Monthly Archives: April 2014

Characteristics of a Good Property Manager

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I am often asked what boards should expect from a property manager,” says Ira Meister President and CEO, Matthew Adam Properties, Inc.

Meister says that at first glance the question seems obvious.  The board wants a person available 24/7 who can oversee the staff so the building is maintained in top-flight condition and provides excellent services. Someone who can help control costs and supervise capital improvement projects. 

Professionalism and having communication with tenants are key in property management

“All management companies will say they do this,” Meister says.  “But to truly

understand what a board and its residents should expect, the answer must be more specific

Meister says that probably the most important quality is professionalism. This means a manager who conducts themselves in a professional manner, who is courteous and patient with board members and residents and who is a good manager of staffs.  Communications and the ability to deal with and work with others is a key ingredient.

“While a manager oversees a multi-million budget, management is very much a people business and those with good people skills and professionalism are excellent managers,” Meister says.

A good manager is organized and keeps detailed records and reports

Another area, he says, is having someone with experience. Other characteristics include  being prompt when attending meetings and making certain anything with a timeframe is delivered on schedule, whether a report or project.  A good manager is organized and keeps detailed records and reports.

A bane of many boards is a lack of responsiveness.  A board should expect that all calls or emails are returned within 24 hours, if not sooner, and that questions are answered directly and accurately.  The board should also expect that the company has a manager available 24/7 in case of emergencies.

“While knowledge of building systems and construction are important, the people aspect and developing a trusting working relationship is the key to good management,” Meister says.

Asset Managers Play Vital Role in a Property’s Finances

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“A property manager deals with many issues in the course of managing a residential property, but probably the most important area is finances,” says Ira Meister, President and CEO, Matthew Adam Properties.   A partner in an accounting firm that works with numerous co-ops and condominiums and who has a good perspective on what to expect regarding finances discussed this with Meister.

“Probably the most important responsibility is making certain the financial records are complete and there is sufficient information for the accountant and the board,” the accountant says.

Complete and accurate financial records are central for projecting expenditures

Meister says the accountant also told him he values asset managers who get the information to him in a timely manner. This includes the monthly financial reports and as well as preparation of the annual budget. In some buildings, the board does the initial budget, in others it is the managing agent or the accounting firm, or most often a combination.  But, the accountant says, when the accounting firm reviews the budget it is important that the managing agent provides accurate historical information on usage of fuel, water, and electricity, both year-to-date figures as well as past numbers. This is central to projecting expenditures.

Coupled with this is having good financial software. The accountant points out that there are numerous software programs on the market for the financials of co-ops and condos and some management companies, particularly smaller ones, try to save money by buying inferior programs. The building is the loser in these instances.

This brings up an interesting point. A firm’s commitment to quality service extends to the technology it uses and the commitment to getting and using up-to-date systems.  “At Matthew Adam Properties, we continuously look at the latest technology and invest in those we believe will improve services,” Meister says.

The Importance of a Long-Term Capital Plan

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Having a long-term capital plan and budget is necessary for successful management of a property, says Ira Meister, President and CEO, Matthew Adam Properties, Inc., a leading New York property management firm.

“Many buildings have a five-year capital program which identifies areas that need work and also sets up a funding plan.  By carefully spreading out the work based on need, the building can better manage its cash flow and identify how much it would need to raise for the projects,” Meister says.

Five year capital programs help avoid pitfalls in today’s strict lending environment

This type of organized planning helps avoid the pitfall of needing several major projects in one year, which put a burden on the property’s finances and the shareholders or unit-owners.  Often the failure to provide a funding plan results in special assessments, especially in today’s strict lending environment.

In preparing the long-term capital budget, a property manager should gather information about the structural condition of the building and its systems.  This, along with the repairs or upgrades required to comply with various government requirements such as Local Law 11, forms the basis of the capital plan.  Included should be estimates of costs, Meister advises.

Gathering information of the building’s condition is needed to prepare a capital budget

“Once all the information is gathered, the asset manager can set priorities and a timeframe for the work based on the information he has obtained,” Meister says.

Another area to consider is available tax incentives and rebate programs.  Some of these have deadlines and others are available on a first-come basis.  Knowledge of these can help in setting the priorities of work.

“By having all the information, the manager can get a big picture view of what is required and bundle similar projects based on the systems or work involved,” Meister says.  One example would be having work that requires scaffolding done in sequence avoiding the need to have the scaffolding put up several times at a much greater expense.