, the annual meetings of co-op and condos are for many of the shareholders and unit-owners at least of equal importance.  For many, the investment in their home is their largest asset. While each meeting has its own rhythm and tone, the basic structure and requirements are similar, and, in fact, mirror to a great extent the corporate sessions.

Annual meetings help inform shareholders and unit owners

There are three main purposes for the annual meeting: to update shareholders and unit-owners on the operations and finances of the property; elect the board as well as vote on other issues, such as amendments to the building’s by-laws; and provide an opportunity for residents to ask questions.

The annual meeting, as with all regulations and rules in a co-op or condominium, is governed by the building’s by-laws. While these are unique to each building, they all call for an annual meeting according to Business Corporate Law of New York State, which govern co-ops and condominiums.

Most meetings follow a standard agenda.  A management report is given, usually by the president or managing agent, describing operations in the past year and specific changes and improvements that were made as well as current issues and future plans.   The treasurer, and or accountant, describes the financial condition of the building and the accountant presents the audit report certifying that the financial records are in order.  The treasurer, president or managing agent also may discuss capital improvement requirements and whether these can be funded from the reserve fund or will require a special assessment or other financial arrangement.

Some co-ops and condominiums require a vote on capital improvements, and some, mainly smaller ones, require a vote on the annual budget.

Why are the meetings usually scheduled in May and June, when most fiscal years end on December 31? One reason is that it takes the accountants time to review and certify the financial statements.  As we all know, accountants are usually immersed in taxes through April, and May and June are the earliest they can complete the financial statements.

The financial reports should be provided to the shareholders or unit-owners sufficiently in advance of the meeting for them to review the document.  They should also receive the text of items to be voted on, if any, and any potential rules changes.

The managing agent usually organizes and sets the agenda for the annual meeting in conjunction with the board president and in some cases directions from the by-laws. 

Attendance varies from building to building and we at Matthew Adam Properties make certain we collect proxies from those who will not attend, or are uncertain, so a quorum is guaranteed.  By the way, a quorum is needed only for votes, so meetings can start on time and votes taken when more residents arrive and a quorum is achieved.

While most buildings have one meeting a year, there are some that have periodic informational meetings to keep the shareholders or unit-owners current on building operations and issues.  Some buildings also have a pre-annual meeting session where the residents can get to know potential candidates for the board of directors and receive an update on building activities.  Additionally, when a major issue arises during the year, such as a capital improvement project, a special meeting may be called.

While most buildings have one meeting a year, there are some that have periodic informational meetings to keep the shareholders or unit-owners current on building operations and issues.  Some buildings also have a pre-annual meeting session where the residents can get to know potential candidates for the board of directors and receive an update on building activities.  Additionally, when a major issue arises during the year, such as a capital improvement project, a special meeting may be called.

Keys to a Smooth Management Transition

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Probably the most difficult, important and often delayed decision the board of a co-op or condominium makes is deciding to change management companies.  Numerous factors, both realistic and psychological, play into this, but one of the most prevalent is the fear of change and the requirements of getting a new management company up to speed.

Unfortunately, the final decision is often made after communication has virtually broken down with the manager and the company, the building’s services and physical plant have deteriorated and the financial records are in poor shape.

Our Strategic Management Program Uses Sound Business Principles

What many boards fail to understand is that some management companies are organized and prepared to move in, take control and bring order to a deteriorated situation.  At Matthew Adam Properties, we follow the policies outlined in our Strategic Management program.  Strategic Management is our adaptation of sound business principles.  We set objectives and a timetable so our performance and the property’s improvements can be measured.  It is a planned approach to property management rather than the usual band-aide cure.

We follow this approach in the transition process.  As we transition the property into our portfolio, we are cognizant that every detail – every record, every management professional’s decision – must be incorporated into management files for the property.  Our Strategic Management program facilitates the transition process and helps us move quickly when we officially start.   We keep the board informed of our progress and alert it to any problems encountered.

When we are retained, we immediately conduct a full evaluation of the property’s operations and finances.  We then create a customized Strategic Management Plan that includes financial issues, service contracts, maintenance, repairs and long-term capital improvements.  This is reviewed periodically with the board.

Organization and Communication are Key Points in Management Transition

While we are working on the Strategic Management Plan, our transition team is working to get the property up to speed.  In taking control of the process we emphasize two points: communications and organization.  It is important that we develop a solid working relationship with the board.  Often, we find board members wary of property managers after a disastrous experience with the previous company or companies.  We work hard to demonstrate our capabilities and professionalism in getting the tasks accomplished.  In organizing the transition, we follow our Management Transition Checklist and the procedures outlined in our Strategic Management program.  These guide us in collecting the information we need.  In some instances, we have found that bookkeeping is totally disorganized and a great deal of information is missing, or hasn’t been recorded.

The Real Estate Board of New York (REBNY) has instituted a professional pledge signed by most management firms saying they will provide the required records and information.  In reality, often the fired management company is lax or resistant to turning over the records. In these instances much of the needed information can come from the auditor, if he/she is still on board.  Sometimes, the auditor has also been fired making it more difficult to obtain records.

We need copies of maintenance contracts, the general ledger and bills that have been paid or are outstanding.  We also have to understand a building’s cash flow requirements and need to know the schedule and amount of mortgage and real estate payments (for co-ops), the payroll and which residents are delinquent in their monthly payments.

Communication and people skills are a significant part of a property manager’s job description and these talents come into play when dealing with the staff.  Very often, when the previous property manager has been lax in his responsibilities, the work quality of the staff has deteriorated.  The new manager must walk a fine line between acting like a bull in a China shop and wanting to change everything immediately and one who shows his/her authority, but will listen to the employees and work with them to make improvements.

To improve the quality performance of the staff, a manager can modify work schedules and job descriptions, however, the union must be kept informed of changes and the changes must comply with labor agreements.

The building’s superintendent should play an important role in this, unless he is a large part of the problem.

Overall, a professionally organized and implemented transition can be smooth while affording the board an opportunity to evaluate operations and services and discuss additional improvements with the new manager.