Residential Property Management
Glickman Kovago Management was born as a property management firm. We are not landscapers or a snowplow contractor that use property management as a way to secure future work. We manage over 1.5 million square feet of space. Our residential projects range in size from six units to as large as 170 units.
It can be difficult to distinguish between various property management firms if you do not know the proper questions to ask. Ordinary everyday issues are just that, ordinary. You need to know that the firm you are considering has depth and breadth of knowledge. Here are some good examples of questions to ask any management firm worthy of your consideration.
How do you treat special assessments?
We are amazed at how many property managers are not aware of the fact that the “priority lien”, which has been a savior for so many associations, excludes special assessments under the Massachusetts Condominium Act. Therefore, we discourage the use special assessments and urge our clients to increase the monthly fees instead, with the understanding that fees will be reduced once the need is met.
Have you ever obtained bank financing for an association, and if so, what was it for and how was it secured?
Yes. In one instance, we used it to eliminate two large capital items that were years overdue for one of our clients. We fully funded their reserves, while keeping monthly fees almost flat. As for security, we collateralized the condo fees. Contrary to popular thought, the units are not encumbered. Only the income streams from monthly payments are available. We have strong banking relationships throughout Central Massachusetts that understand how to finance condominium associations. We can help you.
What methods are used to calculate and monitor reserves?
Massachusetts’ Condominium Act requires all condominiums to maintain an “adequate replacement reserve fund, collected as part of the common expenses” and deposited into a segregated account. This duty is placed upon the shoulders of the condominium board members. The best way to deal with this responsibility is to find a firm that understands reserves and has the resources to adequately assess the items.
We utilize a combination of experience, historical data and vendors to develop a reserve strategy. This information is compiled and used to develop a total reserve budget goal and useful life analysis. We also have developed an accounting that will track the buildup and depletion of each capital item, so there never is a question of the reserve status. We have not found a competitor in our market that has a system as detailed as ours.
