Riga residents await the first utility bills for 2026 with bated breath. Firstly, the strong January frosts promise a reckoning for heating in February. Secondly, a significant number of buildings will be governed by new management contracts for the first time. And finally, the very future of the capital's main housing manager is in question...
“A strong start in the free market,” is how the municipal enterprise Rīgas namu pārvaldnieks (RNP) titled its presentation at the Riga City Council Committee on Housing and Environment. Member of the board of the company, Mārtiņš Paurss, considers the completion of the privatization process to be “a very important process for the state.”
The Housing Management Market
As often happens, the revolution came from above – in May 2025, the Saeima voted for a new regulatory framework. Article 11 of the Law on the Completion of Housing Privatization aimed, in M. Paurss's words, to “end a situation that has existed for several decades” – where the municipality solved residents’ problems.
A total of 2,819 votes took place in Riga, involving 130,154 apartment owners. After consultations with the Consumer Rights Protection Center, a new management contract has been in effect since January 1 – “for effective management of the building.” However, 113 buildings owned by the municipality rejected RNP's proposal – in 38, their own societies were created, or another management company was chosen; 75 are still considering. “The law provides for such an opportunity,” noted M. Paurss. The waiting time is 3 months.
– We understand that the sense of ownership is just awakening, and we offer to help. If not, the market is free, and many managers operate on it whose offers may be more interesting. The housing department, which owns several apartments, can provide consultations.
Currently, besides RNP, there are 50 management companies operating in Riga. Nevertheless, even in votes where a quorum was not reached, 65% supported continuing cooperation with the municipal enterprise.
Cultivating a Loyal Customer
“We will certainly continue to strengthen our customers’ loyalty with higher quality services,” said a board member. Currently, it has become a “surprise” for some residents that they have switched to another manager, and now repeated meetings are being held in these buildings. “We work individually...”. RNP's expertise will also help resolve issues with divided ownership of land.
– We are expected to provide high value-added services, – said M. Paurss. Ultrasonic meters (completely eliminate water losses and reduce costs), modern elevators, round-the-clock building surveillance, and video monitoring of parking lots. RNP now manages a technical center operating in 24/7 mode, receiving information from home sensors.
RNP also offers “clear and favorable service pricing,” “improved customer experience” (through personal communication in service centers), “high standards of savings security” (this aspect is often absent with alternative managers), “innovations in quality of life,” and “building restoration projects.”
Regarding the latter, in 2025 – 60 out of 102 buildings in Riga that received funding from the state financial institution Altum were managed by RNP. In the future, the value of these buildings will only increase.
Rates Mostly Decreased
According to RNP, about 50% of buildings are expected to see a decrease in service costs, in 30% it will remain unchanged. And in 20%, accordingly, it will increase (but, as M. Paurss promised, “a little”). One way or another, they promise “a clearly defined basket of services, without hidden costs.”
– This shows that we have become more efficient, – optimistically stated a board member.
The “sacred” for RNP is the savings fund, which is directed only to reliable banks, with interest paid to residents’ communities, which are expected to have “exactly divided accounting and public reflection in the audited financial reports.” Amendments to the law allow each house to choose to have its own account, with the residents' community acting as a legal entity.
– There is simply no physical possibility of misaccounting anything, – asserts M. Paurss, nodding to meticulous accounting and regular audits.
To enhance customer competence, RNP uses digital tools, and for those who are not computer-savvy, contact service centers are again offered. The enterprise is increasingly bringing its equipment – mini-tractors that clear snow in winter and will mow grass in summer – to the streets and yards.
Everything for Sale?
After listening to the speaker, the deputies recalled that there had recently been rumors about the sale of RNP. Unfortunately, the executive director of Riga – Jānis Lange – did not deign to shed light on this issue. “This is a problem for the shareholders, not the board,” reacted the head of the RD Committee, Elīna Treija (National Alliance).
In response, the head of the Capital Companies Department, Ilze Spule-Statkus, reported that an assessment of the need for municipal participation in RNP is currently being conducted (to privatize or keep it). As the official stated, in connection with the completion of the privatization process, there is no longer such a need. In accordance with the Capital Shares Law and the State Administration Law, work is being done – with the involvement of a consultant. – It has been established that there are no grounds for maintaining municipal participation, – philosophically summarized I. Spule-Statkus. Although, it would seem – as the head of the relevant department of the city administration, she should have fought for the municipal enterprise! Nevertheless, the “exclusive” right to decide is still in the hands of the Riga City Council, for which a draft of the corresponding decision will be prepared:
– Then the question will need to be considered within a reasonable time.
The opposition considered everything happening to be an example of unsuccessful communication:
– We open the news portal – and read: “The Riga City Council wants to sell RNP.” We are put in a foolish position before the voters. That’s why I ask when the composition of deputies will evaluate the decision – to end or continue. At least a month – can you tell us?! And if the majority of deputies decide to cease participation, when will the next step be?
– Unfortunately, I cannot tell you the time, – admitted Ms. Spule-Statkus. – It is not within my competence to promote this issue.
– Gentlemen, I will take responsibility. It is clear that this is a question for the deputies… Well, a question for the coalition!, – openly intervened Elīna Treija. – During the Christmas period, we were concerned about how this management term would begin on January 1. Therefore, there was a kind of slowdown. I may have been at fault too. In principle, we could have started considering this at our committee meeting on February 17 or 24.
For her part, the head of the Capital Companies Department, Ilze Spule-Statkus, pointed out that the issue definitely requires consideration by the Committee on Financial and Administrative Affairs. It is personally chaired by the mayor, Viesturs Kleinbergs (“Progressives”), so a high level of political oversight is guaranteed!
