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Creation in Ukraine of a mechanism in which tenants will be able to choose a management company without the creation of an association of co-owners of apartment buildings (condominiums), can improve the situation in the sphere of housing and communal services. This opinion was expressed during a business breakfast on «Property management practice in Ukraine», held October 3 by Ukrainian Real Estate Club - branch organization of real estate market in Ukraine.
The creation in Ukraine of Condominiums Association solves the problem of selecting by tenants the company that will continue to provide management services to the building, hiring staff, etc., only partly. Today only about 24% of the housing stock is managed by condominiums and housing cooperatives. Further development of condominiums development is hampered not only by complicated scheme of registration but also inertia of Ukrainian apartment owners. According to experts, that is why is not expected to expect a sharp increase in this indicator in the coming years. However, the residential real estate market requires a certain tool for residents to leave the practice of mandatory cooperation with housing offices, or management companies, imposed by developers.
«At this stage is only developing editions and changes in the legislation, the purpose of which is to create a mechanism in which residents can choose a management company without creating condominiums. So far, if there is no created by home owners combining structure and the legal person, to change a serving, management company is necessary the consent of one hundred per cent of the residents of an apartment building, that in practice is almost impossible», - said Lina Nemchenko, a partner at the law firm Backer&McKenzie.
In this context Vladislav Kysil, a partner of the law firm KPD Consulting, the chairman of the Ukrainian Real Estate Club Legal Committee commented the issues raised in the following way: «The attraction of the management company to service the common property in apartment buildings (common areas, utilities, support structures, ensure the operation of the whole building) «directly» by the apartment owners in the current environment will inevitably be accompanied by a stalemate. Under current law no consent of the owner of one apartment will block decisions. The problem can be solved by incorporating the mechanism of civil law of «co-owners democracy». To make decisions about hiring a management company would be limited by a qualified majority, i.e. agreement of the two thirds of apartments in the house».
According to the specialists, providing management services to residential in Ukrainian reality, virtually doesn't make any profit, due to lack of enforcement of the existing mechanism of payment for utility services. Profitability of management companies in the residential sector is currently 12%, but as assure experts, it is very difficult to make them.
As noted by the event moderator Shelemekh Taras, Director of Rustler Property Services", a subsidiary of the Austrian Rustler Gruppe, «The proposed changes in the legislation of a mechanism is similar to a scheme operating in Europe. As a rule the apartment owners create there a formal association, condominium, without registration of a separate legal entity. However, the decisions of these boards are quite legitimate. If such changes will be adopted at the ministerial level, the new scheme will not only really improve the quality of housing services, but also to be a real breakthrough in the relationship between management companies and apartment owners».
If the owners will be given a legitimate opportunity to choose a management company without creating a condominium, the decisions on how to change the control structure can be taken by a simple majority at a general meeting of house residents.
«Company Rustler Property Services provides a full range of services for commercial, administrative and technical management of commercial real estate, but in the case of changes in the scheme of work with the owners of apartments, ready to significantly expand its activities in the sector of real estate. A similar experience we have, but that such a scheme already operating in Europe, the most suitable for the effective interaction, and increasing competition in the provision of utility services and, consequently, the quality of such services» - summed up the Director of Rustler Property Services.
Photo Report on the outcome event
Related links:
The role of management companies in the Ukrainian real estate market will grow | 12.10.2011
