Maintenance - what does yours cover?

The top three components of a maintenance charge in most co-ops should be:

1) the residents' share of charges on the building -- that is, that apartment's apportioned share of the underlying mortgage on the building, and the building's property taxes;

2) Labor -- more so in a doorman building, but even in most buildings you're paying for a super, even if it's part-time

3) Heat -- which has gone up astronomically lately.

Your apartment's share of regularly scheduled repairs -- such as boiler replacement and compliance with Local Law 11, which requires facade maintenance -- and how you're paying for electricity are swing factors, but they're not usually huge ones. The exception is a small co-op, where you're paying for 1/8th of eventual roof replacement.

ali r.
{downtown broker}

thanks Ali.

do most buildings have a separate electricity or air conditioning surcharge?

Most co-op maintenance charges DO NOT cover electricity. Some do. Similarly, most do not cover cable TV charges, but some do (or at least include some portion of the basic service).

Many co-ops with retail space faced challenges with the 80/20 rule in the past. In order to stay in compliance they would provide additional services, such as cable TV or electricity, to insure that sharholders were providing 80% of the income. However, this has recently been relaxed (http://www.nytimes.com/2008/01/20/realestate/20cov.html), so it is less likely that these extras will be seen in the future. Note that this is completely irrelevant to a condo.

I'm in midtown manhattan and my co-op building provides heat, AC, hot (and cold!) water, and gas. The staff includes Doorman, Concierge, handyman, porter, and live-in super.

When I lived in the John Adams on 12th Street, they threw electricity into the common charges. That was pretty common, years ago. Now that fuel prices are rising, more and more co-ops are submetering and doing utilities surcharges -- it discourages things like excessive airconditioner use.

I can't think of any co-op that pays cable. (I'm not saying there aren't any, just that I can't think of them). What they WILL do is make a bulk deal with Time Warner and pass the savings on, so you'll save about $30 a month.

ali r.
{downtown broker}