When it comes to managing condominiums, many owners face the question: Does it have to be an external condominium manager, or is there a viable alternative? The answer is yes: self-management. In this article, we comprehensively examine what self-management means, the associated advantages and disadvantages, the potential costs, and who is eligible for this model.
What does WEG self-management mean?Link to this section
Self-management of a condominium association (WEG) refers to the organization and implementation of the condominium association (WEG) administration by the owners themselves – without the involvement of external administrators or a professional property management company. Nevertheless, all tasks must be carried out in accordance with Condominium Act (WEG). In practice, this means that one or more members of the homeowners' association take on the typical management tasks, as a professional property manager would otherwise perform.
Requirements for self-administration of a condominiumLink to this section
Not all homeowners' associations are suitable for self-management. Certain prerequisites are necessary for the management of a homeowners' association to function without professional property management:
The condominium property should be of a manageable size, ideally between two and ten residential units.The apartment owners should have a good relationship with each other and communicate regularly and openly.At least one person from the homeowners association must be willing to take on responsibility as a condominium administrator.Basic knowledge of condominium law or the willingness to acquire it is necessary.A transparent organization and a common objective within the WEG.
Typical tasks in WEG self-administrationLink to this section
Even in self-governance, all legal obligations must be fulfilled. The administrator assumes the following administrative tasks.
The creation of the economic plan for the coming year, including the calculated contributions of the individual apartment owners.The production of the Annual statement in order to transparently present the actual costs and income of the WEG.The convening and management of the Owners' meeting , including Minutes taking and invitation in compliance with legal Deadlines .The implementation of the resolutions passed at the owners’ meeting.The organization and monitoring of necessary maintenance measures as well as the conclusion of corresponding contracts with tradesmen and service providers.Ongoing communication with service providers, authorities and, if necessary, lawyers.The maintenance of all administrative data and the audit-proof filing of all WEG administration documents.
The advantages of self-management – opportunities for ownersLink to this section
Well-organized self-management offers the homeowners association numerous advantages:
Significant cost savings compared to professional management: Since there is no fee for an external manager, the annual cost for each apartment is reduced. The savings can be used for maintenance or reserves flow.Direct control by the owners: All measures, decisions, and expenditures remain entirely in the hands of the community. This increases transparency and enables a stronger sense of ownership of the property.Flexible design of administrative processes: In self-administration, processes can be individually adapted – be it in decision-making, documentation or communication with third parties.Faster decisions: Voting is often more efficient without external management. The community decides directly at the owners' meeting without having to wait for feedback from the property management company.Strengthening the sense of community: Collaboration promotes togetherness and creates a stronger sense of responsibility within the condominium.
The disadvantages and challenges of WEG self-managementLink to this section
Despite the opportunities mentioned, self-government also brings with it some challenges that should not be underestimated:
High administrative burden for the administrator: Organizing billing, meetings, and maintenance is time-consuming. Without clear responsibilities, there's a risk that tasks will be left undone.Liability risks due to administrative errors: If deadlines are missed, resolutions are not correctly implemented, or legal requirements are ignored, this can lead to claims for damages – both against the administrator and against the entire community of owners.Potential for conflict between owners: Without a neutral authority such as an external property management company, personal differences can complicate management and block decisions – for example, in the case of conflicts with Troublemakers in the homeowners association Lack of specialist knowledge: Important knowledge of condominium law, data protection, or building regulations is often lacking or only partially available. This can lead to legally problematic situations.Overwhelming individuals: Especially in large or technically complex projects, volunteer administrators quickly reach their limits.Lack of external contacts: Third parties such as banks, insurance companies or tradespeople often prefer professional administrators with appropriate expertise and availability.
The costs of self-management for your WEGLink to this section
Although there are no monthly administration fees, self-management also incurs costs, such as:
Specialized software solutions that enable efficient management of business plans, accounting, and owner meetings.Consulting costs, for example from lawyers or tax advisors who can help with tricky questions.Further training costs for the administrator to ensure they can work in a legally compliant manner.Expenses allowances, if the community so decides, to recognize the work of the administrator.
Overall, however, the costs of genuine WEG self-management are generally significantly lower than the fees of a professional property management company.
When does self-management make sense for a homeowners association?Link to this section
Self-management is particularly suitable for smaller condominium associations. This model is ideal when:
The property has a manageable number of apartments.There are committed owners with time and interest in administrative tasks.There is trusting communication within the community.The costs for professional property management exceed the available budget.
In larger or conflict-ridden communities, however, it is advisable to appoint an experienced external administrator.
Digital support for self-administrationLink to this section
Numerous platforms now offer specialized tools to support self-management. These digital tools make everyday life much easier:
Templates for business plans, annual accounts and minutesDigital voting and invitations to the owners' meetingCentral document storage for contracts, resolutions and administrative dataReminders of deadlines, maintenance intervals and legal requirementsClear presentation of incoming payments, reserves and outstanding receivables
With the right platform, even less experienced owners can organize legally compliant and structured condominium management.
Legal basis for WEG self-administrationLink to this section
The 2020 reform of the German Condominium Act (WEG) strengthened the legal framework for self-management. The current Condominium Act explicitly allows owners to act as managers of their condominium association.
Important legal aspects:
The appointment of internal administrators must be made by resolution of the owners.The tasks and responsibilities remain the same as with external administration.Contracts and agreements should always be documented in writing.In case of breach of duty, the condominium association or the responsible administrator is personally liable.
The risks of self-governmentLink to this section
Anyone who decides to pursue genuine self-management should be aware of the risks:
Failure to meet deadlines or formal errors can result in legal and financial consequences.The lack of professional qualifications can lead to incorrect decisions or inadequate maintenance.Data breaches in the management of sensitive data are a real problem.A frequent change of responsible persons can jeopardize the continuity of administration.The loss of trust within the condominium association can lead to tensions if tasks are not completed correctly.
Who is condominium self-management suitable for?Link to this section
True self-management is suitable for owners who are willing to invest time and energy into their property. The prerequisites are:
A strong sense of community within the community of ownersTechnical understanding or openness to trainingThe use of digital tools to optimize administrative tasksClear agreements on responsibilities and representation arrangements
In professionally managed large properties or heavily frequented investment properties, experts usually recommend traditional condominium management by an experienced property management company.
Frequently asked questions about self-administration in the WEGLink to this section
What distinguishes true self-management from internal management by an owner?
Self-management completely eliminates the need for an external manager. The manager is elected from among the owners, assumes all responsibilities, and is jointly liable with the condominium association.
Is the appointment of a condominium management required by law?
No. The condominium association can organize itself without an external manager, as long as the legal obligations are met.
What support is available for self-managing condominiums?
Many platforms and specialized services – including traditional property management companies – offer support services such as billing packages or consulting.
What must be taken into account in the condominium association meeting in the case of self-management?
The invitation, agenda, and resolution process must be legally compliant. The election of the administrator should be a separate item on the agenda.
Do you already know Ralph?
Self-management or property management? As a modern property management company, Ralph offers you the perfect combination of experience, digital processes, and personalized service. If you choose us as your property management company, we will help you manage your administrative tasks efficiently, transparently, and legally.
Still unsure? Request a free, non-binding quote now. Offer and find out how Ralph can best support your homeowners association!
