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In this article, we would like to give you an insight into the tasks and responsibilities of a condominium management company. You will find out what services you can expect as an owner and how professional property managers can help to maintain the value of your residential and communal property and protect the interests of the homeowners' association.
What is a WEG management?
Condominium management, also known as property management, is responsible for the proper organization and support of condominium owners' associations. It takes on tasks on behalf of the owners that arise in connection with the management of the common property of a WEG.
The condominium management is appointed by the owners at the owners' meeting by majority vote. The appointment is usually for five years, but for new buildings and first-time appointments for a maximum of three years.
The legal basis for the work of a property management company is the Home Ownership Act. This regulates the rights and obligations of owners and the management.
The rights and obligations of the WEG management: an overview
The rights and duties of a condominium administrator are set out in Section 27 (1) of the German Condominium Act. According to this, the condominium administrator is both entitled and obliged to act in the interests of the community of owners and to take all measures necessary for proper administration.
This includes, in particular, the execution of general tasks that do not have a major financial impact on the homeowners' association, but are necessary if a disadvantage needs to be averted (for example, when meeting important WEG deadlines).
All in all, the condominium administrator is responsible for maintaining the value of the common property in the interests of the condominium owners. Common property includes, for example, stairwells, facades and courtyard areas. To carry out these activities, technical, administrative and financial activities are required, which we will discuss later.
The exact rights and obligations of the condominium administrator are described and defined in detail in the administrator agreement.
The duties of the WEG management
The condominium management has to fulfill a variety of duties that ensure the smooth functioning of a condominium owners' association.
- Resolutions: First of all, this includes maintaining the collection of resolutions, in which all WEG resolutions passed are documented. An essential part of this work is the implementation and monitoring of the WEG resolutions. The condominium administrator is responsible for ensuring that the resolutions are complied with and for informing the condominium owners of any non-compliance
- Owners' meeting: The condominium administrator must convene, organize and chair an owners' meeting at least once a year
- Economic plan and annual statement of accounts: The preparation of the economic plan and the annual statement of accounts are also part of the duties of the WEG management
- Bookkeeping: Closely related to this is the bookkeeping for the WEG. In particular, this includes the collection of the house rent, the tracking of payment arrears and the processing and timely settlement of invoices from external service providers
The rights of the WEG management
However, the condominium administrator not only has duties, but also rights. For example, it is responsible for chairing owners' meetings and represents the condominium externally, including representation in court.
The condominium management also has the right to bring an action for annulment. If a resolution is passed that impairs the rights of the condominium administration, it can challenge it. A common example of this is contesting a resolution to dismiss itself.
The tasks of WEG management
The tasks of condominium management cover various areas that are regulated in the Condominium Act (Section 27 WEG). The activities can be roughly divided into general, commercial, legal and technical tasks. The condominium administrator can work together with partners or external service providers to implement the tasks.
General tasks
The general tasks of property management include comprehensive correspondence with the owners, whether in relation to inquiries, information or the forwarding of important documents.
It is also responsible for communicating and negotiating with co-owners, for example when enforcing the house rules or clarifying common concerns. The property manager 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 booking all incoming and outgoing payments to ensure a transparent overview of the condominium's financial situation.
The property owners are asked to pay their monthly contributions. The administration processes direct debit bookings and monitors incoming payments. If the owners fall into arrears, the condominium management is responsible for the dunning process and, if necessary, initiates legal dunning proceedings or legal action to recover the outstanding amounts.
The management and disposition of funds in a COA account is also the responsibility of the COA management. It is responsible for checking invoices, instructing and initiating payments.
If necessary, the property management company calculates and requests agreed special levies from the condominium owners, for example for major repairs or renovation measures. Finally, it prepares the business plans and annual accounts, which provide the community of owners with a detailed insight into the financial development of the condominium.
Legal tasks
The legal area of responsibility includes representing the community of owners externally and internally with the aim of averting legal disadvantages for the condominium owners. The administration therefore ensures compliance with legal requirements in and for the community of owners.
This also includes the conclusion of contracts on behalf of the condominium owners' association, for example maintenance contracts for elevators and heating systems as well as insurance contracts (building, water protection, glass breakage and liability insurance).
In addition, property management conducts negotiations with authorities, for example for building permits or other official matters. It negotiates contracts and prices for necessary services with suppliers.
Technical tasks
In the technical area, the condominium administrator is responsible for assessing the structural condition of the condominium complex and any renovation work in and on the building that affects the common property. The management is also responsible for commissioning and monitoring repair and maintenance measures, including invoicing, on behalf of the community.
In addition, technical facilities on the property are checked, utilization concepts are drawn up and consumption values (heating oil, water and electricity) are recorded.
The condominium management is usually in contact with the janitors to ensure that the building is in proper condition.
The change to Ralph is uncomplicated.
The costs of a WEG administrator
The costs of property management cannot be determined on a flat-rate basis, as they depend on a variety of factors. These factors include the location and the number of residential units.
The following overview is intended as a guide. The actual costs may differ.
- Rural region: €26.61 per residential unit/month (less than 10 residential units)
- Urban areas: € 32 per residential unit/month (less than 10 residential units)
- Larger residential complexes: Lower 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): 27,52 €
- Large property management (more than 3,000 billing units) and small residential buildings (less than 10 residential units): 34,68 €
- Average price: 29,35 €
The scope of the services covered and the point at which certain special services are billed to the condominium owners also varies and influences the property management costs. It is therefore always worth obtaining a free quote.
Do you already know Ralph? Find out about our property management costs and get a quote now. We look forward to hearing from you!
