Property management for owners is a topic for everyone who owns real estate in a homeowner association (WEG) community. Whether it's a small apartment building, a large residential complex, or mixed-use properties with rented units, well-structured management is essential for preserving value, cost transparency, and a functioning coexistence.
In this blog article, you will learn how to organize property management efficiently, which tasks and responsibilities are involved, which types of management exist, and which steps must be taken into account when changing.
The Significance of Property Managers for OwnersLink to this section
The management of condominiums within a WEG community fundamentally differs from the management of a classic rental building. As an owner, you share responsibility for the common property with other co-owners. In this context, property management takes on a coordinating, legal, commercial, and often technical role. The goal is the proper administration according to Section 18 of the Condominium Act.
Structured and professional property management ensures:
- Preservation and increase of the property's value
- Clear statements and transparent finances
- Legally sound decision-making
- Efficient maintenance
- Functioning communication within the WEG community
In short: Property management forms the basis for a harmonious and economically sensible cooperation among the apartment owners.
An Overview of the Different Types of Property ManagementLink to this section
Not all property management is the same. Depending on the type of property and ownership structure, different types of management are used. The following forms are distinguished:
1. WEG Administration
WEG administration refers to the management of the common property of a homeowners' association. This includes:
- Roof
- Facade
- Elevator
- Heating system
- Common rooms (laundry room, bicycle storage, etc.)
The duties of WEG administration are legally regulated and include preparing the budget, the annual statement, calling the owners' meeting, and implementing resolutions. The WEG administrator acts as the executive body of the community and always acts in the interest of the owners.
2. Rental Administration
If an owner possesses several rented apartments or apartment buildings, rental administration may also be required. Here, the focus is on managing the tenancy relationships. Typical tasks include:
- Preparing and sending service charge statements
- Tenant communication and management
- Monitoring payment receipts
- Implementing rent increases
- Organizing repairs in individual property units
Combined management of WEG and rental administration is often desired, especially for larger properties with mixed use. It is important that the property manager clearly separates the tasks and provides transparent billing.
3. Individual Property Administration
Administration of individual condominiums, when they are rented out, is a special form. The manager here takes on tasks that typically fall under rental administration, such as tenant support or receivables management.
The Central Tasks of WEG Administration in DetailLink to this section
Professional WEG administration relieves the burden on the owners, ensures legal certainty, and enables long-term planning. The most important administrative tasks can be divided into four areas:
Commercial Tasks
- Preparation of the annual budget
- Creation of the household expense statement
- Monitoring of payment receipts
- Management of the maintenance reserve
- Invoice verification and payment instructions
Technical Tasks
- Organizing maintenance and repairs
- Tendering and commissioning craft businesses
- Monitoring service providers (caretaker, cleaning, gardener)
- Property inspections and condition assessment
- Implementation of refurbishment measures
- Implementation of energy-saving measures
Legal Tasks
- Implementation of resolutions of the homeowners' association
- Safeguarding the community's interests against third parties
- Collaboration with lawyers in case of disputes
- Review and monitoring of legal deadlines
Administrative Tasks
- Preparation and execution of the owners' meeting
- Minute-taking and collection of resolutions
- Communication with owners
- Maintenance and upkeep of all administrative documents
The Certified Manager – A Quality Feature
With the 2020 WEG reform, the option was created to demand a certified manager. The goal is to raise the professional standard and ensure proper administration. Certified managers must pass an exam before the Chamber of Industry and Commerce (IHK) and prove their expertise.
For owners, this means:
- More security in legal matters
- Well-founded decisions regarding structural measures
- Higher professionalism in administrative activities
The appointment of a certified manager can be made by resolution at the owners' meeting.
Self-Management as an Alternative: Opportunities and RisksLink to this section
Especially in smaller homeowners' associations, the question often arises of whether the owners can take over the management of the common property themselves. This so-called WEG self-management is fundamentally permitted according to the Condominium Act and represents a conceivable alternative to professional property management. It can be particularly useful when only a few parties are involved – for example, in two-family houses or small apartment buildings with committed co-owners.
However, self-management does not only bring advantages: it requires clear structures, responsibility, and a well-thought-out division of tasks. For many property owners, it is therefore not the first choice.
Advantages of Self-Management
- Saving administrative costs: One of the most common motivations for self-management is the reduction of ongoing costs. While a professional property manager can often cost several hundred Euros per month, these administrative costs are completely eliminated with self-management.
- Direct influence on decisions: Without external administration, decision-making power rests entirely with the owners. This allows for quicker coordination, flexible planning, and more self-reliance regarding the property.
- High transparency: All decisions, financial processes, and organizational procedures are organized internally and are directly comprehensible to all co-owners – this strengthens trust within the community.
Disadvantages and Risks
- High time and organizational effort: Self-management requires regular meetings, taking on administrative duties, communicating with craft businesses, accounting, and organizing the owners' meetings – tasks usually taken over by a professional WEG administrator.
- Lack of expertise in complex matters: Without corresponding prior knowledge in condominium law, maintenance, accounting, or contract management, uncertainties and errors can quickly arise. The requirements for proper administrative activity are high.
- Liability risks in case of errors: If mistakes are made in billing, reserve formation, or the implementation of resolutions, these can lead to legal and financial consequences. A certified manager offers legal protection and professional competence here.
- Potential for conflict between co-owners: If individual persons dominate or tasks are unequally distributed, the risk of disputes within the WEG community increases. The boundaries between individual interests and communal responsibility are often fluid.
For Whom is Self-Management Suitable?
In practice, self-management primarily proves worthwhile in very small homeowners' associations with a maximum of two to three units. A prerequisite is that all owners work together trustingly and cooperatively and are willing to take responsibility. Often, these are owners who live in the property themselves and have a strong self-interest in its preservation.
However, for larger residential complexes, more complex properties, or those with frequently changing parties, commissioning a professional property manager becomes almost indispensable. An experienced manager not only takes on the classic administrative tasks but also ensures compliance with legal obligations, coordinates external service providers, and relieves the burden on the homeowners' association in daily life.
Further, more detailed tips can be found in our comprehensive blog article: WEG Without a Manager? This is How Self-Management of Homeowner Associations Works
Selection and Commissioning of Property Management – What You Should ConsiderLink to this section
The change or initial appointment of a property manager requires careful preparation. Not every WEG administration suits every property. The following steps are recommended:
1. Analyze Needs
Determine which tasks should be covered: WEG administration, rental administration, or both? What are the special features of your property (e.g., historical monument protection, large outdoor areas, special technology)?
2. Obtain Quotes
Request at least three comparative quotes. Pay attention to:
- Price structure (Euros per month/unit)
- Scope of services (mandatory and optional additional services)
- Response times
- References and reviews
3. Review the Management Contract
The management contract regulates the rights and obligations of both sides. Important components are:
- Term and notice periods
- Concrete description of services
- Regulation on liability and insurance
- Compensation (flat fee vs. itemized billing)
4. Voting in the Owners' Meeting
The manager is appointed by resolution at the owners' meeting. The appointment requires a simple majority but should ideally be made by consensus to avoid later conflicts.
Cost Structure and Price Comparison in Property ManagementLink to this section
The costs for professional property management vary greatly – depending on the region, property size, condition, and desired scope of services. Here are some guide values for calculation:
- WEG Administration: 20–40 Euros per month per apartment
- Rental Administration: 15–30 Euros per month per unit
- Special Services: e.g., construction supervision, project management, special meetings – to be individually agreed upon
Transparent quotes help with comparability. Pay attention to hidden costs and question unclear flat fees. Good property managers openly present their services and offer clear contract structures.
Digital Tools in Modern Property ManagementLink to this section
Digitalization offers numerous advantages – also in real estate management. More and more managers are relying on modern software solutions to involve owners and optimize processes. Advantages of digital property management:
- Online access to statements and budgets
- Digital collections of resolutions
- Automated payment reminders
- Digital defect reports
- Transparent communication via apps or web portals
As an owner, you benefit from better oversight, higher transparency, and faster processes. When commissioning, specifically ask about the digital services offered.
Property Management: Frequent Challenges in Administrative PracticeLink to this section
Despite good organization, there are often typical stumbling blocks between owners and property managers and their administrative activities:
- Disagreement among owners
- Difficult co-owners or even conflicts with troublemakers in the ownership
- Unenforceable resolutions
- Unclear responsibilities regarding tasks in the WEG
- Unexpected maintenance costs
An experienced property management recognizes conflicts early, mediates professionally, and ensures solution-oriented action. It is important that you as owners also take responsibility, inform yourselves, and actively participate.
Changing Property Management – Step by StepLink to this section
Changing property management involves organizational effort. At the same time, it may be necessary if the current management does not meet your expectations. Typical reasons for a change are:
- Lack of communication
- Opaque billing
- Lack of response to complaints
- Insufficient maintenance
How to successfully make the change:
- Review the contract: What notice periods apply? Are there special rights of termination?
- Obtain quotes: Identify suitable successor management companies
- Prepare the owners' meeting: Put the change on the agenda
- Decision-making: Appoint the new management, terminate the old one
- Organize the handover phase: Transfer documents, keys, accounts
Plan the change early – ideally 6–9 months in advance. This ensures that there is no gap in the support.
Conclusion: Achieving Successful Property Management with Structure, Knowledge, and the Right PartnerLink to this section
Property management for owners is far more than just an organizational duty. It is a central element for preserving the value of the property, peace within the homeowners' association, and avoiding unnecessary costs. Whether self-management, WEG administrator, or a combined solution: The crucial thing is that the processes are clearly defined, the tasks are cleanly distributed, and communication is open.
Use this guide as a roadmap through the complex world of real estate administration. With the right information, careful planning, and a dedicated team of management and ownership, you can optimally support and develop your property – in the interest of the entire community and with a view toward long-term value preservation.
Do you already know Ralph?
A change in property management can have many reasons: lack of transparency, insufficient communication, or rising administrative costs. If you are looking for reliable, committed, and professional support for your property, we are happy to assist you.
Request a free quote now and switch to Ralph!
Would you like to search for current property management costs in your area to compare with the given guidelines?Property management for owners is a topic for everyone who owns real estate in a homeowner association (WEG) community. Whether it's a small apartment building, a large residential complex, or mixed-use properties with rented units, well-structured management is essential for preserving value, cost transparency, and a functioning coexistence.
In this blog article, you will learn how to organize property management efficiently, which tasks and responsibilities are involved, which types of management exist, and which steps must be taken into account when changing.
The Significance of Property Managers for OwnersLink to this section
The management of condominiums within a WEG community fundamentally differs from the management of a classic rental building. As an owner, you share responsibility for the common property with other co-owners. In this context, property management takes on a coordinating, legal, commercial, and often technical role. The goal is the proper administration according to Section 18 of the Condominium Act.
Structured and professional property management ensures:
- Preservation and increase of the property's value
- Clear statements and transparent finances
- Legally sound decision-making
- Efficient maintenance
- Functioning communication within the WEG community
In short: Property management forms the basis for a harmonious and economically sensible cooperation among the apartment owners.
An Overview of the Different Types of Property ManagementLink to this section
Not all property management is the same. Depending on the type of property and ownership structure, different types of management are used. The following forms are distinguished:
1. WEG Administration
WEG administration refers to the management of the common property of a homeowners' association. This includes:
- Roof
- Facade
- Elevator
- Heating system
- Common rooms (laundry room, bicycle storage, etc.)
The duties of WEG administration are legally regulated and include preparing the budget, the annual statement, calling the owners' meeting, and implementing resolutions. The WEG administrator acts as the executive body of the community and always acts in the interest of the owners.
2. Rental Administration
If an owner possesses several rented apartments or apartment buildings, rental administration may also be required. Here, the focus is on managing the tenancy relationships. Typical tasks include:
- Preparing and sending service charge statements
- Tenant communication and management
- Monitoring payment receipts
- Implementing rent increases
- Organizing repairs in individual property units
Combined management of WEG and rental administration is often desired, especially for larger properties with mixed use. It is important that the property manager clearly separates the tasks and provides transparent billing.
3. Individual Property Administration
Administration of individual condominiums, when they are rented out, is a special form. The manager here takes on tasks that typically fall under rental administration, such as tenant support or receivables management.
The Central Tasks of WEG Administration in DetailLink to this section
Professional WEG administration relieves the burden on the owners, ensures legal certainty, and enables long-term planning. The most important administrative tasks can be divided into four areas:
Commercial Tasks
- Preparation of the annual budget
- Creation of the household expense statement
- Monitoring of payment receipts
- Management of the maintenance reserve
- Invoice verification and payment instructions
Technical Tasks
- Organizing maintenance and repairs
- Tendering and commissioning craft businesses
- Monitoring service providers (caretaker, cleaning, gardener)
- Property inspections and condition assessment
- Implementation of refurbishment measures
- Implementation of energy-saving measures
Legal Tasks
- Implementation of resolutions of the homeowners' association
- Safeguarding the community's interests against third parties
- Collaboration with lawyers in case of disputes
- Review and monitoring of legal deadlines
Administrative Tasks
- Preparation and execution of the owners' meeting
- Minute-taking and collection of resolutions
- Communication with owners
- Maintenance and upkeep of all administrative documents
The Certified Manager – A Quality Feature
With the 2020 WEG reform, the option was created to demand a certified manager. The goal is to raise the professional standard and ensure proper administration. Certified managers must pass an exam before the Chamber of Industry and Commerce (IHK) and prove their expertise.
For owners, this means:
- More security in legal matters
- Well-founded decisions regarding structural measures
- Higher professionalism in administrative activities
The appointment of a certified manager can be made by resolution at the owners' meeting.
Self-Management as an Alternative: Opportunities and RisksLink to this section
Especially in smaller homeowners' associations, the question often arises of whether the owners can take over the management of the common property themselves. This so-called WEG self-management is fundamentally permitted according to the Condominium Act and represents a conceivable alternative to professional property management. It can be particularly useful when only a few parties are involved – for example, in two-family houses or small apartment buildings with committed co-owners.
However, self-management does not only bring advantages: it requires clear structures, responsibility, and a well-thought-out division of tasks. For many property owners, it is therefore not the first choice.
Advantages of Self-Management
- Saving administrative costs: One of the most common motivations for self-management is the reduction of ongoing costs. While a professional property manager can often cost several hundred Euros per month, these administrative costs are completely eliminated with self-management.
- Direct influence on decisions: Without external administration, decision-making power rests entirely with the owners. This allows for quicker coordination, flexible planning, and more self-reliance regarding the property.
- High transparency: All decisions, financial processes, and organizational procedures are organized internally and are directly comprehensible to all co-owners – this strengthens trust within the community.
Disadvantages and Risks
- High time and organizational effort: Self-management requires regular meetings, taking on administrative duties, communicating with craft businesses, accounting, and organizing the owners' meetings – tasks usually taken over by a professional WEG administrator.
- Lack of expertise in complex matters: Without corresponding prior knowledge in condominium law, maintenance, accounting, or contract management, uncertainties and errors can quickly arise. The requirements for proper administrative activity are high.
- Liability risks in case of errors: If mistakes are made in billing, reserve formation, or the implementation of resolutions, these can lead to legal and financial consequences. A certified manager offers legal protection and professional competence here.
- Potential for conflict between co-owners: If individual persons dominate or tasks are unequally distributed, the risk of disputes within the WEG community increases. The boundaries between individual interests and communal responsibility are often fluid.
For Whom is Self-Management Suitable?
In practice, self-management primarily proves worthwhile in very small homeowners' associations with a maximum of two to three units. A prerequisite is that all owners work together trustingly and cooperatively and are willing to take responsibility. Often, these are owners who live in the property themselves and have a strong self-interest in its preservation.
However, for larger residential complexes, more complex properties, or those with frequently changing parties, commissioning a professional property manager becomes almost indispensable. An experienced manager not only takes on the classic administrative tasks but also ensures compliance with legal obligations, coordinates external service providers, and relieves the burden on the homeowners' association in daily life.
Further, more detailed tips can be found in our comprehensive blog article: WEG Without a Manager? This is How Self-Management of Homeowner Associations Works
Selection and Commissioning of Property Management – What You Should ConsiderLink to this section
The change or initial appointment of a property manager requires careful preparation. Not every WEG administration suits every property. The following steps are recommended:
1. Analyze Needs
Determine which tasks should be covered: WEG administration, rental administration, or both? What are the special features of your property (e.g., historical monument protection, large outdoor areas, special technology)?
2. Obtain Quotes
Request at least three comparative quotes. Pay attention to:
- Price structure (Euros per month/unit)
- Scope of services (mandatory and optional additional services)
- Response times
- References and reviews
3. Review the Management Contract
The management contract regulates the rights and obligations of both sides. Important components are:
- Term and notice periods
- Concrete description of services
- Regulation on liability and insurance
- Compensation (flat fee vs. itemized billing)
4. Voting in the Owners' Meeting
The manager is appointed by resolution at the owners' meeting. The appointment requires a simple majority but should ideally be made by consensus to avoid later conflicts.
Cost Structure and Price Comparison in Property ManagementLink to this section
The costs for professional property management vary greatly – depending on the region, property size, condition, and desired scope of services. Here are some guide values for calculation:
- WEG Administration: 20–40 Euros per month per apartment
- Rental Administration: 15–30 Euros per month per unit
- Special Services: e.g., construction supervision, project management, special meetings – to be individually agreed upon
Transparent quotes help with comparability. Pay attention to hidden costs and question unclear flat fees. Good property managers openly present their services and offer clear contract structures.
Digital Tools in Modern Property ManagementLink to this section
Digitalization offers numerous advantages – also in real estate management. More and more managers are relying on modern software solutions to involve owners and optimize processes. Advantages of digital property management:
- Online access to statements and budgets
- Digital collections of resolutions
- Automated payment reminders
- Digital defect reports
- Transparent communication via apps or web portals
As an owner, you benefit from better oversight, higher transparency, and faster processes. When commissioning, specifically ask about the digital services offered.
Property Management: Frequent Challenges in Administrative PracticeLink to this section
Despite good organization, there are often typical stumbling blocks between owners and property managers and their administrative activities:
- Disagreement among owners
- Difficult co-owners or even conflicts with troublemakers in the ownership
- Unenforceable resolutions
- Unclear responsibilities regarding tasks in the WEG
- Unexpected maintenance costs
An experienced property management recognizes conflicts early, mediates professionally, and ensures solution-oriented action. It is important that you as owners also take responsibility, inform yourselves, and actively participate.
Changing Property Management – Step by StepLink to this section
Changing property management involves organizational effort. At the same time, it may be necessary if the current management does not meet your expectations. Typical reasons for a change are:
- Lack of communication
- Opaque billing
- Lack of response to complaints
- Insufficient maintenance
How to successfully make the change:
- Review the contract: What notice periods apply? Are there special rights of termination?
- Obtain quotes: Identify suitable successor management companies
- Prepare the owners' meeting: Put the change on the agenda
- Decision-making: Appoint the new management, terminate the old one
- Organize the handover phase: Transfer documents, keys, accounts
Plan the change early – ideally 6–9 months in advance. This ensures that there is no gap in the support.
Conclusion: Achieving Successful Property Management with Structure, Knowledge, and the Right PartnerLink to this section
Property management for owners is far more than just an organizational duty. It is a central element for preserving the value of the property, peace within the homeowners' association, and avoiding unnecessary costs. Whether self-management, WEG administrator, or a combined solution: The crucial thing is that the processes are clearly defined, the tasks are cleanly distributed, and communication is open.
Use this guide as a roadmap through the complex world of real estate administration. With the right information, careful planning, and a dedicated team of management and ownership, you can optimally support and develop your property – in the interest of the entire community and with a view toward long-term value preservation.
Do you already know Ralph?
A change in property management can have many reasons: lack of transparency, insufficient communication, or rising administrative costs. If you are looking for reliable, committed, and professional support for your property, we are happy to assist you.
Request a free quote now and switch to Ralph!
