Lloyd Reisman, a Partner in the Firm’s Coop and Condominium practice, was quoted by Habitat Magazine in the January 2024 article titled “The Fine Print.” The article emphasizes the importance of scrutinizing the fine print when a Board is hiring a new management company, with a focus on key areas such as on-site presence, ancillary fees, spending limits, project management, indemnity, insurance, and termination.
Lloyd Reisman highlights the necessity of communicating expectations with the new companies. He is quoted as saying, “Boards typically change managing agents because they don’t like the way they’ve handled business — or failed to — so you want to be sure you’re in agreement with your new company. Managing agents want your business and are willing to engage in negotiations. So don’t be shy.”
Regarding ancillary fees such as purchase applications, alterations, transfers, and sublets, he states that “You should expect an addendum that clearly describes these à la carte fees. They arise regularly and are charged on a per-unit basis, so the costs can quickly add up.”
Reisman also explains that boards should require managing agents to have applicable cyber liability insurance, given that they often transmit sensitive information electronically. He stated, “If they’re a transfer agent or any money is coming through them, there’s the possibility of wire fraud. Better safe than sorry.”
Mr. Reisman has extensive experience serving as general counsel to cooperative and condominium Boards throughout New York City. Should you have questions about hiring a new management company, do not hesitate to contact us for an initial call.
About BBG’s Coop/Condo Practice
BBG is the trusted legal advisor for over 300 boards of directors and management in the greater New York area, possessing in-depth experience with condominiums and cooperatives. Our practice extends its services to buildings of various sizes, including prestigious locations across New York City.