Certified Property Manager

Certified Property Manager - A certified property manager is a WEG property manager who has demonstrated their legal, commercial, and technical knowledge of condominium management by passing an examination administered by the Chamber of Industry and Commerce (IHK). Since the 2020 WEG reform, condominium owners have a legal right to have a certified administrator appointed (Section 19(2)(6) WEG).

Legal Basis and Qualification Requirements

The WEG reform of December 1, 2020, introduced the right of every individual condominium owner to the appointment of a certified manager through Section 19(2)(6) WEG. The specific requirements for certification are governed by the Certified Property Manager Examination Regulation (ZertVerwV), which entered into force on December 1, 2022.

IHK Exam: The exam administered by the Chamber of Industry and Commerce consists of a written section lasting approximately 90 minutes and an oral section lasting approximately 15 minutes. The written portion consists of multiple-choice questions and open-ended tasks covering the topics of condominium law, tenancy law, fundamentals of contract law, commercial fundamentals of property management, as well as technical and building physics knowledge. In the oral portion, practical case studies are discussed, such as the preparation and conduct of a homeowners’ meeting or the handling of a repair project.

Grandfathering for existing property managers: Property managers who, at the time of the legislative change, had already been appointed as WEG property managers for at least three consecutive years were considered certified until June 1, 2024, without having to take the exam. This transition period has since expired. Managers who availed themselves of the grandfather clause had to pass the IHK exam by this deadline to remain certified.

Equivalent Qualifications: Certain professional qualifications are considered equivalent to the IHK exam. These include, among others, qualifications as a real estate agent, real estate specialist (IHK), a completed university degree with a focus on real estate management, and fully qualified lawyers. Anyone who can demonstrate one of these qualifications is not required to take the exam but will receive the certificate upon request.

Continuing Education Requirement: Certification alone is not a one-time credential. Pursuant to Section 34c of the German Trade Regulation Act (GewO) in conjunction with the Real Estate Broker and Developer Ordinance (MaBV), property managers are subject to a continuing education requirement of 20 hours within three years. This requirement exists independently of certification and is intended to ensure that property managers keep their knowledge up to date.

Significance for Condominium Owners

The right to a certified property manager significantly strengthens the position of condominium owners. Any individual owner may demand at the owners’ meeting that only a certified property manager be appointed-even against the will of the majority. If a non-certified property manager is appointed, any owner may challenge the resolution. Certification offers owners the assurance that the property manager possesses sound knowledge in the relevant areas of law, commercial management, and technical fundamentals. However, the exam does not replace practical experience: We recommend that owners consider not only the certificate but also references, the number of units managed, and the manager’s availability when making their selection. In communities with only one condominium owner (such as in new construction projects that have not yet been divided), there is no entitlement to a certified property manager.

Practical Tip for Nuremberg and Franconia

The Nuremberg Chamber of Industry and Commerce for Middle Franconia regularly offers exam dates for certification as a property manager. Condominium owners in the Nuremberg metropolitan region can use the property manager registry at the German Chamber of Industry and Commerce (DIHK) to search specifically for certified property managers in their region. We recommend that homeowners’ associations explicitly request the certificate when appointing or renewing a property manager and ask to be provided with a copy. Especially in Nuremberg neighborhoods with a high proportion of condominium properties, such as Langwasser, Röthenbach, or Schweinau-where many residential complexes from the 1960s and 1970s are in need of extensive renovation-a professionally qualified property manager with sound technical knowledge is particularly valuable.

Frequently Asked Questions

As an owner, can I reject a non-certified property manager?

Yes, according to Section 19(2)(6) of the WEG, every individual condominium owner has the right to request the appointment of a certified property manager. If a non-certified property manager is elected at the owners’ meeting, any owner may challenge this resolution at the local court within one month of the meeting. The court will generally declare the resolution invalid, and the community must decide again on the appointment of the property manager.

Does the certification requirement also apply to self-managers?

No, the certification requirement applies only to commercial third-party property managers. If a condominium owner manages the property themselves or if a co-owner takes on the management on a voluntary basis, no certification is required. However, even in a self-managed community, the other owners can demand the appointment of a certified external manager at any time if they are dissatisfied with the self-management.

How can I tell if my manager is actually certified?

Certified managers receive a certificate from the Chamber of Industry and Commerce (IHK), which they must present upon request. Additionally, owners can check the DIHK database to verify whether a manager is registered. We recommend not relying solely on verbal assurances, but rather keeping a copy of the certificate with the management documents. In case of doubt, a direct inquiry to the relevant IHK can provide clarity.

What else should be checked when selecting a property manager besides the certificate?

The certificate alone is not an indicator of the actual standard of management. In addition, homeowners’ associations should review the number of units managed, availability in emergencies, the type of management software used (accounting, communication, document management), and current references from comparable associations. Appointing a property manager without a trial period is risky: Many management contracts can only be terminated early if there are compelling reasons. We recommend that homeowners’ associations in Nuremberg obtain at least three quotes when searching for a property manager and visit reference properties with a similar year of construction and number of units, or attend their current homeowners’ meeting as a guest association.

Responsibilities of a Certified Property Manager: Distinguishing Between Technical, Commercial, and Legal Management

A certified WEG property manager handles three core areas of responsibility. Commercial management includes bookkeeping, maintenance fee billing, reserve fund planning, and the preparation of operating budgets. Technical management includes commissioning and supervising tradespeople, planning and overseeing renovation measures, and reviewing maintenance contracts. Legal management encompasses the preparation and conduct of owners’ meetings, the implementation of resolutions, and communication with authorities. The manager’s technical expertise is particularly important, especially for older residential complexes in Nuremberg that require significant renovation: If a manager cannot competently oversee renovation projects for the roof, facade, and heating system, they may end up costing the community more money than their management fees.

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