Rising Costs for Apartment Building Management
Residents of multi-story apartment buildings may see their building management fees increase, even while a government price freeze is in effect for other utilities. This is because the official moratorium, which prohibits price hikes for communal services like heating, hot water, and gas, does not legally apply to building management, which is classified as a housing service. This distinction is a key point of confusion for many homeowners' associations.
Legal Methods for Increasing Fees
According to current legislation, there are two lawful ways for a building management fee to be raised:
- The first method requires a decision made by a general meeting of the building's co-owners. This decision is legal if it is supported by owners representing more than 50% of the building's total floor area.
- The second method allows for an automatic price adjustment if such a clause is stipulated in the management contract. For instance, this could be tied to increases in the minimum wage or electricity prices.
When the second method is invoked, the building manager is obligated to notify residents of the new price. This notification must be posted as an announcement in the building's entrance or on the back of a payment receipt. As Iryna Poliakova explained,
"A single word changes the classification, and there is no legal prohibition on adjusting its cost."She further added,
"All the manager is required to do is simply inform you of the new price via an announcement in the entranceway or on the back of your receipt."
Consequently, residents of apartment buildings should be aware that their management fees are subject to change, as they fall outside the scope of the government's utility price freeze.
Given this situation, it is crucial for residents to stay informed about their rights and responsibilities regarding multi-story building management. Since a fee increase can only be approved with majority support, active participation in general meetings and discussions is a vital part of protecting residents' interests. Simultaneously, managers should maintain transparency in their communications to prevent misunderstandings and conflicts with residents.
As residents grapple with potential increases in their building management fees, it is essential to recognize the broader context of rising utility costs. Many households are already feeling the financial strain from significant hikes in heating and electricity bills, which have been exacerbated by recent economic conditions. Understanding how these changes impact overall living expenses can help residents better prepare for the financial challenges ahead. For more information on the anticipated increases in utility rates, see our article on the expected rise in utility bills.