With the continuous deepening reform of China’s urban housing system, the ownership structure of houses has undergone major changes, and public housing has gradually been transformed into personal ownership. The relationship between the original public housing managers and households in management and management has gradually evolved into a mutual service relationship between property management companies and house owners.

During the reform of the housing system and the development of urban construction, the emerging industry of property management appeared. The nationwide property management enterprises have increased rapidly. Its emergence and development play a positive role in improving the living and working environment of the people, raising the level of urban management, and expanding employment. There have also been some problems that need to be resolved through legislation and improved systems.

Clarify the rights and obligations of owners, property management companies, and development units, standardize the behavior of property management companies and owners ‘meetings, owners’ committees, responsibilities, and operations, protect the common interests of owners, and create a good environment for improving people’s lives and working environment condition. Enterprises engaged in property management activities should have independent legal person qualifications, are established according to legal procedures, engaged in property management activities, provide integrated services and management for owners and tenants, independent accounting, self-financing economic entities. The main signs of a property management company as an enterprise are: Have certain funds and equipment, have the status of the legal person, can independently complete the management and service of the property, operate independently, independently account, afford to civil rights in their own name, assume civil liability, etc., implement a quality management system for enterprises engaged in property management.

The specific rules shall be formulated by the competent administrative department of construction under the State Council. Personnel engaged in property management shall obtain professional qualification certificates in accordance with relevant state regulations. In a property management area, if a property service enterprise implements property management and its property service contract, it should deal with property management matters, service quality, service costs, rights and obligations of both parties, the management and use of special maintenance funds, property management buildings, contract duration, agreement on liability for breach of contract.

The “Property Management Regulations”, which came into effect on October 1, 2007, amended “Property Management Enterprise” to “Property Service Enterprise”, which essentially changed the function of a property company from management to “property owner” service. In order to regulate property management activities, safeguard the legitimate rights and interests of property owners and property service companies, and improve the living and working environment of the people.

The called “property management” refers to the owner’s selection of a property service company. The owner and the property service company shall repair, maintain, and manage the house and supporting facilities and related venues in accordance with the property service contract. Environmental sanitation and related order activities.

1. Types of property management companies

“Property management companies divided according to existing forms”

1. An independent property management company.
2. A property management company affiliated with a real estate development company.

“Division according to service scope”

1. A comprehensive property management company: to provide comprehensive and comprehensive management and services, including management of property ownership, maintenance, and various services for residents
2. Specialized property management company: to implement specialized management on a part of property management, such as a special decoration company, maintenance company, cleaning company, security company, etc.

” Division according to the nature of enterprise ownership”

It is divided into property management companies owned by the whole people and property management companies owned by the group, wholly foreign-owned, joint venture or shareholding, and private. At present, property management companies owned by the whole people and collectively account for the majority.

“Division according to management level”

1. Single-layer property management company: The company is composed of pure management personnel, with capable personnel, without working workers, but by contracting to hand over specific work tasks to a specialized property management company or another work team.
2. Double-layer property management company: Double-layer property management company includes the administrative management layer and operation layer. The operation layer implements specific business management, such as house maintenance, cleaning, decoration, and service activities.
3. Multi-layer property management companies: generally larger in scale and wider in management scope, or have their own branch companies or have their own specialized operating companies, such as cleaning companies, garden companies, etc.

“Division according to enterprise qualifications”

The qualification of a property management company is a comprehensive reflection of the company’s strength, scale, performance, and integrity, and it is an important symbol of the state’s permission to join the property management market.

The conditions for a property management enterprise to engage in property management business include having registered capital that complies with national regulations; having professional and technical personnel suitable for its property management activities; and having certain performance in property management. Property management enterprises are divided into first-level, second-level, and third-level qualification levels and temporary qualifications.

First-level enterprise

1. The registered capital is required to be more than 5 million US dollars
2. More than 30 engineering and technical personnel are needed. The enterprise manager should obtain the certificate of the property management enterprise manager issued by the Ministry of Construction, and more than 80% of the department managers and administrators should obtain the position certificate of the employees.
3. Manage more than two types of property
4. The total construction area of each type of property under management accounts for the sum of the following corresponding calculation bases not less than 100%.
5. Management projects with more than 20% won the title of “City Property Management Excellent Residential Community” awarded by the Ministry of Construction
6. Has a sound enterprise management system and a financial management system that complies with national regulations.
7. Established a maintenance fund management and use system.

• Second-level enterprise

1. The registered capital is required to be more than 3 million US dollars
2. More than 20 engineering and technical personnel are needed. The enterprise manager should obtain the certificate of the property management enterprise manager issued by the Ministry of Construction, and more than 60% of the department managers and administrators should obtain the position certificate of the employees.
3. Manage more than two types of property
4. The total construction area of each type of property under management accounts for the sum of the following corresponding calculation bases not less than 100%.
5. Management projects with more than 10% won the title of “City Property Management Excellent Residential Community” awarded by the Ministry of Construction
6. Has a sound enterprise management system and a financial management system that complies with national regulations;
7. Established maintenance fund management and use system.

• Third-level enterprise

1. The registered capital is required to be more than 500,000 US dollars.
2. More than 8 engineering and technical personnel are needed. The enterprise manager should obtain the certificate of the property management enterprise manager issued by the Ministry of Construction, and more than 50% of the department managers and administrators should obtain the position certificate of the employees.
3. Entrusted property management project;
4. Has a relatively complete enterprise management system and a financial management system that complies with national regulations;
5. Established maintenance fund management and use system.

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