Clearer rules needed for building reserve management 0 20

The sector is governed by the Residential Building Management Law, which defines the principles of building management, the responsibilities of property managers, as well as the rights and obligations of apartment owners’ associations. However, in practice, the application of this regulation still creates uncertainties, particularly regarding the division of responsibilities between property managers and apartment owners.

Amendments to the Residential Building Management Law came into force in July 2025, strengthening the role of apartment owners’ associations, clarifying the organisation of the management process, and introducing several improvements aimed at ensuring continuity and greater transparency in building management.

However, as A. Logins emphasizes, these amendments are not sufficient to fully eliminate the existing practical ambiguities:

“The responsibilities of apartment owners’ associations should clearly include reserves – determining their amount and use as a single block, while the property manager’s service, including mandatory management activities and their costs, should be defined as a service. By separating the service from the collective financial interests of the owners, the management and maintenance market would become more transparent and easier for apartment owners to understand.”

The next step would be to define even more clearly what constitutes the property manager’s service and its cost structure; what falls under the decisions and reserves of the apartment owners’ association; and how these elements are reflected in payments and reports provided to residents. Such changes would not only reduce ambiguity but also promote competition in the property management market. If the manager’s service were clearly defined and separated, service providers would compete more on quality, efficiency, and customer service.

At the same time, it is important to recognize that improving the regulatory framework is closely linked to resident engagement. In building renovation as well, the main challenge remains the attitude of apartment owners and their willingness to make long-term decisions. Renovation projects require collective agreement, and decision-making is often hindered by caution or insufficient understanding of the benefits.

Without active involvement from residents, renovation rates will not significantly increase. Therefore, it is essential not only to continue improving the regulatory framework but also to raise public awareness about the importance of high-quality management and renovation in the long term.

CIVINITY is one of the largest building maintenance, facility management, engineering, and technology solutions groups in the Baltic region, operating across Lithuania, Latvia, and the United Kingdom and bringing together more than 30 companies under a clear multi-brand structure (Home/Solutions/Engineering), enabling both scale and specialization.

The group’s capacity is demonstrated by more than 1,600 professionals, approximately 14 million m² under management, and more than 2,000 completed engineering projects, as well as a proven ability to deliver complex engineering solutions internationally, including long-term projects in the United Kingdom.

In 2024, CIVINITY generated €88.5 million in revenue and €7.4 million in EBITDA (pro forma), providing a stable financial foundation for further investment and growth. In recent years, the group has systematically expanded its footprint and capabilities through consolidation and acquisitions, including the Inservis Group transaction, increasing managed area by 25% to approximately 12.5 million m², as well as strengthening capabilities in smart engineering (Ionica Serviss) and expanding its service offering.

These results and strategic directions position CIVINITY as a strong, scalable international group with a broad service portfolio, high execution capacity, and financial stability, enabling further expansion in both services and geographies in the coming years.