In this article, we'd like to give you an insight into the duties and responsibilities of a condominium management company. You'll learn what services you can expect as an owner and how professional property managers can help maintain the value of your residential property and community assets and protect the interests of the condominium association.
What is a condominium management?Link to this section
The condominium management, also known as property management, is responsible for the proper organization and management of condominium associations. It handles tasks on behalf of the owners related to the management of the shared property of a condominium association.
The condominium management is appointed by the owners at the owners' meeting by majority vote. The term of office is generally five years, but for new buildings and initial appointments, the term is a maximum of three years.
The legal basis for the work of a property management company is the German Home Ownership Act (WHO). This regulates the rights and obligations of owners and the management company.
The rights and obligations of the WEG administration: An overviewLink to this section
The rights and responsibilities of a condominium management company are defined in Section 27, Paragraph 1 of the German Condominium Act (WEG). Accordingly, the condominium management company is both authorized and obligated to act in the interests of the condominium association and to take all measures necessary for proper management.
This includes, in particular, the completion of general tasks that do not have a major financial impact on the condominium association, but are necessary if it is necessary to avoid a disadvantage (e.g., compliance with important condominium association deadlines).
Overall, the condominium association administrator is responsible for maintaining the value of the common property for the benefit of the condominium owners. Common property includes, for example, stairwells, facades, and courtyards. Fulfilling these duties requires technical, administrative, and financial activities, which we will discuss later.
The exact rights and obligations of the WEG administrator are described and specified in detail in the management contract.
The duties of the WEG administration
The condominium association administration has a variety of duties to fulfill to ensure the smooth functioning of a condominium association.
ResolutionsThis includes, first of all, maintaining the resolution collection, in which all passed condominium association resolutions are documented. A key component of this work is the implementation and monitoring of condominium association resolutions. The condominium association administrator is responsible for ensuring compliance with the resolutions and informing condominium owners of any non-compliance.Owners' meeting: The WEG administrator must at least once a year Owners' meeting convene, organize and leadBusiness plan and annual financial statements:The creation of the economic plan and the preparation of the annual statement are also part of the duties of the WEG administrationAccountingClosely related to this is the accounting for the WEG. This includes, in particular, the collection of the House money , the tracking of payment arrears and the processing and timely payment of invoices from external service providers
The rights of the WEG administration
The condominium association administration not only has duties, but also rights. For example, it is responsible for chairing owners' meetings and representing the condominium association externally, including in court.
In addition, the condominium management board has the authority to file an action for annulment. If a resolution is passed that impairs the rights of the condominium management board, it can challenge it. A common example of this is challenging a resolution to dismiss the board.
The tasks of the WEG administrationLink to this section
The tasks of a condominium management company encompass various areas regulated by the Condominium Management Act (Section 27 of the Condominium Management Act). These activities can be broadly divided into general, commercial, legal, and technical tasks. In carrying out these tasks, the condominium management company may collaborate with partners or external service providers.
General tasks
The general tasks of property management include comprehensive correspondence with the owners, whether regarding inquiries, information or the forwarding of important documents.
Communication and negotiations with co-owners, for example, regarding the enforcement of house rules or the resolution of common concerns, also fall within their responsibilities. The property management team convenes an owners' meeting at least once a year.
Commercial tasks
In the commercial area, the condominium administrator is responsible for proper accounting. This includes recording all incoming and outgoing cash receipts to ensure a transparent overview of the condominium's financial situation.
The condominium owners' monthly contributions are collected. The management processes direct debit entries and monitors incoming payments. If owners default on payments, the condominium management is responsible for dunning and, if necessary, initiates legal proceedings or lawsuits to collect the outstanding amounts.
The management and disposition of funds on a WEG account This also falls under the responsibility of the condominium management. It is responsible for auditing invoices, authorizing payments, and initiating them.
If necessary, the property management calculates and requests agreed special levies from the condominium owners, for example, for major repairs or renovations. Finally, it prepares the budgets and annual financial statements, which provide the condominium owners' association with detailed insight into the financial performance of the condominium association.
Legal tasks
On the legal area of responsibilityThis includes representing the homeowners' association both internally and externally with the goal of preventing legal disadvantages for the condominium owners. The administration therefore ensures compliance with legal requirements within and for the homeowners' association.
This also includes the conclusion of contracts on behalf of the condominium association, for example maintenance contracts for elevators and heating systems as well as insurance contracts (building, water protection, glass breakage, liability insurance).
In addition, the property management company conducts negotiations with authorities, for example, regarding building permits or other official matters. It negotiates contracts and prices for necessary services with suppliers.
Technical tasks
In theIn the technical area, the condominium administrator is responsible for assessing the structural condition of the condominium complex and any renovation work in and around the building that affects the common property. The administration also handles the contracting and monitoring of repair and maintenance work, including billing, for the community.
In addition, technical facilities on the property are inspected, usage concepts are drawn up, and consumption values (heating oil, water, and electricity) are recorded.
The condominium management usually communicates with the caretakers to ensure that the building is in proper condition.
The costs of a WEG administratorLink to this section
The costs of property management cannot be determined in a blanket manner, as they depend on a variety of factors, including location and the number of residential units.
The following overview is intended as a guide. Actual costs may vary.
Rural region: €26.61 per housing unit/month (less than 10 housing units)Metropolitan areas: €32 per unit/month (less than 10 units)Larger residential complexes: Smaller cost differences between rural and metropolitan areas. 50-99 residential units: Metropolitan area: €19.75, Rural area: €18.86
The size of the property management company also plays a role.
Small property management (less than 40 billing units) and small residential buildings (less than 10 residential units): €27.52SizeProperty management (more than 3,000 billing units) and small residential buildings (less than 10 residential units): €34.68Average price: €29.35
The scope of the services covered and the point at which certain special services are billed to the property owners also vary and influence the property management costs. It's always worth obtaining a free quote.
Do you already know Ralph? Find out more about our Property management costs and get a quote now. We look forward to hearing from you!
