The maintenance needs report: what it tells you and how to read it

Alongside the financial statements and the budget, the papers for the annual general meeting include a document that says more about the housing company’s next few years than almost anything else: the maintenance needs report (kunnossapitotarveselvitys). It is required by law, yet it often ends up as an appendix that gets only a quick glance, even though shareholders and board members could get a great deal out of it.

What the law requires

The maintenance needs report is based on chapter 6, section 3 of the Limited Liability Housing Companies Act (asunto-osakeyhtiölaki, 1599/2009). At the annual general meeting, the board must present a written report on the maintenance of the company’s buildings and properties over the five years following the general meeting that will significantly affect

• the use of the apartments,
• the maintenance charge, or
• other costs arising from the use of the apartments.

The same section requires a second report: the board must describe significant maintenance and alteration work carried out in the company, with dates. Together, these documents show what has been done in the housing company and what lies ahead.

The amendments to the Limited Liability Housing Companies Act that came into force on 1 October 2026 (Act 535/2026) did not change the provision on the report. The review period is still five years.

An estimate, not a decision

The report concerns estimated maintenance needs, not renovations that have been decided. It can state, for example, that the company will probably need to prepare for replacing the roof within five years, even though no decision has been made on the project. Actual renovation projects are prepared and decided separately in accordance with the Act and the articles of association, with major projects decided at the general meeting.

What goes into the report

The Act does not give a detailed list of contents. It sets the goal: shareholders must be informed of maintenance needs that significantly affect living in the building or costs. This gives the board discretion, but also the responsibility to base its estimate on the information available.

A report typically covers the roof, facades and balconies, domestic water and drainage pipes, electrical, heating and ventilation systems, lifts, windows and external doors, perimeter drains, rainwater systems and the yard. Not all of these need to be mentioned every year, only those expected to matter over the next five years.

The Act does not require the contract price, the contractor, an exact start date, a financing model or a decision to proceed. A rough estimate of the cost impact does, however, help shareholders prepare, so it is worth including whenever possible.

The report looks five years ahead. For a longer horizon, many housing companies draw up a voluntary long-term maintenance plan (PTS), which usually covers 10–20 years and makes writing the annual report considerably easier.

What the board’s estimate is based on

A good report is not written in a rush the week before the general meeting. It can draw on condition assessments and condition surveys, the PTS, the maintenance log (huoltokirja), observations from the property manager and the maintenance company, expert opinions and documents from previous repairs. The more the estimate rests on documented information, the more reliable it is.

The board cannot be expected to know about a hidden defect that nobody has had any indication of. If, however, the available information points to a significant repair need, leaving it out reduces the value of the report and may mislead shareholders.

Only what the company knows ends up in the report. Information on the parts inside the apartments that the company is responsible for, such as floor drains and pipe supports, can only be gathered by visiting the apartments. That is why a regular apartment round improves the information the report is based on.

For each item, a good report states at least:

• which part of the building the estimate concerns
• why the need has been identified and on what information
• when the company should prepare for the work
• how it may affect living in the building or the charges.

How a shareholder should read the report

Simply asking “which renovations are being done?” can be misleading. A better question is where the board thinks the housing company is heading over the next five years.

What is the estimate based on? Is it backed by a condition assessment, a condition survey, an expert opinion or the board’s own view? All are permitted, but their reliability varies.

Is something obvious missing? If the facade is clearly worn, the roof is original or the domestic water pipes are more than 50 years old, but none of these is mentioned, it is worth asking about. The question does not imply that the board has made a mistake. There may be information behind it that shareholders are not aware of.

Can the finances cope? Costs do not have to be stated, but shareholders should consider whether a repair might raise the maintenance charge or require a company loan.

Does the report change from year to year? Compare it with earlier versions. Has a need disappeared, have new ones emerged, or is the same project being pushed back year after year?

At the general meeting, shareholders have a right to ask questions: on request, the board and the property manager must provide more detailed information on matters that may affect the assessment of the item being discussed. Reasonable questions include, for example, “has a condition survey been carried out on this?” and “will this affect future charges?”.

If you are buying an apartment

In addition to the property manager’s certificate (isännöitsijäntodistus) and the charges, read the latest maintenance needs report. If it estimates, for example, a need to repair the pipework or the facade, you gain valuable information about future costs. The report does not, however, guarantee that repairs will fall within that exact period or that no new needs will arise. You will find more tips in the article buying shares in a housing company.

The report as a tool for the board

A well-prepared report helps the board monitor the property’s condition from year to year, justify its decisions and maintain continuity when the board’s membership changes. It also makes major decisions easier: when shareholders have been reading about the coming pipe renovation for years, the project does not come as a surprise. See also how postponed repairs turn into a repair backlog.

Frequently asked questions

Is the maintenance needs report mandatory?

Yes. Under chapter 6, section 3 of the Limited Liability Housing Companies Act, the board must present it at every annual general meeting.

Does the report mean that a renovation will definitely go ahead?

No. The report is the board’s estimate. Repairs are decided separately.

Can a shareholder see the report?

Yes. It is presented at the annual general meeting and forms part of the meeting documents.

Sources

• Limited Liability Housing Companies Act 1599/2009, consolidated version (Finlex, in Finnish) (opens in a new tab)
• Act amending the Limited Liability Housing Companies Act 535/2026 (Finlex, in Finnish) (opens in a new tab)

This article provides general information and does not replace case-specific legal or technical advice.