The 10 Questions Co-op and Condo Boards Forget to Ask a Property Manager
Most boards interviewing property managers ask the obvious questions about experience and response times. Those matter, but they rarely separate one firm from another.
Here are ten we see boards skip, taken from our full list of 100 Questions to Ask a Property Manager or Managing Agent Before You Hire Them.
1. How many buildings have you added and lost in the last three years, and why did the ones that left decide to go? Every firm has happy references, but the buildings that left tell you more.
2. Will the person who pitches us be involved after we sign, and in what role? The person in the pitch meeting may not be someone you see again after signing.
3. How are your managers evaluated and paid, and does any part of their pay depend on things like vendor volume or building retention? Pay tied to vendor volume can quietly work against competitive bidding.
4. What fidelity or crime insurance does your firm carry, what are the limits, and does it cover theft by your own employees of our building's funds? Get the limit in writing and compare it with what your building holds, including reserves.
5. Will you disclose in writing any commissions, rebates, referral fees, or other compensation your firm or staff receive from vendors, insurers, banks, or service providers connected to our building? These payments rarely show up on a monthly statement, so put disclosure in the management agreement.
6. If our building has an abatement or exemption expiring, how will you plan for the tax increase in our budget? A good manager plans for an expiring benefit years ahead, not the year it hits the budget.
7. Do you review the building's open violations and filing history before you take over, and will you share what you find? A firm that checks your record first knows on day one what needs attention.
8. Does your firm, or anyone who owns or works for it, own or have a financial interest in any contractor, supplier, insurance brokerage, or service company? Affiliates aren't automatically a problem, but the board should know about every one before the first bid goes out.
9. Can the board terminate without cause, and what are the notice period and any penalties or costs? Termination language is easy to skim while everyone is optimistic, and it matters most when they aren't.
10. Who owns the building's records and data, and if we leave, what will you hand over, in what format, and how quickly? Your records belong to the building, so agree on the handover in writing now.
Why these questions get skipped
A search competes with everything else a volunteer board handles, so the comfortable questions fill the interview time. And asking is only the first step: boards also have to compare written answers across firms, check references beyond the ones offered, and read each management agreement clause by clause.
Get the full list
The complete checklist covers 100 questions in ten sections, from staffing and financial controls to Local Law 11/FISP, Local Law 97, 32BJ staff matters, and management agreement terms. Read all 100 questions or download the free PDF.
The Folson Group has run property management searches for NYC co-op and condo boards since 2014. If your board is thinking about a change, book a call or Zoom with us or call (212) 472-0114.
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