The administration of a condominium owners' association (WEG) is traditionally the task of external WEG administrators. But what happens when a COA operates without a manager? More and more owners' associations are looking into the possibility of taking management into their own hands - be it for cost reasons, due to dissatisfaction with previous property managers or simply because no suitable manager can be found.

In this article, you will learn how self-administration works in practice, what legal framework conditions apply, what tasks owners have to perform and what opportunities and challenges the self-administration of homeowners' associations entails.

What does it mean if a condominium is without an administrator?

A condominium without a manager means that the community of owners has not appointed an external property manager. Instead, the condominium owners themselves manage the common property. This can be done in two ways:

Forms of self-administration

• Genuine self-administration: All owners jointly assume the administrative tasks and jointly represent the community.
• Internal manager solution: One or more owners are appointed by resolution to manage the property and act as an internal manager.

Both variants are provided for in condominium law and offer a practicable solution, particularly for smaller communities, if the appointment of an administrator is not desired or possible.

Legal basis of WEG self-administration

The legal framework for the self-administration of a condominium is set out in the German Condominium Act (WEG). Pursuant to Section 18 (1) WEG, the management of the common property is generally the joint responsibility of the condominium owners. The law expressly provides for the possibility of owners' associations taking over the administration themselves by resolution and not appointing an external administrator. The WEG remains capable of acting even without an administrator, provided that the owners assume the tasks and observe the legal requirements.

Important paragraphs at a glance

• § Section 18 WEG: Management of the common property by the community of owners
• § Section 24 (3) WEG: Convening the owners' meeting without an administrator
• § Section 26 WEG: Appointment and dismissal of the administrator by resolution of the owners
• § Section 9b WEG: Representation of the WEG by the community of owners if no administrator has been appointed

The self-administration process: how it works in practice

The self-administration of a condominium requires a high degree of organization, commitment and basic legal knowledge. The most important steps and tasks include

Organization of the owners' meeting

• The invitation to the owners' meeting must be sent by an owner, the management advisory board or a person authorized by resolution.
• The meeting is chaired by an owner who also takes the minutes.
• The resolutions passed are documented and made available to all owners.

Management of the common property

• Maintenance and repair of communal building parts and facilities
• Conclusion and administration of contracts (e.g. maintenance, insurance, service providers)
• Control and commissioning of tradespeople and monitoring of measures
• Management of joint reserves and accounts

Financial tasks

• Preparation of the business plan and annual accounts
• Collection and administration of the house money
• Processing of payment transactions and accounting

Other administrative tasks

• Communication with authorities, service providers and insurance companies
• Implementation and monitoring of resolutions of the owners' meeting
• Management of documents, contracts and protocols

Advantages of WEG self-administration

Self-administration offers numerous advantages, particularly for smaller homeowners' associations:

• Cost savings: There are no external administrator fees for the condominium community.
• More control: The owners retain full control over all measures and decisions.
• Flexibility: Decisions can be made more quickly and directly.
• Personal support: Management is carried out by people who are familiar with the property and the needs of the community.

Challenges and risks of self-administration

Despite the advantages, self-administration also brings considerable challenges:

• Time-consuming: Taking on administrative tasks requires a lot of time and commitment.
• Specialist knowledge required: Knowledge of condominium law, accounting and technology is essential.
• Liability risks: Errors in administration can lead to financial losses or liability issues.
• Potential for conflict: Unclear responsibilities or differences of opinion can lead to disputes in the condominium community.
• Ability to act: The community must also be able to act quickly and with legal certainty in difficult situations (e.g. in the event of disputes, payment arrears or claims).

Prerequisites for successful self-administration

The following requirements must be met for the WEG to function without the appointment of an administrator:

• Clear regulations: The distribution of tasks and responsibilities must be clearly regulated - ideally by resolution or in the community rules.
• Commitment of the owners: Everyone involved must be willing to contribute their time and knowledge.
• Transparent communication: Regular information and coordination are important in order to avoid conflicts.
• External support: If necessary, individual tasks (e.g. bookkeeping, technical support) can be outsourced to external service providers.

Resolution and circulation procedure

Even without an administrator, decision-making remains the central instrument of condominium management. The owners' meeting is the most important body. Alternatively, resolutions can be passed by circular resolution if all owners agree. The resolutions passed must be documented and must comply with the legal requirements.

Appointment of an administrator: when is it necessary?

In certain cases, it may be necessary to appoint an administrator again:

• The tasks become too complex or time-consuming.
• Disputes arise that jeopardize the community's ability to act.
• The owners would like professional support.

The appointment of an administrator is made by resolution at the condominium owners' meeting. If no resolution is passed or if the community is unable to act, any owner can apply to the local court for the appointment of an administrator. The court will then check whether the requirements are met and can appoint a property manager.

The procedure for appointing an administrator

• Search for suitable property managers, tendering and comparison of offers if necessary
• Presentation of the candidates at the owners' meeting
• Resolution on the appointment of an administrator
• Conclusion of the management contract and handover of the management documents

Special features of the judicial appointment of administrators

• Every owner is entitled to the appointment of an administrator if the community has not appointed one.
• As a rule, an attempt must be made to bring about a resolution on the appointment of the administrator prior to court proceedings.
• The court examines the situation and can appoint an administrator if the community's ability to act is at risk.

Typical problems and solutions in WEGs without administrators

Lack of experience and expertise

• Solution: Further training, advice from experts, use of software and external service providers

Unclear responsibilities

• Solution: Clear distribution of tasks and written resolutions

Conflicts among the owners

• Solution: Transparent communication, mediation, appointment of a neutral third party if necessary

High administrative costs

• Solution: distribute tasks across several shoulders, external help for individual areas (e.g. accounting)

Lack of capacity to act

• Solution: Appointment of an internal administrator or, if necessary, judicial appointment of an external administrator

Practical examples: When does it make sense to dispense with external property management?

Dispensing with external property management is particularly suitable for:

• Small communities of owners with few apartments
• Communities with committed and knowledgeable owners
• Situations in which no suitable property management company can be found
• Communities that want to save costs and retain more control

The self-managing WEG is less suitable for large communities with many units, complex technical systems or frequent conflicts between the condominium owners.

Important aspects and tips for self-administration

• Check regularly whether the self-administration still fits the situation of your community.
• Use digital tools and templates to make administrative tasks easier.
• Always adhere to the provisions of the Condominium Act and carefully document all resolutions and measures.
• If you are unsure, seek legal advice to avoid mistakes and liability risks.
• Consider whether individual tasks (e.g. accounting, technical support) can be outsourced.

Conclusion: WEG without an administrator as an opportunity and a challenge

WEG self-administration is a real alternative to traditional property management - especially for small, committed communities of owners. It offers more control, flexibility and cost savings. At the same time, it requires discipline, specialist knowledge and a high degree of organization. Owners must be prepared to take on responsibility and deal with the legal and practical requirements of management.

Whether self-administration is the right way for your community depends on the size of the condominium, the commitment of the owners and the individual framework conditions. Examine the options carefully and, if necessary, use external support to ensure that the management of the common property is legally compliant and efficient. In this way, your condominium will remain capable of acting and future-proof even without an administrator.

Do you already know Ralph?

More and more communities of owners are opting for self-administration - for cost reasons or because no suitable administrator can be found. What many people underestimate: The tasks are extensive, the requirements are high and legal pitfalls are not uncommon. Without professional support, important issues such as the collection of resolutions, maintenance planning or accounting quickly fall by the wayside.

Do you realize that self-administration is not a long-term solution? Then opt now for professional condominium management that knows what's important. Request a free quote directly from us!