Reduced running costs
As a member of a housing association you do not own your apartment, but rather buy the right to live there in a so-called condominium tenancy agreement. However, together with your neighbors you do own the building in which it is situated and are responsible for its management which entails significant obligations.
It is therefore important that housing association board members are active in their roles. One of the most critical issues, in addition to securing low-interest loans, is day-to-day management of the property. In a rented accommodation this is usually the responsibility of an assigned property manager, but in a housing association liability rests with the board.
For example, in the Hammarby Strand Housing Association, overheads account for around 85% of outlay – for heat, electricity and maintenance – while 15% goes to pay interest on any mortgages that are incumbent to the property.