Property Management

Property Management - Property management (also known as real estate management) handles the commercial, technical, and organizational management of a property on behalf of the owner. Depending on the type of property being managed, a distinction is made between rental management for leased properties, condominium association management for condominium associations, and individual unit management for individual condominium units.

Types of Property Management

Rental management (also known as SEV-individual unit management for single condominiums or rental management for entire buildings) manages rented properties on behalf of the owner. The property manager handles tenant screening, the execution and termination of lease agreements, rent accounting, the preparation of operating cost statements, the collection process for overdue payments, and the coordination of maintenance measures. On behalf of the owner, they handle communication with tenants, thereby relieving the burden on landlords who do not live on-site or who own multiple properties.

Condominium management oversees condominium owners’ associations in accordance with the Condominium Act. Here, the property manager administers the common property, prepares the budget and annual financial statements, convenes the owners’ meeting, and implements its resolutions. Condominium management is required by law and is appointed by the owners’ meeting.

Commercial and Specialized Property Management encompasses the management of office buildings, retail spaces, logistics properties, or mixed-use properties. It requires specialized expertise in commercial leases, space management, and technical building operations.

Scope of Services and Fees

The scope of services provided by a property management company is individually agreed upon in the management contract. Typical basic services include bookkeeping and rent collection, preparing the annual operating cost statement, organizing repairs and maintenance work, corresponding with tenants, authorities, and utility providers, and monitoring insurance contracts.

Fees are based on the type and scope of management services. For rental management, costs typically range from 20 to 35 euros per unit per month. For condominium management, 25 to 40 euros per unit per month is the market standard. Special services such as support for extensive renovation projects, legal proceedings, or extraordinary owners’ meetings are billed separately.

Owners should ensure that the management contract includes a clear list of services that transparently distinguishes between basic and special services. In practice, unclear contract wording often leads to disputes over additional fees.

Practical Tip for Property Owners in Nuremberg and Franconia

In the Nuremberg metropolitan region, demand for professional property management is high, particularly in sought-after neighborhoods such as St. Johannis, Gostenhof, and the Südstadt, where many older buildings with complex ownership structures and high maintenance needs are located. Choosing a qualified management firm has a direct impact on a property’s value retention and return on investment.

When selecting a property manager, we recommend asking for references of properties of comparable size and location, comparing service catalogs in detail, and ensuring the manager holds IHK certification, which has been mandatory since the 2020 WEG reform. Upon request, we can advise you on selecting a suitable property management firm for your property.

Frequently Asked Questions

Do I need a property management company for my rental property?

Management is only required by law for condominium owners’ associations. There is no such obligation for a single rental property. However, professional management is worthwhile if you rent out multiple units, do not live near the property, or do not have the time to handle day-to-day management. Management costs are tax-deductible as business expenses against income from renting and leasing.

How do I change property management companies?

In the case of condominium management, the manager is appointed and dismissed by resolution of the owners’ meeting. Since the 2020 condominium reform, dismissal has been possible at any time by a simple majority; the management contract ends no later than six months thereafter. For rental property management, termination is governed by the provisions in the management contract-pay attention to contract terms and notice periods.

How much does good property management cost?

In the Nuremberg metropolitan area, monthly management costs for rental apartments range from 20 to 35 euros per unit, and for WEG management from 25 to 40 euros per unit. What matters is not the lowest price, but the value for money. An inexpensive management firm that neglects maintenance or fails to consistently pursue rent arrears can end up costing the owner significantly more in the long run than a qualified manager with appropriate compensation.

Quality Characteristics of a Good Property Management Company

Not every property management company delivers on its promises. Quality is evident in day-to-day operations: Are damages repaired promptly? Are operating cost statements timely, transparent, and legally accurate? Is there clear communication with owners and tenants? And are reserves set aside in a way that ensures the property is managed to maintain its value over the long term?

Since the 2020 WEG reform, there has been a certification requirement for WEG property managers. Starting in December 2022, homeowners’ associations can require a certified property manager-who must have passed a proficiency exam administered by the Chamber of Industry and Commerce (IHK). This establishes a statutory minimum standard for the first time. Owners in Nuremberg should ensure, when selecting a manager, that the provider can demonstrate this certification or is actively working toward it.

In addition, it’s worth taking a look at the manager’s digital capabilities. Modern property management firms use owner portals where statements, minutes, maintenance records, and current correspondence can be viewed at any time. This transparency builds trust and significantly reduces the communication burden. In the Nuremberg metropolitan area, there are management companies of varying sizes and levels of digital maturity-a direct comparison of the tools offered is part of our recommendation process.

Changing Property Managers - What Matters

Changing property managers is an important decision that requires careful preparation. For WEG management, a resolution by the owners’ meeting is required; following the 2020 WEG reform, the property manager can be dismissed at any time by a simple majority. The existing management contract then expires no later than six months after the dismissal.

The handover of management documents is critical: accounts, contracts, maintenance logs, the collection of resolutions, the building file, and current correspondence must be handed over in full to the successor. Uncooperative former management firms sometimes delay this handover-in such cases, the community can take legal action if necessary. We recommend that homeowners’ associations in Nuremberg create a checklist for the handover of documents early on when changing property managers and include this in the resolution to remove the manager. We are happy to assist in the search for a suitable successor property manager in the metropolitan region.

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