High maintenance fees in Manhattan are not automatically a red flag, and sometimes they are the point. A monthly charge that pays for full-time staff, healthy reserves, and building work that is already finished can be a better deal than a low charge that hides deferred repairs. Below, I cover what the fee pays for, why fees are rising across New York City, the real warning signs, and what to review before you make an offer.

What does a Manhattan maintenance fee actually pay for?

A co-op’s maintenance pays your share of everything it costs to run the building. That typically includes:

• The building’s real estate taxes
• Interest and principal on the co-op’s underlying mortgage, if it has one
• Staff payroll and the managing agent
• Insurance, fuel, water, and common-area utilities
• Repairs and contributions to the reserve fund

Your share follows the shares allocated to your apartment, often set decades ago, so it does not always track square footage. Condo owners pay common charges for operations and receive a separate property tax bill, so compare a co-op’s maintenance with a condo’s common charges plus its taxes, not with the common charges alone.

If the apartment will be your primary residence, the building may also receive New York City’s Cooperative and Condominium Property Tax Abatement. The NYC Department of Finance sets the benefit at 17.5% to 28.1% of the unit’s tax, depending on the building’s average assessed value. Ask how the savings reach owners.

Why are maintenance fees going up across New York City?

Maintenance is rising because the costs behind it are rising. In July 2026, Gothamist reported on a Council of New York Cooperatives & Condominiums study of more than 1,200 co-ops and condos: from 2019 to 2024, insurance rates more than doubled, and fuel, maintenance, and property taxes each rose at least 20%.

Two more pressures are arriving now:

1. Local Law 97. The emissions law covers buildings over 25,000 square feet. Buildings over their limit pay $268 per ton of excess emissions each year, and the limits tighten in 2030, which Habitat Magazine reported in September 2026 will likely push many co-ops and condos toward costlier retrofits.
2. Condo reserve rules. For loan applications dated on or after January 4, 2027, Fannie Mae and Freddie Mac will require condo projects to allocate at least 15% of budgeted assessment income to replacement reserves, up from 10%, according to National Mortgage Professional (October 21, 2026). Some condos will raise common charges to meet it.

When is a high maintenance fee a good sign?

A high fee is a good sign when you can see what it buys and the building has been managed carefully. I look for:

• A full-service staff that matches what the price of the apartment implies
• Reserves that are healthy relative to the building’s age and planned work
• Major work already completed and paid for: facade, roof, boiler, elevators, windows
• Steady, modest increases rather than years of flat maintenance followed by a spike
• A clear plan for Local Law 97

What are the real red flags with maintenance fees?

The real red flags are about direction and funding, not the size of the fee. Watch for:

1. Unexplained jumps from one year to the next.
2. Flat maintenance for many years. A Douglas Elliman property manager told Brick Underground in 2022 that “a no-increase environment is not sustainable,” even in well-run buildings.
3. Capital projects with no funding plan. Unfunded projects tend to become maintenance increases or assessments.
4. Repeated special assessments.
5. Deferred maintenance. In August 2026, an engineer quoted by Habitat Magazine said a building’s annual Local Law 97 penalty could rise from $6,000 to $87,000 within five years.
6. An underlying mortgage that matures soon and may refinance at a higher rate.

How does maintenance affect what you can afford and what you should pay?

Maintenance reduces how much apartment you can carry, because lenders and co-op boards count it in your monthly obligations alongside the mortgage. That is why I talk about the price of the apartment and the cost of the money together.

It also affects value. In a 2013 Miller Samuel column, Deanna Kory, then of Corcoran, estimated that each $100 of above-average monthly charges worked out to roughly $20,000 of price, based on a mortgage rate near 4% at the time. Rates are higher today, so the same $100 supports less borrowing. Recent sales in the building and nearby are the better guide.

What should you review before you make an offer?

Before you make an offer, have your attorney and broker review the building’s financial statements, budget, increase history, reserves, mortgage terms, and minutes. Specifically:

1. The last two years of audited financial statements
2. The current operating budget
3. The history of maintenance increases and assessments
4. The reserve fund balance and any capital plan
5. The underlying mortgage terms and maturity date
6. Board or condo minutes, for discussions of upcoming projects, Local Law 97, or insurance changes

For context, real estate attorney James Woods told Brick Underground in 2022 that co-op and condo increases typically range from 3% to perhaps 5% a year. A building well above that, year after year, deserves an explanation.

Is co-op maintenance tax deductible?

Part of co-op maintenance may be tax deductible. Co-op shareholders can generally deduct their share of the building’s real estate taxes and mortgage interest, and the co-op reports that portion each year. The percentage varies by building, and the rules depend on your own situation, so confirm the details with your CPA before you count on a deduction.

Do high maintenance fees hurt resale value?

High maintenance fees can narrow the pool of buyers, because lenders and co-op boards count the monthly charge when they assess affordability. A well-run building with a high fee and strong reserves can still sell well when the charge pays for real services. Comparable sales show how the market is pricing it.

What do I tell my clients about maintenance fees?

I tell my clients to start with the reason for the number, not the number itself. A higher monthly charge in a full-service building with a new facade and strong reserves can be a safer purchase than a lower charge in a building that keeps postponing its boiler replacement.

Here’s what most brokers won’t tell you: a low maintenance can be the most expensive number in the listing. It can mean the board has held increases down by drawing on reserves or delaying work, and the bill arrives after you move in.

So I ask clients to compare total monthly cost, not price alone, and to read the financials before they fall in love with the layout. As I wrote in my piece on whether co-ops have become undervalued, the trade-off between price and carrying cost is often where the opportunity is. My clients’ attorneys review the statements and minutes in every deal.

I walk through how I separate red flags from real value in a building’s maintenance in this video.

If you are weighing a co-op or condo in Manhattan or Brooklyn, request a confidential consultation and I will walk through the building’s financials, the monthly cost, and how it compares with similar apartments nearby. For my quarterly read on the market, see the Q3 2026 Franco Report and sign up for The Franco Report newsletter.

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About the author. Michael J. Franco is a top producing broker at Compass with more than 20 years of experience as a broker, attorney, and investor. The Wall Street Journal and Real Trends ranked him number 13 in Manhattan and number 100 in the United States.

This post is for general information and is not financial, legal, or tax advice. Compass is a licensed real estate broker. Equal Housing Opportunity.