Law on the Management and Maintenance of Buildings

Law on the Management and Maintenance of Buildings

On January 1, 2025, the new Law on the Management and Maintenance of Buildings came into force, bringing numerous changes regarding building management and maintenance. With advice from the property management company Heros Plus, we provide an overview of some of the most important provisions of the law and simple explanations that will surely arise among apartment owners in buildings.

Legal Personality of Co-owners - Register of Co-owners' Communities

For the first time, co-owners are granted legal personality, which was previously lacking. Legal personality is acquired by registering in the register of co-owners' communities, which must be completed by the building manager within six months of the establishment of the Managers' Register.

Types of Maintenance of Common Parts of Buildings

The types of maintenance for the common parts of buildings are regular and extraordinary. Extraordinary maintenance is further divided into urgent repairs, necessary repairs, and investment maintenance.

Regular maintenance includes activities such as service inspections, stairwell cleaning, elevator maintenance, maintenance of lighting in common areas, parking barriers, and similar tasks.

Urgent repairs are actions taken to eliminate causes of danger to life, health, or property in the building. These typically involve gas system failures, central heating system malfunctions, pipe bursts, damage, blockages in water and sewage systems, and similar issues.

Necessary repairs permanently eliminate causes of danger to life, health, or property. Such works usually include repairing or reconstructing roof structures, coverings, load-bearing walls, foundations, and the like.

Investment maintenance aims to improve the building.

Common Reserve Fund

The common reserve fund consists of financial resources allocated for the maintenance of common parts and equipment of the building. Contributions to the reserve fund are paid by all co-owners proportionate to their ownership share, i.e., the surface area.

A co-ownership agreement may stipulate that certain business premises used for business activities, specific parts of buildings used for short-term rentals, and/or rentals to a larger number of people contribute double the amount compared to apartment owners.

The minimum reserve fund contribution for 2025 is €0.36 per square meter.

House Rules

The new law for the first time regulates general and specific house rules, as well as penalties for non-compliance.

The fine for a co-owner who violates the house rules ranges from €50 to €500.

Apartments for Short-term Rental

Under the new law, apartment owners wishing to use their property for short-term rentals must obtain consent from two-thirds of the co-owners in the building, along with mandatory consent from the co-owners whose walls, floors, or ceilings adjoin the rental property.

Consent cannot be given for a period shorter than five years and may be revoked in case of violations of the house rules.

Decision-making via Email

The new law introduces the possibility of making decisions via email, provided identity verification is ensured.

Representative of Co-owners

The representative of co-owners can be any legally capable individual residing in the city or municipality where the building is located.

If the representative is a co-owner, their spouse, or a direct relative living in the building, they are elected by a simple majority. All other representatives require a two-thirds majority for election.

Building Manager

The building manager can be a legal or natural person registered for property management activities.

New provisions require the building manager to ensure urgent repairs within three hours of reporting a need, except when circumstances beyond their control prevent it.

The manager may carry out maintenance work personally, but for works exceeding €2,500, they must obtain at least three independent and comparable bids.

Misdemeanor Penalties for Co-owners, Representatives, and Managers

Articles 57, 58, and 59 introduce detailed misdemeanor penalties ranging from €700 to €10,000.

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For the full text of the Law see the link provided - Zakon o upravljanju i održavanju zgrada.pdf

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