If apartments in two different co-ops are essentially the same in terms of size, location and amenities, why is one getting a higher price per square foot than the other? Could it be the uniform and demeanor of the doormen? This might sound like a small detail, but first impressions are vital in determining a sale and price, says Ira Meister, President and CEO, Matthew Adam Properties, a leading property management company. Paying strict attention to details is essential to creating value in a co-op or condo, one of the prime goals of a residential property management firm.
Meister says that Matthew Adams Properties feels so strongly about viewing a home as an important investment that it calls its managers asset managers. “They are there to preserve and increase the asset value of the property, and thus the sale price of the units,” Meister says.
Ira Meister Adds Value to Condos and Co-ops, Improving Living Experience
Numerous factors contribute to creating value, some, such as the condition of the building, are obvious. Others, such as the demeanor and look of the doormen, are less dramatic. Here are some factors that add up to creating value in a property:
“One of the most important is the financial condition of the building,” says Meister. How large is the reserve fund, is there debt, are the maintenance charges too high in relation to similar properties and have the monthly charges increased dramatically in the past several years?
These are factors that buyers and their attorneys should consider. “We place great emphasis on finances, not only making certain that the books are current — it is surprising how many co-ops and condos have poor bookkeeping — but we also work to keep down expenses through controls as volume purchasing, careful scheduling of staff and use of the latest technology to reduce energy costs,” Meister says.
Part of this is the maintenance of the property so that all systems are kept in good, efficient working order. If periodic maintenance of the boiler, for instance, is not maintained, the system will probably work less efficiently and use more fuel than it should. Periodic checking of the roof is important to detect problems early to reduce the possibility of damage to apartments and to repair the problem early, before it becomes more costly.
(To be continued)