What are the pros and cons of creating an HOA? Advantages and disadvantages in comparison table

You can find out how to create a partnership, in particular in an apartment building, register it with the tax authorities, enter into service agreements with the owners, as well as how to become a member of the partnership on our website. A sample application for joining this organization is available.

Description of HOA opportunities

The purpose of creating a legal entity is to give apartment owners the right to participate in the management process of apartment buildings. In addition to residents, economic entities can be participants in the partnership. The association of owners has the opportunity to use the following objects in its work:

• elevator cabins and shafts;
• corridors, staircases;
• non-residential part of the apartment building: basements, attics;
• other load-bearing and limiting structures;
• electrical appliances, plumbing equipment, and other devices located in the common area of ​​the house;
• local area.

Charter

The main document of the association of apartment owners in an apartment building is the Charter. To adopt it, you will need to organize a meeting of the owners of residential premises. The official paper must contain the following provisions:

• details of the legal entity being created;
• tasks of an economic entity (management of a residential building);
• types of permitted work;
• belonging to the partnership of non-residential parts of the house;
• the members of the board and the chairman of the HOA are indicated;
• responsibilities of the chairman and other founders;
• powers and obligations of participants, audit team;
• liquidation procedure, etc.

The Charter is adopted by a majority vote. Owners of real estate that disagree can put their claims in writing.

During the meeting, it is necessary to keep minutes, which subsequently, together with the Charter and other necessary documents, are transferred to the fiscal authority for registration of the legal entity.

Founders

The advantages of this form of partnership include the fact that the owners of real estate who have joined the HOA are the founders. But only the governing structure of the legal entity is included in the charter and other documentation for registration. This need is dictated by a large number of property owners in MKD. The founders are the owners of the residential premises in the house. They, like other residents, are interested in the quality management of apartment buildings.

Another advantage for members of the management board of a partnership is withdrawal from the governing body. To do this you need to write applications. The consent of the other founders is not required.

Among the disadvantages of changes in the composition of the founders, the fact that this fact will need to be registered with the fiscal authority stands out. The founders are included in the Unified State Register of Legal Entities.

Register of HOA members

This documentation contains a list of the members of the partnership. The register will also need to indicate contact information, using which you can find each member of the HOA. The advantage of the register is the data that allows you to determine the percentage of common property owned by each member of the partnership.

The register contains the following data:

• details of the partnership (name, address, TIN);
• date of registration;
• list of houses included in the HOA.

Responsibility

The management of the partnership is obliged to ensure:

• organizing and carrying out repairs and cleaning of local areas;
• ensuring cleanliness in the entrances;
• efficient use of space related to the property of the house;
• operation of facilities owned by a legal entity;
• providing the home with quality utilities.

For property owners, these types of association obligations are a plus.

Decision making in a partnership

To eliminate the problems of an apartment building, board members must call together as many residents as possible. At meetings, decisions regarding the management of the property are made by a large number of votes.

Issues affecting the management of the house cannot be decided without the participation of the other owners of the living space in the apartment building. This fact is a disadvantage for the founders of a legal entity.

The advantage of the decision-making procedure is the possibility of meeting in person and in absentia. Absentee voting refers to the use of a written voting method. The initiator will need to notify all property owners in the house. The message must contain information about the purpose of the meeting of owners, its place, date and time. Before the meeting, the initiators will need to prepare an agenda. It should contain issues that need to be resolved at the meeting.

Each meeting must be recorded. The official paper is endorsed by the chairman, secretary and initiator. Citizens who were unable to attend the meeting must be notified of the decisions made within 10 days. This fact can be called a plus.

Procedure for reporting to residents

Based on current legislative norms, the owners who are part of the management must periodically submit a report to the other participants of the partnership.

The frequency of the report is determined by the provisions of the statutory documentation. For example, a report by the chairman of the HOA for the year on the financial condition, costs, work performed, funds spent on repairs, etc. An advantage for the members of the association is that the board is obliged to report on the first request.

Problem 1. Land surveying of an apartment building

MKD land surveying can be carried out along the line of the house or with the addition of the adjacent territory. But today in Moscow and the Moscow region the queue for land surveying stretches for 8 years!

If the survey was successfully completed, the HOA owns all the attics and basements, the ground floor, the attic... All this can be rented out and receive additional profit. You can rent out space for advertising on the side of a building - again, profit.

But, as a rule, all the ground floors have long been purchased. All attic floors and basements are registered as state property of local authorities (or have already been sold to “third parties”), and the HOA members will not receive any profit from them...

Homeowners association functions

The powers and obligations of the association of owners are determined by the norms of housing legislation and the statutory documentation of the legal entity:

1. Registration of contractual relations with contractors. For example, concluding an energy supply agreement, cleaning the house, etc. This fact can be a plus if you choose a reliable service provider.
2. Control over the work of contractors providing any service to property owners. The advantage is that control is exercised by residents.
3. Monitor compliance with maintenance and operation requirements for residential buildings.
4. Making decisions about renovation work in the house. This can be a disadvantage if an incompetent citizen is chosen as chairman.
5. Respond to and comply with requests from residents of the house. For example, to an application to the HOA about leaks. If professionals are hired to carry out the work, then this function is one of the advantages of the association.
6. Approve and implement the project for the improvement of the apartment building and the adjacent area. If an incompetent person is chosen to be responsible for the acceptance and execution of the document, then the work will be performed poorly. This fact can be a disadvantage.
7. Monitor compliance with sanitary requirements for waste removal and cleanliness of the area near containers. Due to the fact that this can not always be done, this function can be classified as a disadvantage.
8. Arrange a parking lot and a playground for residents of the apartment building. It is worth choosing reliable contractors so as not to earn a minus in the evaluation of the work.
9. Issuance of necessary receipts and certificates to apartment owners.
10. Other obligations provided for by the provisions of the Charter.

Advantages of HOA

Opportunity to influence the policy of the management company

All important issues in the HOA are decided by the general meeting of premises owners. And if residents do not want to pay money for a marble entrance or other exotic features, no decision will be made. In most Moscow houses, especially old ones, the social composition of the residents is mixed: the neighbors of a large businessman may be a teacher and a janitor, and here everything will depend on who is in the majority. It is interesting that a person living in a condominium, but not a member of the HOA, does not participate in decision-making, but is obliged to obey them. Practice differs from theory: those who cannot pay do not pay, and those who can treat this with varying degrees of understanding.

The ability to reduce residents’ expenses due to the building’s reserves and the competent work of managers

An important advantage of an HOA is the right to conduct commercial activities. If the house has non-residential premises, the partnership has the right to rent them out. But this is the exception rather than the rule: usually all non-residential premises have owners. But as for the basements and upper technical floors, here the HOA can show its imagination and find a tenant. An advertising board can be placed on the blank facade or roof of a building. Income from this activity will also replenish the budget of the HOA.

The ability to choose a management company and control the quality of its work

The main task of the HOA is to ensure a decent level of operation of the building. And there are several ways to solve this problem:

1. If DEZ works well - a rare case - you can not change anything, but simply pay for its work.
2. The construction company created an operating organization. This usually happens in luxury buildings with complex utilities. The work of such an organization is usually well established, but it is not cheap. Wealthy residents are happy with this.
3. DEZ works unsatisfactorily. In this case, the HOA can renew contracts with contractors - either with the same ones with which DEZ worked, or with others whose quality of work and prices are satisfactory to the partnership.
4. You can try to solve all the problems with the help of the HOA and hire your own service personnel. Usually this method becomes a logical continuation of the previous one: the HOA refuses the services of contractors, leaving to third-party organizations only those works that are unprofitable to carry out themselves. Gradually, an operating organization is formed under the HOA, which can offer its services to other houses and earn additional funds for the HOA.

Clean, well-maintained entrance, well-groomed yard

It is these values ​​that should become the result of the work of the HOA. Intercom and concierge at the entrance, clean stairs, an elevator with a mirror, a children's playground and a lawn in the yard - all this affects not only the mood of the residents, but also the cost of apartments in the building. Of course, the activities of HOAs can significantly increase the market price of housing.

Despite the nominal support of the city authorities, the process of creating and developing HOAs is not going quickly. At the same time, alternative city and commercial management companies are developing, and in some places the work of public health services is improving. Most likely, HOAs will never completely replace city services - after all, the order in the yard and in the entrance, established by the city, does not contribute to the manifestation of the initiative of the tenant-owner.

Pros of creating an HOA

The advantages of this form of management of multi-apartment buildings are as follows:

1. Prompt action to solve problems at home after the vote;
2. Use of real estate and objects related to common property to generate profit and more efficient maintenance of apartment buildings;
3. Availability of control over financial expenses and profit making for each resident of the house;
4. Providing and paying for the services that a home needs, without imposing additional services (for example, in new buildings, homeowners pay for cleaning and garbage collection services);
5. Choice of utilities.

If the contractor does not fulfill his obligations properly, then you can enter into an agreement with another company.

Advantages

First, let's clarify - what is an HOA?

This is a non-profit organization created to manage a particular home.

It consists of the owners of square meters related to a given house.

In general, this is a legal entity with all the attendant rights and obligations. And like any legal entity, it can make profit .

So, what are the advantages of this method of management:

• business is allowed;
• all issues are decided at the meeting of owners;
• Any home owner can speak out and his opinion is guaranteed to be taken into account;
• residents can choose their own contractors;
• there is an opportunity to organize the work on your own;
• transparency of activities - any citizen, even not living in this house, can request the necessary information about activities and his request will be satisfied.

Find out from our articles about how absentee voting of owners is carried out, what membership, insurance and other fees should be used for, as well as what the procedure for adopting the charter of an HOA is.

Thus, it turns out that if there is such an organization, you don’t have to worry about the cleanliness of the lawns, the availability of playgrounds, or parking lots. All this will happen because it is aimed at the benefit of the apartment owners of this building.

Realtors have long noted a peculiarity - square meters in those houses where a homeowners' association rules are always more expensive.

Pros and cons of methods of managing an apartment building: comparison table.

Read about issues of reorganization, liquidation and bankruptcy of a partnership on our website.

Disadvantages of creating an HOA

The disadvantages of an HOA in an apartment building include:

1. A complex procedure for registering a legal entity, consisting of several steps.
2. Insufficient amount of equity capital to pay off emerging debts, which can provoke a conflict with contractors.
3. The association is a non-profit structure, which does not allow registration of ownership of real estate.
4. Responsibility of residents for decisions made of a financial nature: accounting, storage of documents, amount of membership fees.
5. Lack of strict liability measures for debtors and other violators.

Below is a comparative table of the advantages and disadvantages of the chosen form of management.

Feasibility of creating

Reference. An HOA is a form of property management established by law, in which all home owners are responsible for maintaining the home.

In order to create an HOA in which homeowners will incur fewer financial losses with greater operational efficiency than with another form of management, it is necessary to learn about the forms of government support and what this means for this self-government body. This, first of all, will determine how expedient the choice in favor of creating an HOA will be.

Support measures that an HOA can receive from the state:

• major repairs at the expense of the local or state budget;
• equal, in comparison with other forms of management, conditions for the maintenance and repair of residential premises;
• lenient lending conditions, up to paying part of the interest rate for the partnership.

In addition to government support, the feasibility of creating an HOA will depend on the efficiency of spending funds on maintaining the premises. Often, an incompetent or not very honest manager may spend money for other purposes; in this case, it will be necessary to hold a meeting of the audit commission and, in case of discrepancy, hold a meeting to change the manager.

To calculate how profitable it will be to create a self-government body, you need to determine what the costs of each member of the partnership are for maintaining the house and paying salaries to employees, depending on the area of ​​the common property.

The feasibility of creating an HOA can be calculated using the formula given in the table:

In this formula, BSO is the burden of maintenance and service.

This formula is universal and allows you to calculate the feasibility of creating an HOA. The lower the BSO coefficient, the more profitable the creation of this self-government body will be.

Our website explains all the nuances of creating a partnership. Read about what legal type the HOA is, who the founders of the organization are, as well as how to draw up a charter, open a personal and current account, and register the HOA with the tax and state information systems.

HOA legislation

The main regulatory legal acts that relate to the activities of the association of apartment owners are:

• Article 135 of the housing legislation, which provides clarification regarding the obligations of the partnership and its members;
• the provisions of Article 123.13 of the Civil Code, distributing the rights to use common property;
• Federal Law of the Russian Federation No. 129 on registration, which defines the list of documents for carrying out the procedure;
• government acts relating to public utilities and the provision of housing services;
• provisions of the Criminal and Administrative Codes that determine the amount of penalties for violation of requirements for the maintenance and management of apartment buildings.

About the meeting of HOA members

All issues related to the management of apartment buildings in the HOA fall within the competence of the general meeting of the HOA members, the HOA board is the executive body, and, please note, the meeting of the HOA members is valid if members of the HOA with more than 50% of the votes took part in it. Owners of apartment buildings are not required to be members of the HOA; they become members of the HOA only upon application. Just imagine how much work needs to be done to organize this most competent general meeting of HOA members.

If in the management company you can simply order a register of owners that is current on the date of the meeting, then in the HOA you still need to make a selection of members and non-members of the HOA and notify them properly. Therefore, the argument that the undoubted advantage of the HOA is literally that “important decisions are made as soon as possible at a meeting of owners” is very doubtful, especially about the shortest possible time.

Another conclusion from the Internet about the advantages of HOAs is that “the board can receive additional income for general purposes by renting out premises and placing advertising on the facades.” Again a misconception.

The board can, but if it is authorized to do so by the general meeting of HOA members, the board is only an executive body, see Art. 145, 147, 152 Housing Code of the Russian Federation. And why can’t the management company do this if it is authorized by the general meeting of owners of an apartment building? Let's look again at the Housing Code of the Russian Federation, Part 4, Art. 36, by decision of the owners of premises in an apartment building, adopted at a general meeting of such owners, common property in an apartment building can be transferred for use to other persons if this does not violate the rights and legitimate interests of citizens and legal entities. From the provisions of clause 3.1 of Art. 44 of the Housing Code of the Russian Federation it follows that the general meeting of owners of premises in an apartment building makes a decision on identifying persons who, on behalf of the owners of premises, are authorized to conclude agreements on the use of common property in an apartment building on the terms determined by the decision of the general meeting. We also read the ruling of the Supreme Arbitration Court of the Russian Federation dated April 10, 2013 No. VAS-1417/13.

So what is the distinguishing advantage of an HOA? Here the rights are equal for both the management company and the HOA, but we look above about holding a general meeting of HOA members and draw conclusions whether this is a plus at all.

Exit from the HOA with one or more apartments

If there is a misunderstanding with the governing body or for other reasons, property owners may leave the partnership. Moreover, even one apartment can choose another management organization. This will require certain actions:

• repay debts incurred to the partnership for utilities and membership fees;
• draw up a resignation letter addressed to the chairman of the association.

The petition is drawn up in free form, since there is no legally established form. The reason for withdrawal may not be indicated in the document.

If at the time of leaving the association the applicant has an outstanding debt, then the legal entity will collect it by any legal means. Including through the courts. This fact can be attributed to the disadvantages of the partnership.

If more than half of the citizens who have ownership rights in an apartment building vote to leave the association managing the building at a meeting, then the legal entity is subject to liquidation. In this case, you should prepare for a long procedure. Liquidation of a legal entity is one of the disadvantages of the chosen form.

Before closing, you must comply with the legal requirements regarding the liquidation of legal entities. It is necessary to pay off existing debts, close accounts, and submit the necessary reports. The closure procedure must be reflected in the statutory documentation. It is also worth adhering to the provisions of the Housing Code of the Russian Federation.

If the entire house is dissatisfied with the activities of the managing association, then it will be necessary to select several citizens who will collect evidence to justify the reasons for leaving. Next, those interested must fill out an application. The number of applicants is at least half of those living in the house. To join the new organization, residents will also need to draw up a corresponding application.

Consulting housing and communal services/homeowners association/residential property management

It would seem that the Housing Code of the Russian Federation introduced a new legal institution for the management of an apartment building by the owners of the apartment building. Before the introduction of the institution of management of an apartment building, there was a maintenance and repair function assigned to the state and the municipality, and was aimed only at maintaining the current condition of residential real estate, thereby not meeting the needs of the residential real estate market.

A new approach to residential property management is aimed at preserving and increasing the value of residential property through an integrated approach to managing and improving the quality characteristics of housing and utility services provided in houses and in the local area.

But what do we actually have? It is impossible to attract professionals to manage HOAs due to the lack of an incentive system in this area of ​​residential property management. The very concept of “management” is not independent, but is part of the concept of “ maintenance and repair of the common property of an apartment building ”, therefore there is no clear division between management and maintenance (repair) services. The Housing Code of the Russian Federation does not provide a complete description of the entire system and cycles of residential real estate management. The lack of standards defining the life cycles of residential real estate does not allow us to determine the necessary activities in the field of residential real estate management that could be controlled. The entry of unprofessional managers into the market, as practice shows, significantly reduces the operational life cycle of real estate and increases social tension in society

on the housing and communal services that are not capable of professionally, that is, providing high-quality and in the required volumes, housing and communal services to owners of apartment buildings. Owners do not have the opportunity to obtain the necessary information about these organizations from local government bodies, thus they cannot ensure their protection from unscrupulous service providers. Decree of the Government of the Russian Federation No. 731 of September 23, 2010 , designed to correct this situation, is either not implemented by many management organizations at all or is not implemented in full.

When managing a house through an HOA/housing cooperative , a number of problems arise caused by the approved postulates of legislative acts at various levels.

There are many violations associated with the creation and transfer of management of an apartment building to an HOA . Developers of an apartment building at the construction stage register an HOA (including when the developer has a majority of votes) and thereby introduce a monopoly on the operation and maintenance of an apartment building for shareholders and owners. The HOA becomes the de facto operating organization for the period of acceptance of the house into operation and the period of warranty repairs from the developer after commissioning, which is unacceptable, since the object is actually transferred to one person, and deficiencies identified during the warranty period of operation are hidden from the owners in order to not elimination.

The management organization becomes the object of purchase and sale for the resulting debts of the population for utilities. Resource supply organizations, by purchasing the management organization, receive an instrument to cover all their losses in the course of providing utility services.

The nature of the formation of debts for utility services is determined only by the existing relations between the management organization and the resource supplying organization . Thus, the management organization (HOA) receives payments from consumers for utility services according to tariffs and consumption standards, and settles payments with resource-supplying organizations according to the consumption calculation methods established by the contract. The management organization (HOA) actually cannot change the methods due to the agreement of accession of the natural monopoly. As a result, a delta arises that is not covered by charges directly from consumers. And this is despite the fact that paragraph 2 of the Resolution of the Plenum of the Supreme Arbitration Court of the Russian Federation dated October 5, 2007 No. 57 states that the HOA is not an economic entity with independent economic interests different from the interests of the HOA members . The corresponding obligations of the HOA to organizations directly providing services (performing work) cannot be greater than if these organizations conclude direct contracts with residents - members of the HOA, and therefore, when selling services at regulated prices (tariffs) (for example, services for energy supply) the HOA pays for such services intended for residents at tariffs approved for the population, and not for legal entities. Arbitration courts apply this conclusion in practice and in relation to management organizations. The Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation dated July 27, 2010 No. 3779/10 states that after the entry into force of the Rules for the provision of utility services, the provider of such services has the right to pay the RSO at the tariff established in accordance with the legislation of the Russian Federation and used to calculate the amount of payment for utility services.

Homeowners' associations and housing cooperatives cannot ensure the quality of the provided utilities at the entrance to the house, for which the resource supplying organization should actually be responsible, but when concluding an agreement they are forced to enter into an agreement on terms that do not allow them to ensure the quality of the provided utilities at the entrance to the house, this is simply enshrined Legislation is behind them!

In the field of residential property management, sources of income and profit have not been identified that could properly motivate the development of an organization or enterprise in the field of residential property management.

The management organization (HOA) provides housing and utility services to owners (tenants). Housing services include maintenance, repair of common property in an apartment building and management services. This cost of services provides for the profitability (profit) of the management organization (in the total volume of housing and communal services it is approximately 20-40%). The management organization is obliged to provide utilities directly, that is, purchase the resource from the resource supplying organization and transfer it (without selling) to the owners (tenants). The management organization (HOA) does not have the ability to change the quality and volume of the resource supplied to the house, that is, to improve (change) its characteristics, so we can conclude: the management organization acts as an intermediary without payment from the owners (tenants). In fact, a situation arises when the resource supplying organization is not directly responsible to consumers for utility services, and the management organization (HOA) cannot influence changes in the quality and volume of the supplied resource . The volume of utilities in the total amount is 60-80%. The average amount of non-payments for housing and communal services is 5-7%. If in a housing service it is possible to provide for the risks of non-payments by consumers due to management costs, then in the sale of utility services the risks of non-payments cannot be foreseen, therefore the risks of utility payments are compensated at the expense of housing services (cross-subsidization arises) on an irrevocable basis, entailing the management organization (HOA, housing cooperative ) to bankruptcy. First of all, owners who suffer from this scheme do not receive additional housing services due to non-payers. The state tariff policy does not provide for a premium for the “sale” of utilities (utility resources) to consumers through management organizations, homeowners' associations, which sharply reduces the motivation for providing utilities to consumers and contributes to financial violations in the fulfillment of contractual obligations to resource-supplying organizations. And at the same time, the difference between the managing organization of an HOA and a commercial organization created for the purpose of making a profit is not defined by law. And most importantly, the HOA/housing cooperative is constantly equated in obligations with the MA, while the HOA, STRICTLY SPEAKING, is not a MA, but is a representative of the owners of an apartment building (MKD) in which representation is based on the requirements of the law, and the HOA - this is a representative of the owners of the apartment building, which manages the property of the principal without making a profit, since it was created by the owners of the apartment building themselves for the joint management of the property of the apartment building (Article 135 of the Housing Code of the Russian Federation) on a non-contractual basis, since the management body of the HOA is the owners of the apartment building themselves. For some reason, this main difference from management companies created for the purpose of making a profit from their activities is not taken into account by our legislation. The homeowners' association carries out free management of apartment buildings (without making a profit), within the scope of membership fees (mandatory payments), as evidenced by the huge difference in the taxation of the management company and the homeowners' association . But the Legislation (for example, No. 354 RF PP) equalizes all management structures, and does not make any difference between the form of management of an apartment building.

Housing legislation does not contain a procedure for transferring management from one manager to another. There is no institution that would take on the role of arbitrator in the event of disagreements during the transfer of powers and documentation.

There are no strict sanctions associated with the owner’s refusal to bear the burden of maintaining the common property of an apartment building and paying mandatory payments for housing and communal services, refusal to participate in the general meeting and decision-making, for damage to the common property as a result of improper operation or illegal redevelopment of residential premises , apartments. Formally, control over this is entrusted to the Housing Inspectorates, but informally? Those same HOAs/housing cooperatives turn out to be extreme , and the strictest sanctions are applied to them, up to and including refusal to accept the house as ready for autumn-winter use. Seeking protection in our courts is a thankless task.

There is another and important problem, communication . Today, citizens receive information that is not adapted for perception and obtaining an objective conclusion about the actions of the subject of management in spending funds, performing work, as well as planning for property management. The majority of citizens are focused on obtaining information from the media, TV programs, which are not controlled in this area. The lack of reliable information about the management of their property and the provision of housing and communal services gives rise to justified indignation among citizens . Who turns out to be the extreme in this whole string of imperfections in the legislative and information space? We are the ones who run the house! The social problem associated with the lack of truthful and accurate information forms among citizens a negative attitude towards the management of their residential real estate and towards housing and communal services in general.

I have listed only a small fraction of the problems when managing a house through an HOA/housing association , but the main thing is that the Institute for Monitoring Residential Real Estate has not yet become mandatory for management. There are no requirements, standards and indicators for monitoring residential real estate that will make it possible to predict the life cycles of residential real estate , and perhaps it is necessary to start with the development of these standards, and only then develop rules and standards for the management, maintenance and repair of residential real estate.

It is impossible to achieve a steadily developing sphere of professional management of residential real estate without making fundamental changes in legislation and regulations, as well as introducing measures to stimulate the development of professional management of residential real estate, both through HOAs/housing cooperatives and through Management Organizations created for the purpose of making a profit.

Olga Perminova, Independent Expert, Legal consulting agency "Solar House"

Sources used to create the material: https://souzpotrebitely.livejournal.com https://minregion.ru/

Choosing a different form of management for an apartment building

Property owners can independently manage a house if it has several apartments. This procedure will require the execution of a power of attorney by each owner of the living space. The disadvantage of this form of management is that the activist must have certain knowledge and the ability to make the right decisions. Difficulties may arise during repair work.

Owners can organize a new HOA. One house can be managed by one partnership.

Residents can also entrust the management of the house to a licensed management organization. Owners do not have to think about finding contractors and quality of services. The Criminal Code is responsible for this. The organization managing the apartment building is selected based on the results of a competition. An agreement for the provision of utility services will be concluded with each apartment owner.

What is the best way to manage an apartment building?

Homeowners' association: a relic of past times or still a relevant form of management of suburban areas?

The homeowners' association allows you to elect a chairman and, with his input, organize cleaning of the territory, landscaping, repair of communications and many other issues.

On the one hand, this is convenient, but on the other, this form of service has its drawbacks, since you need to separately hire specialists for landscaping, technical support, work on organizing places for children’s leisure - all this results in an exorbitant price. Practice shows that in the case of servicing the village by an HOA, homeowners are forced to pay significantly more monthly compared to the option of a management company.

Yes, in past times it was convenient, in particular, when servicing summer cottages, when, in principle, fairly simple work was required to support the territories of the gardening partnership.

However, modern business and elite class cottage villages, the territory of which is landscaped according to completely different parameters and the latest technologies are used, may be too tough for third-party organizations without the proper experience, and lead to dire consequences.

In addition, with an HOA, much attention should be paid to the financial side of the issue. The quality of work and the efficiency of spending the village budget depend on who people choose as chairman.

How good the HOA chairman is usually shows time and results of work. With this form of servicing territories, the human factor, honesty and decency are important.