Pricing Principles of Apartment House Management in Latvia

Results obtained during the research regarding the principles of price formation of apartment house management, except one-flat houses, and clarified costs allow to evaluate the implementation process of State’s planned reform in 1995 about privatization of state and municipal dwelling houses and its impact on apartment house management field in Latvia. The aim of the presented study is to analyze the entire mechanism of multi-storey apartment house management services price formation in Latvia and, on the basis of the results obtained, to develop proposals for development of effective facility management pricing system in Latvia. In developing the study, different methods were used, such as the inquiry, experts’ evaluation, historical investigation, quantitative methods like statistical, exponential smoothing and the correlation methods. The executed analysis of management prices of apartment house services divided into different positions misleads apartment owners on the real amount of the management fee of their property. Proposals of authors are useful to promote sustainable arrangement and development of local apartment houses’ management market