It’s no secret that co-cop common charges are on the rise. But what is causing this increase? There are a number of factors, but some of the main reasons are repair costs, compliance with environmental guidelines, and staff costs. Let’s take a closer look at each of these factors.
Repair costs are the biggest contributor to rising co-op common charges. With inflation, it is getting more and more expensive to repair or replace essential components such as leaky pipes, windows, roofs and other building necessities. In some cases, these repairs can cost up to 150% more than they did just a year ago.
Co-op boards must also adhere to Local Law compliance guidelines. As they make retrofits to reduce their buildings’ carbon emissions like Local Law 97 or facade inspection safety like Local Local 11, these costs are often passed on to the shareholders’ owners in the form of common charges or assessments.
Staff costs also play a part in rising charges. Unionized workers are more expensive than ever before, and this cost is passed on to the owners. Venture NY Property management assists their managed co-ops take advantage of all available tax abatements such as the Employee Retention Credit. This strategy has been vital in preserving staff and maintaining building operations without the need for assessments.
Finally, energy costs are a major factor in increasing charges. In September 2022, Con Edison warned consumers to expect as much as a 30% increase in electric bills. Heating oil prices have skyrocketed over 22%, this burden often falls on the shoulders of shareholders.
In conclusion, rising repair costs, environmental compliance guidelines, staff costs and energy costs are all contributing to increasing common charges. We prepare our co-ops with energy saving recommendations and appropriate budgeting. Our goal is to financially equip all our managed properties to weather economic hardships without the need for large increases and assessments.
We would love to assist, we can be reached at [email protected]