Changing the property manager in five steps

1. Check the appointment and the contract

The appointment of a manager and the management contract are legally separate. Check both the appointment resolution and the contract. An appointment is limited to a maximum of five years. After the creation of the condominium, the first appointment is limited to a maximum of three years (§ 26 (2) WEG). The association can dismiss the manager at any time; no good cause is required. The management contract ends no later than six months after the dismissal (§ 26 (3) WEG). Until then, the agreed fee generally remains payable. A look at the appointment resolution and the contract shows which terms and deadlines apply to you.

2. Obtain and compare offers

Before a new manager is appointed, the owners should have several comparable offers; otherwise the resolution can usually be challenged. This is often done by the advisory board or committed owners. Do not compare only the price per unit, but also:

• what the basic fee includes and which services cost extra,
• whether the manager is certified (§ 26a WEG),
• who your contact will be and how easy they are to reach,
• whether the annual statement for the transition year is included in the offer.

3. Resolution at the meeting

The owners’ meeting decides by simple majority on dismissing the previous manager, appointing the new one and the key points of the contract. These items must be announced in the invitation; the notice period is usually at least three weeks. If the previous manager refuses to call the meeting, the chair of the advisory board or an authorised owner can do so (§ 24 (3) WEG). The chair of the advisory board signs the contract with the new manager on behalf of the association. If there is no advisory board, the meeting decides by resolution who signs (§ 9b (2) WEG).

4. Handover of the documents

The previous manager must hand over all documents kept for the association and account for its activities. These include in particular:

• Declaration of division, collection of resolutions and meeting minutes
• Bookkeeping, vouchers and bank records
• Contracts with utilities, service providers and insurers
• List of owners, keys and technical documents
• Information on ongoing damage, legal disputes, orders and deadlines

5. The new manager starts

The accounts belong to the association. The new manager has itself registered with the bank as authorised signatory, switches the collection of house money where necessary and informs service providers, utilities and insurers. A change at the end of the year can make organisational sense, but is not a legal requirement. In that case, the new manager usually draws up the annual statement for the past year on the basis of the bookkeeping handed over.