Monthly Archives: September 2014

Preparing for Heating Season

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The heating season is fast approaching and this is the time that buildings should make certain they are prepared, says Ira Meister, president and CEO of Matthew Adam Properties, a leading New York property management firm.

If the annual preventive maintenance has not been done arrangements should be quickly made to do this.  Cleaning the tubes and an overhaul of the system increases its efficiency and prolongs the life of the equipment.  Any repairs should be done prior to the beginning of the heating system to avoid breakdowns or service interruptions during the winter months.

If you haven’t done so, be sure to contract with an oil or gas company for the winter.

“We recommend locking in a rate at the beginning of the heating season,” Meister says.  “This protects the property if prices go through the roof during the winter due to severe cold or an international crisis.”

With the significant number of buildings Matthew Adam Properties manages, in fact more than 100, it can use its bulk purchasing power to reduce the cost.

“With our knowledge of energy procurement and ESCOs (Energy Service Companies) and our bulk purchasing power, we can purchase oil, electricity and gas at excellent rates for our properties. Unlike many of our competitors who add a charge for their services, all the savings goes to our clients, and this can be considerable,” Meister says.

While not limited to the beginning of the heating season, boards and the property manager should periodically explore ways to reduce costs by converting to natural gas or installing energy-reducing systems such as motion detectors in such places as stairways or storage areas.

“There are numerous government grants and tax savings available for certain conservation installations and we advise boards on how to qualify for these,” Meister says.

New NYC Elevator Signage Regulations

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Imagine a firefighter running into a building with a fire on a high floor and he can’t find where it is located.  The same holds for emergency service personnel who are responding to the report of a man with a heart attack.  In both instances seconds can make a difference, says Ira Meister, president and CEO, Matthew Adam Properties, a leading New York property management firm.

Elevator signage helps prevent confusion for firefighters and emergency personnel

To reduce the uncertainty, chaos and lost time, the New York City Department of Buildings and the Fire Department have implemented recommendations from the real estate community that improve elevator signage in residential and commercial buildings. .

“The new regulations help eliminate any confusion for firefighters and other emergency service personnel when responding to a call” says Meister The signage identifies the various elevator banks so responders can more quickly find the bank where assistance is needed.

“This regulation is a good idea,” Meister says.  He explains that the new regulations require buildings to have both a letter and number to designate elevators.  Elevator banks will be identified by a letter and the individual cars by a number. “For example, this makes it easier for firefighters to immediately find the elevator bank where the fire is located,” Meister says.

The signage must be posted at a designated level, usually the street floor that best serves the needs of the firefighters or emergency personnel and then on every floor at all entrance points to the elevator bank.  The lettering must be at least 3 inches high. Also, all elevator equipment will have the same designation.

“This regulation is being enforced and buildings that have not complied to date should do so as soon as possible to avoid receiving a notice of violation,” Meister says.

Long-Term Planning Is Essential for Co-ops and Condos

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Many co-ops and condos take a narrow approach to long-term planning in an effort to keep a lid on maintenance or common charges, says Ira Meister, president and CEO Matthew Adam Properties, a leading New York property management firm.

“Boards fail to maintain adequate reserve funds and delay or give short shrift to preventive maintenance and neglect making repairs when necessary, or doing just the minimum,” Meister says. 

Boards often smaller ignore repairs resulting in much bigger repairs in the future

He believes this approach can cause the slow deterioration of a property and create more expensive major repairs down the road. When that occurs, the reserve fund is usually too small and a major assessment or significant double-digit increase in monthly charges is necessary.

“This situation can be avoided if the property is forward thinking and develops a long-term capital improvement plan,” Meister says. “In most cases, this is a five-year program that identifies projects that will be required, prioritizes them and identifies funding sources. In fact, the American Institute of Certified Public Accountants has recommended that co-ops and condos include information on the useful life and replacement costs of the building’s infrastructure in financial statements.”

The property manager and team must coordinate to create a long-term plan of repairs and projects.

Preparing a long-term plan requires the coordinated efforts of the property manager, an accountant, the superintendent or resident manager and an engineer. The first step is gathering as much information about the physical plant and systems as possible. Effective superintendents know their building and can pinpoint areas that would require work; in many instances, small matters that could lead to larger projects unless attended to. The engineer would perform a complete inspection of the building including the exterior, the roof, public areas, and systems such as the boiler, HVAC if the building has central heating and cooling, etc. Once this information is gathered, the team needs to prioritize the work based on need and spreading out the cost over a period to lessen the impact in any given year.

Once projects are identified and a cost estimate is determined, the accountant working with the property manager and the board can determine a financing plan. .

“Sound planning with an eye to the future and making the most of the opportunity find improved ways of providing services not only keeps costs down for shareholders and unit-owners, but makes the building more desirable and increases the value of apartments.” Meister says.