March 16, 2022

Apartment building management

In world practice, professional activity in the management of residential real estate is understood as any actions of a managing company (or a managing individual entrepreneur) in relation to a real estate, aimed at achieving the goals formulated by the owner of the real estate.⠀

In most countries (Turkey, the Netherlands, the USA, Canada, Poland, the Czech Republic, Mexico), the management of multi-apartment buildings is considered as a type of business (the manager or management company receives remuneration from the owners of the premises). Moreover, the association (condominium) is responsible to the owners for the maintenance of the apartment building. All major management decisions are made by the management of the association (condominium).⠀

In contrast to our country, in many countries of Europe and America, insurance by the managing company (manager) of their civil and material liability in case of damage to the owners of an apartment building is actively developed. The presence of insurance increases the competitiveness of managing company (managers). In addition, the rating rises due to the presence of certificates confirming professionalism, experience and stability. ⠀

So, for example, if we consider Germany, then the manager is required to have a higher education and the qualifications of a social worker, engineer, economist or lawyer. He must also be able to negotiate, resolve conflicts, be sociable and stress-resistant. ⠀

A similar situation is in Hungary - there, according to the law, only a person who has undergone professional training or completed special courses can be a manager. ⠀

Let’s consider the experience of Poland, which, among the first of the states of the former socialist camp, switched to management in the field of housing and utility services, creating a joint-stock company with 100% state or city capital. All types of public services were combined into a single company that carried out all economic and technological processes. The main tasks set by Poland are to provide quality services and ensure the reliable functioning of all facilities. The holding is a joint-stock company, but its shares are not sold on the open market, but are 100% owned by the state. Also in Poland, the system of benefits, subsidies, loans is being worked out very well, which leads to the absence of such a problem as non-payment for services.

Tenant associations are well developed in Sweden. They have their own headquarters, branches at the regional and local levels. Some of these associations number in the hundreds of thousands, forcing the government to reckon with their opinion. They monitor the quality and prices of the public services provided, protect their rights, and negotiate with the authorities. Also an interesting phenomenon in Sweden is the presence of the Housing Court. Claims to organizations in the field of housing and utility services from ordinary residents there are usual and regular.

Most countries in the management of apartment buildings follow two main principles: facility-oriented and client-oriented.

The principle of facility orientation is expressed in the fact that the management of each apartment building is carried out as a separate facility, taking into account its characteristics and qualities.

The principle of customer orientation aims to satisfy the needs of homeowners as customers.

Also in Europe, two models are often used to reduce utility bills: “discounts” and “depreciation”. "Discounts" means a choice of those services that residents need. In accordance with the selected services, the rent is calculated. "Depreciation" implies the dependence of the fee on the care and concerns you have for your home. The more careful you are, the less you pay.

The experience of foreign countries shows that the most profitable and effective way of management is the creation of a homeowners association, which takes responsibility for decision-making, and the executive part is entrusted to the management company. From my point of view, this approach will be the most optimal for us. However, in our country, most of the owners prefer to entrust the task of managing their property entirely to the managing company.