Private management

When we say the management and maintenance of the building, we mean the management and maintenance of common areas (staircase, common rooms, building environment, etc.) and common parts of the building (roof, facade, entrance door, common plumbing, sewage and electrical installations, etc.) , so this activity ends with the front door of an individual apartment, i.e. it does not apply to the apartments themselves, which are individually owned.

In order to understand the management and maintenance of the building, it is necessary to emphasize that we distinguish between three entities in this work:

  1. Owners of spaces (apartments) in the building (co-owners of the building)
  2. Authorized representative of co-owners (owners of premises (apartments) choose him through an inter-ownership agreement)
  3. The manager, which is a natural or legal person registered to perform management tasks, e.g. HEPP UND BERGER IMMOBILIEN d.o.o., (the owners (of the premises) of the apartments choose him through an inter-ownership agreement)

Therefore, the co-owners of the building by inter-ownership agreement (the MU proposal can be offered by Hepp und Berger Immobilien d.o.o. and can be found here.) determine, among other things: their authorized representative, the manager of the building, and in cooperation with the manager determine the amount of the monthly reserve per m2 of usable area of the apartment depending on the needs and condition of the building.

In order for the inter-owner agreement to be valid, it must be signed (certified) by the number of co-owners whose spaces (apartments) make up more than 50% of the total usable area of all spaces (apartments) in the building (the majority of co- ownership shares), then it is binding and for those co-owners of the building who could not or did not want to sign the MU. The selected authorized representative of the co-owner of the building then concludes a building management contract with the selected manager based on the agreed provisions of the inter-ownership contract.

The goal of the above is the beginning of the creation of a common building reserve fund from which common parts and spaces in the building will be maintained. The fund is filled by the individual payments of the co-owners, and the amount of each monthly reserve depends on the area of the individual apartment. For example if a reserve amount of €0.50 (HRK 3.77) is agreed upon, then the owner of a 50 m2 apartment would pay €25 (HRK 188.36) per month to the reserve account.

The amount of the reserve per square meter of the apartment is agreed depending on the condition and needs of the building, older buildings should pay more, and newer buildings should pay less. The upper amount of the reserve is not fixed, and the amount of the minimum reserve is determined by law and amounts to 0.41€/m2 (3.09 kn/m2) of the usable area of the apartment. The exact amount of the reserve required for the proper maintenance of the building over a multi-year period can be calculated using the building management program, which is created by the Manager (Hepp und Berger immobilien d.o.o.) in cooperation with the co-owners.

In addition to all of the above, it should be noted that the money collected by the co-owners of the building is stored in a special giro account of the building, which is exclusively owned by them and which they dispose of through their authorized representative and building manager.Regardless of the amount of the agreed reserve, the fixed management costs as well as the compensation to the Manager (Hepp und Berger Immobilien d.o.o.) are always the same. At the end of each year, all co-owners receive a financial report on the balance of their building's accounts to their personal addresses, and they can also check the same daily on our website.

Any necessary work on the building, the price of the work and the contractors are decided by the elected representative of the co-owner in cooperation with the Manager. If it is about larger works, the manager's duty is to conduct an invitation to tender, i.e. to collect min. three bids and, in cooperation with an authorized representative, choose the most favorable bidder from among the received bids. As for stimulating the work of co-owner representatives, there are two cases in practice. Namely, his work can be voluntary, and he can also be paid by the owners of the apartments, which is agreed in the inter-ownership contract. The compensation to the authorized representative of the co-owner is paid based on the agreement on the part.

The majority of jobs and activities are financed from the building's common reserve fund; something is defined by law, something by an inter-ownership agreement, and something is agreed upon between the authorized representative and the manager:

  • Building insurance (insurance against: fire, storm, lightning strike, flood, rupture of a water or sewage pipe, liability of the building towards third parties). Annual premium amount: approx.: €0.30/m2 (2.26 kn/m2) of the building's usable area - legal obligation
  • Dealing with emergency repairs and restoring the space to its original state in the event of a breakdown - a legal obligation
  • Payment of common staircase lighting
  • Cleaning the building
  • Procurement, installation and servicing of fire extinguishers (min. one per floor) – legal obligation
  • Pest control – legal obligation
  • Chimney sweeper – legal obligation
  • Elevator servicing – a legal obligation
  • Examination of the lightning protection installation - a legal obligation
  • Testing of the electrical installation - a legal obligation
  • Examination of the internal hydrant network - legal obligation
  • Testing emergency (panic) lighting - legal obligation
  • The possibility of crediting the necessary works: if it is necessary to carry out major works on the building, the price of which is higher than the balance on the building's account, then on the basis of the reserve, a dedicated loan can be taken out for the building, which will be repaid in the future from the funds of the common reserve. In order to obtain a loan, 60 percent consent of all apartment owners in the building is required, and the amount of the reserve must be adjusted according to the bank's conditions.
  • Building management costs, (regardless of the decided amount of the reserve, the costs are the same)

The building management system itself, i.e. the inter-ownership agreement, can also resolve the individual payment of consumed water on the basis of Vodovod invoices (if the building has a common water meter), although the individual consumption itself cannot be paid from the common reserve fund.

Main responsibilities of the manager:

  • opening a special giro account of the building and collecting payments,
  • collection of individual reserves (regular or forced)
  • recording of incoming and outgoing invoices,
  • organization of regular maintenance of common parts and devices in construction and functional condition,
  • collection of bids for major works on the building,
  • organization of payment for stair lighting,
  • risk insurance of common parts and devices,
  • taking out a loan to secure additional funds to cover building maintenance costs, based on the owner's decision,
  • representation of co-owners before the court and other state authorities in procedures arising from management, and others,
  • organization of repair of urgent defects in common parts of the building,
  • safeguarding the interests of all co-owners of the building,
  • warning about tasks that must be done for the functionality of the building, and others.
  • Creation of an annual or multi-year building management program, i.e. a proposal for the monthly amount of the reserve in order to properly function and maintain the building.

REGARDING THE ABOVE, FEEL FREE TO CONTACT US WITHOUT OBLIGATION AND IF YOU WANT TO, OUR EMPLOYEES WILL GUIDE YOU THROUGH THE ENTIRE PROCEDURE OF ESTABLISHING THE MANAGEMENT AND MAINTENANCE OF YOUR BUILDING.

Additionally:

THE MINIMUM HEIGHT OF THE BUILDING'S MONTHLY RESERVE IS REGULATED BY LAW:
The amount of the minimum amount of the common reserve is 0.54% of the reference price of construction for application in the Law on socially encouraged housing per year, so that today the minimum monthly amount of the reserve per square meter is:

HRK 6,800/m2 x 0.54% / 12 = HRK 3.06 (€0.41) / m2 per month

It is important to point out that the Manager has no right to impose the amount of the reserve, but only proposes it based on estimates of fixed and possible costs, and the reserve cannot be increased until it is accepted by the majority of the co-owners of the building!

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