As of the writing of this article we have had (and survived) two large snowstorms with predictions for more. Managers should insure they have a plentiful supply of snow removal products and equipment. Does anyone remember the twelve inches of snow we got in late March several years ago?
FIDUCIARY RESPONSIBILITY
I was fortunate enough to be selected by New York University to instruct a class on Financial Management for the NYARM certification program during the fall semester, 2000. I would like to share a discussion the class had regarding a building's escrow account.
The discussion began with my instruction that escrow accounts of up to $50,000 be deposited in a FDIC insured money market account. Larger amounts should be partially invested in United States Treasury bills with staggered expiration dates and the balance in a FDIC insured money market account.
A heated debate began amongst the students who felt that a building should explore a conservative portfolio of stocks and/or mutual funds. They cited returns of 20% and better (as opposed to the 5-6% the T-bills pay).
When confronted with even a remote loss of principal, the class agreed to leave the risk taking for personal weekends in Atlantic City. The lesson of the class is that other people's money must be invested in the safest, most liquid insured vehicles possible. A manager never wants to be in a position of explaining why the great stock pick with 25% returns suddenly hit the tank.
WINDOW GUARD NOTICES
Beginning March 1, 2001 managers must notify the Department of Health, in writing, of all residential tenants that failed to return the annual window guard notice that you delivered to them in January. As I always recommend the best way to communicate with an agency on a paperwork matter is either by certified mail - return receipt requested (mailed from the post office with a bull's eye stamp) or when time is of the essence, hand delivered with a duplicate set of documents that should be time/date stamped or signed as received.
Stephen Elbaz, nyarm is Secretary of the NYARM Board of Directors and President of Esquire Management Corporation, a full service management company, in New York and New Jersey. Readers are encouraged to contact Stephen at 718-623-2300, fax 718-623-2322 or email steve@esquiremanagement.com with real estate management questions, concerns and helpful hints. Questions will be thoroughly researched and answered in this column.