Property management in New York City has two different fee structures. There’s a flat fee model and a percentage based model, which is also called a performance model. Before you talk to a property management company about their fees, you want to make sure your vision is aligned with their services. You also want to make sure they have the technology to implement what you need.
Technology and Vision
A good management company of any size has to have good technology with depth and breadth. At Newgent, our technology establishes us as experts and leaders in this area. Our abilities and resources with technology translates into a distinct ability to take on the most difficult projects for you. Your property management company needs the vision to translate what your Board wants. Whether there are financial difficulties or maintenance difficulties, the Board is in charge of the decision making, and the property manager has to use the right products and services to execute their vision. Co-op and condominium (condo) management requires a company that can deliver the best technology and the best services to grow with you and help you establish your financial goals.
Regardless of whether you work with a company that uses a flat fee model or a percentage based model, there will likely be additional fees. Your management company should tell you about these fees and be completely transparent about all the charges you’ll see on your monthly statement. With a flat fee, you’ll pay a monthly management fee and any additional fees will be negotiated and agreed upon before the management contract is signed. With the percentage based on performance model, the property manager will collect fees according to the amount of rent they collect for you. If they collect more, they’ll earn more. If they collect less, they’ll earn less.
Choose Quality, Not Price
The best New York City property management companies know technology and provide unique products and services that meet your needs. They will remember the vision you have for your building, and align their services with your needs. Whichever model you choose, remember that choosing the cheapest property manager is not always the best. Knowing your property management company can deliver is worth the price.
When you go to meet the property management company you’re considering, remember the flat fee and the percentage based models, and ask questions about what they will do in exchange for your fees. Newgent Property Management is a company that cares deeply about the financial health of the buildings we work with, and we always make plans for the building’s future. If you have any questions about New York City property management, please contact us at Newgent Property Management.