Summer season is in its peak and property management and maintenance companies are already rubbing their hands for the new season maintenance fees. There is still room to business expansion since there are still apartment complexes in ski and sea resorts which doesn’t have a proper maintenance and management company.
Let the condominium maintenance war begins
Usually the developer of the building has been “converted” to a property maintenance and management company. That is the normal evolution of the “wannabe” builders. They had one or two developments and after the property market bubble burst, they saw the new business niche of the property maintenance and management of their own buildings.
Another party who saw that opportunity are the apartment owners. Some of them even without seeking legal advice from a qualified Bulgarian solicitor, stared trying to take over the maintenance of the common areas of the condominiums. They neither set up a proper business in Bulgaria, nor they follow the accountancy legislation. For example they sent out invoices to owners for payment of maintenance fees for common parts, but the invoices are invalid because the invoice form doesn’t follow the requirements of the Bulgarian Accountancy Act and the Bulgarian VAT Act. Not to mention that they don’t have a properly set limited company (or other form of business entity, recognised in Bulgaria). These are just bits of all irregularities in the so called maintenance business.
Often we see the builder and the owners, who want to maintain the common areas to enter into Internet forum arguments and battles. Owners usually are split into two parties, each one of them defending the person they like more. Yes, it’s not about business logic and profits/expenses, it’s about liking the person. And the bad thing is that owners even haven’t met in person both arguing parties.
The legal way to the common areas maintenance
If you own/manage a company that will maintain the common areas of a condominium, you need to follow the Bulgarian laws, that is Condominium Ownership Management Act, Accountancy Act, Commercial Code, Obligations and Contracts Act, Ownership Act etc.
It’s not just collecting the money from the owners, but you need to follow the Bulgarian regulations, otherwise you risk to be kicked out of the complex and be sewed for business misconduct and damages.
Instruct a solicitor to prepare your procedures and documents
If the property maintenance company want to do a proper business in Bulgaria, they need to consult/instruct a qualified Bulgarian solicitor. Underestimation of the situation is a bad thing to do. There are always at least one owner who will be well informed about the condominium regulations in Bulgaria and if he sees any irregularities, the matter surely will be brought to the local District Court.