Frequently asked questions from apartment owners

A change of manager must be carried out correctly, provably and without interrupting the management of the building. We recommend the following procedure:

1. Review of the existing contract. Check the term of the contract, the notice period, how notice is to be delivered and any special contractual provisions.
2. Collecting offers. The owners obtain comparable offers from candidates and check the scope of services, responsiveness, reporting, technical support, reserve fund administration and all regular and additional costs.
3. Drafting the resolutions. The resolutions must clearly set out withdrawal from the contract with the current manager, the choice of the new manager, authorisation to sign the new contract and, if necessary, the person authorised to deliver the notice.
4. The owners' decision. The decision can be taken at an owners' meeting or by signing a document. Votes are counted by co-ownership shares.
5. Establishing and publishing the result. When a document is signed, the person running the procedure establishes the result and posts it where the owners can see it.
6. Proper delivery of the notice. An authorised owner delivers the notice and the validly adopted resolution to the current manager by registered post. The notice period starts on delivery.
7. Signing the contract with the new manager. The contract is signed by the new manager and the owners with the required majority, or by representatives appointed by the owners' resolution.
8. Handover of management. The current manager prepares a final report and statement, transfers the building's funds and hands over to the new manager the contracts, records, permits, technical and financial documents and information on open matters.

A good change therefore does not end with the notice to the old manager. The key is a supervised handover that checks the documents, the reserve fund balance, open receivables, supplier contracts, ongoing maintenance and unresolved reports.

Appointing and dismissing a manager are acts of ordinary management. The resolution is adopted when owners holding together more than half of the co-ownership shares in the building vote for it.

What counts is not the number of flats, signatures or people present, but co-ownership shares. Ten signatures from owners of smaller flats are therefore not necessarily enough if their combined share does not exceed 50%. Conversely, a smaller number of owners can reach the required majority if together they hold more than half of the shares.

The same majority is needed to validly withdraw from the contract with the current manager and to choose the new one. Before voting, the list of owners and shares, the wording of the resolutions and the voting method must be checked.

Owners can generally withdraw from the management services contract with a notice period of at least three months. The period starts on the day the notice with a valid resolution is delivered to the current manager. During this time the owners must choose a new manager and prepare the takeover in good time.

The whole procedure often takes longer than three months, because before the notice is delivered the contract must be reviewed, offers obtained, the vote held and a new contract signed. If the procedure starts without a clear timetable, registration of the new manager may be delayed or the handover may be disorganised.

Yes, but not merely because of general dissatisfaction. Owners may withdraw from the contract without notice if the manager breaches the law or the management services contract.

Before such a withdrawal it is wise to describe and document the breaches specifically. Useful evidence includes valid resolutions not carried out, missing statements or reports, unjustified use of funds, failure to hand over documents, written requests to the manager and other provable conduct. Because an incorrect immediate termination can lead to a dispute over the validity of the withdrawal or payment during the notice period, an individual legal assessment is advisable in more complex cases.

When management ends, the current manager must prepare a final report and final statement. It must transfer the building's funds to the account the new manager keeps for the building and hand over the documents needed for management to continue smoothly.

The handover usually includes contracts with suppliers and contractors, insurance policies, the balance and transactions of the reserve fund, accounting records, open receivables and liabilities, minutes of owners' meetings, valid resolutions, the maintenance plan, technical documents, permits, inspection and service records, keys, and information on open reports and ongoing works. The new manager must review the documents received and record any missing ones in the handover record.

The reserve fund is the owners' common earmarked property, intended to preserve and improve the common parts of the building. The money may be used for maintenance works foreseen in the adopted maintenance plan, works for more efficient energy use, permitted improvements, urgent maintenance, repayment of loans taken for these purposes, and the costs of collecting unpaid reserve fund contributions.

Reserve fund money is not the manager's income and may not be used for arbitrary purposes. Nor can an owner demand repayment of contributions already paid just because they have sold their flat or disagree with an approved investment.

The owners decide on the maintenance plan, the works and the method of financing, with the majority required for the type of transaction. The manager prepares the draft maintenance plan and the technical and financial basis, obtains offers when needed and carries out validly adopted resolutions.

Regular maintenance and the maintenance plan generally require the majority prescribed for ordinary management. Improvements or works that go beyond ordinary management may require higher consent. The percentage of votes needed should therefore not be set only by the value of the investment; the nature of the work, its effect on the building and the applicable legal basis also matter.

Oversight is ensured by several related measures:

• the money is earmarked and kept separate from the manager's assets;
• spending must be based on the law, the maintenance plan, a valid resolution or urgent necessity;
• the owners can stipulate in the contract that the manager may only withdraw funds together with a chosen owner;
• the manager reports on the balance, income and spending;
• an owner can request to inspect the reserve fund balance, related contracts and accounting documents;
• the supervisory board monitors the manager's work within its statutory tasks and the owners' resolutions;
• for larger works, offers, the contract, interim statements, invoices and proof of completion are checked.

Transparent oversight does not mean that an individual owner approves every payment. It does mean there must be a verifiable trail from the resolution or legal basis to the contract, the work done, the invoice and the payment.

Yes. At the owner's request, but not more than once a month, the manager must allow inspection of the reserve fund balance, contracts concluded with third parties for operation and maintenance, and the accounting documents relating to these transactions.

Inspection does not automatically mean a right to unlimited distribution of documents or other people's personal data. The manager must also respect data protection rules, trade secrets and the rights of third parties. The request should therefore be specific: it should name the building, the period and the documents or items the owner wants to check.

Urgent works are those that cannot reasonably be postponed, because failing to do them would significantly worsen living conditions or cause major damage to individual or common parts of the building or to third parties. Examples include a major leak, a burst common water pipe, a dangerous electrical fault, a failure of the common heating system in bad weather, roof damage, a dangerous part of the façade or another immediate danger to people and property.

Not every inconvenience is urgent maintenance. A broken light or minor cosmetic damage usually does not need the same response as escaping water, a fire hazard or a risk of part of the façade falling. The level of urgency depends on the danger, the extent of possible damage and whether the area can be temporarily secured.

The report should include the name and contact of the person reporting, the exact building address, the unit number, a description of the event, when it happened or was noticed, whether the damage is still increasing, and photos or video if they can be taken safely.

In case of immediate danger, first make sure people are safe and, if necessary, call 112, the fire brigade, the police or the relevant emergency service. The building manager is not a substitute for emergency services. Then inform the manager through the published channel for urgent reports.

The person reporting should not interfere with electrical, gas, fire, lift or other hazardous systems and should not order expensive works on behalf of all owners without proper authorisation, unless it is an urgent measure to avert immediate damage and no other help is available.

The manager first checks the details and assesses the urgency. Depending on the circumstances, it informs the building's administrator, the on-call service or a qualified contractor. The first goal is to protect people and property and stop the damage spreading, for example by shutting off water, switching off a dangerous system, temporary covering or restricting access.

This is followed by an inspection, finding the source of the defect, determining whether it is a common or individual part, documenting the condition, checking insurance cover and deciding on a temporary or permanent repair. For a larger intervention, after the urgent protective measures, technical documents, offers and a proposal for the owners' further decisions are prepared.

No. When a danger must be averted immediately or major damage prevented, the manager may organise urgent maintenance without a prior owners' resolution. It must report appropriately to the owners on the measures taken, the reasons, the contractor and the costs.

This power is not meant for carrying out arbitrary investments without the owners' decision. The scope of an urgent order must be proportionate to the danger. If the damage can first be limited with a temporary measure and a permanent, more expensive repair can wait, the permanent solution is decided by the usual procedure.

Who pays depends on where the defect originates, who owns the damaged part, the cause of the damage, the applicable contracts and insurance cover. If the defect originates in a common part or common equipment, the cost is generally borne by the owners according to the applicable key. If it originates in an individual unit, its owner or whoever caused it may be responsible.

The insurer becomes involved when the event matches an insured risk under the valid policy. Reporting a claim does not automatically mean the cover is accepted. That is why it is important to keep photos, a record of the event, the established cause, invoices and, where it makes sense, the damaged parts. Urgent measures to prevent further damage are not postponed just to wait for the insurer's inspection.

The manager acts on behalf of the owners in managing the building. Its main tasks are in particular:

• carrying out the owners' validly adopted resolutions;
• preparing the maintenance plan and ensuring it is carried out;
• organising operation, regular maintenance and urgent measures;
• concluding transactions with third parties in the name and on behalf of the owners within its powers;
• preparing monthly statements and dividing costs according to the applicable keys;
• administering the reserve fund and the building's records;
• monitoring payments, sending reminders to debtors and carrying out the agreed collection procedures;
• reporting to the owners and giving them the statutory access to documents;
• representing the owners in matters for which it has statutory or contractual authority.

The manager does not own the building and cannot arbitrarily replace the owners' decisions. Nor is it generally responsible for a defect in an individual flat, the conduct of an individual owner or a decision the owners did not take in time, provided it has performed its obligations professionally and within its powers.

Owners have the right to take part in decisions, receive monthly statements and at least an annual report on the manager's work, be informed of adopted resolutions and check that they are carried out. Under statutory conditions, they can request access to the reserve fund balance, contracts with suppliers and contractors and the related accounting documents.

They have the right to propose agenda items, attend owners' meetings, vote in person or through a duly authorised representative, nominate members of the supervisory board, point out irregularities and ask for an explanation of an individual item on the statement. If they believe a resolution or the management infringes their rights, they can use the legal remedies the law provides for the specific case.

Rights also come with obligations: an owner must report data needed for management and billing in time, allow necessary access when needed for work on common parts, respect valid resolutions and pay their obligations on time.

Not all operating costs are divided by the same key. The criterion used is the one set by law, the Rules on the management of multi-apartment buildings, a specific regulation, the agreement on mutual relations or a valid agreement of the owners.

Where reliable individual metering is available, the cost is generally divided by actual consumption. Other costs may be divided by the floor area of each unit, the number of units, the number of users or co-ownership shares. Heating and hot water costs are divided under special rules. The manager may not change a key at will but must apply the valid legal and contractual basis.

For a correct statement, owners or users must report in time any changes in the number of occupants, ownership, tenants and other data that affect the division of costs.

The monthly statement must clearly show the individual costs of operation, maintenance and management services for the building and the share falling on the addressee. It must also show the monthly reserve fund contribution, any other obligations and the reserve fund balance for the building.

A transparent statement lets you trace the path from the supplier's total invoice to the share of an individual unit. For each item, the type of cost, the billing period, the total amount or basis, the key used and the amount charged to the unit must be visible.

First check the name of the cost, the period, the allocation key used, the recorded floor area, the number of users and any metered consumption. Then compare the item with previous periods and check whether the change results from higher consumption, a new supplier price, an adjustment, a seasonal cost or a change in data.

If the item is still unclear, send the manager a specific question naming the building, the unit, the month and the item. An owner may also request access to the supplier's invoice, the contract and related accounting documents to the extent permitted by law. A general statement that the bill is too high does not allow an effective check; a precisely named item allows a traceable answer.

Most of the monthly charge is not payment to the manager but a share of supplier and contractor costs. The total can change because of water or energy consumption, utility prices, the heating season, the number of users, servicing, insurance, cleaning, ongoing repairs, adjustments or one-off works.

A change in the total invoice can also affect an individual unit differently if the cost is divided by consumption, floor area, number of occupants or another valid key. So when comparing two bills, check each changed item and its key, not just the final amount.

In dividing heating costs, correction factors take into account the different positions of units in the building and their different heat losses. A flat under the roof, above an unheated basement or on a corner may be more exposed than one in the middle of the building, so the raw reading without correction does not give a comparable picture.

The factors are calculated by a qualified expert using the applicable methodology. After an energy renovation of the façade, roof, windows or other works that significantly change heat losses, it must be checked whether a new calculation is needed.

We first check the documents in the building's archive and the available official records. If they are incomplete, the competent authority must be identified based on the building's age and location, and a request filed to obtain a copy or regularise the situation.

For an initial check, give the manager the exact building address and say which document you need. Whether it can be obtained and the next steps depend on the specific building and the availability of official records.

Whether an energy performance certificate has been issued can be checked in the public official register. A search generally requires the exact address of the building or other property identification data.

If there is no certificate or the data are unclear, the building's documents and the obligations applicable to the specific case must be checked. Validity and the obligation to obtain one are not the same in all circumstances.

The owner or acquirer must report the change of ownership to the manager immediately, or at the latest within 30 days of the day the acquirer becomes entitled to apply for registration of ownership in the land register. A copy of the document showing the data needed for correct registration must be attached, for example the sale or gift contract or the inheritance decision.

You can send the documents to info@practic.si, by post to Practic d.o.o., Celovška cesta 147, 1000 Ljubljana, or hand them in personally by appointment.

Under the rules, dog owners are charged only for cleaning of common areas such as corridors, lifts and staircases. For each dog, half of the cost falling on one user is charged. No such cost is foreseen under this rule for other pets.

The owner or user must inform the manager in time of a change in the number of people actually using the unit. A person counts as actually using it if they use the unit at least 15 days a month. When a unit is empty or used only occasionally, less than 15 days a month, one user is generally counted for costs divided by the number of users.

Report the change on the prescribed form with the data needed for correct registration. Download the form for changing the number of occupants (in Slovenian).

Hot water costs are divided in line with the applicable regulations, meter data and the allocation method that applies to the building. The statement generally includes a part based on metered consumption and a remaining part divided by the prescribed key.

To check the statement, compare the billing period, the meter reading, the recorded number of users and the allocation key used. For an explanation of a reading, contact the metering or allocation provider; for an explanation of an item on the statement, contact the manager.

The price depends on the number and type of units, the technical complexity of the building, the scope of contractual tasks, the reporting method and open matters at takeover. It therefore makes little sense to compare offers only by a single monthly amount per unit.

When comparing, check which administrative, legal, financial, accounting and technical tasks are included, how additional services are defined and who coordinates contractors and investments. Practic prepares an offer after reviewing the building's basic data, so that the scope of services and the price are clearly defined.

Need an explanation of a statement, advice on changing your manager or a more transparent way of managing your building? Get in touch with Practic. We will review the building's basic data and suggest practical next steps.