Living conditions in an apartment building, where heating, gas, water, light, are, of course, very comfortable compared to your own house, where you have to think about all this. But at the same time, in order for the pleasure to be complete, the services provided must be monitored and properly managed. For this, apartment owners have the right to choose the most convenient form of government for them. In our article today, we will try to find out: HOA or management company - which is better.
Management Company
This organization is a legal entity or an individual entrepreneur, managing MKD. This is an entrepreneurial organization, which means its goal is to profit.
The main document according to which the activity is carried out is a management contract concluded with more than 50% of the owners of the house. The percentage is set by calculating the area, not the number of owners.
The functions of the Criminal Code are to ensure the repair and maintenance of houses, in accordance with the requirements of technical regulations. In this case, the owners have the right:
- to receive information of interest to them within five business days after treatment;
- information on the scope, list and quality of services provided;
- check the performance of work;
- demand the elimination of defects and monitor the completeness of the service provided;
- from the first quarter to receive a report on the work performed from the managing organization.
On the other hand, the management company does not intend to lower the cost of servicing the house. In addition, its financial activities are not always transparent to residents, although the latter are rarely interested in this. Moreover, this company has a lot more employees than HOAs. Accordingly, they will spend more on wages. Therefore, residents have a legitimate question about what is more profitable - HOA or management company.
HOA
In one house there can be only one HOA. But one HOA can combine several houses. So, let's figure it out, HOA or management company: what is the difference?
To begin with, HOA is a non-profit organization created in accordance with the norms of the Housing Code of the Russian Federation. The meeting approved the Charter of the organization. Governing bodies are both board members (who are elected for a term of not more than two years) and the general meeting. The financial plan for the year can be approved only at the general meeting. A report on its implementation is provided to the Audit Commission. And the HOA management reports to the general meeting.
If the costs are allocated correctly, funds will be collected when necessary. HOA financial activities are more transparent. After all, every resident can influence decisions on improvement. Without intermediaries between tenants and the contractor, deficiencies will be eliminated at a lower cost. On the other hand, some one-time jobs can be more expensive. Therefore, apartment owners will benefit only if the HOA management consists of truly competent and caring people.
Management company or HOA: pros and cons
Proponents of the Criminal Code believe that the main advantage of their work is that they reckon with the opinion of all owners living in the house. So, at least, the management companies themselves say, although it is hard to believe in this. At the same time, experts unequivocally speak in favor of the Criminal Code in the sense that their services can be refused at any time if there are complaints about poor-quality service. But the elimination of HOA will take more time.
On the other hand, it is difficult for residents to get specific information about the organizations themselves, although the law requires the latter to do so. Taking into account the fact that the Criminal Code is a commercial organization, that is, one whose main goal is to make a profit, giving them full control is disadvantageous.
So what to choose - HOA or management company?
Optimal form of government
Most experts agree that the best today is a mixed form of government. That is, it is not HOA or UK, but HOA and UK. The partnership of homeowners concludes a service agreement with the management company. Then all residents will know where the funds go. In addition, each of them has the right to ask for a report from the chairman, and the latter must report. HOA can also dispose of house property at its sole discretion, as well as place billboards on the facades of the building.
Create HOA
So, if you had a choice: HOA or a management company, and you decided to create a HOA, to organize it you need to take a number of next steps.
An initiative group is being created from among the owners of residential premises of an apartment building. The initiator can be any resident. But for informational, organizational and campaigning to be successful, you need to recruit as many people that will pull all the work.
Informing people about the essence of HOA
Next is the legal and informational education of people by the initiative group. At this stage, you need to be able to easily answer the question of whether HOA or the management company - which is better. And also to convince everyone of the benefits of the first option.
The answer here is contained in the legal form of the company: if the UK is a commercial organization, then the HOA is non-profit. It turns out that the goals of the first are, first and foremost, profit-making, and the other is the solution of social, legal, managerial and similar tasks.
In addition, in the Criminal Code, the funds received are distributed according to the established procedure. But in the HOA - by decision of the meeting of its members.
Homeowners associations may also engage in entrepreneurial activity, however, it is in the Criminal Code that it is the main type.
The profit received is distributed among the founders in the Criminal Code, and in the HOA it goes to the implementation of the statutory goals.
Work with people and staff recruitment
The next step is the preparatory work to create an organization. For this:
- a register of owners is being drawn up;
- the address of the HOA is determined;
- The Charter is being prepared;
- look for candidates for the chairman, members of the board, the audit and counting commissions, the chairman and secretary of the meeting;
- prepare bulletins;
- notify of the meeting at least 10 days in advance;
- in the same period send this notification to the MLA.
HOA creation meeting
The following is a general meeting. For legitimacy, more than 50% of the tenants who own the apartments of the house should be present. The following issues are resolved at the meeting:
- selection of the chairman and secretary of the meeting;
- counting commission;
- about the management method;
- The Charter is approved;
- elect a chairman and other persons;
- a representative of owners of HOA is appointed;
- choose a place where the information will be placed;
- choose a place to store documents.
Other issues may also be addressed, depending on the needs of the home. However, if it was not possible to gather the tenants at the general meeting, an absentee ballot is announced. For this, ballots are prepared, and each of the owners votes.
Finishing organizational work
After the voting, documents are drawn up, which include:
- list of owners;
- protocol of the counting commission;
- minutes of the general meeting.
HOA is registered. For this, a tax application is submitted with annexes (minutes of the meeting, charter, information on voters, a receipt with paid state duty).
It is necessary to register with the statistical authorities, the PF, the Social Insurance Fund, the medical fund and make a seal.
After that, you can start work by notifying interested parties about its beginning. For the organization you need:
- get technical documentation;
- draw up a register of property, examine it and draw up an appropriate act;
- to study the rules for providing the public with public services ;
- to study the rules for the provision of housing services;
- with the direct management of the HOA, it is necessary to conclude agreements with resource supply organizations, as well as determine the organization with which the cash flow will be recorded;
- and if management is carried out through the Criminal Code, then the HOA concludes an agreement with them.
And yet: HOA or management company - which is better?
Which form of management to choose is for residents to decide. But recently, more and more often they are inclined toward a joint form of government. On the one hand, there are often cases when in the HOA with direct control, the opinion of residents is replaced by the opinion of one chairman.
On the other hand, a person competent in technical matters is not always elected as the chairman. But in the management companies are specialists who often know better what is necessary for the house at one time or another.
Conclusion
Having considered the issue (HOA or the management company - which is better?) And deciding in favor of one or another option, residents should understand that no form of organization can be truly effective if the residents themselves do not participate in the management process. When they remain indifferent, do not attend meetings and are not interested in current issues, the HOA organization often falls into disrepair, and the management company sometimes overstates the cost of its services.
Therefore, for the best functioning of the house, first and foremost, caring owners are important, who must understand that management comes from them, regardless of the chosen form, whether it is an HOA or a management company. It is then that things in the house will flourish, and the residents will be happy and happy to live in it.