When a co-op or condo board reviews a property management proposal, the headline number — the monthly management fee — is usually clear. What isn’t always clear is everything around it.

Here’s what some management companies don’t explain upfront, and what every board should ask before signing.

The Base Fee Is Just the Starting Point

Most management companies charge a base monthly fee. For co-ops and condos, it’s often structured as a percentage of monthly maintenance collected, or a flat per-unit rate. That fee covers the core management function: administration, communication, owner relations, and basic oversight.

What it often doesn’t cover: ancillary services that your building almost certainly needs.

DHCR annual rent registration filings for rent-stabilized units. Boiler inspection certificates. Elevator Category 1 and Category 5 inspection coordination. Bed bug disclosure filings. Bank account setup fees. Insurance certificate requests. RPIE filings. Each of these may appear as a separate line item when the invoice arrives — if they’re disclosed at all.

Before you sign, ask for the complete fee schedule. Not the proposal summary. The full schedule of all fees, including ancillary services. A transparent management company will hand it over without hesitation.

The Markup Question on Vendor Work

When your management company coordinates a repair or capital project, they’re typically acting as your agent — soliciting bids, reviewing proposals, and overseeing the work. In theory, they’re working for you.

Some management companies add an administrative markup to vendor invoices — typically 5–15% — for coordinating the work. This is sometimes disclosed, sometimes not. On a $50,000 facade repair, a 10% markup is $5,000 you might not have budgeted for and might not even notice buried in a capital expenditure report.

Ask directly: “Do you add any markup or administrative fee to vendor invoices?” The answer should be immediate and specific. Vague responses deserve follow-up.

Who Pays for the After-Hours Call?

Your management company’s base fee typically covers business-hours services. Emergencies happen at 11 PM on a Friday. When they do, you want your manager to be reachable — but “reachable” means different things at different companies.

Some firms provide 24/7 emergency lines as a standard service. Others charge after-hours response fees, dispatching fees, or premium rates for emergency contractor coordination outside business hours. In a city where pipes burst in January and elevators fail on Sunday mornings, this is not a minor detail.

Get the after-hours policy in writing. Understand exactly what’s included and what triggers an additional charge.

Lease Renewal and Application Fees in Rental Buildings

For rental properties, the fee structure has additional layers. Application fees, lease renewal coordination fees, and vacancy fees are common — and the amounts vary significantly between firms.

New York City law caps rental application fees at $20 per applicant. That’s the legal maximum, and it applies to any fee charged in connection with processing a rental application. Some firms charge the maximum; others charge less. Make sure your management company’s fee schedule complies, and confirm in writing that they’re not charging tenants above the legal cap.

Lease renewal fees — charged when an existing tenant renews their lease — are separate from application fees and are not capped. These fees can range from one month’s rent to a flat administrative charge. Understand what your management company charges before a renewal cycle begins.

How Leasing Commissions Are Handled

When a unit is leased, a commission is typically earned — either by a broker, by the management company acting as leasing agent, or both. How that commission flows matters.

The cleanest arrangement: commissions are paid directly to the building entity, with net proceeds disbursed to the owner after any agreed deductions, in full accordance with the management agreement. This keeps the money flow transparent and the building in control.

Ask how commissions are structured, who receives them, and how they’re documented in monthly reporting. Clear answers protect everyone.

The Reserve Fund and Investment Question

Your building’s reserve fund — the savings account for major capital work — may sit in a bank account managed by your management company. Who controls that account, who has signature authority, and whether the funds are in a segregated account in your building’s name are questions every board should be able to answer.

Funds should be held in a dedicated account in the building entity’s name, not commingled with the management company’s operating funds. A fidelity bond should cover the management company against employee dishonesty or misappropriation. Ask for proof of both before you sign.

What Transparent Pricing Actually Looks Like

A management company committed to transparency will give you a complete fee schedule before you ask. They’ll explain every line item, tell you which services are included in the base fee and which aren’t, and answer markup questions without defensiveness.

At Camelot Realty Group, our fee structure is straightforward: a percentage-based management fee with a clear rate schedule for ancillary services, no hidden markups on vendor work, and all building funds held in segregated accounts in the building’s name. We publish our rental pricing tiers on our website because we believe transparency isn’t just an ethical obligation — it’s a competitive advantage.

If you’re evaluating management companies and want to compare proposals, we’re happy to walk you through ours line by line. Call us at (212) 206-9939 or email info@camelot.nyc.