Reader ‘s opinion Housing companies have reason to be concerned about the excessive influence of property managers

The increased need for lobbying by condominiums is related to the aggressive business model of management companies in which they seek to fund condominiums. The price cartel under investigation is just one example of this.

Supplier Juha-Pekka Raeste wrote (HS 19.6.) legitimate concerns of condominium assets. The great influence of management companies in the Real Estate Association and its local associations makes lobbying dubious.

It is special that the Executive Director of the Real Estate Association, Harri Hiltunen, acknowledged the concerns of the housing companies by stating that they were “absurd and caught in the wind”. What other leader can afford to respond so rudely to the concerns of its members?

Hiltunen also stated that local associations are not even part of the Finnish Real Estate Association but completely independent associations. In addition, he spoke of “false imagery” and “internal power games”. As I read the story, I got the feeling that the calf had fished.

The increased need for lobbying by condominiums is related to the aggressive business model of management companies in which they seek to fund condominiums in every way possible. The price cartel under investigation is just one example of this. As the business model has been developed within the framework of the Finnish Property Management Association, almost every slightly larger property management company follows the same model. This makes it difficult for condominiums to choose a so-called traditional property manager. In my opinion, it is clear that this is now the Real Estate Association’s most important advocacy task. It is equally clear that representatives of management companies do not support this. It’s about money for them.

There are four local associations of the Finnish Real Estate Association in Finland that own a local property management company. These local associations therefore receive the bulk of their assets from the income of the hosting business. How can such a local association control the interest of housing associations, even in theory?

Hiltunen told Kiinteistölehti (6/2021) that in fact “the purpose of the Real Estate Association is to act as an interest organization for the entire real estate industry, not just housing companies”. The “entire real estate industry” apparently also covers the property management business. I think condominiums should now wake up and urge the Real Estate Association to initiate lobbying to minimize the damage caused to condominiums by the aggressive business of management companies.

Mikko Virkamäki

Chairman of the Board of the housing company

Helsinki

Reader opinions are speeches written by HS readers, selected and delivered by HS editorial. You can leave a comment or read the principles of the writing at www.hs.fi/kirjtamielipidekirjoitus/.

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