Starting in January and February of 2002 however, people began to rebound a little. “They started to proceed with their lives—and people who had listed their apartments [after September 11] took them off market and stayed,” says Simon. At the same time, there was renewed interested in buying in New York City, and Simon says she “saw a lot of people negotiating, buying, and selling.”

But the drop in the stock market last summer resulted in another lull in the market. “That had an enormous influence on the real estate market,” says Simon. “Fewer people were in positions to buy.”

Smaller bonuses, layoffs, downsizing and a weakened economy all contributed to potential buyers stepping back and staying put. Steven James, senior executive director responsible for East Side sales for Insignia Douglas Elliman, says, “It slowed down in summer and was much quieter than years past.” He adds that the market has been active year-round for the last 10 years, but last summer reminded brokers of the “old days,” when summers were slow.

What Sold and What Didn’t

According to James, the entry-level market, which includes studios and one-bedroom apartments, has seen a great deal of activity this year. Irlander agrees, noting that properties in the middle price range—selling at $400,000 or more, and including studios, one bedrooms, and two bedrooms—moved best. For many of these buyers, says James, “the alternative is renting. Consumers would rather buy and build equity.”

Peter Marra, president of the William B. May Company in Manhattan, says, “I think that interest rates in general have helped people buy more for the same dollars. Even though the prices are the same or less [than last spring], they are able to afford or borrow more.”

For all the entry-level activity, however, the luxury market is not so strong. Overall listings at Insignia Douglas Elliman are up 40 percent compared to last year, but high-end luxury sales are down.

“Sellers have to get into a new reality,” says James. “They can’t expect high prices they’ve gotten in the past.” He adds that if buyers have the perception that a property overpriced, they might go see it, but they won’t make an offer. “Buyers are very savvy and know when a seller is just trying to cash in.”

“The market from $1.7 million to more than $2 million has been really quiet,” says James. He remains optimistic, however, noting, “It seems in the last few weeks, more buyers are looking and nibbling. It’s very reassuring.” James adds that many of the offers are not at asking price, which is an indication that sellers must pay attention to their asking prices. He offers an example of a high-priced apartment that’s not getting offers: “A seller asking $2,225,000 needs to reduce to under $2 million. When they do that, they will get offers.” Simon observed that for the first time since 1986, it appears to have become a buyer’s market.

Why the drop off in luxury sales? “Most of the people who buy have a reason to buy,” says Andrew Gerringer, managing director of Insignia Douglas Elliman. “Families are changing, maybe someone just got married.” This typically accounts for sales in the lower end of the market. On the other hand, those already living in an upper-end home “may want 4,000 square feet, but don’t need it. There’s not as much urgency.”

The Current Market

“The pace is a little off from where we would normally like it, but there’s been a spurt in the last four weeks in the higher end of the market,” says Gerringer, who notes that Insignia Douglas Elliman recently sold a penthouse for $3 million, and two 4,500 square-foot units in TriBeCa.

“What we have now is a mixed market,” says Marra. “Things are coming on the market that are priced lower than in the spring, and those are selling quickly. Buyers are active and ready to buy, but they’re not as frantic [as in the spring].” Marra thinks buyers are looking for quality-of-life issues, and taking those into account.

“There’s less discretionary buying now,” says Simon. She feels the market is “on hold like after 9/11, but for different reasons. There’s fear of what will happen monetarily to people’s accounts.”

Gerringer thinks that consumers are “cautiously optimistic about the coming year. If you don’t have to buy, you can sit back and wait right now.”

Hot Neighborhoods

Lower Manhattan also offers opportunity and viability for residents. “Battery Park City rebounded very fast [after the attacks],” says James. He also feels the Upper East and West Sides are especially popular with families.

Simon recalls that last year, people were afraid to move below 34th Street. “TriBeCa, Greenwich Village, and Battery Park suffered,” she says. “Now because the area is cleaned up, there are pretty good prices in those areas, which is encouraging people to buy.”

For his part, Gerringer feels that “Soho always remains a very interesting area,” and that the area where the West Village, Soho, and TriBeCa converge (around Spring and Washington Streets) continues to be desirable.

Gerringer thinks a good way to gauge the new hot spots isn’t necessarily the most obvious: follow the artists. “Artists always lead the front, looking for the cheapest places,” he says. “Restaurants and bars follow. Then the rental guys come in with market-rate housing. Then condo guys come in and show them for that same the amount of money, they can own.” This is what happened in Williamsburg, Brooklyn, and now buyers who were priced out of the East Village often move to Williamsburg or other outer boroughs. Only one subway stop away from Manhattan, Williamsburg has seen a great deal of growth during the past few years. Chelsea and Soho have also undergone this pattern of activity, and more recently DUMBO has seen an influx of residents.

Ah, the Amenities

Gerringer points out that in co-ops and condos, storage space is always necessary. “We try to provide storage separate from the apartment, often in the basement,” he says. Parking is another feature that attracts buyers, especially in areas where on-street parking is difficult to find.

Indoor features can include new types of stone or glass tile not typically found in other apartments. Gerringer also notes that buyers like interesting wood floors—walnut as opposed to oak, for example. New appliances are always something buyers like to see. Modern conveniences Gerringer knows of in Insignia Douglas Elliman properties include refrigerators equipped with computers, flat-screen televisions in bathrooms, and above-the-stove waterspouts that tilt out from wall, directly over the burners.

Simon has noticed that buyers are looking for homes that are already renovated. “They want to move quickly, so the chances of selling [a renovated apartment] quickly are much more viable.” She thinks that most buyers favor recently renovated kitchens and bathrooms, and “the rest can be cosmetic; a matter of taste.”

2003: The Year Ahead

Looking ahead, Simon suspects that sellers may continue to have a difficult time selling their property. “People must be much more realistic about their asking prices,” she says, and adds that the future (or at least the next six months) of the immediate market really depends on flexibility of sellers.

Marra, optimistic about he coming year, feels the market activity will remain stable and prices will stay where they are now. He thinks there will be activity and “apartments that are priced in a range that is comparable to what they are [currently] will sell [in 2003].”

It’s difficult to speculate on the condition of the market in the next year. Says Marra, unpredictable world events and terrorism can affect the market greatly. The financial world is another factor, although Marra feels it is more stable than earlier in the year. But an underlying threat of layoffs and smaller bonuses and raises this year may have buyers and sellers acting cautiously into 2003. Marra thinks we are unlikely to see people putting their homes on the market in the event of mass layoffs. “People very rarely sell primary residences, even if they lose their job,” he says. While they might sell vacation homes, they’ll likely hold on to their primary homes.

Only time will tell what’s in the real estate forecast for 2003 but if past trends are any indication, the New York market should weather the storms of economic unrest and come through stronger than before.

Stephanie Mannino is a freelance writer based in New York.

It’s happened twice recently. In the summer of 1994, 72 New York property managers were convicted of taking kickbacks from contractors and extorting payoffs. This resulted in a $4 million restitution fund. Then, just last summer, 21 corporations and 62 individuals, including managing agents, superintendents, vendors, contractors, architects, and even board members, were indicted for bid-rigging (coordinating false bids so that the "lowest bid" was inflated) and other fraudulent practices. Just what can boards do to protect their buildings in the face of such widespread fraudulent activity?

In a perfect city, every building would know it could trust its managing agent. Most managing agents are honest professionals, but recent years have shown that it is not possible for boards to blindly feel confident that their buildings are being run legally. It is in their interest to actively prevent fraud from happening in their buildings, and there are simple, inexpensive, and specific ways to help make sure it doesn’t.

According to the Council of New York Cooperatives and Condominiums (CNYC), managing agents should, at minimum, provide two financial reports by the 15th of every month. One report should supply the opening and closing balances and summarize the building’s disbursements and income. The other report should list all disbursements, with exact dollar amounts, copies of invoices, check numbers, an explanation of any unusual expenses, and a copy of authorization to incur such expenses. P. Leonard Jones, president of the New York Association of Realty Managers (NYARM), agrees that this information is extremely important and suggests, "It would be important to distribute a package including invoices to the board president, treasurer, and one other officer and then a summary of that information should be distributed to each board member once a month. Each board member should carefully review reports for the corporation quarterly and ask questions."

CNYC also suggests monitoring bids closely and comparing costs of services against costs for similar services from previous years or against other sources. CNYC provides a Comparative Study of Building Operating Costs, which should provide boards with ball park figures of reasonable prices. Jones agrees that comparing costs for services is important and suggests reviewing contracts yearly. When searching for a contractor, he "generally sends out invitations to propose to five to eight companies to ensure a minimum of three proposals."

Sam Irlander, president of Parker Madison Partners Inc. Incorporated, a full-service New York real estate firm, and associate professor at New York University, stresses the importance of a hands-on board. This is particularly important in the case of requesting bids from contractors for services. "Everything should be on a sealed-bid basis and should always go directly to the board. This way no one should know what the bids are until they open them up," he says. According to Irlander, one way to decrease the chances of fraud is to remember that choosing a contractor should always be a board decision and not a managing agent or management company decision.

A board will probably want to allow its managing agent to work independently when it comes to routine expenses such as electricity, but for unusual expenses, CNYC suggests having a separate checking account with checks requiring double-signatures, one from the managing agent and one from a board member. Boards can keep an account with enough money to comfortably cover routine budgeted expenses, but have a separate account for non-routine expenses. This separate account could require two signatures, the signature of the managing agent and the signature of a board member.

Irlander states that a board can require two signatures on all checks or they can choose to "set a maximum check amount that the agent can sign on [his or her] own and require two signatures on all checks exceeding that amount." Although signing each check may be difficult in practice, it would ensure that the manager’s practices are accounted for.

CNYC suggests periodically assigning specific members of the board to review a particular cost item in depth and report findings with possible suggestions for improvements. For example, one board member could focus on paint and investigate which companies and products have been used, how their costs compare to other companies offering similar services, how often the building incurs painting expenses, where supplies for these jobs have been purchased, and if there are any recommendations for improvement in this area. Rotating in-depth analysis of specific expenses will ensure, over time, that all elements of a building are run in the most efficient manner.

The easiest way to catch fraud early is to have your accounting firm review your accounts quarterly, or even monthly if you suspect something, instead of just semi-annually or annually. The sooner suspicious activity is detected, the sooner it can be investigated and acted upon.

It is also important, when striving for building compliance, to know with what regulations the building must comply. For example, a law passed last summer prohibited the practice of torching roofs for replacement. Many buildings were not aware of the law until recently, and the practice remained widespread. Keep in mind that not complying with new laws not only puts residents in danger but can cause potential legal hazards for boards.

How can you find out about new laws? According Jones, the primary way to find out about changes in laws is to "have corporate counsel and require that counsel to keep boards abreast of changes in laws." He also stresses the importance of reading trade newspapers such as The Cooperator, NYARM News, and Real Estate Weekly which put out information to keep boards informed. Some other ways to make sure you are aware of new laws are networking with other board members and searching on the Internet. Know the industry.

In addition, Irlander suggests becoming a member of the Real Estate Board of New York (REBNY) which, he says, "can provide you with a fountain of information."

What if your building has been running under a single system for a long time with the same managing agent or management company? Will you breed resentment by suddenly adopting stricter policies? What should you do to soften the transition to new policies?

Jones states, "Any managing agent or agency that wants to give good and proper service should not object to providing information." He continues, "Managing agents should enjoy that type of involvement by a board."

He does agree, however, that a procedures manual, a reference in which policies are clearly written out, is helpful. "It is prudent that changes in policy be adopted by the board and submitted in writing. It lends a kind of clarity. Reducing it to writing is extremely helpful," Jones explains.

Also, let your managing agents know that, while you are checking them, they are also responsible for keeping an eye on the board’s activities. If a board member should suggest something that sounds suspicious, the managing agent should know that he or she is responsible to notify other members of the board.

Board members are not the only ones making sure managing agents work in compliance with laws and run their buildings legally. Organizations such as The Institute of Real Estate Managers (IREM) has created a code of ethics in which specific responsibilities are discussed in detail.

Similarly, NYARM teaches seven courses on property management at the NYU School of Continuing and Professional Education. The courses range from financial management to the handling of clients, but the one required course is the Code of Ethics course written by and taught by the Manhattan law firm Schecter & Brucker.

In Sum…

Although we will never live in a perfect city where fraud is unheard of, a board that stays actively involved with its managing agent will feel more confident that its building is being run legally. Check financial statements closely. Implement a policy for writing checks, whether this includes requiring two signatures on all checks, having two checking accounts, or requiring two signatures on checks above a certain amount. Be involved in the bidding process when contracted services are required in your building. Always present changes in policy in writing so that your managing agent and management company know what is expected, and keep abreast of changes in laws. Taking these steps should help protect your co-op or condo against fraud. A knowledgeable board is many steps closer to maintaining a safe and prosperous building.

Ms. Hoodiman is a freelance writer living in Astoria, New York.

They have to worry about everything from keeping track of financial reports to whether the masonry will survive another winter. They collect maintenance, track repairs, and soothe ruffled shareholder feathers. If they don’t know how to handle something, they had better know someone who does. Part accountant, part contractor, part therapist, they are property managers, and they keep New York’s apartment buildings habitable.

Not Enough Hours in the Day

Manhattan’s Midboro Management, Inc. currently handles 58 properties. Company president Michael J. Wolfe describes the beginning of his typical day: “First, I check my mail box for faxes, mail, voice mail messages and e-mail, and prioritize the group. Then, while I’m addressing the incoming [issues], I also have to follow up on things like the last board meeting and ongoing projects.”

A sample to-do list for Wolfe might look like this:

• Call roof manufacturer—advise them that the roof is leaking.
• Arrange replacement for vacationing maintenance staff member.
• Obtain bids for new elevator contractor.
• Notify board of possible code violations.
• Meet with architect/engineer and vendor to discuss status of façade restoration.
• Speak to shareholder behind on maintenance.
• Review and approve invoices.
• Answer questions from prospective purchaser.
• Investigate banging in heating pipes.
• Review alteration application from shareholder.
• Investigate excessive noise complaint from a neighbor’s apartment.
• Attend evening board meeting.

Of course, the whole list may go out the window if an emergency or crisis rears its ugly head. “You can start the day with a plan,” says Elizabeth Hurley, president of Platinum Properties of New York, Ltd., “and by 10:30 it will change. You have to be flexible.” Property managers need to be able to think quickly and creatively.

“You have to be a pretty good problem solver,” adds Hurley. Emergencies run the gamut from flooded apartments to a tree leaning on power lines. The property manager needs to know which contractor or city agency to call in each situation.

A manager may personally oversee anywhere from six to ten buildings—which can easily add up to a total of 500 to 800 units. How does one prioritize all those people and responsibilities on a day-to-day basis? Most managers agree that safety issues top the list. These include roof leaks and crumbling masonry, electrical shorts or boiler problems. Next in line is following up on financial and legal deadlines. Herein lies the demanding nature of a property manager’s job. Overseeing a building involves operational, financial and administrative savvy, and good communication skills to boot.

Know Thy Building

A property manager needs at least a basic knowledge of building systems—including heating, ventilation, plumbing and electrical—and must be vigilant in keeping them all up and running properly. Hurley stresses, “If you see something that might not be right, and you don’t look into it, you might regret it later.”

“One has to be familiar with the day-to-day running of the building,” suggests Sam Irlander, president of Parker Management in Manhattan and an adjunct assistant professor at NYU’s Real Estate Education Division. “I’ve been to many a basement and many a rooftop. Operations can be handled when you have really good staff on-site. You have to trust yourself and hire the right people.”

“In this business, you have to be organized,” says Michael Berenson, president at AKAM Associates, Inc. “There’s a lot of administrative detail, and if you’re not organized, things slip through the cracks. We require that all our agents keep action lists, and check them daily.” In addition, a manager needs to have up-to date knowledge of the local laws and building codes, to ensure that routine inspections are successful.

Last but not least in the property manager’s professional arsenal are people skills.

“You’re dealing with the electrical contractor, the elevator guy. You’re dealing with your tenancy—the board and the shareholders,” says Irlander. “Every deal needs a little bit of love.”

According to Hurley, “A project becomes more special when you’re able to get the shareholders involved.” She cites an example of a tree that needed to be planted in front of one of the properties she manages. What could have been a chore was transformed into a fun event by inviting the building’s children to help plant the tree and surrounding flowers. “They have an interest in how that tree does now,” she adds.

The Many Roads to Management

There may be as many roads leading to a job in property management as there are individuals who do it. Wolfe grew up in the business, helping his father run the rental buildings they owned. “We did everything ourselves, which allowed me to learn about the operation of real estate from the inside out,” he says.

“By 1986, I decided that I no longer wished to clean sewer lines, tile bathrooms and personally collect rent. So I answered an ad in the New York Times and started out as an assistant manager. By 1993, I owned the company.”

Donald H. Levy is the director of management at Manhattan’s Lawrence Properties. He began his career as an attorney, working for 13 years in the smoking pipe industry. Then in 1980, his cousin invited him to join his full service real estate company, and the rest is history. Levy says, “This job requires an enormous amount of stamina, patience and endurance in an industry that traditionally carries more criticism than praise. However, there’s satisfaction in knowing that you do a significant job of looking out for the buildings you manage.”

Hurley was an accountant with peripheral real estate experience when she worked in the conversion department of J. I. Sofer. “I was making a job change and this came my way,” remembers Hurley. “I went into property management by opening my own full service real estate company when the market went soft in the late ‘80s. We do rentals and sales too, [but] management provides a steady income and a consistently solid base for the business.”

Irlander wanted to go into business law. Out of school, he started to work as a commercial leasing broker. By 1972, he says, “I decided to do for myself what I had been doing for others.” He quenches his appetite for things legal by teaching licensing law to brokers and managers.

Berenson has dual degrees in economics and business. He jokingly says, “I didn’t know what I was getting into.” From his start as an assistant property manager in 1988, he has risen to managing other managers and overseeing properties of his own. He adds, “There’s a great feeling of satisfaction in being able to respond to a client’s needs and get things accomplished.”

The Licensing Debate

While most managers would agree that there is no substitute for on-the-job training, there are many courses available to prepare the property manager and further their education. In order to collect rent, New York State law requires a real estate broker’s license. The Real Estate Board of New York (REBNY) offers the curriculum required to obtain a real estate brokers license. After securing a license, brokers are required to complete 22.5 hours of continuing education every two years. While the required licensing of property managers is being hotly debated right now, the New York Association of Realty Managers (NYARM) does offer its own certification course, as do many other organizations, including New York University (NYU).

NYU offers certifications in Building and Property Management, and calls their certification “an optional professional credential.” The NYU certificate is awarded upon completion of six courses, four of which are from the Building and Property Management department’s roster and include courses sponsored by NYARM, IREM, and ABO, and two of which may be electives drawn from elsewhere in the Real Estate or Construction departments.

For example, one 15-hour course offered through NYU is an overview course titled, “Management and Operating Techniques for Residential Properties,” and another, called “Practical Aspects of Residential Management” address the basic, day-to-day skills and knowledge that a successful property manager must have in order to function. According to NYU’s continuing education web site, topics covered in both courses include, “how to run a successful management company…maintenance of the physical plant, compliance with local laws…the special needs of government-sponsored properties, rent collection, landlord/tenant court…co-op/condo management, and financial reports.”

For his part, Irlander highly recommends aspiring managers take financial courses. “Your ability to handle other people’s finances is a requirement for this job,” he says. “Also, a manager should have a thorough understanding of how to value and appraise property.”

Levy points out the advantages of operational and technical classes. “You don’t need to know how to change elevator cables yourself, but you do need to acquire enough understanding to fairly evaluate whether you are getting good information from the people you hire.”

Some of the arguments against licensing property managers revolve around the great time commitment required for continuing education. In general, a property manager begins his or her day before 9 a.m. and ends late in the evening. “Required education potentially adds another level of time constraint to people who don’t have a life to begin with,” says Levy. “On the plus side, going through the process of certification will thoroughly prepare an individual and give them the extensive and updated knowledge [they] need to do the job well.”

The debate continues as to whether licensing is worth the trouble. While it can certainly enhance a manager’s knowledge, it remains to be seen whether the credential will make a significant change in how clients choose a property manager.

At the End of the Day…

Long hours, slim profit margins, and an atmosphere that most insiders call stressful: why does anyone go into property management? Professionals say they enjoy the need to problem-solve creatively, and feel satisfaction knowing they are creating a wonderful, working place for their residents to live.

“It’s not just a job,” says Hurley. “You’re giving a service. You have to preserve the integrity of the building and the quality of life of the residence. And then you hopefully improve on it.”

“It’s a wonderful business,” says Irlander. “In 30 years, no two days have been exactly alike.”

Rebekah Mulhare is a freelance writer living in Forest Hills, NY.