is one of the basic human needs and simultaneously represents a tool for social, economic, and personal development. Therefore, the reform of housing and utilities is a vital necessity. Housing for a person is a basic condition for existence, which gives the housing sector particular social significance and places housing reform among the top priorities of government policy.
When we speak of managing an apartment building, we refer to managing three key areas: common property, apartments and their individual owners. Managing the common property is often the easiest part, but it becomes manageable only when the systems for the other two areas are well established. For instance, it’s difficult to adjust the heating system in the building if the systems in the individual apartments are not functioning properly. It’s impossible to understand why the plumbing keeps getting clogged until you find out who is dumping inappropriate waste into the system. It’s hard to plan necessary work when you don’t have a complete picture of the condition of the common property within the apartments themselves. Managing common property is very challenging without clear decisions from the owners about what exactly needs to be done. While there is a minimal list of tasks and services for maintaining the common property, this list typically only specifies the types of work without detailing their costs.
One effective framework for managing an apartment building is the Shuhart-Deming cycle (PDCA), which focuses on planning, implementation, control, and coordination for continuous improvement. The cycle begins with planning, which involves setting objectives and determining the processes necessary to achieve results according to legal requirements and the terms of the property management contract. This is followed by organizing or carrying out the processes, ensuring proper execution of tasks. The control phase involves monitoring and measuring the performance of processes and the results of services to ensure they comply with legal standards and contract terms. The final stage is coordination, or corrective action, which focuses on actions to improve processes continuously.
The first step in managing an apartment building should be a thorough inspection. Only through a proper visual inspection, and sometimes with the aid of tools, can you compile a list of the necessary tasks to be performed in the building. After this initial assessment, you can add mandatory tasks to the list, calculate the total cost of these tasks, and begin managing the property.
The process of managing an apartment building is cyclical, meaning most tasks are performed periodically. These tasks can be neatly integrated into a calendar schedule, and their costs can be estimated in financial terms. The expenses for maintaining common property will generally remain constant throughout the year, evenly distributed over 12 months.
One-off tasks, such as repairs in specific areas, are better planned separately. These tasks require individual cost assessments, as their expenses are variable and depend on the scope of the work to be done. Work plans should be based on inspections conducted in the fall and spring.
The list of tasks that must be performed as one-time operations should be as comprehensive as possible. Afterward, depending on the management goals, a specific list of tasks can be proposed to the property owners for approval.
Depending on the types of work needed in a particular apartment building, both project-based and process-based management approaches can be applied. The process-based approach is ideal for periodic tasks and routine operations, such as handling residents’ requests, responding to them, and similar administrative tasks. Meanwhile, the project-based approach is more suitable for one-time tasks, such as repairs, reconstruction, or improvements to elements of the building, as well as enhancing certain processes.
In conclusion, effective management of an apartment building should always begin with a thorough inspection of the common property and the creation of detailed work plans, including assigning responsible parties and setting deadlines for completion. If there is a lack of expertise in identifying the “weak points” of the common property, it is wise to involve subcontractors. It’s better to invest at the start rather than end up with an unclear situation later on, similar to the case of an inconvenient suitcase – difficult to carry and hard to leave behind.
1. Where to start? (What is needed to open a service company) Is it possible to make property management a profitable business? What can the income be?
When creating a service company, many entrepreneurs often overlook the importance of strategic planning and business structure. The main motivation usually comes from the desire to quickly launch the process, enter the market, and start earning. However, as practice shows, the “let’s earn first and think later” approach rarely yields the expected results. The long-term success of a business requires a systematic approach, thoughtful management, and thorough preparation at every stage.
Nevertheless, a service company not only has the potential to generate profits but can also become a stable and profitable business. Such a company can provide its employees with opportunities for professional growth, generate steady income for its shareholders, and build a reputation as a reliable partner in its industry. However, achieving these goals requires consistent effort, constant attention to detail, and persistence in the pursuit of objectives.
Opening a property management or service company is a complex and multi-step process. It begins with the stage of careful planning, which forms the foundation for further actions. At the forefront is the development of a business plan – a key document that will define the company’s future activities. This document is not merely a formality; it becomes a kind of roadmap, outlining the company’s main objectives, development strategy, business structure, market analysis, financial forecasts, and proposed marketing steps. The business plan helps identify potential risks, the resources required, and how to establish competitive advantages.
Once the business plan is finalized, the next important step is choosing the legal form of the company. This could be individual entrepreneurship, a limited liability partnership (LLP), or a joint-stock company (JSC), with the choice depending on the nature of the business, local legislative norms, and the scale of the project. At this stage, the company must be registered with the relevant government authorities, obtain a legal address, open a bank account, and create a company seal. It is also crucial to ensure that all necessary licenses and permits are obtained to commence operations. The right choice of ownership structure and the proper handling of all documentation will lay the foundation for a successful company launch and minimize the risks of legal and financial problems in the future.
Preparing financial resources is another critically important stage on the path to creating a successful company. To get started, a carefully thought-out budget will be required to cover both the expenses of setting up the company and the operational costs for the first few months. These expenses include office rent, renovation of the premises, the purchase of furniture and equipment, the implementation of software, and employee salaries. Additionally, there may be marketing and promotional costs to help the company enter the market and attract its first clients. Funding sources can include personal funds, investments, partnerships, or bank loans. From the outset, it is also important to implement accounting and financial control systems to ensure transparency in operations and avoid financial difficulties in the future.
The preparatory stages do not end with financial considerations alone. For the company to function effectively, a reliable infrastructure is essential. This encompasses the rental of office space that will represent the face of the company. The selection of the right location and the creation of a comfortable environment are important aspects that shape the first impression for clients. The office should be convenient for visits, functional, and aesthetically pleasing. It is important to consider including a waiting area, a customer service zone, and possibly even a children’s corner, which will enhance the company’s client-centric approach.
Thus,
