Tina Larsson

Financial professionals play a vital role in ensuring the financial stability and effective management your co-ops or condo. These include CPAs and auditors who handle tax filings and financial audits, to property management firms responsible for bookkeeping and budgeting, to specialized financial experts hired to address specific concerns or challenges.

The ever-increasing cost of insurance varies depending on your building's specifics, the type of coverage, the carrier, the limits and of course your building’s claims history. Some co-ops and condos may be required to carry insurance policies in excess of the standard coverage limits in order to meet the underlying mortgage lender's requirement.

It is important for co-op and condo owners and boards to be properly insured against various risks.

When new board members first see the association’s monthly financial reports, they are often puzzled why the association has so many bank accounts. Since the association involves multiple owners, it is important to separate the monies to keep clear records. It is therefore quite common that associations have many different needs-based accounts. 

In co-ops and condos with a property manager, the property manager usually secures insurance coverage for the building. A few property management firms have their own in-house insurance agency enabling them to collect the full insurance commissions. Other property managers work with one insurance brokerage that has an agreement in place to split the brokerage commission with the property manager. 

While the cost to maintain each building varies, the costs that every building incurs include heating, electric, water, insurance, and real estate taxes. Building size also impacts costs in various ways.