Modern Technologies for Effective Communication between Apartment

Owners and Apartment Building Managers in Latvia

ROSITA ZVIRGZDINA, ERVINS STRAUPE, IVETA LININA, VELGA VEVERE

Faculty of Business Administration,

Turiba University, Riga,

Graudu iela 68, Zemgales priekšpilsēta, Rīga, LV-1058,

LATVIA

Abstract: - As in other sectors of the economy, the construction and operation of buildings are becoming

increasingly technologically advanced. Different digital tools are used not only for design and construction

planning but also for faster and more efficient communication in housing maintenance and management

processes. These technologies can significantly speed up the flow of information, save time and money, and

optimize decision-making. This way, the most sustainable solutions are chosen, which not only saves money

but can also increase the value of the property. The aim of the study is to identify and analyze the problems and

their causes in the communication between apartment building managers and apartment owners, as well as to

provide recommendations for their elimination using modern technologies. In order to achieve the objective of

the study, the following tasks were carried out: 1) to analyze the statistics, technical and legal aspects of the

Latvian housing stock, 2) to assess the situation in the cooperation and communication of apartment owners

with the manager, 3) to study and evaluate the use of the largest and most frequently used digital platforms in

management activities. The analysis of the technical and legal aspects is based on the monographic or

descriptive method and the analysis of secondary data. In order to find out the current situation and identify the

main communication problems, the authors have carried out a survey of apartment dwellers. The study found

that the most significant problems in managing apartment buildings are related to a lack of information among

apartment owners, which contributes to confusion, disinterest, passivity, or conflict. Sometimes you may also

encounter incompetence on the part of the manager. Problems are often caused by communication gaps

between apartment owners and building managers, or even a lack of communication. With the communication

that modern technology can provide, apartment owners and managers can work together effectively to address

issues in an environment of understanding and mutual trust.

Key-Words: - multi-apartment residential buildings, residential building management, efficiency, modern

technologies, communication, housing maintenance, digital platforms.

Received: July 15, 2023. Revised: April 12, 2024. Accepted: May 15, 2024. Published: June 17, 2024.

1 Introduction

Housing is one of the most basic human needs and

therefore an integral part of life. This concept

encompasses not only the place to live, or the

building product, but also the infrastructure,

technology, and management throughout the life

cycle of the building. The role and importance of

housing are highlighted in various international and

national laws.

The life cycle of a building consists of several

stages: planning, design, construction, operation,

and demolition, with the period of use being the

longest, [1]. The success and thoughtfulness of this

operation process determine the lifetime of the

building. The importance of the maintenance phase

is often not sufficiently understood and appreciated,

especially in apartment buildings divided into flats.

After Latvia regained its independence in 1990,

the privatization of real estate was launched, which

had a significant impact and changed the situation in

the housing sector. However, most people at that

time had no real understanding of the acquisition of

property through privatization and the level of

responsibility for their own property, especially if it

was an apartment in a block of flats. There was also

a lack of understanding of the common property of

the building and the obligations and responsibilities

of the apartment owners in relation to it. The

privatization of residential housing in Latvia was

largely completed in 2003, but the management of

multi-apartment dwellings and the problems

associated with it are still topical issues.

It should be noted that similar processes in the

field of real estate took place in other countries of

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the former Soviet Union and socialist Eastern

Europe, [2]. The housing management sector affects

all levels of society, from the state to the individual,

and has not only an economic and financial but also

a social dimension that can have a significant impact

on the real estate market and its development trends.

In Latvia, the principles of management of

residential buildings, the relations between the

parties involved in the process, the rights, duties,

and responsibilities, as well as the competencies of

the state and municipalities are laid down by law.

The "Law on Administration of Residential Houses"

is the basis for regulating the management

relationship between the client (apartment owner)

and the service provider (manager). The authors

believe that the relationship between the apartment

owners and the manager, as well as the quality of

that relationship, plays an important role in the

management of the building. To increase the

efficiency of the management process, an

appropriate level of communication is needed,

which in turn provides information on the services

requested and provided and prevents conflicts.

As in many other areas of the economy, housing

management is embracing the latest technological

solutions, and various digital tools are being used

not only for design and construction planning but

also for faster and more efficient communication in

housing operation processes. Modern technology

can significantly speed up the flow of information,

save time and money, and optimize decision-

making. This way, the most sustainable solutions

are chosen, which not only saves money but can

also increase the value of the property.

The study was carried out between 30 June 2023

and 20 February 2024. The aim of the study is to

identify and analyze the problems and their causes

in the communication between apartment building

managers and apartment owners, as well as to

provide recommendations for their elimination

using modern technologies. In order to achieve the

objective of the study, the following tasks were

carried out: 1) to analyze the statistics, technical and

legal aspects of the Latvian housing stock, 2) to

assess the situation in the cooperation and

communication of apartment owners with the

manager, 3) to study and evaluate the use of the

largest and most frequently used digital platforms in

management activities.

The study uses data extraction and processing

methods such as analysis of laws and regulations,

secondary analysis of studies and publications, and

compilation of statistical data. The authors applied

the following data processing methods: descriptive

method, data analysis, graphical analysis, and-

constructive method. In order to understand the

current situation and identify the main

communication problems, a survey was carried out

among residents of apartment blocks of different

series and numbers of apartments. A questionnaire

for apartment owners in multi-apartment buildings

was developed for the survey. The descriptive

statistics method of data analysis was used to

process the information obtained from the

questionnaires.

2 Latvian Housing Stock

2.1 Statistics, Technical and Legal Aspects of

the Latvian Housing Stock

In developed economies, real estate is an essential

national asset, as economic development is

unthinkable without it. Everyone in a country needs

a place to live as a basis for life. Access to quality

housing is a key indicator of well-being and

stability, as well as a way to address social and

economic challenges. Real property has a close

connection with the ownership, possession, lease,

tenancy, or right of use of the immovable property

in question, [3].

According to the Cabinet of Ministers Regulation

No 326 "Regulations on Classification of

Structures" (adopted in Riga on 12 June 2018),

which defines the classification of structures by type

of use in Latvia, structures are divided into

buildings and civil engineering structures. Buildings

are separately usable structures in which people may

reside and which are intended for the shelter of

people or animals or for the storage of objects.

Engineering structures are all structures that do not

meet the criteria of buildings. Buildings are divided

into residential and non-residential. The residential

buildings are:

• single-apartment buildings,

• two-apartment building,

• buildings with three or more apartments,

• co-housing for different social groups.

Housing provides for the life and development of

the individual and is an essential basic need for

every citizen in the country. Housing is a type of

real estate that has undergone several changes

during its evolution, [4]. Historically, various

transformations have taken place in the form of

ownership of the real estate, including residential

property, to address socio- economic and political

challenges, including nationalization, privatization,

denationalization, and reprivatisation.

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According to the data of the State Statistics

Bureau, as of 1 January 2024, there were 371 456

residential houses in Latvia, of which 39 485 were

houses with three or more apartments.

As shown in Figure 1, single-apartment houses

have the highest share of 85.3%, two-apartment

houses account for 3.8%, and three-apartment and

more houses account for 10.7% of the total. The

share of co-housing for different social groups is

negligible - 0.2%.

Fig. 1: Distribution of residential buildings in Latvia

by number

In Latvia, 65.5% of the population lives in

apartments in apartment blocks. Most of Latvia's

apartment buildings have been in operation for more

than 50-60 years, which has highlighted the need to

renovate and improve the energy efficiency of these

buildings. According to the Ministry of Economy

and State Land Service, the total depreciation of

residential buildings is 38.9%, [5].

Analyzing the multi-apartment buildings by the

year of their construction (Figure 2), it can be seen

that the majority (43.6%) were built before 1941.

Between 1941 and 1960, 13.3% of all residential

buildings were built, while most houses (23.9%)

were built in the post-war years between 1961 and

1979. Between 1980 and 1992, a further 12.7% of

buildings were built. However, the number of

houses built after independence represents only

6.5% of the total number of all residential buildings.

Fig. 2: Multi-dwelling residential buildings in

Latvia by number

Until 1941, Latvia was dominated by apartment

houses with wooden exterior walls, which

accounted for about half of the total number, and 1-

2 storey brick masonry buildings were also

common, but 3-5 storey buildings were the most

numerous. However, over time, the construction of

wooden-walled dwellings has declined, and in the

last five years, only a few houses of this type have

been built. Similarly, the construction of wooden

apartment buildings has recently been active in

London, Vienna, Bergen, and other European cities,

where a significant number of wooden residential

buildings already exist. The first new wood-frame

apartment building in Latvia was built in Brenguļi.

The rapid development of apartment buildings

took place between the end of the Second World

War and 1961, due to the need for housing renewal

and the availability of additional housing at that

time. During this period, mainly 1-2 storey stone

and timber buildings were built, as well as 3-5

storey buildings. A major period of growth was

from the 1960s to the 1980s, when 3-5 storey

buildings were built intensively. In the 1980s,

houses with 6-9 storeys and 10 or more storeys were

also developed, as it was necessary to provide

apartments for a large number of inhabitants.

However, the situation changed with the restoration

of Latvia's independence, and between 1993 and

2003 the rate of construction dropped sharply, with

only 429 apartment houses being built. Construction

activity picked up again after EU accession, but the

economic crisis of 2007-2010 halted this growth.

After the crisis, the rate of construction of apartment

blocks gradually picked up again, [6].

Although Latvia's National Development Plan

2021-2027 states that by 2050 all households in

Latvia should have access to housing that meets

high standards of energy efficiency, construction,

safety, and amenity, the analysis of previous studies

shows that residential houses do not undergo all the

necessary maintenance and repair works that affect

the compliance of residential houses with safety

requirements, and are characterized by low energy

efficiency, as almost 90% of energy certified

residential houses meet the lowest energy efficiency

classes E and F, [7].

The relations between apartment owners and

managers are based on the "Law on Administration

of Residential Houses", the "Law on Apartment

Property" and their subordinate Cabinet

Regulations, which regulate the principles of

management, relations between the parties involved,

rights, duties, and responsibilities, as well as the

competence of the state and local authorities in this

area.

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Analyzing the legal aspects, the authors conclude

that:

• the laws and regulations governing the principles

and procedures for managing residential

buildings are complex and unclear, often

misunderstood and poorly understood by

apartment owners,

• the regulatory enactments do not strictly define

the requirements for the formation of apartment

associations in multi-apartment dwellings and

the responsibilities, rights, and actions of the

managers, so they are not respected in some

cases, which ultimately hinders and impedes the

development of this area.

Apartment building management in Latvia is a

free market - apartment owners can choose any

manager. According to the Register of Enterprises,

there are approximately 2,000 house management

companies (LLCs and cooperative companies)

operating in Latvia, of which approximately 40%

are active. Management activities are open to legal

and natural persons with appropriate education and

qualifications who meet the criteria set out in the

"Law on Administration of Residential Houses", [6].

2.2 Study on the Cooperation of Apartment

Owners with the Manager

In order to assess the cooperation and

communication of apartment owners with the

manager, a survey was carried out among apartment

dwellers, selecting houses according to a series of

criteria and the number of apartments. The houses

were selected on the basis of the following

principles:

• Location - residential area of Riga.

• Number of apartments per house: three-storey

houses with 12 apartments, five-storey houses

with more than 50 apartments, and houses with

more than five storeys with more than 100

apartments.

A questionnaire was prepared for the owners of

flats in apartment blocks to carry out the survey.

The questionnaire consisted of 25 questions

covering a variety of topics related to apartment

owners' attitudes and knowledge about working with

the manager. It covered the legal, economic, and

financial issues, as well as the social aspects and

communication problems faced by apartment

owners and their managers. The questionnaire was

divided into three main blocks:

• Information section,

• Cooperation section,

• Problem section.

866 respondents from 3 different groups of

building types took part in the survey: 56 from

three-storey houses; 325 from five-storey houses

and 485 from nine-storey houses.

Below is a summary of the information gathered

from the section of the questionnaire dedicated to

the need for and provision of communication:

• Only 44% of respondents are aware of their

responsibility for property management and are

ready to make decisions in this area.

• More than 62.8% of respondents would prefer to

receive information through modern means of

communication, using platforms provided by the

manager, 4% would prefer to receive

information via email, while the majority of

older respondents prefer printed

information.64% of respondents trust their

manager, while almost a third have only some or

no trust. Respondents point to the incompetence

of managers on certain issues and their inability

to explain ongoing management processes and

activities.

• About 45% of respondents are aware of the

monthly costs and how they are used, and more

than 50% are aware of the actual costs. At the

same time, shortcomings in timely information

are pointed out.

• The majority of respondents (59.2%) believe that

the activity of apartment owners influences the

quality of management.

• 74.7% of respondents are aware of how their

money is spent, which shows that they regularly

keep track of their expenses.

Analyzing the activities and communication

between apartment owners and building managers,

the authors conclude that:

• Many apartment owners are not aware of their

rights and obligations regarding the management

of their home, the common property, and related

issues,

• Apartment owners in multi-apartment buildings

lack information on the formation of

associations of apartment owners and on the

choice of the building manager,

• A large proportion of apartment owners are

inactive and disinterested in change when it

comes to managing their homes,

• Incompetence, ignorance, and indifference on

the part of both apartment owners and managers

in managing and running the building,

• A large proportion of apartment owners are

interested in using modern means of

communication with the building manager.

In order to stimulate the cooperation of

apartment owners with building managers, it is

necessary to promote the activity of apartment

owners in solving management issues, carry out

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educational activities, work on the dissemination of

information, as well as to organize and improve the

regulatory framework in this area. Modern

technological solutions such as online portals can

make a major contribution in this direction, as they

enable the collection, storage, transfer, and

circulation of the necessary information, as well as

feedback.

3 Use of Modern Platforms for

Management Activities in Latvia

The property management market has undergone

significant changes in the last decade due to the

rapid development of technology. Conservative and

traditional management practices are increasingly

influenced by the development and use of modern

technologies. Artificial Intelligence (AI), Internet of

Things (IoT) and GIS systems with machine

learning algorithms are also becoming part of

everyday real estate management, [8].

However, the development and application of

digital strategies in management companies in

Latvia is still in its infancy. So far, providers of

management services have tended to focus on

providing basic services rather than on the

opportunities offered by modern technology.

Creating a digital business model is key to defining

and implementing the right management strategy, as

it allows you to develop existing markets and

discover new opportunities. Customer contact and

knowledge are one of the core principles of digital

strategy, as data and services based on it, not just

products and/or services, are becoming increasingly

important in the development of business models,

[9].

Customers are becoming more demanding, they

want service always, everywhere, and immediately,

they expect special service, they demand speed,

individuality, and adequate quality, they are not

always loyal and cooperate well with the service

provider [10]. A final social driver of digitization is

the shift from an industrial to a knowledge-based

society, which places greater demands on people to

use and organize knowledge, [11].

One of the most important developments in the

property management sector in recent years has

been the emergence of online portals specifically

designed for property management. These portals

act as centralized resources where apartment owners

can easily access information about their property,

financial reports, maintenance schedules, important

notices, and other data. These online resources

provide quick and easy access to relevant

information, improve transparency, and allow

owners to be informed about all management

activities related to their property. Processes are

automated and cover the entire information

lifecycle, from data creation to data extraction to

data use. This helps to build trust between owners

and managers. The use of digital technologies

enables entrepreneurs (managers) to carry out

internal business processes more efficiently and

flexibly and to monitor performance and

productivity indicators more accurately.

Real-time communication channels are an

important aspect of modern technology that can

significantly improve communication between

owners and managers. Through messaging

platforms and mobile apps, owners can now contact

property managers online, seek help, raise concerns,

or give feedback. Such immediate accessibility

speeds up the responsiveness of property managers

and demonstrates their commitment to open

communication, which is essential for building trust.

By responding promptly to owners' questions,

managers demonstrate their commitment to

providing high-quality services and meeting

customers' needs in a timely manner. The

application and integration of new information

technologies in the business environment are

bringing about significant changes in business by

connecting the digital and physical business worlds,

[12].

An electronic construction information system

(BIS) has been established at the national level in

Latvia, which ensures the flow of information

between the participants in the construction process,

maintains registers necessary for the construction

process, and e-services related to the construction

process and registers. The system not only includes

construction information but also provides a digital

environment for housing managers and owners. The

system allows you to store property management

documentation, organize residents' meetings and

surveys electronically, process building survey data,

etc. BIS is continuously improving, and more and

more services and processes are being digitized,

[13].

An examination of publicly available housing

management portals reveals that the amount of

information available on them is often either

incomplete or lagging far behind real-time. In this

section of the study, the authors analyze two

platforms that are available to customers in

Riga.The choice of these platforms is based on the

fact that they are the largest e-platforms in Latvia in

terms of number of customers.

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The first platform is "e-parvaldnieks.lv", which

is administered and offered by the largest real estate

manager in the Baltics - the municipal company SIA

"Rīgas namu pārvaldnieks". The platform provides

customers with a personal office where they can

access the following services (Figure 3):

• provide meter readings for hot and cold water

consumption,

• receive an electronic invoice for management

and maintenance services,

• pay for the management and maintenance

services,

• receive in electronic form a summary of the

planned income and expenditure estimates and a

list of the necessary repairs for future periods for

mandatory maintenance and management work

to be carried out in the dwelling,

• receive an electronic statement of the actual

income and expenditure for the maintenance and

management of the dwelling for the previous

period,

• receive other information about the management

of the building.

Fig. 3: Functions of the "e-parvaldnieks" portal

Analyzing and evaluating the platform, the

authors consider that, overall, it fulfills its functions

and includes the accumulation and circulation of

key information. However, a closer look reveals the

following shortcomings:

• The provisioning fund for repairs is shown with

a large real-time lag of more than 73 days. In

this way, owners have no information on the

actual accumulation of funds at a given point in

time,

• The proposed renovation plan is not transparent

and does not indicate the decision on which it is

based,

• Also, the actual work carried out is often

presented with a large time lag, giving a false

impression of the funds actually accumulated,

• The applications section is one-sided, with no

immediate responses and no way to track the

progress of the application.

The authors recommend that the platform

maintainers take these shortcomings into account

and improve the functionality of the platform in the

foreseeable future in line with the wishes and needs

of the clients of the managed houses.

The second platform reviewed by the authors is

"e- saimnieks.lv", which is offered to clients by the

management groups "Civinity" and

"MansParvaldnieks.lv", as well as the largest state

real estate manager "Valsts nekustamie īpašumi"

and the building manager "Teche". The platform

also includes a personal office where you can

submit utility meter readings, report problems, get

up-to-date bills, and view the billing archive. You

can also see the amount of debt, the amount of funds

accumulated, and the planned renovation plan. As

can be seen, the functions offered by this portal

(Figure 4) are quite similar to those of the "e-

parvaldnieks" portal.

Fig. 4: Functions of the "e-saimnieks" portal

However, on deeper analysis, the authors point to

several advantages:

• the provisioning fund for repairs is shown in real

time (for the previous day), which helps

customers understand the actual provisioning.

• the proposed repair plan is linked to the actual

• backlog and documentation of decisions taken.

• as a very big advantage is its automatic linking

with the Construction Information System

(BIS), where, according to the current

legislation, every manager has to post

information about the "Building file" of the

managed property.

• in addition, digital maintenance rules for home

appliances and equipment are available, as well

as visual and technical home inspection reports.

The authors of the article rate the portal "e-

saimnieks.lv" as the most advanced house

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management system in Latvia. The positive

assessment can be justified by the fact that the portal

has been developed in cooperation with the building

managers and according to the wishes of the clients

of the managed houses.

4 Conclusion

The authors conclude that:

• The management of apartment buildings is an

important part of the real estate sector in Latvia,

faced by more than half of the population.

• Most apartment blocks have been in operation

for more than 50-60 years and are characterized

by low energy efficiency. Many problems in

managing of apartment buildings are linked to

the lack of awareness among apartment owners

of their rights and obligations regarding the

management of the building and the common

property. These problems are also the result of

incomplete or missing communication between

apartment owners and the manager.

• The results of the survey show that a large

proportion of apartment owners are interested in

using modern means of communication with the

building manager.

• The property management sector is increasingly

using digital technologies (online portals,

mobile apps, etc.) to collect, store, accumulate,

and access the information you need when you

need it.

• Modern technology offers a wide range of

opportunities for communication and trust

between apartment owners and managers.

Through online portals, real-time

communication channels, digital maintenance

tracking systems, smart home technologies, data

analytics, and community engagement

platforms, operational and communication

efficiency between owners and managers is

increased.

• In Latvia, digital technologies are used in

housing management both at the national level

(Building Information Systems) and at the

company level (e-platforms of management

companies).

• The largest digital platforms used in Latvia for

utility management include the ability to submit

utility meter readings, report problems, receive

up-to-date bills, and view a billing archive, as

well as view a home's debt, backlog, and

planned repair plans.

• The main shortcomings identified in the digital

management platforms are the real-time delay of

information, non-transparent and non-decision-

based repair plans, and non- transparent

information flow on customer applications.

• The development and improvement of the digital

platform should be carried out in cooperation

with the building managers and taking into

account the wishes of the customers of the

managed houses.

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Contribution of Individual Authors to the

Creation of a Scientific Article (Ghostwriting

Policy)

- Rosita Zvirgzdina is the lead author.

- Ervins Straupe is the creator of the theoretical

base and data analyzer.

- Iveta Linina, Velga Vevere are the data analyzers.

Sources of Funding for Research Presented in a

Scientific Article or Scientific Article Itself

No funding was received for conducting this study.

Conflict of Interest

The authors have no conflict of interest to declare.

Creative Commons Attribution License 4.0

(Attribution 4.0 International, CC BY 4.0)

This article is published under the terms of the

Creative Commons Attribution License 4.0

https://creativecommons.org/licenses/by/4.0/deed.en

_US

WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT

DOI: 10.37394/232015.2024.20.27

Rosita Zvirgzdina, Ervins Straupe,

Iveta Linina, Velga Vevere

E-ISSN: 2224-3496

275

Volume 20, 2024