A friend of mine recently purchased a 1-bed Condo in Manhattan and is looking to do some renovations including both the Kitchen & Bathroom. As far as I know it is not what is considered to be a gut renovation. Obviously there are many costs associated with such renovations but the fees demanded by the Board/Management come as a bit of a surprise and I wanted to check if this is standard. The... [more]
A friend of mine recently purchased a 1-bed Condo in Manhattan and is looking to do some renovations including both the Kitchen & Bathroom. As far as I know it is not what is considered to be a gut renovation.
Obviously there are many costs associated with such renovations but the fees demanded by the Board/Management come as a bit of a surprise and I wanted to check if this is standard.
The Board/Management is asking for a $20k deposit, and 50% of this i.e. $10k as a fee. I understand there are potential costs to be covered by the Board/Management of the condo such as an Architect & Permits but $10k seems a little excessive. I'm not even entirely sure whether such costs will be asked to be covered separately.
Unfortunately I am not dealing with this first hand so am not privy to all the information but would be very grateful for any advice you have.
Thanks
[less]
Response by 30yrs_RE_20_in_REO
over 9 years ago
Posts: 9877
Member since: Mar 2009
Perhaps I am out of the loop on this but a $10,000 fee to be allowed to do a renovation in a condo seems excessive to me.
Ignored comment.
Unhide
Response by Primer05
over 9 years ago
Posts: 2103
Member since: Jul 2009
Condoq,
I have renovated 100's of apartments throughout the years and have never heard of anything even close to that. Usually there is a deposit for around 10K which is refundable. The fee is usually anywhere from $300-500 and thats it.
Ignored comment.
Unhide
Response by jelj13
over 9 years ago
Posts: 821
Member since: Sep 2011
I did work in a condo and a coop within the past 5 years. Both places had an escalating scale dependent upon the complexity of the job. The refundable deposits were under 5K and the fees were typically under $500.
Ignored comment.
Unhide
Response by multicityresident
over 9 years ago
Posts: 2431
Member since: Jan 2009
Is this condo located at 351 East 51st St by any chance? That is the only building I have heard of with a renovation fee along those lines, but that fee is disclosed in the building's governing documents such that any purchaser who did their due diligence would be aware of it.
Ignored comment.
Unhide
Response by FireDragon
over 9 years ago
Posts: 110
Member since: May 2009
Reading our co-op building's alteration agreement, I see they charge a per diem fee of $25 per business day, and it increases to $50 after 3 months. So it could be significant for a gut renovation.
'/%3e%3c/g%3e%3c/svg%3e)
Perhaps I am out of the loop on this but a $10,000 fee to be allowed to do a renovation in a condo seems excessive to me.
Condoq,
I have renovated 100's of apartments throughout the years and have never heard of anything even close to that. Usually there is a deposit for around 10K which is refundable. The fee is usually anywhere from $300-500 and thats it.
I did work in a condo and a coop within the past 5 years. Both places had an escalating scale dependent upon the complexity of the job. The refundable deposits were under 5K and the fees were typically under $500.
Is this condo located at 351 East 51st St by any chance? That is the only building I have heard of with a renovation fee along those lines, but that fee is disclosed in the building's governing documents such that any purchaser who did their due diligence would be aware of it.
Reading our co-op building's alteration agreement, I see they charge a per diem fee of $25 per business day, and it increases to $50 after 3 months. So it could be significant for a gut renovation.