The difference between an HOA and a management company: what is the significant difference between them, benefits and pitfalls,

Living in an apartment building requires apartment owners to take care not only of their personal property, but also of common house property.

Also, from time to time it is necessary to resolve issues of repair and maintenance of the house as a whole, relationships with the management company or other organization that provides maintenance.

For convenience, one of the management methods should be chosen, it can be a management company or a homeowners association. HOA - what is it, the pros and cons of this method of managing life at home, the advantages over the company?

Information must be obtained before one of the control methods is selected. The difference between the HOA and the management company mainly lies in the way of doing business, but both methods can be quite effective and fruitful if you show responsibility and professionalism.

HOA functions

First you need to find out what the HOA does, what powers and rights this form of home management organization has. The homeowners association is an association of residents of MKD on a non-profit basis. This is the answer to the question of those residents who want to know if the partnership is a commercial organization or not.

The HOA is assigned a legal status, since this organization will manage the funds received from the residents.

The association of apartment owners in the HOA takes place in full accordance with the standards of the Housing Code of the Russian Federation. Such an organization, what you need to know, can unite not only apartment owners, but also owners of land plots that are located next to the MKD.

ATTENTION! The main objective of the association is a high-quality and efficient economic activity in the territory that belongs to all homeowners, is common. The object of management of the HOA is common house property.

List of common property

• Attics.
• Entrances in an apartment building.
• Technical buildings.
• Parkings.
• Boiler rooms.
• Land plots that are located near the house.

A homeowners' association (HOA) is organized only with the consent of more than half of the tenants, "for" when voting should be at least 51%. There must be a notarized document confirming the intention to create the Partnership based on the results of the vote of the residents.

Based on this document, a standard application is submitted to local authorities. To organize the activities of the HOA, a Chairman, a board of directors is elected, whose powers include the regulation of issues related to the maintenance, maintenance of housing, the installation or change of tariffs. The creation of an HOA, according to the Housing Code, may be limited due to the square footage and the number of apartments of the owners.

Management Company

Residents of an apartment building can manage the life of an MKD with the help of an HOA and a management company, what is the difference between these forms of management? The question of the creation and tasks of the HOA has been considered, now it is necessary to figure out what the management companies do?

IMPORTANT! A UK is a legal entity whose activity is the correct operation and maintenance, maintenance of one or more apartment buildings.

Such an organization constantly works with utility providers and ensures a regular, stable supply of natural resources to the apartments of its clients. The company can serve several housing facilities, have capital. If apartment owners owe suppliers for utilities, the management company can cover debts from its reserve so that the supply of electricity, water, and gas does not stop.

The activities of the Management Company are subject to Russian legislation and the Charter. Residents can choose such house management on their own initiative, deciding that it is better than an HOA or other management method.

Differences in the comparison table

The main difference between the Criminal Code and the HOA is the number of objects under control and the form of organization. The homeowners association unites only a few houses, and even dozens of MKDs can be under the control of the Management Company.

In addition, the Partnership is a non-profit organization, it does not receive profit and is not interested in it. Is the UC commercial? This organization is interested in receiving its profit from the activities of servicing homeowners.

Members of the HOA make decisions on the management of the house at a general meeting, where representatives of all apartments must be present. In the Criminal Code, such decisions are made by authorized persons, the owners are only then informed about such decisions.

Statistical data on the number of houses serviced by management companies and homeowners associations show that the majority of apartment residents entrust the maintenance of their housing to Management Companies (80%), and only a fifth of them unite in a partnership. But it is most beneficial for homeowners when HOAs cooperate with the management company, while concluding contracts.

Advantages and disadvantages

A comparative table can be drawn up with the pros and cons of different methods of managing the life of an apartment building.

pros

The important positive qualities of the Criminal Code include the fact that she performs all house maintenance work as planned. This applies to repair and snow removal, replacement of pipelines and garbage disposal. It is also important that the management company can cover the debts of apartment residents at the expense of reserve funds that accumulate in the company's account. Another plus is the professionalism of the UK staff.

The advantages of the HOA are control over the payment of utility bills, decision-making on the maintenance of the house by its residents, the ability to dispose of common property to make a profit for common needs.

But we must not forget that the board of the HOA must actively fight debtors, otherwise not only the guilty apartments, but also their neighboring ones, may be disconnected from public services.

Minuses

Management decisions in the management company are made by its staff, the residents of the house cannot always influence them. Also, this organization is not interested in saving money for tenants intended to pay utility bills.

Homeowners associations cannot take on the debts of apartment owners in extreme situations. And sometimes, even among a large number of residents of the house, it is difficult to find a competent, responsible individual who can be elected chairman of the HOA, entrusted with representing the interests of others. And in this case, the person managing the house can make decisions with negative consequences.

What to choose?

Residents of the building have the right to independently choose the management method, taking into account all the advantages and disadvantages of each option. Why is HOA often the best form of management for most MKDs?

The HOA more reliably represents the interests of each of its members in solving housing issues. For the management company, what is the difference, its profit, economic aspects of activity are important.

Among the tasks of the Partnership is saving money for residents. In addition, apartment owners can fully participate in the management of the house, show their initiative, collect OS on topical issues.

And even if the management company pays the debts of negligent tenants so as not to turn off the supply of utilities to the entire house, later it can distribute the funds spent between all apartments.

Useful video

A report on the benefits and disadvantages of different methods of managing an apartment building.

Features of the control method

Apartment owners should be aware that the choice of management method is not just their voluntary business. It is also a duty, according to the provisions of the housing legislation. To make a choice, tenants must come to a general meeting of all apartment owners in the MKD, organized at the initiative of any of the tenants. The OS decision is displayed in the meeting minutes.

ATTENTION! The house is given a year to make a choice. If at the end of this period a meeting was not held and the tenants did not decide on the method of management, the local authorities begin to deal with the issue. She announces a competition between the Criminal Code for the selection of the one that will be engaged in house maintenance.

In this case, the residents of the house are completely deprived of the opportunity to decide anything regarding the maintenance of their apartments, MKD as a whole. Therefore, they must not waste time and perform all the actions established by housing legislation.

If the house has merged into an HOA, it can combine both methods of management, for this the Partnership signs an agreement with a suitable Management Company. The main thing is to find responsible and competent members of the board of the HOA.