There’s no avoiding NYC condo and co-op maintenance increases over the long-term, but you can keep an eye out for certain red flags that may indicate a building is more likely to institute steep hikes in monthly maintenance or common charges, our experts say.
Monthly fees are up in both condos and co-ops, according to The Cooperator, thanks to the rising costs of energy and staff wages. Moreover, the Covid pandemic has meant residents spending more time at home and in common spaces, which in turn means more wear-and-tear, and the need for costly repairs. As a result, on a national level, the monthly median condo fee increased by 19 percent from August 2020 to August 2021, according to Zillow.
In New York, co-ops and condos usually have a specific range of annual increases for carrying costs, but the upheaval of the past few years has changed that.
Most condos and co-ops set annual NYC condo and co-op maintenance increases and they typically range from 3 percent and perhaps up to 5 percent,” says James F. Woods, Esq., managing partner at Woods Lonergan (a Brick Underground sponsor). “With some research, you will be able to learn the prior history of increases. Given the current economic environment, however, you can expect the board to consider increasing maintenance further to keep pace with inflation and the increased costs of goods and services needed to operate the building.
About the Author
James F. Woods is Founder and Managing Partner of Woods Lonergan. He has tried more than 60 jury cases to verdict as first-chair trial counsel, beginning his career as a prosecutor, and resolves complex commercial and real estate disputes valued at $1M to $100M+ for business owners, principals, and middle-market enterprises across the New York metro area. He appears regularly in the New York Commercial Division and in the federal district courts for the Southern and Eastern Districts of New York, and has argued appeals in the Appellate Division and the Second Circuit.
His practice covers complex commercial litigation, real estate and asset litigation, partnership and shareholder disputes, fiduciary breach and corporate fraud, and cooperative and condominium governance. He counsels corporate and cooperative boards throughout New York.
The Legal 500 United States ranks James in its New York Elite rankings for Commercial Disputes, and his peers have recognized him with Martindale-Hubbell's AV Preeminent rating. Woods Lonergan is ranked in Chambers USA: Spotlight New York for Litigation: General Commercial and Real Estate. James serves on the Commercial & Business Litigation Committee and the Business Torts & Unfair Competition Committee of the American Bar Association Section of Litigation, and on the Cooperative & Condominium Law Committee of the New York City Bar Association. His commentary on New York commercial and real estate disputes has been quoted in The New York Times, The Washington Post, Bloomberg Law, Law360, and Forbes.
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