What are the key differences between manager-managed and member-managed cooperatives and condominiums?

What is a manager-managed cooperative or condominium?

A manager-managed cooperative or condominium is one where a professional property manager is responsible for the day-to-day operations of the property. This includes tasks such as collecting rent, handling maintenance and repairs, and managing the budget. The manager is typically hired by the board of directors and reports to them.

What is a member-managed cooperative or condominium?

In a member-managed cooperative or condominium, the residents themselves are responsible for the day-to-day operations of the property. This means that the residents are responsible for tasks such as collecting rent, handling maintenance and repairs, and managing the budget. The residents typically elect a board of directors to make decisions on behalf of the community.

What are the key differences between manager-managed and member-managed cooperatives and condominiums?

One of the key differences between manager-managed and member-managed is the level of involvement of the residents. In a manager-managed property, the residents are typically less involved in the day-to-day operations of the property, while in a member-managed property, the residents are more involved.

What is the level of expertise and experience of the manager or board of directors?

Another key difference is the level of expertise and experience of the manager or board of directors. In a manager-managed property, the manager is typically a professional with experience in property management, while in a member-managed property, the board of directors may not have the same level of expertise and experience.

What are the benefits and drawbacks of each approach?

There are also benefits and drawbacks to each approach. In a manager-managed property, the residents may benefit from the expertise and experience of the manager, but may also be less involved in the decision-making process. In a member-managed property, the residents may be more involved in the decision-making process, but may also be less experienced in property management.

What is the right approach for managing a cooperative or condominium?

In conclusion, understanding the key differences between manager-managed and member-managed is crucial for making an informed decision about how to manage a cooperative or condominium. While both approaches have their own advantages and disadvantages, the right approach will depend on the specific needs and goals of the community.