The subject matter of the research is highlighted by both the new regulatory framework and the need for technical housing, and the need for clear conditions – how to calculate the rent so that it also covers the technical maintenance work of the dwelling, thereby ensuring that the residential space complies with the technical requirements. The aim of the research is to identify problems and gaps in the rental process of residential spaces owned by the local government and to provide proposals for solutions to related problems. Methods used in the development of the research: the method of collecting intelligence, analysis and empirical data (interview, observation, analysis of the situation). The theoretical, methodological and informative basis of the research is composed of theoretical and practical knowledge of Latvian science and economic scientists, and residential houses management and rental specialists, scientific publications, legislation of the Republic of Latvia, data of the Ministry of Economics, Riga City Council (including “Riga city builder”, Riga Municipality Housing and Environment Department) data, internet resources and other sources of information, including information published and unpublished by the company. The research examines the problems, including legal relations, the technical state of residential houses and the decision-making aspects that affect the rental process of residential spaces. Research examines the conditions of the rental contract for residential spaces, the processes of mandatory management activities, decision-making aspects, and the method of calculating rental for residential spaces. Within the framework research, the possibilities for the development of residential rental processes are examined, including methods for improving the method of calculating rental residential spaces, as well as a comparison of the laws on rental of residential spaces. As part of the study, the hypothesis is being confirmed: the lack of residential spaces or their unsatisfactory technical status, as well as low rents, affect the possibility for municipalities to fully implement their statutory functions by providing residents with living space.