A change of manager in a homeowners' association (WEG) is a significant step. It is often accompanied by dissatisfaction with the previous management, structural changes or the desire for better service. However, the change is legally regulated and subject to certain formal and substantive requirements. In this article, you will find out how the change of condominium management works - step by step.
1. reasons for a change of administrator
There are many reasons for a change of administrator:
- Poor accessibility or lack of transparency
- Incomplete or late settlements
- Conflicts in communication with owners
- Lack of commitment to maintenance measures
- Expiry of the existing management contract
It is often a combination of several factors that leads to reorientation.
2. legal basis: Condominium Act (WEG)
Since the 2020 reform of the Condominium Act, it has been regulated that an administrator can generally be appointed and dismissed by resolution of the owners' meeting at any time, without giving reasons (Section 26 (3) WEG).
However, the dismissal does not automatically mean the immediate termination of the administrator contract. This remains valid for the time beingunless a separate cancellation is agreed or resolved.
3. the process in practice - step by step
a) Review of the existing contract
Before a change is initiated, the community of owners should review the current management contract:
- How long does the contract run for?
- Is there an ordinary notice period?
- Is there a possibility of extraordinary termination in the event of breaches of duty?
Tip: A legal check by a lawyer specialising in tenancy and condominium law can help to avoid potential pitfalls.
b) Search for and selection of a new administrator
The search for a new administrator can begin at the same time as the audit. Criteria for the selection should include
- Qualifications and experience
- References and transparency
- Range of services and technical equipment (e.g. digital owner portals)
- Personal demeanour in interviews or interview rounds
Ideally, several providers should introduce themselves. It is also customary to include an overview of the offer in the invitation to the meeting.
c) Convene an owners' meeting
The change is decided at an ordinary or extraordinary owners' meeting. The invitation to the meeting must be issued in good time (at least 3 weeks in advance) with an agenda which should contain the following points, among others:
- Dismissal of the current management
- Cancellation of the existing contract (if necessary)
- Appointment of the new administration
- Approval of the contractual terms of the new management
d) Adoption of resolutions
For each of these points a majority resolution of the owners present or represented required. The following applies Head principleEach owner has one vote, regardless of the number of units they own (unless otherwise stipulated in the declaration of division).
e) Logging and documentation
All resolutions must be recorded in the minutes and sent to all owners after the meeting. The new management subsequently receives a written contract and the official resolution on its appointment.
f) Handover and start of the new administration
The old administration is obliged to hand over all documents and funds to the new administration - this includes, among other things
- Annual financial statements and business plans
- Account statements, overview of reserves
- List of owners
- Contracts with service providers
- Keys, maintenance documents, proof of insurance
The more structured the handover, the smoother the start of the new administration's work.
Special features in the event of breaches of duty
If an administration grossly breaches its obligations (e.g. in the case of breach of trust, delaying maintenance or ignoring resolutions), extraordinary termination of the contract can also be considered - legally well-founded and ideally with legal advice.Conclusion
A change of condominium management is not an everyday process - but it is legally and organisationally feasible. Thorough preparation, transparent communication within the community of owners and a professional selection of the new management are crucial for a successful reorganisation.
Our tip: Use the opportunity of the change to restructure the collaboration - with clear goals, digital processes and a manager who really understands and supports your property.
If you need support in finding a property manager, legal categorisation or communication within your condominium, we will be happy to assist you.
