New York property management: Frequently asked questions

In a condo, each owner holds a deed to their individual unit and has partial ownership of the building’s common areas. Condo owners are responsible for their own property taxes while paying common charges for building maintenance and amenities. The building is managed by a condo board, which oversees shared spaces and enforces building rules, but does not control unit sales or ownership transfers.

Learn more about what a condo is here.

A co-op, is a form of ownership where residents (called “shareholders”) do not own their individual unit outright, but instead own shares in a corporation that owns the entire building. In exchange, shareholders receive a proprietary lease granting them the right to occupy a specific unit. Similar to a condo, the shareholder is responsible for monthly maintenance fees. The co-op board typically plays a larger role in governance, including approving new shareholders and managing property taxes and mortgages.

Learn more about what a co-op is here.

The main differences between condos and co-ops include individual unit ownership structure, the buying process, and board governance. Click here for a comprehensive overview how these properties differ.

Condo maintenance fees and common charges  are monthly payments made by unit owners and shareholders to fund the property’s shared services, upkeep, and operational costs. These fees vary widely depending on the size of the unit, the services provided in a building, and the overall financial needs of the building. Every board has its own approach to structuring these costs.

Learn more about co-op and condo maintenance fees here.

Operating expenses comprise a building’s fixed costs and recurring future income:

• Anticipated income: Maintenance fees or common charges, monthly parking and storage fees, commercial income, amenity memberships, etc.
• Mortgages and line of credit debt service
• Building repairs and maintenance
• Contractual expenses: Elevator maintenance, exterminator, water treatment, security systems, etc.
• Annual insurance premiums: Property, general liability, directors and officers, crime and umbrella coverages, etc.
• Overhead / Miscellaneous items necessary to operate the building: Office equipment, cleaning supplies, phone and internet service, postage, etc.
• Payroll & Real Estate Taxes
• Professional Services: Accountants, attorneys, architects/engineers, and professional organizations
• Utilities: Annual fees for electricity, oil, gas, and water
• Vendor Services: Plumbing, HVAC, landscaping, snow removal, painting, pest control, snow removal, pool maintenance, laundry services, window cleaning, property management fees, etc.

Budgeted capital expenses comprise large improvement projects and upgrades that are already planned.

• Major building repairs & restoration projects
• Capital improvements
• Energy upgrades

Generally, co-op and condo funds designated as reserves are long-term savings set aside to cover major building expenses like roof replacements, elevator upgrades, and facade repairs. Typically, these savings are held in a separate account identified as a “reserve fund,” typically a low-risk, interest-earning account. Unlike operating funds, which pay for routine services such as cleaning or landscaping, reserves are used for capital projects that keep the building safe, functional, and compliant over time.

Cash management advisory services offered by FirstService Financial can enhance the returns on your reserves. Learn more.
 

There is currently no legal requirement in New York State for condos and co-ops to maintain a minimum reserve fund amount or collect reserves annually within an operating budget. However, keeping a well-funded reserve is widely recognized as a core part of responsible financial planning. It’s also something lenders and underwriters often look for when financing units in a building. It’s also advised that boards follow the Fannie Mae minimum requirement for their property. This includes funding replacement reserves for capital expenditures and deferred maintenance equal to at least 10% of the applicable operating income.
 

A reserve study is a detailed evaluation of your building’s major components, designed to help boards plan ahead for large repairs and replacements. It typically includes:

• Inventory of major components (roof, facade, mechanical systems, etc.)
• Expected lifespan of each system
• Estimated costs for repair or replacement
• Funding plan based on projected expenses

Learn more about reserve studies from our experts.

While there isn’t a legal minimum, condos and co-ops that do not have either a 10% reserve line item in an operating budget or a reserve study with a corresponding prescribed reserve line item in an operating budget are technically not compliant with current Fannie Mae and Freddie Mac lending requirements. Most lenders require co-ops or condos to follow Fannie Mae and Freddie Mac’s guidelines for reserves when deciding to provide mortgage financing to owners and purchasers of condominium and cooperative properties, regardless of loan amount.

Learn more about reserve studies from our experts.
 

Each year, New York City’s Department of Finance (DOF) reassesses the market value of condominium and cooperative properties to calculate real estate taxes. These annual assessments often estimate a property’s income and expenses, which can yield inaccurate valuations and inflated tax bills for individual condominium unit owners and for cooperative corporations.

Tax certiorari, also known as tax protests, is how condominiums and cooperatives can secure valuable reductions on their assessments. Annual tax certiorari filings can result in significant savings and should be considered an essential component of a board’s financial plan.

Click here to learn more about the process.
 
 

A good budget considers historical spending, anticipated projects, and routinely fluctuating costs like energy and insurance. Clear communication with residents and regular financial reviews strengthen transparency.

FS Insurance Brokers leverages the size of our property portfolio, historical claims and loss data, and our property managers’ certification in risk management to negotiate policies that result in lower annual premiums with better terms and coverage limits. Learn more here! 

Following the pandemic, the cost of insurance has been creeping up in virtually all lines of business. In the United States, the 2021 Surfside, Florida condominium collapse sent even more shockwaves throughout the industry. The subsequent insurance disbursement to affected parties peaked at more than $1 billion which illustrated the importance of accurate building valuations. Many carriers now insist on far higher deductibles, especially for claims involving water damage.  For some carriers, this means deductibles valued between $50,000 and $100,000.

For many years in New York City, insurance carriers accepted valuations on fire-resistive high-rise buildings priced at $200 to $250 per square foot. This was well before the Surfside collapse and before the pandemic when labor and material costs spiked dramatically. As a result, most of these properties cannot be rebuilt for under $500 per square foot, so carriers are requiring more accurate insurable values (rebuilding costs).

Learn more from our insurance experts.

FS Insurance Brokers, our affiliated insurance brokerage has saved millions for boards and building owners. We make this a reality through the size of our management portfolio, our national buying power, and our relationships with the leading insurance carriers. Learn more about our affiliated brokerage.
 

Yes, insurers assess factors like building age, safety systems, and maintenance practices. Addressing past claims and required repairs can impact coverage terms or rates.

Learn more with FS Insurance Brokers in NY.

We strongly advise rental building owners and board members of condos and co-ops to invest in quality coverage as emergency weather events are increasingly more common.

Within FirstService Residential’s New York portfolio, our company received notices of flood claims from more than 50 buildings that experienced severe property damage immediately following Hurricane Ida. Those claims included buildings with an existing flood insurance policy, as well as many that did not have flood insurance. The latter group will likely have to finance building repairs out of pocket.

Learn more about insurance requirements and how FS Insurance Brokers in NY can help here.

New York City currently prohibits smoking and vaping of any substance in all indoor common areas of residential buildings with three or more residential units. This applies to rental properties, as well as condos and co-ops. Boards and landlords can also expand smoke-free building policies to include outdoor common areas, including courtyards and rooftops, as well as a private balcony, terrace, or patio. Thus, the right to smoke marijuana may be limited.

Click here to learn more.
 

The Facade Inspection Safety Program (FISP), formerly known as Local Law 11, mandates regular inspections of building exteriors to prevent hazardous conditions. It’s crucial for landlords and condo/co-op boards to understand new requirements, avoid penalties, and keep the public safe.

Click here for a comprehensive overview, of requirements for condos, co-ops, and rental buildings.
 

Local Law 152 of 2016 requires the periodic inspection of gas piping systems of all buildings at least once every four years. The law is designed to prevent dangerous gas leaks and pipeline explosions in New York City. Beyond inspection schedules, the legislation establishes fines for non-compliance and hazardous conditions, mandates the installation of combustible gas leak indicators or detection devices and defines how boards and building owners are expected to notify residents in the event of a gas leak.

Click here to learn more.
 

Starting October 6, 2024, curbside composting service became mandatory for condominiums, cooperatives, and multifamily rental buildings in New York City. While the program may be inconvenient for buildings to follow, enforcement began on April 1, 2025, and in just one week, the city issued nearly 2,000 fines for noncompliance.

Acceptable items include:

• Fruit and vegetable scraps (no need to remove stickers)
• Coffee grounds and filters
• Tea bags (no need to remove staples)
• Bread, rice, and pasta
• Meat, bones, and dairy
• Moldy or spoiled food
• Greasy pizza boxes, napkins, and paper towels
• Certified compostable dishware (if BPI-labeled)
• Leaves and yard trimmings
• Houseplants and cut flowers

Click here for all the requirements you need to know.
 

The following local laws form the core of New York City’s lead paint laws. Click here for a full overview of fines, compliance deadlines, and inspection requirements.

• Local Law 1  – Property owners must provide annual notices to tenants about lead-based paint hazards and perform necessary repairs if lead paint is found. These notices and repair records must be maintained for at least 10 years.
• Local Law 31 – Requires independent EPA-certified inspectors to conduct X-Ray Fluorescence (XRF) tests in all tenant-occupied apartments within pre-1960 buildings. The law mandates these tests be completed by August 2025, or within one year of the move-in date of any child under age six, whichever is sooner.
• Local Law 66 – Lowers the threshold that defines paint or similar surface coating as “lead-based” from 1.0 mg/cm2 to 0.5 mg/cm2.
• Local Law 111 – Expands Local Law 31’s XRF testing requirements to include common areas (i.e. hallways, an amenity space, residential lobby, etc.)
• Local Law 122 – Requires owners to provide records of annual notices, investigations, and XRF testing to HPD within 45 days of lead-based paint hazard or turnover violations
• Local Law 123 – Owners must address lead-based paint hazards within apartments upon turnover, or by a certain date if a child under the age of six resides there
• Local Law 127 – Mandates that turnover violations – violations that occur when an apartment changes tenants – are a criterion for selecting buildings for audit. Data on blood lead levels in certain areas collected by the NYC Department of Health & Mental Hygiene (DOHMH) will also be used as applicable criteria

New York City’s Local Law 87 requires buildings of 50,000 square feet and above to complete an energy audit and retro-commissioning study, and to file a detailed report with New York City agencies. An energy audit is a detailed assessment of a building’s energy use. The results identify opportunities to reduce energy consumption. The audit will examine major building systems including HVACs, lighting, and building envelope performance. Retro-commissioning is the process of ensuring that the energy systems in an existing building are installed according to  the design intentions, functionally tested, and capable of being operated and maintained according to the owner’s operational needs.

Click here to learn more.
 

Labor Law 240 imposes strict liability on boards and building owners should a project-related injury occur to a contractor or subcontractor employee at a building. In other words, if a contractor’s worker is injured while working at a building there may be no need for that employee to prove that there was any negligence on the part of the building owner, nor is any negligence of the injured party relevant.

While it was not the intent of state lawmakers, passage of Labor Law 240 has opened the floodgates to gargantuan liability claims in residential properties. This has led to significant rate increases and many of the major insurance carriers exiting the multifamily sector altogether.

Click here to learn more.
 

Local Law 157, passed by the New York City Council in 2016, mandates the installation of natural gas detectors in residential buildings and modifies some rules regarding carbon monoxide and smoke detectors. The new compliance deadline is January 2027.

Gas detectors can be hardwired, plug-in, or battery-powered, but they must be:

• Labeled with the manufacturer’s name
• Labeled with UL 1484 or UL 2075 depending on use case
• Certified to meet NFPA 715 standards

Click here to learn more.
 

Local Law 97 was passed in 2019 as part of the Climate Mobilization Act, a package of laws aimed at significantly reducing greenhouse gas (primarily carbon dioxide or CO2) emissions from covered buildings across New York City. The law also supports government initiatives to achieve carbon neutrality in New York City by 2050.

LL97 imposes strict emissions limits on buildings over 25,000 gross square feet and requires these buildings to submit annual emissions reports to demonstrate compliance. The law also established significant fines for buildings that exceed their emissions limit.

Click here to learn more.
 

A property manager oversees the day-to-day operations of a building, from handling maintenance and repairs to building annual budgets and interacting with residents. They also are responsible for enforcing building policies established by a rental building owner or the board of a condo or co-op.

FirstService Residential delivers superior property management services to New York’s condominiums, cooperatives, and multifamily properties. Our local experts provide maintenance, financial, and resident solutions designed to enhance value and optimize community living.

Learn more about FirstService Residential and our New York property management services here.

At FirstService Residential, our teams listen to understand the unique vision for each property, allowing us to provide personalized solutions that align with your goals. Beyond industry-leading services like energy management, financial solutions, and project oversight, we take pride in our deep understanding of New York’s diverse neighbourhoods, ensuring tailored management that enhances property value and the resident experience.

Learn more about property management in New York here.

FirstService Residential provides property management services to rentals, condominiums, co-ops, and more throughout New York.

Areas we serve include:

• Manhattan property management
• Brooklyn property management
• Queens property management
• The Bronx property management
• Westchester County property management
• Long Island property management

Boards trust FirstService Residential because of our dedication to delivering exceptional results through customized management solutions. From condominiums and co-ops to multi-family rentals, we cater to properties of all types by integrating innovative services like concierge programming, project management, and energy efficiency enhancements. With a client-focused approach and an extensive network of resources, we not only meet your immediate needs but also help create long-term value and thriving communities.

Learn more about New York property management by FirstService Residential here.

A condo board, or board of managers, oversees shared spaces, building maintenance, and financial decisions like setting common charges and managing reserve funds. It enforces building rules but does not regulate individual unit ownership or approve buyers, though it may have a "right of first refusal" to purchase a unit before a prospective buyer.

Learn more about condo boards here.

A co-op board of directors takes an active role in managing cooperative communities. They approve new shareholders by reviewing financials and often conducting interviews. The board also oversees the building’s finances, as maintenance fees typically cover property taxes, utilities, and shared expenses, making financial health a key focus.

Learn more about co-op boards here.

Typically, bylaws are initially created by developers or attorneys when forming the association or corporation. Once in place, the elected condo or co-op board may propose updates, which are subject to approval by the owners or shareholders.

Click here to learn how to enforce building policies the right way.
 

Board members are elected during an annual meeting, where property owners or shareholders vote. Votes are based on unit or share ownership, and candidates with the most votes are selected to the board.

Learn more about board members here.

To become a board member, you typically need to be a condo owner or co-op shareholder and express interest in serving. Elections are held within the community, where candidates present their qualifications and are voted in by fellow homeowners or shareholders.

Learn more about condo and co-op boards here.

Proxy voting allows owners or shareholders who cannot attend a meeting to give another person the right to vote on their behalf. Rules vary by community, but proxies must generally be submitted in writing before the meeting.

Review your association's bylaws for specific rules and guidelines.

The board president leads meetings, oversees projects, and acts as the primary representative for the board. Their role involves working with property managers, legal counsel, and residents to maintain operations and address concerns.

The secretary maintains official records, takes meeting minutes, and oversees communications to the community. Their work helps document decisions and keeps residents informed of important updates.

The treasurer handles financial oversight, including tracking budgets, reviewing expenses, and oversees timely payment of obligations. Their role often involves preparing reports to keep the community informed about financial health.

Quorum refers to the minimum number of attendees required for a meeting to be legally valid. A quorum is necessary to conduct official business, such as voting on budgets or board members, and provides fair representation of the community.

Review your association's bylaws for specific rules and guidelines.

With FirstService Residential, you can pay your condo and association fees online here.

If you are a FirstService Residential resident, you can find your account e-statements by logging in here.

If you are a FirstService Residential resident, you can find your community website here.