Maintenance Increases For 2008

The gifts have been exchanged, the ball has dropped, the Christmas trees are on the curb, and the dreaded phrase “maintenance increase” comes knocking on your door. Happy 2008 Co-op Owners!

“Maintenance increase” are two words that most co-op owners may not want to hear, but sometimes it is necessary for a building’s board to make the unpopular decision of raising fees. Oil is over 100 bucks a barrel, so fuel is UP UP UP, high operating costs, and insurance rates climbing, plus emergency repairs, they are left with no choice. Although I gulp as I write this, raising maintenance fees often is not only a necessity but advisable.

“It’s totally dependent on economic consistency,” says Jeff Heidings of Siren Management Corp. in Manhattan. “Sometimes it needs to be done, or else there can be serious problems within the building.”

“Having low maintenance fees can be an attractive selling point. Some buildings in Manhattan may pride themselves on not having increased maintenance for decades, but maintenance that’s too low can cause a host of problems on its own—from issues with the 80/20 rule to coming up short in cases of emergency. “

Yesterday, I too received a memo in the mail stating we will be having a 7.5% increase as well as keeping an assessment.

When should you expect an increase?
When there are insufficient funds available to pay the normal operating expenses.
The increase is based on the estimated budget for the upcoming year. The increase is divided by the proportionate shares that each shareholder has.

Higher maintenance costs are not welcomed by the shareholders or the board. The higher costs are something that everyone should accept and understand it is a necessity in the majority of co-ops in Manhattan.