Topicality of the mentioned theme is determined by fact that there are no common understanding in Latvia about formation of administration price and its content. Aim of the research is to analyse in common a price formation mechanism in Latvia, to make price comparison between various property managers in Latvia as well as to evaluate the algorithm of debt collection in order to improve the efficiency of collection process. Based on the obtained research results to develop economically based proposals of price determination mechanism in dwelling house management. Results obtained during the research regarding the peculiarities of price formation of apartment house management and clarified costs allow evaluating the implementation process of State’s planned reform in 1995 about privatization of state and municipal dwelling houses and its impact on apartment house management field in Latvia. The substantiates mentioned above obtain the proposals in the research process for local apartment house management and development in long term.