Condominium Management

WEG Management - WEG management refers to the professional administration of condominium associations in accordance with the German Condominium Act (WEG). The appointed manager handles the financial, technical, and legal management of the common property and represents the association externally. Qualified WEG management protects the value of the property, ensures smooth day-to-day operations, and significantly reduces the liability risk for individual owners.

Duties and Responsibilities of the WEG Manager

The duties of the WEG manager are regulated in Section 27 of the WEG and encompass the entire day-to-day management of the common property. In the financial area, the manager prepares the annual budget, reconciles actual costs in the annual statement, manages the maintenance reserve in a separate trust account, and monitors the owners’ maintenance fee payments. In the event of payment arrears, the manager is obligated to handle the collection process and, if necessary, take legal action.

In the technical area, the property manager oversees the maintenance and repair of the common property, contracts tradespeople, monitors their work, and ensures compliance with safety obligations. They organize regular inspections, coordinate maintenance contracts for elevators, heating systems, and fire safety equipment, and handle the community’s insurance matters-including building insurance, liability insurance, and, if applicable, the administrator’s own financial loss liability insurance.

Legally, the property manager is obligated to convene an owners’ meeting at least once a year, implement the community’s resolutions, maintain the record of resolutions, and represent the community vis-à-vis third parties. Since the 2020 WEG reform, the homeowners’ association, as an association with partial legal capacity, has its own rights and obligations, which the property manager exercises on its behalf-including the right to sue delinquent owners or third parties.

2020 WEG Reform: Key Changes

The Condominium Modernization Act, which took effect on December 1, 2020, has fundamentally reformed WEG administration. Among the most important changes are:

Every owner now has the right to appoint a certified property manager (Section 26a WEG). The manager must pass an examination administered by the Chamber of Industry and Commerce (IHK) that demonstrates their expertise in the areas of law, technology, and business. A transition period applied to existing managers until the end of 2024-starting in 2025, owners’ associations can legally remove a non-certified manager and replace them with a certified one.

The decision-making process has been simplified: Structural changes can now be approved by a simple majority, provided they do not unreasonably disadvantage any owner. Additionally, owners have the right to request permission for privileged measures such as electric vehicle charging stations, accessibility improvements, burglary protection, and fiber-optic connections. These measures may be carried out at the requesting owner’s own expense, even if the association does not approve cost coverage.

The dismissal of the property manager is possible at any time by a simple majority vote, without the need for good cause. The management contract ends no later than six months after the dismissal. Homeowners’ associations thus have significantly stronger leverage against poorly performing management firms than before the reform.

Management Contract and Compensation

The management contract specifies the exact service obligations, the term, and the compensation. Typical contract terms are three years with a subsequent option to extend. Remuneration is divided into a base fee for standard services and special fees for extraordinary services: additional owners’ meetings, extensive renovation support, legal proceedings, and the administration of major special measures. We recommend precisely defining the scope of services before signing the contract-vague wording often leads to disputes over the scope of basic services.

Pursuant to Section 27(5) of the German Condominium Act (WEG), the property manager must maintain the maintenance reserve in a separate, open trust account, distinct from the community’s other assets. In the event of the property manager’s insolvency, this protects the reserve funds from being seized by creditors. We advise owners’ associations to request account statements regularly and to compare the reserve balance with the recommended benchmark of the Peters formula.

Practical Tip for Owners in Nuremberg and Franconia

In the Nuremberg metropolitan region, WEG management fees vary considerably depending on the size of the complex, the scope of services, and the condition of the building. For standard management without special technical requirements, monthly costs typically range between 25 and 40 euros per unit. Larger complexes with elevators, underground parking garages, or swimming pools require higher fees-here, 40-70 euros per unit is realistic.

We recommend that homeowners’ associations not focus solely on price when selecting a manager, but rather carefully review the scope of services in the management contract. In particular, it should be clarified which services are included in the base fee and which are billed separately as special charges. Typical cost traps include extra fees for every owners’ meeting beyond the first annual one, flat fees for written communications to owners, and surcharges for supervising contractors.

Residential complexes in Nuremberg from the 1960s and 1970s in neighborhoods such as Langwasser, Röthenbach, or Schreibersdorf often face costly renovations-heating system replacement, facade insulation, and elevator upgrades. An experienced property manager who has already coordinated such renovation projects and is familiar with regional subsidy programs (KfW, BEG) is particularly valuable here. We assist homeowners’ associations upon request with finding and selecting a property manager.

Frequently Asked Questions

How much does property management for a homeowners’ association cost in Nuremberg?

The costs depend on the size and condition of the residential complex. In the Nuremberg metropolitan area, management fees for standard properties range between 25 and 40 euros per residential unit per month. Additional fees may apply for extraordinary owners’ meetings (approx. 200-500 euros per meeting), legal proceedings, or extensive renovation measures. The management fees are allocated to all owners via the maintenance fee and are partially recoverable as operating costs for owners who rent out their units.

Can the homeowners’ association dismiss the property manager at any time?

Yes, since the 2020 Condominium Act reform, the property manager can be dismissed at any time by a simple majority vote of the owners’ meeting without requiring good cause. In this case, the management contract ends no later than six months after the dismissal. However, the contract may contain provisions regarding compensation for the remaining term-in the event of justified termination without notice (good cause, e.g., embezzlement of reserve funds), this claim is waived.

What happens if the WEG does not have a manager?

A homeowners’ association without a property manager faces a significant problem, as numerous administrative tasks-from convening the owners’ meeting to representing the association in dealings with contractors and government agencies-require an appointed property manager. Any individual owner may seek a court order to compel the appointment of a property manager. Until a new property manager is appointed, the court may appoint an emergency property manager. The costs of the emergency property manager are borne by the association.

What documents must the property manager provide to the owners?

The property manager is obligated to grant access to all administrative documents upon request: account statements for the association and reserve funds, maintenance contracts, invoices, correspondence with authorities, a collection of resolutions, and minutes of owners’ meetings. Every owner has the right to inspect these documents (Section 18(4) WEG). We recommend having the administrative advisory board conduct a full audit of the annual financial statement once a year.

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