What should I look for when choosing a property management company?

How to find a competent property management 

You are looking for a competent property management company to take on the legal, technical and administrative tasks of property management for you. Renovations, repairing defects and damage, commissioning utility services - all of this requires time and expertise that you lack. However, as is the case almost everywhere, there are competent partners and so-called black sheep among property management companies.

That's why a quality check is paramount when selecting a property management company. In addition to the hard facts, which you can tick off using our checklist, personal impressions and a good gut feeling are also crucial. After all, when things are right on a human level, cooperation works much better.  

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Where to find a competent property management company

Finding the right property management company is often the first step when setting up a community of owners or when replacing an existing management company. Does this also apply to you?

Use these 2 points of contact when looking for a new property management company:

• Ask those around you: Personal recommendations from friends, colleagues, neighbors or acquaintances who have already had positive experiences with a property management company are worth their weight in gold. They will give you a first impression of the quality of service and reliability of the property manager.
• Use local search terms on Google: An online search can give you an overview of the property management companies operating in your region. The keyword property management + your place of residence is a suitable search term. Example: "property management Berlin" or "property management Charlottenburg". Ralph, for example, is a property management company for the entire city of Berlin - whether in Berlin Mitte, Prenzlauer Berg, Friedrichshain, Kreuzberg or Charlottenburg.

Find a property management company: Your checklist for the selection

The most important question when choosing a property management company is: What distinguishes a really good property management company? First and foremost, a really good property management company stands out from the rest through trust, efficiency and a professional approach.

The administration industry in Germany is struggling with major capacity problems, which unfortunately often means that many administrators barely respond or respond slowly, simply do not complete their tasks and can hardly be reached. All this costs a lot of time and nerves.

You should pay attention to the following points when looking for an administrator:

• The administration is easy to reach and offers flexible office hours: If problems occur, such as a burst pipe, it is important that help can be provided quickly. An easily accessible administration can respond immediately and take the necessary steps to rectify the problem.
• There is full transparency for costs, contracts, legal documents and invoices: This strengthens trust in administrative tasks, enables efficient management and protects against errors and legal disputes.
• There are lean, digital processes: By digitizing workflows, you can be sure that all concerns from tenants and your co-owners will be dealt with swiftly. This ensures that inquiries and problems are processed quickly and efficiently.
• There are flexible contract terms: The needs of your community of owners may change over time. Flexible contract terms make it possible to adapt the contract to new requirements without having to adhere to lengthy notice periods. If you as an owner are dissatisfied with the performance of your management or would like to change your property management company, this can be implemented more easily and quickly with flexible contract terms.
• There are personal property managers on site: Find a condominium management company in your area that personally looks after the property and your community and is available.
• The property management company is known for its fast response times: Solving problems, damage and other challenges quickly and competently is the be-all and end-all. With a management company with fast response times, you will always feel that you are being competently looked after.
• The management is a member of associations: Property managers can be members of various professional associations such as the VDIV, VdH or BfW. Although such membership is not mandatory, it indicates a high level of expertise and commitment in the sector.
• The WEG management company has references: Feel free to ask potential property managers for references if they cannot be found online. Make sure that these are long-term customer relationships. Successful support over many years is a better indicator of the quality of a management company than short-term projects.
• Management is insured: Both public liability insurance and financial loss liability insurance are required by law for property managers. Nevertheless, you should check the insurance policies. Pay particular attention to the amount of cover. In view of the high values involved in property management, the sum insured per claim should be at least 500,000 euros.
• The property management company has satisfied customers: Online reviews on platforms such as Google, ProvenExpert or Trustpilot give a first impression of the work of a property management company. Pay particular attention to the source of the review and the content of the points of criticism.
• The website makes a serious impression: The website of a property management company is often the first impression you get as a property owner looking for a new condominium management company. Even if a professional website is no guarantee of a good service, it does give an indication of how the company works and how modern it is. Pay attention to whether the services are clearly presented and whether there are digital tools for communication and claims reporting.
• The website has an imprint: When comparing property management companies, be sure to check the legal notice. Here you will find important information about the company, such as the name of the management and the company's registered office. A complete and up-to-date legal notice is a sign of seriousness.
• The property management company is certified: Since the 2020 condominium reform, certification has been an important quality feature for property management companies. It guarantees that the condominium management company has the necessary expertise to take over your property management professionally. The certification of a property management company is carried out by the IHK.

The more items you can tick in our checklist, the better the property management company you choose.

Clarify your expectations of the property management company: What services do you need?

Before you make a request, you should think carefully about the tasks you want the management company to take on. Although the German Condominium Act stipulates certain tasks for condominiums, the scope of services can be customized for rental properties. The tasks of a property management company are varied and range from the technical management of the building to financial management and legal representation.

Many property management companies also offer additional services such as janitor services or finding new tenants. To ensure that the management company you choose meets your individual needs, you should define in advance exactly what services you expect and want.

A clear idea of the requirements will help you to find the right administrator more quickly and avoid potential problems or disputes from the outset.

Consider the special challenges of the property

Every property has its own special features. In order to better assess which property management company is right for your home, you should be able to honestly answer for yourself what challenges the property brings with it.

This concerns, for example, the condition of the property, but also any legal disputes or administrative work from previous years. Address these challenges honestly and transparently in order to find a property management company that is up to the sometimes demanding tasks.

Keep administrator search clear

Choosing a property management company is an important decision that should be made carefully. The range of property managers on offer is large and diverse - from small, owner-managed companies to start-ups or large, established service providers.

It is worth getting a comprehensive overview of the local providers. Then you can take the next step.

Obtain offers and order WEG management

Are you about to decide on a new property management company? Before you make a final decision, you should obtain individual offers from the shortlisted management companies. They will provide you with detailed information about the services they offer and the associated costs.

In order to receive a tailor-made offer, it is important that you disclose all relevant information about your property. This also includes any renovation backlog or existing legal disputes. This is the only way for the management to prepare a realistic offer.

In addition to costs, personal factors such as likeability and trust also play an important role in choosing the right management company. After all, you want to work with your property management company on a long-term basis.

The appointment of a property manager varies depending on the legal form. In the case of a condominium owners' association, a resolution must be passed at the owners' meeting. The statutory provisions on the request for proposals must be observed.

Conclusion: How to choose the right property management company

Finding a property management company requires careful research. When choosing, it is advisable to check a few basic features. Take a look at the range of services offered by your potential new property management company.

A good property management company lists all services and costs transparently. Can the property management company also provide good references? Is the property management company easy to contact and are the processes streamlined? Are there personal property managers on site?

If these and other points from the checklist are observed and fulfilled, the search for a property management company is quickly off the table. 

Property management can be changed without giving reasons

Ideally, cooperation with a property management company is designed for the long term. The more the property management company knows the property, the better it will be looked after. If you are dissatisfied with your property management company, you are probably not a good match and it will no longer be possible to work together.

The existing management contract can then be terminated at any time without giving reasons. If the contractual relationship is terminated, the existing property management company is not obliged to find a successor. Sole owners of a rental property decide on the selection of the new manager themselves, whereas in a condominium owners' association, the change must be voted on. 

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