From Deficit to Stability: How We Turned Around a Historic 4-Unit Condominium in Cobble Hill
When four unit owners in a beautifully preserved Cobble Hill condominium reached out to us, they weren't asking for anything extraordinary: they just wanted to understand where their money was going.
That, to me, is where property management so often fails people.
The building - a Federal-style townhouse conversion dating back to the turn of the 20th century - was still being run by the Sponsor, under a budget that had been drafted for the building's very first year of operation and then left largely untouched for years afterward. The owners had no clear reporting, no real visibility into their expenses, and no sense of how much money was actually available to them. For a board of just four owners, that kind of opacity isn't a minor inconvenience - it's a direct hit to each person's peace of mind and their pocketbook.
We took over the engagement and got to work immediately.
Understanding the building before touching the budget
Historic properties are a privilege to manage, but they demand a different level of attention. The original details on this building's exterior are genuinely special - the kind of character you can't replicate in new construction. But that character comes with real maintenance obligations, and any budget that doesn't account for the true cost of caring for a century-old structure is a budget that will eventually fail the people who rely on it.
That's exactly what had happened here. Once we dug into the financials, we found the building was running on a deficit, and by the time we stepped in, most of the reserve and working capital had already been drained by day-to-day operating expenses.
Rebuilding the numbers - without overburdening the owners
With only four units, every dollar of a special assessment lands hard on each individual owner. So our priority wasn't just to fix the budget - it was to fix it in a way that was fair and manageable for the people who'd have to live with it. We formed the Board, reviewed every line of the financials, and built a new, precise budget alongside an assessment plan sized appropriately for a small association.
At the same time, we went through every vendor contract line by line. That's when we found something the owners hadn't been told: there was no regular exterminator service in place. In a building with the structural quirks typical of a century-old property, that gap had already led to a mice issue in the basement - and the added costs that come with fixing a problem that should never have been allowed to start. Historic buildings are simply more susceptible to this kind of issue, which is exactly why proactive vendor management matters so much.
Fixing it fast, together
We called a special unit owners meeting and laid it all out plainly: here's what's wrong, and here's exactly how we fix it - without adding new costs for the owners. No jargon, no spin, just a clear plan and a clear ask.
Because we communicated honestly and moved quickly, the owners approved the financial plan on the spot. Within three months, the building's finances were stabilized and the pest issue was resolved.
Where the building stands today
The condominium now has a strong reserve fund and the confidence to take on larger capital improvements down the road - on its own terms, not out of financial desperation.
This is the part of the job I love most. It's not really about spreadsheets or vendor contracts. It's about giving owners back the transparency and trust they deserve in the building they call home - especially when that building has a history worth preserving.
If your building is facing similar challenges - whether it's an unresponsive Sponsor, an outdated budget, or simply a lack of clarity about where things stand - we'd be glad to talk.
Luca Burato Co-Founding Partner, VPM NYC