Conflicts between property management companies and condominium associations are unfortunately not uncommon: missing annual statements, unavailability, unauthorized terminations, embezzlement of community funds, or unauthorized maintenance measures are just a few examples. But what options and, above all, rights do owners have when problems arise with the property management company? How and where can condominium associations file complaints? This article provides a comprehensive overview and explains the most important aspects.
Trouble with the property management: Common criticisms of condominiumsLink to this section
Unreachable property management, missing annual statements, financial uncertainties or even Insolvency of the property management company Such problems burden many condominium associations. Frequently cited criticisms include:
Incorrect or incomprehensible Annual statements Faulty Minutes of owners' meetings Unprofessional execution of Owners' meetings Ignoring agenda items requested by ownersMissed deadlines and complete inactionDelayed or non-implementation of owner resolutionsUncooperative cooperation with the Administrative Board Obtaining overpriced offers from service providersFrequent price increasesPoor accessibility of the WEG administratorsActions by property managers without the required authority
Administrator problems? How to find a solution togetherLink to this section
When it comes to property management issues, a collaborative approach within your homeowners association is important. Before contacting the property managers, first consult with your co-owners to determine if the issue is a shared one.
Together, you can clarify whether your property management company is violating its obligations to all or only individual owners, and whether a mutual solution is possible. Please first consult with the property management company.
Important: Only if discussions with your administration fail should you consider legal action such as a warning or a lawsuit.
We have listed and explained here which measures you should take beforehand.
Write a letter of complaint
To effectively file a complaint with your property management company, use a letter of complaint. Include all relevant information, such as your unit, dates, and owner details. Inform yourself of your rights and responsibilities in advance to support your complaint. Write your letter politely, firmly, and clearly structured. Send it by registered mail or email with a read receipt for proof of receipt. Finally, give the management company a reasonable deadline to respond before taking further action.
Contact us by phone
In the age of email and messaging apps, it's often forgotten that these communication channels aren't always reliable. Constantly updated spam filters can mistakenly block important messages. Therefore, if your emails go unanswered, try calling first to speak directly with the property manager.
Go to the WEG administration office
If letters of complaint, emails, or phone calls fail to resolve the issue, a personal visit to the property management office may be the next step. This is especially effective if you join forces with other owners in your homeowners association and present a joint effort. Such a visit lends more weight to your concerns and can put pressure on the management. However, it's important to remain calm and objective throughout to find a constructive solution.
Set clear guidelines for your administration
When you finally contact the property management company, don't let them put you off. Refer to the existing service agreements and the management contract to clarify the breaches. Set specific deadlines and demand feedback on the results achieved. This will ensure that the management company finally fulfills its obligations.
Strengthening property rights: Exposing the administration's inadmissible excusesLink to this section
Property management companies often resort to excuses to justify their inaction. But which of these excuses are legally valid, and which can owners expose?
Staff shortageA temporary staff shortage is not a legal justification for inaction and non-implementation of a decision. However, it is advisable to be lenient when setting a deadline.Incorrect decision: Resolutions are valid according to Section 23 Paragraph 4 Sentence 2 WEG until they are annulled by a final and binding judgment.challenge: A challenge does not entitle the non-implementation of a WEG resolution (cf. LG Munich, case number 1 T 13169/08).Age of the decision: Decisions do not expire and must therefore be implemented even after a long period of time."The building permit is too old":Building permits have a limited validity (often three years)."The decision is void":A void resolution is legally ineffective and may not be implemented."There is an interim order stating that the decision may not be implemented.": A court order takes precedence."We can't get three quotes from tradesmen":This statement should be questioned, as it is usually possible to obtain comparative offers."If the resolution is implemented, the WEG must pay compensation claims": This claim should also be examined carefully, as it is often unfounded.
File a complaint against the property managementLink to this section
If all of the communication attempts mentioned above fail, the next step is to file a complaint against the property management. The management board can play a crucial role in this: They can help establish contact, organize a meeting, file a formal complaint, or extraordinary owners' meeting convened.
If these measures also fail, the owners' meeting must be called, if necessary through the advisory board. The meeting allows for further steps to be planned jointly, up to and including immediate termination of the management contract. It is advisable to seek legal advice and, if termination is necessary, to choose a reliable new property management company.
Warning in case of problems with the property managementLink to this section
If the property management fails to properly fulfill its obligations, a warning may also be an appropriate step. This applies to cases where the breaches of duty are not so serious that immediate termination or Removal of the administrator would be justified.
If you receive a warning, proceed as follows:
Identification of the breach of dutyWarning with deadlineIf necessary: Further steps such as legal action or termination of the management contract
The warning is issued either by individual apartment owners – for example, in the case of personal claims (e.g. inclusion of an item on the agenda) – or by the entire community of owners – for example, in the case of general problems with the administration.
In serious cases: Legal assertion of claims against the property managementLink to this section
If the warning remains ineffective, asserting claims in court is often the last resort. Whether the lawsuit is filed by the entire condominium association or by an individual owner depends on the specific claim. In the case of claims for damages by the condominium association or the enforcement of property management duties, the association is responsible. One example of this is the implementation of resolutions.
When enforcing claims against the property management company, it is important to distinguish between individual and collective claims. As with warning letters, individual property owners can file a lawsuit themselves in the case of personal claims, such as the inclusion of an agenda item, or the entire condominium association can file a lawsuit.
Removal of the administrator or termination of the management contractLink to this section
The removal of a property manager or termination of the management contract requires a resolution of the condominium association. Personal differences between individual owners are not sufficient. Before removal or termination, it is advisable to review the contract term and seek a new condominium management company. Our website " Change property management " provides detailed instructions.
Landlords not reachable: What tenants can doLink to this section
If the landlord is unavailable, this can also be stressful and challenging for tenants. Even if landlords don't have to be available around the clock, there are situations where quick action is necessary. In the case of urgent repairs such as water damage or heating failures, tenants are allowed to take action themselves and arrange for the repairs at the landlord's expense.
Otherwise, if you are a tenant, try to contact your landlord through various channels (email, phone) and consider that he or she may not be able to respond immediately.
Conclusion and summaryLink to this section
Problems with the condominium management should not be ignored. If obligations are not met, a frank discussion is the first step to finding a mutual solution and securing future cooperation. If inquiries remain unanswered, a written warning is appropriate. Only if these measures prove unsuccessful should legal action and termination of the contract be considered.
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