What is the difference between a condominium and cooperative?
Condominium’s operate like a cooperative (co-op) except that when you buy a condo, you buy an individual piece of real property, not stock in a corporation. The condo building is divided into individual units and a common area. You own your apartment unit an undivided interest in the common area. You are responsible for paying your own real estate taxes, utilities and your share of common charges for the expense to maintain and operate the common areas and the building systems.
A housing cooperative or co-op is a corporation whereby the owners does not own their units outright; instead, each resident is a shareholder. The percentage of shares are determined on the square footage of the unit. The common charges consist of real estate taxes, underlying mortgage, insurance, salaries, heat and the maintenance and operation of the common areas and the building system.
What is the benefit of owning a coop?
The main advantage of purchasing a co-op is that they are often cheaper to buy than a condo. Co-ops are typically more financially stable. The instance of foreclosure is rare. Co-ops are typically going to be higher owner occupancy rate. You can typically get better square footage for your money.
What is a proprietary lease?
If you live is a co-op apartment, you are the owner (shareholder) and a tenant at the same time. You own shares in the corporation which owns the building, but you are also a tenant who rents an apartment form a corporation. You are considered a tenant/shareholder. The lease between you and the building is called a proprietary lease. You pay a monthly maintenance fee to the cooperation to cover the expenses of maintenance, mortgage, the operations of the building, the property taxes and sometimes for underlining emergencies.
What is role of a property manager?
Property manages ensure that the properties under their care operate smoothly, maintain their appearance, and either preserve or increase in value. They also collect monthly rents/ maintenance and pay the bills.
What are the skills of a property manager?
A property manager needs strong communication skills, provide responsive customer service, be organized, know the basics in marketing and provide hands on skills.