I hope some of you who have experience dealing with co-ops and their management companies (especially in NYC area) can give me a hint how deal with the management company who for years deliberately makes my life difficult and put unnecessary burden on me and my investment. To give you some examples, they freely change balances on my accounts and ignore to correct them - even with the support of the BoD. I am closing January with $0 balance, to see on the February’s statement that I have not paid them in $2K, and now I owe them $2K + penalty + fees for February. After calling them / sending letters (certified), paying fees for February, on the following statement I am finding that I $1200(?) is overdue + fees for the current month. This game is happening for months.
They demand excessive documentation (on my dime) for damages caused by their negligence, and even we settle (what takes months) they lie confirming completion the work while the work was never done.
I am not even sure if I get to the court as I am living out of state and I doubt if I can sue them for their stubbornness in doing stupid things. I am spending a lot of personal time collecting paperwork, sending letters, discussing cases with an attorney.
The BoD does not want to change the management company and either doesn't want to or doesn't have a leverage to change their behavior.
Any thoughts other than selling the apartments?
I do mortgages for a living and mostly focus on co-op lending. Management companies are the worst. Recently, I had a similar issue with unresponsiveness (this is not an isolated incident). In order to get a loan we usually need some documentation from the management company (in this case the building's financials) for which they frequently charge a fee for (why someone would charge to literally send an e-mail is beyond me, but it is it what it is). The worst part about it is after I mail them a check (they don't accept credit card) it took them two weeks to send me what I need! And that was only after e-mailing them and calling them three times!
I know this response adds no value to how to deal with your situation, but I feel your pain! :(
@Ronald Roetsel I am a property manager in NYC and I specialize in small properties, including co-ops, under 10 units. However, I OWN a co-op in a fairly large building and have witnessed mistakes made for my neighbors.
Assuming there is no fraud going on, you would need to assume ineptitude on the part of the person who is keeping the books and/or entering charges. You need to look at the history of these overcharges holistically from the time they began -in other words, you have to do their work for them. If you can find the place where everything starts, then you present the history of overcharges and unwarranted penalties and demand they straighten it out.
The only other things you can do are what you have already spoken about - come to NYC or hire someone on the ground to sort it out for you by physically going to the management company. Threaten action against the co-op (not the management company - the co-op is responsible for employing the management company and making sure its books are correct - what do the co-op's books look like if your ledgers are wrong?), and possibly follow through, in small claims if possible.
Or, sell, but talk to a lawyer to make sure that you still have the right to sue the co-op for overcharges if you leave the co-op.
Sorry, that isn't what you want to hear, but there's no simple way to get this straightened out.
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