How Managing Agents Can Help Boards Make Prudent Decisions and Avoid Costly Mistakes

Co-Op, Condo & Real Estate Advisor

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PUBLISHED ON: October 1, 2019

Some cooperative board members see managing agents as mere maintenance collectors and building employee supervisors. But a manager can have various roles, including gatekeeper, advisor, and as the eyes and ears of the board.

Board members are volunteers with limited time; they often lack experience in running buildings, and may hesitate to make important decisions. Managing agents typically have vast experience dealing with a multitude of building issues. Accordingly, boards should make use of that experience to help make critical decisions.

Enacting New Rules

Board members may overreact to certain conduct in a building and insist on enacting a new rule prohibiting such conduct. But before the board enacts a new rule, the managing agent should explain the pros and cons of doing so. The board must understand that if the rule is violated, they’ll need to take steps to enforce it, including commencing a lawsuit — which may be expensive.
Board members cannot arbitrarily decide to enforce some rules and not others, or enforce a certain rule against one shareholder but not another.