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Unfortunately, conflicts between property management companies and condominiums are not uncommon: missing annual accounts, unavailability, unauthorized terminations, misappropriation of community funds or unauthorized maintenance measures are just a few examples. But what options and, above all, what rights do owners have when problems arise with the property management? How and where can communities of owners complain? This article provides a comprehensive overview and explains the most important aspects.
Trouble with the property management company: frequent points of criticism from WEGs
Unreachable property managers, missing annual accounts, financial uncertainties or even insolvency of the property management company - such problems are a burden for many condominium owners. Frequently mentioned points of criticism are:
- Incorrect or incomprehensible annual accounts
- Incorrect minutes of owners' meetings
- Unprofessional conduct of owners' meetings
- Ignoring items on the agenda requested by the owners
- Missed deadlines and complete inactivity
- Delayed or non-implementation of owner resolutions
- Uncooperative cooperation with the management advisory board
- Obtaining overpriced offers from service providers
- Frequent price increases
- Poor accessibility of the WEG administrators
- Property managers acting without the necessary power of attorney
Administrator problems? How to find a solution together
If you have problems with the property management, it is important to take a joint approach in your community of owners. Before you contact the condominium administrators, first discuss the issue with your co-owners to determine whether it is a common problem.
Together you can clarify whether your property management is violating its obligations to all or just individual owners and whether a joint solution is possible. If this is the case, please first seek a discussion with the condominium management.
Important: Only if talks with your administration fail should you consider taking legal action such as a warning or a lawsuit.
We have listed and explained the measures you should take beforehand here.
Write a letter of complaint
To effectively lodge a complaint with your property management company, use a complaint letter. Include all relevant information such as your apartment unit, time periods and owner details. Find out in advance about your rights and obligations in order to substantiate your complaint. Write your letter politely but firmly and clearly structured. Send it by registered mail or email with a read receipt so that you have proof of receipt. And finally: give the administration a reasonable period of time to respond before you take any further action.
Contact us by telephone
In times of emails and messenger apps, it is often forgotten that these communication channels are not always reliable. Spam filters, which are constantly updated, can incorrectly block important messages. If your emails go unanswered, try calling first to speak to the property management company directly.
Go to the WEG administration office
If neither a letter of complaint, emails nor phone calls lead to success, a personal visit to the property management office may be the next step. This is particularly effective if you join forces with other owners in your community and act together. Such a visit gives your concerns more weight and can put pressure on the management. However, it is important to remain calm and objective at all times in order to find a constructive solution.
Set clear deadlines for your administration
When you finally get in touch with the property management company, don't be put off. Refer to the existing service agreements and the management contract to clarify the breaches of duty. Set specific deadlines and demand feedback on the results achieved. This will ensure that the management finally fulfills its obligations.
Strengthening owners' rights: exposing inadmissible excuses by the administration
Property managers often resort to excuses to justify their inaction. But which of these excuses are legally tenable and which can expose owners?
- Staff shortage: A temporary staff shortage is not a legal justification for inaction and non-implementation of a resolution. However, it is advisable to be gracious when setting deadlines.
- Incorrect resolution: Resolutions are valid pursuant to Section 23 (4) sentence 2 WEG until they are revoked by a legally binding judgment.
- Contestation: A contestation does not entitle to the non-implementation of a WEG resolution (see LG Munich, Ref. 1 T 13169/08).
- Age of the resolution: Resolutions do not expire and must therefore be implemented even after a longer period of time.
- "The building permit is too old": Building permits have a limited validity (often three years).
- "The resolution is void": A void resolution is legally ineffective and may not be executed.
- "There is a temporary injunction which states that the order may not be implemented.": A court order takes precedence.
- "We can't get three quotes from tradesmen": This statement should be questioned, as it is usually possible to obtain comparative quotes.
- "If the resolution is implemented, the COA must pay claims for damages": This claim should also be examined carefully, as it is often unfounded.
Submit a complaint against the property management company
If all the above-mentioned communication attempts really do fail, the next step is to lodge a complaint against the property management company. The management advisory board can play a decisive role here: He or she can help to make contact, organize a joint meeting, submit a formal complaint or convene an extraordinary owners' meeting.
If these measures also fail, the owners' meeting must be enforced, if necessary by the advisory board. The meeting makes it possible to plan further steps together, up to and including termination of the management contract without notice. It is advisable to seek legal advice and, in the event of termination, to choose a reliable new property management company.
Warning in the event of problems with the property management
If the property manager does not properly fulfill their duties, a warning may also be an appropriate step. This applies to cases in which the breaches of duty are not so serious that immediate termination or dismissal of the manager would be justified.
Proceed as follows when issuing a warning:
- Identification of the breach of duty
- Warning letter with deadline
- If necessary: Further steps such as legal action or termination of the administrator contract
Either individual condominium owners - for example in the case of personal claims (e.g. inclusion of an item on the agenda) - or the entire community of owners - for example in the case of general problems with the administration - are responsible for issuing a warning.
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In serious cases: Asserting claims against the property management company in court
If the warning remains ineffective, asserting claims in court is often the last resort. Whether the action is brought by the entire homeowners' association or an individual owner depends on the claim in question. In the case of claims for damages by the homeowners' association or the enforcement of property management tasks, the association is responsible. An example of this is the implementation of resolutions.
When enforcing claims against the property management company, it is important to differentiate between individual and collective concerns. As with warnings, in the case of personal claims, such as the inclusion of an item on the agenda, individual condominium owners can take legal action themselves, or the entire condominium.
Dismissal of the administrator or termination of the administrator contract
The dismissal of the administrator or termination of the administrator contract requires a resolution by the homeowners' association. Personal differences between individual owners are not sufficient. Before dismissal or termination, it is advisable to check the contract term and look for a new condominium management company. Our page"Changing property management" offers detailed instructions.
Landlord/landlady not available: What tenants can do
If the landlord/landlady is not available, this can also be stressful for tenants and lead to challenges. Even if landlords do not have to be available around the clock, there are situations in which quick action is required. In the case of urgent repairs such as water damage or heating failures, tenants can take action themselves and arrange the repairs at the landlord's expense.
Otherwise, if you are a tenant, try to contact your landlord/landlady via various channels (e-mail, telephone) and bear in mind that they may not be able to respond immediately.
Conclusion and summary
Problems with the condominium management should not be ignored. If you fail to fulfill your duties, an open discussion is the first step towards finding a joint solution and ensuring future cooperation. If inquiries remain unanswered, a written warning is appropriate. Only if these measures remain unsuccessful should legal action and dismissal be considered.
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