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Challenges in property management within the Swedish cooperative housing sector
KTH, School of Architecture and the Built Environment (ABE), Real Estate and Construction Management, Building and Real Estate Economics.ORCID iD: 0000-0002-2517-6884
2016 (English)Report (Other academic)
Abstract [en]

Purpose - The paper investigates the challenges to property management in the tenant-owner cooperative (TOC) housing sector in Sweden which accounts for 22% of the housing stock in the country as compared to an average of 10% in the rest of Europe.

Design/methodology/approach - A qualitative descriptive approach is used in the paper in which semi-structured interviews of governing committee members in 12 TOCs; a questionnaire on operation and management strategies sent to chairpersons in 725 TOCs as well as a questionnaire on issues related to energy efficiency sent to chairpersons in 91 TOCs provide the empirical data. This is complemented by an analysis of financial reports.

Findings – The paper provides indications that most of the challenges identified are related to the lack of a long-term perspective in the decision-making due to various principal-agent related problems. There appears to be an exploitation of the TOC sector by construction companies especially in cooperatives with newly constructed buildings.

Research limitations/implications – Because of the chosen sampling method and research approach, the presented results may lack generalisability. Thus, researchers are encouraged to carry out further studies.

Practical implications - The paper highlights the need for knowledge sharing as well as enhancement of competence in procuring outsourced services.

Originality/value – This paper fulfils the need for more research into the large but rarely studied TOC sector governed by amateurs in property management.

Paper type - Research Paper

Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 2016. , 15 p.
Series
Working Paper Series, Department of Real Estate and Construction Management & Centre for Banking and Finance (cefin), KTH, 2016:1
Keyword [en]
Property management, cooperative housing, tenant-owner, multi-owner housing, Sweden
National Category
Economics and Business
Research subject
Real Estate and Construction Management
Identifiers
URN: urn:nbn:se:kth:diva-181911OAI: oai:DiVA.org:kth-181911DiVA: diva2:901662
Note

QC20160225

Available from: 2016-02-08 Created: 2016-02-08 Last updated: 2016-02-25Bibliographically approved
In thesis
1. Property management and maintenance in the multifamily housing sector in Sweden
Open this publication in new window or tab >>Property management and maintenance in the multifamily housing sector in Sweden
2016 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Several studies and government reports have indicated that a large number of apartments in Sweden built during the 1960s and 1970s require extensive refurbishment and that there is concern that some companies in the rental housing sector and in the tenant-owner cooperative (TOC) sector may have difficulties carrying out the needed activities. The overall purpose of the thesis is to increase the understanding of the factors that influence the decisions made within the multi­ faceted property management of multifamily housing in Sweden which would mitigate some of the shortcomings. Econometric analysis and semi-structured interviews as well as questionnaires carried out within the TOC sector as well as the public and the private rental housing sectors provide the basis of the conclusions arrived at. The aim is to contribute to raising efficiency in maintenance and property management within the housing sector in Sweden. The major conclusions presented in the thesis are that: maintenance as a concept is unnecessary from a decision-making perspective as the concept of investment embraces all the relevant decisions; maintenance models in manufacturing industries could be applied within the housing sector but building maintenance is different and should be grounded on a strategy that allows for the continuous adjustment of maintenance plans based on a regularly up-to-date decision support system in the company or TOC; reported maintenance costs within the municipal (public) and the private rental sectors in Sweden continuously diverge mainly due to principal-agency issues of a socio-political character, in the form of political involvement in the operations of public housing companies, as well as the way companies define maintenance together with the timing of the maintenance measures; hidden incentives in the form of cooperative members, managers or service providers that seek short term gains together with the lack of a long-term perspective in the decision-making as well as a high turnover rate of committee members are major challenges to efficient property management within the Swedish TOC sector. Similarly, the information asymmetry between the professionals (constructors as well as service providers) and the amateur decision-makers in the managing committees, especially in cooperatives with newly constructed buildings, is a substantial source of losses in efficiency within the operations of the TOCs. Major contributions of the thesis are that: it promotes the view of maintenance as an investment and highlights the possibility of cost saving through the linking together of several measures as well as the challenges involved; it points to the need within the housing sector for better decision support tools as well as knowledge transfer and sharing; it calls for the government to promote policies that would reduce the degree of information asymmetry between the procurers of services within the TOC sector and the construction companies as well as other service providers. A requirement of formal competence and certification could be a step towards increasing the degree of qualified decision making and efficiency in property management within the housing sector. How this could be implemented nationwide in the different housing sectors is an issue worth further investigation.

Abstract [sv]

Flera studier och statliga rapporter har visat att ett stort antal lägenheter i Sverige som byggdes under 1960- och 1970-talet kräver omfattande renovering och att det finns oro för att vissa företag i bostadshyressektorn och i bostadsrättssektorn kan ha svårigheter att utföra nödvändiga åtgärder. Det övergripande syftet med avhandlingen är att öka förståelsen av de faktorer som påverkar beslutfattning inom den mångfacetterad fastighetsförvaltning av flerfamiljshus i Sverige, vilket skulle mildra några av bristerna. Ekonometriska analyser och semistrukturerade intervjuer samt enkäter som genomföddes inom Brf sektorn samt den offentliga och den privata hyresbostadssektorn utgör grunden för de slutsatser som dragits. Syftet är att bidra till att höja effektiviteten i underhåll och fastighetsförvaltning inom bostadssektorn i Sverige. De viktigaste slutsatserna i avhandlingen är att: underhållet som begrepp är onödigt från ett beslutsperspektiv eftersom begreppet investering omfattar alla relevanta beslut; underhållsstrategier i tillverkningsindustrin skulle kunna tillämpas inom bostadssektorn men byggnadsunderhåll skiljer sig och bör grundas på en strategi som gör det möjligt för kontinuerlig anpassning av underhållsplaner baserat på ett reguljärt uppdaterad beslutsstödsystem i företaget eller TOC; redovisade underhållskostnader inom den kommunala och den privata hyresbostadssektorn i Sverige kontinuerligt avviker från varandra främst på grund av principal-agent frågor av sociopolitisk karaktär, i form av politisk inblandning i verksamheten inom de allmännyttiga bostadsföretag, och hur företag definierar underhåll samt tidpunkten för underhållsåtgärderna; effektiv fastighetsförvaltning inom den svenska Brf sektorn kompliceras av olika aktörer (kooperativets medlemmar, che fer eller tjänsteleverantörer) med dolda incitament, avsaknaden av ett långsiktigt perspektiv i beslutsfattandet, en hög omsättning av kommittémedlemmar samt informationsasymmetri mellan yrkesverksamma (konstruktörer samt tjänsteleverantörer) och amatör beslutsfattare inom Brfer, särskilt i kooperativ med nybyggda hus, vilket utgör en stor källa till effektivitetsförluster inom verksamheten i Brf sektorn. Avhandlingens viktiga bidrag är att: det främjar synen på underhåll som en investering och understryker möjligheten till kostnadsbesparingar genom att knyta ihop flera åtgärder samt de utmaningar som kan finnas; det pekar på behovet inom bostadssektorn för bättre beslutsunderlagsverktyg liksom kunskapsöverföring och delning samt uppmuntrar den regeringen att främja en politik som skulle minska graden av informationsasymmetri mellan beställare av tjänster inom Brf sektorn och byggföretag samt andra tjänsteleverantörer. Ett krav på formell kompetens och certifiering kan vara ett steg mot att öka graden av kvalificerad beslutsfattande och effektivitet inom fastighetsförvaltning i bostadssektorn. Hur detta skulle kunna genomföras i hela landet i de olika bostadssektorerna är en fråga som ytterligare skulle kunna undersökas.

Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 2016. ix, 35 p.
Series
TRITA-FOB-DT, 2016:1
Keyword
Property management, housing maintenance, tenant-owner, cooperative housing, maintenance planning, incentives, bostadsrätt, fastighetsförvaltning, fastighetsunderhåll, underhållsplanering, incitament, bostadsrättsförening
National Category
Construction Management
Research subject
Real Estate and Construction Management
Identifiers
urn:nbn:se:kth:diva-182663 (URN)978-91-85783-61-8 (ISBN)
Public defence
2016-03-17, F3, Lindstedtsvägen 26, KTH, Stockholm, 13:00 (English)
Opponent
Supervisors
Note

QC 20160223

Available from: 2016-02-23 Created: 2016-02-22 Last updated: 2016-07-11Bibliographically approved

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