The management of a homeowners' association (WEG) is traditionally the responsibility of external property managers. But what happens when a WEG operates without managers? More and more homeowners' associations are exploring the possibility of taking on the management themselves – whether for cost reasons, due to dissatisfaction with existing property managers, or simply because a suitable manager cannot be found.
In this article, you will learn how self-management works in practice, what legal framework applies, what tasks owners face, and what opportunities and challenges self-management of condominium associations brings with it.
What does it mean if a condominium association has no administrators?Link to this section
A condominium association without managers means that the homeowners' association 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-governmentLink to this section
Real self-government:All owners jointly assume the administrative tasks and represent the community together.Internal administrator solution:One or more owners are appointed by resolution to manage the property and act as internal administrators.
Both options are provided for in condominium law and offer a practical solution, particularly for smaller communities, when the appointment of a manager is not desired or possible.
Legal basis of WEG self-administrationLink to this section
The legal framework for the self-management of a condominium association (WEG) is derived from the German Condominium Act (WEG). According to Section 18, Paragraph 1 of the WEG, the management of the common property is generally the joint responsibility of the condominium owners. The law expressly provides for the possibility for condominium associations to take over management themselves by resolution and not appoint an external manager. The WEG remains operational even without managers, provided the owners assume the responsibilities and comply with the legal requirements.
Overview of important paragraphsLink to this section
§ 18 WEG:Management of the common property by the owners' associationSection 24 para. 3 WEG:Convening of the Owners' meeting without administrators§ 26 WEG:Appointment and dismissal of the administrator by resolution of the owners§ 9b WEG:Representation of the WEG by the owners’ association if no administrator has been appointed
Self-administration process: How it works in practiceLink to this section
Managing a homeowner's association (WEG) 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 administrative board or a person authorized by resolution.The meeting is chaired by an owner who also takes the minutes.The decisions taken are documented and made available to all owners.
Management of common property
Maintenance and repair of common building parts and facilitiesConclusion and administration of contracts (e.g. maintenance, insurance, service providers)Control and commissioning of craftsmen and monitoring of the measuresManagement of joint reserves and accounts
Financial tasks
Creation of the economic plan and the Annual statement Collection and administration of the House money Processing of payment transactions and accounting
Other administrative tasks
Communication with authorities, service providers and insurance companiesImplementation and control of resolutions of the owners' meetingManagement of documents, contracts and protocols
Advantages of WEG self-managementLink to this section
Self-management offers numerous advantages, especially for smaller homeowners associations:
Cost savings: There are no external management fees for the condominium association.More control: Owners retain full control over all actions and decisions.Flexibility: Decisions can be made faster and more 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-governmentLink to this section
Despite the advantages, self-government also brings with it considerable challenges:
High time commitment: Taking on administrative tasks requires a lot of time and commitment.Expertise required: Knowledge of condominium law, accounting, and technology is essential.Liability risks: Administrative errors can lead to financial losses or liability issues.Potential for conflict: Unclear responsibilities or differences of opinion can lead to disputes within the condominium community.Ability to act: The community must be able to act quickly and legally, even in difficult situations (e.g., disputes, arrears, or damage cases).
Prerequisites for successful self-administrationLink to this section
In order for the WEG to function without the appointment of an administrator, the following requirements must be met:
Clear rules: Allocation of tasks and responsibilities must be clearly regulated – ideally by resolution or in the Community regulations .Owner commitment: All parties involved must be willing to contribute time and knowledge.Transparent communication: Regular information and coordination are important to avoid conflicts.External support: If necessary, individual tasks (e.g. accounting, technical support) can be outsourced to external service providers.
Resolution and circulation procedureLink to this section
Even without administrators, resolutions remain the central instrument of condominium management. The owners' meeting is the most important body. Alternatively, resolutions can be made in the Circulation procedure only be passed if all owners agree. The resolutions passed must be documented and comply with legal requirements.
Appointment of an administrator: When is it necessary?Link to this section
In certain cases, it may be necessary to appoint an administrator again:
The tasks become too complex or time-consuming.Disputes arise that endanger the community’s ability to act.The owners want professional support.
The appointment of a property manager is made by resolution at the condominium owners' meeting. If no resolution is passed, or if the association is unable to act, any owner can apply to the local court for the court appointment of a property manager. The court will then examine whether the requirements are met and may appoint a property manager.
The process of appointing administratorsLink to this section
Search for suitable property managers, if necessary, tendering and comparing offersPresentation of the candidates at the owners' meetingResolution on the appointment of an administratorConclusion of the administrator contract and handover of the administrative documents
Special features of the judicial appointment of an administratorLink to this section
Every owner has the right to appoint an administrator if the community has not appointed one.Before legal proceedings begin, an attempt must usually be made to obtain a decision on the appointment of an administrator.The court examines the situation and may appoint an administrator if the community's ability to act is at risk.
Typical problems and solutions in WEGs without administratorsLink to this section
Lack of experience and expertise
Solution: Further training, expert advice, use of software and external service providers
Unclear responsibilities
Solution: Clear allocation of tasks and written decisions
Conflicts among owners
Solution: Transparent communication, mediation, if necessary, appointment of a neutral third party
High administrative costs
Solution: Distribute tasks across multiple shoulders, external help for individual areas (e.g. accounting)
Lack of ability to act
Solution: Appointment of an internal administrator or, if necessary, court appointment of an external administrator
Practical examples: When does it make sense to forgo external property management?Link to this section
Avoiding external property management is particularly suitable for:
Small homeowner associations with few apartmentsCommunities with committed and knowledgeable ownersSituations where no suitable property management company can be foundCommunities that want to save costs and retain more control
The self-managed condominium association is less suitable for large communities with many units, complex technical systems or frequent conflicts among the condominium owners.
Important aspects and tips for self-managementLink to this section
Check regularly whether self-government still fits the situation of your community.Use digital tools and templates to simplify administrative tasks.Always adhere to the provisions of the Condominium Act and carefully document all decisions 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 administrator as an opportunity and challengeLink to this section
Self-management in a condominium association is a viable alternative to traditional property management—especially for small, committed homeowners' associations. It offers greater control, flexibility, and cost savings. At the same time, it requires discipline, expertise, and a high degree of organization. Owners must be willing to assume responsibility and deal with the legal and practical requirements of management.
Whether self-management is the right path for your community depends on the size of the condominium association, the commitment of the owners, and the specific circumstances. Carefully examine the options and, if necessary, utilize external support to manage the shared property in a legally compliant and efficient manner. This way, your condominium association remains operational and future-proof even without a manager.
Do you already know Ralph?
More and more homeowners' associations are opting for self-management – either for cost reasons or because they can't find suitable managers. What many underestimate is that the tasks are extensive, the demands are high, and legal pitfalls are not uncommon. Without professional support, important issues such as resolution collection, maintenance planning, or accounting quickly fall by the wayside.
Are you realizing that self-management isn't a long-term solution? Then choose a professional condominium management company that knows what matters. Request a quote directly from us. free offer on!
