Property management problems are legendary, from incompetance to outright fraud. Though Delkap certainly hopes you'll give us an oppuruntity to show you how well we can manage your property, we've excerted these guidelines from Habitat Magazine.
Accountants, property managers and board members have come up with a checklist all co-op and condo board should follow to make sure that their funds are being handled properly.
1. When offering a contract to a management company, expressly forbid commingling of your building's funds with funds from other buildings.
2. Compare your management company's monthly financial report with the prior month's report and with the report from the same month a year ago. Be on the lookout for abnormal fluctuations.
3. Make sure your management company provides the monthly bank statement and bank reconciliation, including your building's name, along with the monthly financial report. Make sure they jibe. Examine cancelled checks and copies of paid bills. And make sure you get a statement for every one of your accounts -not only checking, but escrow, reserve fund, money market, investments, and any others.
4. Insist on seeing a maintenance roll, including maintenance charged per apartment, other charges, maintenance collected per apartment, and other income collected. Make note of any arrears, and make sure the managing agent is taking appropriate collection action
5. Designate a director as co-signatory on checks with the managing agent. Do not allow the managing agent access to the reserve fund, and limit the amount the managing agent can spend without a second signature on the check. $5,000 is a common cap. Have your accountant review your accounts at least annually.
6. Make sure the management company is bonded for at least the amount your building has in all of its accounts. Make sure you carry an up-to-date and adequate fidelity bond, a type of insurance also known as a "crime policy" or "employee dishonesty policy." That way you're protected in the event your safe-guards fail to prevent the management company from stealing money.
Contact Delkap to learn more about how we can help you get control of your property management.
"Delkap has been managing our small community of 68 condominium units since it was completed in 2010. As a new community with very little cash reserves, Delkap provided the Board with contacts for local vendors at very competitive prices which wound up saving the community money and better services for our residents. While there were no major complaints with the service being provided to the community by Delkap there was nothing that I would consider extraordinary; that is until the devastation of super storm Sandy devastated the region and our community. Six of the seven buildings of the complex had flooded during the storm, 31 of the 68 units were unlivable and had sea water damage throughout. The next morning, there was no electricity, no phones, the roads were barely passable and we don't get a messenger, we don't get a staff member, we get the owner of the company on site, seeing what was happening and getting to work to do whatever she could to get things moving. The next day we had flood disaster teams in to remove sheetrock and prevent mold from setting in. Our insurance carriers were informed right away of the extent of the damage and had executives fly in to authorize payments. This insurance, I might add, was at the suggestion of the broker who Delkap put the Board into contact with and informed the Board that in her opinion, we were vastly underinsured. The Board took that advice, raised the common charges and paid for a larger and more comprehensive insurance policy than what the sponsor had left us with. While many would suggest that this is no extraordinary service since this is what they are paid to do, once you realize that Delkap was doing all of this before taking care of themselves. The Delkap offices were under water. They were working from their own homes with their personal cell phones to make sure that we were taken care of. Before they were able to put their house back in order, they ensured that their customers needs were being met. It was a very trying time for everyone as people were out of house and home and things could not be done fast enough. That is, until it was completed and everyone began to notice that we were back in our community yet there were many homes in the neighborhood where work was at a standstill or had not begun. It was then that everyone could truly appreciate the hard work, dedication, experience and know-how that Delkap was able to provide. Sure no one is perfect and there will always be gripes from some, but in my experience, Delkap has strived to put customers first and make every effort to listen to complaints and correct them where needed.
There is no one I would rather have on the side of my community than Pam Delorme and Delkap Management."
Andrew Oliveras, President, Board of Managers The Villas Of Oceanside Condominium
