The work of a residential property manager may cover two different segments of the property sector. A residential property management company, commonly referred to simply as a property management company, may act either as a condominium association manager under the German Condominium Act (WEG manager) or as a rental property manager. In the latter case, the property manager works on behalf of an individual property owner. A WEG management company, by contrast, manages and organises the common property belonging to all condominium owners within a building. Unlike a sole property owner, a condominium owners’ association is required to appoint a WEG property manager.
There Is No Formal Vocational Training for Property Managers, but There Are Professional Licensing Requirements
Until 1 August 2018, anyone interested in the profession could work as a property manager and take responsibility either for the affairs of an individual property owner, such as the owner of an investment apartment, or for the common property belonging to multiple owners.
Although there is still no specific training programme that formally qualifies someone as a property manager, professional licensing requirements are now set out in Section 34c of the German Trade Regulation Act (Gewerbeordnung, GewO). The law does not prescribe any particular qualification for practising this profession. Nevertheless, relevant knowledge of the property sector, vocational training as a real estate agent or property professional, and previous experience in property management are advantageous.
Property managers are also subject to continuing professional development requirements. According to the Berlin Chamber of Industry and Commerce, property managers applying for a licence under Section 34c GewO must demonstrate their personal reliability, sound financial circumstances and valid professional liability insurance. Property owners are also entitled to ask their property manager to provide proof of certification.
The Following Responsibilities Must Be Performed by the WEG Management Company
Property managers preserve the common property, ensure that it is properly maintained and repaired, and manage communal funds and maintenance reserves. They arrange for contractors to dispose of waste regularly, clean the stairwells and service the central heating system.
WEG property managers are also responsible for administrative and commercial duties. These include preparing service charge statements and obtaining quotations for roofing work, pipe repairs and other maintenance work within the building. Monitoring the duties performed by the caretaker also falls within their area of responsibility. Among other tasks, the caretaker may be responsible for cleaning and maintenance work relating to the common property.
The property management company must also invite all owners to an owners’ meeting once a year. At this meeting, the owners discuss past and future measures affecting the common property, and the resolutions adopted jointly by the owners are formally recorded.
Property managers act as the main point of contact for all parties when questions, complaints or damage reports arise. It may also be contractually agreed that the property management company will handle the letting of individual apartments.
The Responsibilities of a WEG Property Manager Are Defined by Law
The responsibilities of a WEG property manager, unlike those of a manager appointed by an individual landlord, are governed by law. They are set out in Section 27 of the German Condominium Act (Wohnungseigentumsgesetz, WEG):
“The manager is entitled and obliged, in relation to the condominium owners’ association, to take measures of proper administration that are of minor importance and do not result in significant obligations, or that are necessary to meet a deadline or prevent a disadvantage. The condominium owners may restrict or extend the rights and obligations under subsection 1 by resolution.”
WEG property managers are therefore responsible for all matters relating to the property outside the individual apartments.
Rental Property Managers Look After Individual Properties
Unlike WEG property managers, rental property managers look after individual properties. These may include a rented investment apartment or a holiday apartment that is either rented out or used by its owner.
Placing a holiday property located far away in the hands of a property manager can be a sensible option for owners who wish to reduce the time and administrative effort involved in managing a property on the coast or in the Alps.
The responsibilities of a rental property manager vary considerably. They range from preparing heating and service charge statements for tenants and arranging for tradespeople to repair damage to conducting the handover and return of a rental property. A detailed description can be found on the website of the German Association of Property Managers (Verband der Immobilienverwalter Deutschland, VDIV Deutschland).
How to Find a Good Property Management Company
“You can reach anyone in life except your property manager” is a rather harsh saying. It may be true in isolated cases, but it does not reflect the reality of property management companies in Germany.
Through its website, vdiv.de, VDIV Deutschland provides access to a wide range of member companies. Thanks to their continuing professional development and regular exchanges with industry specialists, these companies operate as reliable and competent property managers, supporting both condominium owners’ associations and individual landlords.
