Economic Advantages

Elimination of Outside Landlord

Co-ops offer control of one’s living environment and security of tenure not available in rental housing. There is no landlord profit or return to investors built into the monthly charges that you pay.

Reasonable Monthly Charges

Members have no reason to increase their monthly charges unless taxes or operating costs go up or they decide to undertake some new projects or service programs. Many studies have shown that co-ops control their operating and maintenance costs better and more efficiently than do owners of comparable rental properties.

Tax Deductions

For income tax purposes, most co-operative members are considered homeowners and as such, are eligible to deduct a share of the real estate taxes and mortgage interest paid by the co-op.

Equity

Equity will increase each year by a pre-set amount established in the By Laws.

Limited Liability

Co-operative members have no personal liability for mortgage loans on co-operative/ owned property. The co-operative corporation is responsible for paying off any such mortgage loans. This can often make it possible for persons whose income might not qualify them for an individual mortgage to buy a membership in a limited/equity co-op.

Consumer Action

Through their co-operative association, members can jointly exert influence in order to change tax rates and utility prices and obtain improved services from local governments. The co-op, as consumer advocate, can also join with other organizations.

Co-operative Ownership Savings

Co-operative members can benefit from economy of scale in co-operative operating costs as well as from the co-op’s not-for-profit operation. Also, when there are “transfers,” only the outgoing member’s equity must be paid by the incoming member In most states, transfers of co-operative ownership shares are not subject to the high settlement costs involved in the sale of individually owned houses and condos.

Social Advantages

Community Control

As mutual owners, member/residents can participate at various levels in governing their co-ops. Members elect their own board of directors. The co-operative board sets rules and regulations governing the co-operative community. Most housing co-ops have the right to approve new members and to restrict subletting and absentee ownership.

Community Stability

Members own the co-op together and have the security of being able to remain in their homes for as long as they wish, as long as they meet their monthly obligations and abide by their co-op’s bylaws, rules, and regulations.

Physical Benefits

Shared Maintenance

Echo Ridge Homes has its own on-site maintenance staff.

Vandalism and Security

Echo Ridge Homes employs a Security company to patrol at night 365 days a year.

Shared Maintenance Responsibilities

Co-operative members usually have limited direct maintenance responsibilities. The co-operative association is responsible for major repairs, insurance, replacement of worn-out equipment, and upkeep of common grounds and facilities.

Vandalism and Security

Co-operatives are often structured to vigorously protect their member's homes and the co-op's property. Compared with rental properties, co-ops have reduced vandalism and abuse of property and have better security arrangements.