The management and administration of residential houses in Latvia can be performed by legal and natural persons who have the appropriate qualifications, which are determined by the Law on Administration of Residential Houses. There are 767 active legal and natural persons registered in the Register of administrators of residential houses kept by the Ministry of Economics of the Republic of Latvia, they, according to the regulatory framework, are entitled to fulfil the functions and duties of the real estate manager. In order to employ the most sustainable and efficient administrator for a residential house, the community of flat owners has the right to choose and contractually agree upon the management and administration of the house with any person of their choice. Most often the choice is based on the lowest price and the reputation of the management and administration company. The purpose of the study is to evaluate the administrator's experience and sustainability in provision of the service to identify existing trends and facilitate the selection process. The study contains the financial analysis of the management and administration companies for residential houses using the DuPont model and bankruptcy prediction models. The results of modelling provide an estimate of the financial position of the company and predict its solvency in the near future. The research approach is a descriptive and inferential experimental study by collecting, analysing and comparing secondary publicly available financial data using model calculation formulas. The result of the study proves that by using the bankruptcy and solvency prediction models, the community of the flat owners may avoid fraudulent low-priced bids.