Property Manager on the board?

Is the property manager also an owner in the building? And is there any indication the board is sophisticated about managing the conflicts of interest inherent in a board member supervising his or her own work?

The property manager is an agent for the board, not an agent for the residents of the building. Technically if you're not on the board, the agent does not work for you, but of course practically speaking you call the agent to do things for you as a resident.

Property managers have lots of opportunities to commit fraud if the board is unaware of the hazards. I just sold a condo unit run by an incredibly naive, clueless board and just about kissed the closing table when the whole thing was over. If the board is unaware or easily conned by things like Christmas gifts, a property manager can pad expenses by supplying only the canceled checks instead of the invoices, or can provide invoices from companies that the PM controls for services that were not needed, not done, or over charged for. And that's just a couple of things they can do.

All that said: Check the governing documents (bylaws usually) to see what the board member qualifications are. If ownership of shares is required, then check ACRIS to make sure the PM meets that requirement, and all others. If that is the case---in my humble opinion having the PM on the board is no worse than having them not on the board. So Zoe, I would not be worried at all if I were you. If voted off the board, the board can still use the very same PM as their agent, who is also an owner of shares.

Everyone buying a co op or condo should investigate the property manager before signing on the dotted line. Find out if they get good reviews, make sure they are licensed. If the board is ignorant, or worse, you may not to reconsider buying into that building.

BTW I don't mean to suggest that property managers are scary, or mostly dishonest; that has not been my experience. In my experience all the PMs in my life have all been careful and honest with my money. I'm just a stickler and believer in good accounting practices, and when they are not followed, I do not like it, even if nothing bad happens as a consequence. My friends who've lived in self-managed buildings without professional property management have often wished they lived in a bigger building with a real managing agent.

Thank you so much for your helpful comments. I will check the bylaws.

Is there a sponsor in the building that still owns units and holds a seat on the Board? If so, does the manager also manage those units? We have seen cases in the past where the property manager will be appointed as the sponsor's rep, in which case, this wouldn't be an issue.