It may sound hard to believe now, but there was a time when New York City condo and co-op prices were relatively in sync. The amenity craze had yet to take hold in new condominiums, which didn't differentiate them much from cooperatives. Moreover, in a slightly more dangerous city, a full-time doorman and an additional slate of gatekeepers (also known as the co-op board) was seen by many as a must-have. As a result of the evolution of the city and real estate market, CityRealty listings show that median Manhattan asking prices are a whopping $2,475,024 for condos and only (!!) $996,554 for their co-op counterparts.
However, that is not to say that co-ops are necessarily the place to go for bargains. The cost of one’s maintenance fees must be taken into account since, in New York City, fees are often extremely high. While fees in an older walk-up in Brooklyn may be just a few hundred dollars per month, fees in prestigious Manhattan co-ops are several thousands of dollars each month. In fact, some co-ops can come with extremely low sticker prices but maintenance fees as high as, if not higher than, one’s monthly mortgage payment (this listing is an excellent example). Just as we recently examined condo common charges, this article examines co-op maintenance fees in detail, discusses how they are set, and how to avoid excessively high fees if and when possible.
In this article:
What Co-op Fees Cover
In co-ops, all shareholders pay co-op fees. Generally, co-op fees include property taxes, any underlying mortgage on the building, and building insurance. In many buildings, utilities (e.g., heat and hot water, electricity, and gas) are also included in the fees. One’s fees likely also cover other regular upkeep costs (e.g., landscaping, pest control, etc.). Finally, fees cover building staff salaries and any additional services. As a result, the more staff and services found in the building, the higher the fees.How Co-op Fees Are Set
In co-ops, fees are generally set based on the size of the apartment. As a result, if you combine two units, expect to pay higher fees. In some cases, other factors, including the floor level, may also be taken into account when setting fees.
In co-ops, fees are generally set based on the size of the apartment. (250 West 27th Street, #3A | Compass)
Negotiating Co-op Fees
Co-op fees are set by the co-op board and voted on at an annual meeting for shareholders. Small fee increases are expected (e.g., to cover higher taxes or fuel costs). Also, from time to time, a building may need to temporarily charge higher fees to cover the cost of a major capital improvement or repair. For example, many buildings are forced to raise their fees as a result of façade work. However, fees can also be a source of controversy in some co-op buildings.While some shareholders may want to renovate the lobby or install a gym and be happy to pay higher fees in the process, other shareholders may consider such additions and the related costs unnecessary. Where majority rules, however, there isn’t much a shareholder can do. Ultimately, once the fees are set, shareholders are obliged to pay the fees as long as they remain shareholders in the building. This is one of the risks of buying in a co-op building. Of course, there is always one line of recourse: Shareholders who feel spending is out of control can always get elected to their co-op board and put an end to the frivolous spending and soaring fees.
Active listings with monthlies under $1,200/month
108 Wooster Street, #3D
$2,295,000
SoHo | Cooperative | 2 Bedrooms, 1.5 Baths | 1,200 ft2Monthly Maintenance: $825
108 Wooster Street, #3D (Compass)
799 President Street, #6
$1,995,000
Park Slope | Cooperative | 3 Bedrooms, 2 Baths
Monthly Maintenance: $977
799 President Street, #6 (Compass)
512 Henry Street, #1
$1,600,000
Carroll Gardens | Cooperative | 2 Bedrooms, 2 Baths | 1,050 ft2
Monthly Maintenance: $1,100
512 Henry Street, #1 (Brown Harris Stevens Residential Sales LLC)
93 Lexington Avenue, #3
$1,450,000
Clinton Hill | Cooperative | 2 Bedrooms, 2 Baths
Monthly Maintenance: $1,035
93 Lexington Avenue, #3 (Compass)
16 Lincoln Place, #1B
$1,400,000
Park Slope | Cooperative | 3 Bedrooms, 1.5 Baths | 1,400 ft2
Monthly Maintenance: $1,122
16 Lincoln Place, #1B (Park Property Advisors)
849 Carroll Street, #4
$1,399,000
Park Slope | Cooperative | 2 Bedrooms, 1 BathMonthly Maintenance: $1,155
849 Carroll Street, #4 (Compass)
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656 Carroll Street, #1R
$1,345,000
Park Slope | Cooperative | 2 Bedrooms, 1 Bath
Monthly Maintenance: $850
656 Carroll Street, #1R (Corcoran Group)
302 Garfield Place, #4
$1,295,000
Park Slope | Cooperative | 2 Bedrooms, 1 Bath
Monthly Maintenance: $1,000
302 Garfield Place, #4 (Corcoran Group)
425 West 24th Street, #3GF
$1,249,000
Chelsea | Cooperative | 2 Bedrooms, 2 Baths
Monthly Maintenance: $1,077
425 West 24th Street, #3GF (Compass)
250 West 27th Street, #3A
$1,175,000
Chelsea | Cooperative | 1 Bedroom, 1 Bath | 1,100 ft2Monthly Maintenance: $1,037
250 West 27th Street, #3A (Compass)
176 Sterling Place, #6L
$1,170,000
Park Slope | Cooperative | 2 Bedrooms, 1 BathMonthly Maintenance: $803
176 Sterling Place, #6L (Compass)
523 8th Street, #4L
$1,150,000
Park Slope | Cooperative | 2 Bedrooms, 1 BathMonthly Maintenance: $982
523 8th Street, #4L (Compass)
652 Lafayette Avenue, #4
$1,075,000
Bedford-Stuyvesant | Cooperative | 3 Bedrooms, 2 Baths | 971 ft2Monthly Maintenance: $664
652 Lafayette Avenue, #4 (Corcoran Group)
566 Prospect Place, #4A
$995,000
Crown Heights | Cooperative | 3 Bedrooms, 1 Bath
Monthly Maintenance: $887
566 Prospect Place, #4A (Compass)
The Vermeer, #2E (Compass)
314 West 19th Street, #5B
$945,000
Chelsea | Cooperative | 1 Bedroom, 1 Bath | 700 ft2Monthly Maintenance: $962
314 West 19th Street, #5B (Brown Harris Stevens Residential Sales LLC)
35-56 79th Street, #22
$930,000
Jackson Heights | Cooperative | 3 Bedrooms, 1 BathMonthly Maintenance: $1,035
35-56 79th Street, #22 (Compass)
Southbridge Towers, #3E
$925,000
Financial District | Cooperative | 2 Bedrooms, 1 BathMonthly Maintenance: $936
Southbridge Towers, #3E (Brown Harris Stevens Residential Sales LLC)
315 East 12th Street, #30
$895,000
East Village | Cooperative | 2 Bedrooms, 1 BathMonthly Maintenance: $921
315 East 12th Street, #30 (Berkshire Hathaway HomeServices New York Properties)
427 15th Street, #2B (Corcoran Group)
71 Wolcott Street, #303A
$799,000
Red Hook | Cooperative | 3 Bedrooms, 1.5 BathsMonthly Maintenance: $844
71 Wolcott Street, #303A (Corcoran Group)
403 West 21st Street, #5W
$799,000
Chelsea | Cooperative | 2 Bedrooms, 1 BathMonthly Maintenance: $908
403 West 21st Street, #5W (Corcoran Group)
The Norma, #6C (Douglas Elliman Real Estate)
Would you like to tour any of these properties?
Just complete the info below.
Or call us at (212) 755-5544
Would you like to tour any of these properties?
Contributing Writer
Cait Etherington
Cait Etherington has over twenty years of experience working as a journalist and communications consultant. Her articles and reviews have been published in newspapers and magazines across the United States and internationally. An experienced financial writer, Cait is committed to exposing the human side of stories about contemporary business, banking and workplace relations. She also enjoys writing about trends, lifestyles and real estate in New York City where she lives with her family in a cozy apartment on the twentieth floor of a Manhattan high rise.
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