Property management service debts and their impact on entrepreneurship
2018
Pukite, I., Riga Technical Univ. (Latvia) | Geipele, I., Riga Technical Univ. (Latvia) | Moisejeva, I., College of Law, Riga (Latvia)
The present research examines the causes and risks of property management service and utility debt collection and their impact on the operation of the management company. Every day, civil relations arise in the society from the liabilities of the parties. By providing property management services, civil contracts are concluded in order to achieve a certain economic result – the fulfilment of specific work. The other party is usually interested in remuneration for the services provided. The data of the Portal of the Latvian Court of Justice https://manas.tiesas.lv have been used to determine the current situation. Both the judicial authorities and the judgements have been chosen on a random basis. During the research, the court judgements and verdicts on debt collection, the regulatory enactments regulating the recovery of debts in Latvia, publications related to entrepreneurship and debt recovery issues have been reviewed. The aim of the research is to investigate the current situation of property management service and utility debt collection, determine the causes of debts, the possibilities for debt recovery, and the risks of bad debts, as well as their impact on the operation of the management company. The research analyses the results obtained by considering 17 court judgements of the Republic of Latvia. In the end, proposals are formulated for the management company’s further activities to improve the fulfilment of the liabilities. Analytical and quantitative methods have been used within the framework of the research.
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