Condominium Management

Condominium Management (SEV for short) refers to the professional management of individual condominium units by a property manager acting on behalf of the owner who is renting out the unit. It supplements condominium association management (WEG management) with tasks related to tenancy law, such as finding tenants, collecting rent, and managing the ongoing tenancy. Special property management is an indispensable service, especially for investors who do not live near their property.

Tasks of Special Property Management

SEV handles all tenancy-related tasks that arise between the owner and their tenant: drafting and finalizing lease agreements, tenant selection (SCHUFA check, credit check), rent collection and dunning, preparing the annual operating cost statement, coordinating repairs and hiring tradespeople, as well as apartment handovers upon move-in and move-out. In doing so, SEV acts as an interface between the individual unit owner and the condominium management of the entire building-for example, it ensures that maintenance fees and special assessments are paid on time.

In detail, a comprehensive SEV service includes: Tenancy law representation of the owner vis-à-vis the tenant-including rent increase requests pursuant to § 558 BGB, operating cost statements pursuant to § 556 BGB, and warnings in the event of breaches of duty. Technical management of the unit-coordination of repairs, obtaining quotes from contractors, and supervision of maintenance work. Financial management-monthly billing to the owner, remittance of the net rent after deduction of the management fee and, if applicable, repair costs.

Distinction from WEG Management

While WEG management oversees the common property (stairwell, roof, exterior facade, heating system) and represents the interests of all owners, SEV focuses exclusively on the individual unit and the tenancy agreement. Both forms of management can be handled by the same manager, but this is not required. Some managers offer combined packages-for the owner, this means a single point of contact and smoother communication.

Important to understand: WEG management is required by law (§ 19 WEG) and is appointed by the owners’ association. SEV, on the other hand, is a purely private-law agreement between the individual owner and the manager-it can be terminated at any time in compliance with the contractual notice periods. For owners who wish to manage their apartment themselves, an SEV is not necessary; however, WEG management remains mandatory at all times.

Costs and Contract Terms

The fee for condominium management is typically calculated as a percentage of the net base rent (typically 5-8%) or as a monthly flat rate per unit. Additional fees often apply for re-leasing (one to two months’ rent), rent increase notices, or complex damage claims. The SEV contract should precisely define the term, notice periods, scope of services, and powers of attorney-in particular, the maximum amount up to which the manager may order repairs without consultation.

A frequently underestimated aspect of the contract is the repair cost authorization: Many SEV contracts allow the manager to commission repairs up to a certain amount (e.g., €500-1,000 per individual case) without consultation. This makes sense for a quick response to urgent damage, but can lead to unnecessary costs if the manager is negligent. Owners should carefully review the monthly statements and inquire about unusually high contractor costs.

Legal Status of the SEV Property Manager

The SEV property manager acts as the owner’s authorized representative-they can enter into contracts, send reminders, and hire contractors on the owner’s behalf, provided the authority granted in the SEV contract permits it. However, in dealings with the tenant, the owner is always the contracting party-the manager acts only as a representative. This means that, in case of doubt, the owner is liable to the tenant for the manager’s errors. Internally, the owner may seek recourse against the manager if the latter has acted negligently.

Since December 1, 2020, commercial property managers have been required under Section 34c of the German Trade Regulation Act (GewO) to provide proof of a license and professional liability insurance. We recommend that owners verify the manager’s license and insurance before signing a contract.

Practical Tip for Owners in Nuremberg and Franconia

In Nuremberg, the market for investment apartments is dynamic-many out-of-town buyers are purchasing apartments in neighborhoods such as Gostenhof, St. Johannis, or Langwasser and require reliable on-site support. We recommend choosing SEV property managers who also handle the building’s WEG administration: synergy potential is better leveraged, and conflicts between individual owners and the community can be resolved more quickly.

Another hallmark of quality is digital owner communication: Modern management companies offer online portals where owners can view statements, lease agreements, meeting minutes, and contractor invoices at any time. This significantly increases transparency and reduces the communication burden. Contact us-we are familiar with the established management companies in the Nuremberg, Fürth, and Erlangen region and can provide an initial assessment of the quality of various providers.

Frequently Asked Questions

How much does condominium management cost in Nuremberg?

Standard rates range from €25 to €50 per month per unit as a flat fee or 5-8% of the monthly net rent excluding utilities. For a two-bedroom apartment in Nuremberg with a net rent of €800, that would be €40-64 per month.

Do I need a property management company if I only own one condominium unit?

Not necessarily-many owners manage their units themselves. A property management company is recommended if you do not live nearby, do not have the time, or wish to avoid conflicts with tenants. For multiple units, it almost always makes financial sense.

Can the SEV manager terminate my tenant’s lease?

Yes, provided they have been granted the appropriate authority in the SEV contract. However, the termination must always be issued in the owner’s name and comply with the legal grounds for termination under the German Civil Code (BGB).

How do I change the SEV manager if I’m dissatisfied?

The SEV contract typically has a one-year term with automatic renewal unless terminated in a timely manner. Notice periods are usually three to six months prior to the end of the term. You may terminate the contract for cause in the event of serious breaches of duty by the manager-e.g., embezzlement of rent or systematic violation of their duties. We recommend requesting all documents (lease agreement, operating cost statements, bank statements, handover reports) in a timely manner when changing property managers to ensure a seamless transition. A new property manager needs these documents to be able to take over seamlessly.

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