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It also mentions that during covid there were co-ops that went bankrupt. But they don't mention what the mechanism for that was- mismanagement?
by awongh 1y ago
It also mentions that during covid there were co-ops that went bankrupt. But they don't mention what the mechanism for that was- mismanagement?
- owenversteeg 1y agoI don't have any specific knowledge of Swiss co-ops, but I'd imagine it's some of the same reasons as other co-op buildings elsewhere: economic crash means residents can't pay rent or fees, improper budgeting for large future expenses that eventually come due, or poor construction or new safety requirements cause a huge expense. In Florida right now, in the wake of the Surfside disaster, a lot of condos are struggling with solvency because of the cost of the new safety requirements. Then there is always new technology (asbestos, aluminum wiring, spray foam insulation, polyurethane cladding) that will one day have to be remediated. Then there is climate change. I think the key is good management and good construction. Unfortunately, both of those things are very opaque for your average person.