The company can take out a loan, for renovation and modernisation, for example, using the building and real estate as collateral. All the most important decisions in housing companies are made at the shareholders' meeting, at which an administrative board is also elected. The board usually consists of owners of apartments, that is, private individuals living in the building. The board appoints a property manager and auditors, either professionals or residents. The housing company is therefore a good example of resident democracy, where residents decide on housing matters themselves and bear the financial consequences of their decisions.
Housing companies tend to be rather small, often comprising only one building.
The buyers of apartments are covered by a special act on housing transactions, which protects consumers irrespective of whether the housing unit being sold is old or new, and whether the parties to the transaction are businesses or private individuals.