A property manager handles the day-to-day operation, the administration of funds and the commercial and technical care of a property, depending on the mandate either for an owners association, for a landlord, or for a single flat within an association. What matters is which of the three types of management is meant, because each follows different rules. This guide explains WEG management, rental management and individual-unit management, the manager’s statutory duties and responsibilities, and the costs, with the relevant provisions from the German Condominium Act (WEG). It is written for international owners who need to understand how property management works under German law.
Three types of management: WEG, rental, individual unit
When people say “property management” in Germany they may mean three quite different jobs. Keeping them apart is the basis of any clear agreement.
WEG management looks after the common property of a condominium owners association. It is governed by the German Condominium Act (Wohnungseigentumsgesetz, WEG). Under § 18 (1) WEG, the management of the common property is the responsibility of the community of owners (Gemeinschaft der Wohnungseigentümer, GdWE), which appoints a manager for this purpose. The client is therefore the community as a whole, not the individual owner.
Rental management (Mietverwaltung) looks after let property on behalf of a single owner, an heir community or an investor. It is not governed by the WEG but by the tenancy law of the Civil Code (BGB) and the individual management contract. Its duties include tenant support, rent collection, service charge statements and the organisation of maintenance.
Individual-unit management (Sondereigentumsverwaltung, SEV) is the management of a single condominium flat within a WEG. It sits between the other two forms: while WEG management looks after the common property, SEV looks after the let individual flat of a particular owner, in effect a rental management for the unit that is at the same time part of a community.
| Feature | WEG management | Rental management | Individual-unit management |
|---|---|---|---|
| Client | owners association (GdWE) | single owner / investor | single owner of a flat in the WEG |
| Object | common property | the whole let property | a single let flat |
| Legal basis | WEG (§§ 18, 26-28) | tenancy law (BGB), contract | tenancy law (BGB), contract |
| Typical duties | implement resolutions, budget, annual statement | tenant support, rent collection, service charges | tenant support for the unit, reporting to the owner |
One and the same management firm can take on all three roles, for example for a let condominium flat in a WEG it already manages. Contractually, however, these remain separate mandates with separate fees.
Duties of the WEG manager
The WEG manager is the executive body of the owners association. The duties follow from the statute, from agreements and above all from the owners’ resolutions.
Implementing resolutions and maintaining the common property
The owners take the basic decisions at the owners meeting; the manager implements those resolutions. In addition, every owner is entitled under § 18 (2) WEG to proper management that corresponds to the interests of all owners according to reasonable discretion. The manager is thus a service provider to the community and bound by its will.
Measures of minor importance on the manager’s own authority
Not every small matter needs a resolution. Under § 27 (1) WEG the manager is entitled and obliged to take measures on their own authority that
- are of minor importance and do not lead to significant obligations, or
- are necessary to meet a deadline or to avert a disadvantage
This lets the manager keep operations running without having to convene the community for every routine act, for example commissioning small repairs or urgent emergency measures. Under § 27 (2) WEG the owners may restrict or extend these powers by resolution, adapting the manager’s scope of action to their community.
Example: If a water pipe bursts in the basement in winter, the manager need not first call an owners meeting. Commissioning the emergency service is a measure necessary to avert a disadvantage within the meaning of § 27 (1) WEG and is therefore covered by the manager’s own authority.
Budget and annual statement
The commercial core of WEG management is governed by § 28 WEG. Each year the manager prepares a budget (Wirtschaftsplan) showing the expected income and expenditure; on this basis the owners resolve on the advance payments, that is the monthly contribution (Hausgeld), and the contribution to the maintenance reserve (§ 28 (1) WEG). After the end of the financial year the manager prepares the annual statement of actual income and expenditure; only the difference from the advances is resolved, that is the collection of additional contributions or the adjustment of the advances (§ 28 (2) WEG). The manager also prepares an asset report (Vermögensbericht) showing the state of the reserves and the essential community assets, and makes it available to every owner (§ 28 (4) WEG).
Administering the community funds
The manager administers the community’s money, collects the Hausgeld, settles invoices and runs the accounts. These funds must be kept separate from the manager’s own assets; they belong to the community, not to the manager.
Appointment, management contract and removal
The owners decide on the appointment and removal of the manager (§ 26 (1) WEG), usually by simple majority at the owners meeting. The appointment is time-limited: it may run for a maximum of five years, or three years for the first appointment after the condominium is created (§ 26 (2) WEG). Re-appointment is possible, but at the earliest one year before the current term ends.
The appointment as a corporate act must be distinguished from the management contract, which governs the contractual relationship, in particular the fee and the specific services. Under § 26 (3) WEG the manager can be removed at any time; the statute requires no reason. The management contract then ends no later than six months after removal. These rules are mandatory; a deviating clause in the contract would be void.
Certified manager (§ 26a WEG)
Since the WEG reform, owners have a particular quality benchmark at hand. Under § 26a (1) WEG, only someone who has passed an examination before a Chamber of Industry and Commerce (IHK) proving the legal, commercial and technical knowledge required for the role may use the title certified manager (zertifizierter Verwalter).
Certain qualifications are treated as equivalent and exempt from the examination, including the qualification to hold judicial office, a university degree with a focus on real estate, and completed vocational training as a real estate agent (Immobilienkaufmann/-frau). The significance of certification is that owners can demand a tested minimum standard. You can read more about our quality standard under certified property management.
Responsibilities and fiduciary position
The manager acts in someone else’s interest and holds a fiduciary position. The manager is bound by the resolutions and agreements of the community, must keep the community funds separate from their own assets, and must account for their work transparently. The owners’ right to proper management (§ 18 (2) WEG) gives rise to duties of care, information and accounting. If the manager breaches these duties culpably, they may be liable in damages to the community.
Costs of management
The manager’s fee is agreed in the management contract, usually as a monthly flat rate per unit; additional fees may apply for special services. In a WEG this fee counts as a community cost and is distributed among all owners through the annual statement.
For landlord owners one point is important: management costs are not allocable in a tenancy. They are not part of the catalogue of allocable operating costs and may therefore not be passed on to the tenant. Anyone who owns a let condominium flat thus bears the manager’s fee economically themselves. How allocable and non-allocable items are correctly separated is explained in our guide to service charges.
Typical duties of rental and individual-unit management
While WEG management looks after the common property, rental and individual-unit management concern the relationship with the tenant and the individual owner. Typical duties are:
- tenant support: point of contact for tenants, handling requests and defect reports
- rent collection and dunning: monitoring rent payments, pursuing arrears
- service charge statements: preparing the annual statement towards the tenant
- lease management: re-letting, rent adjustments, handovers and flat inspections
- technical care: organising maintenance and repairs, commissioning tradespeople
- reporting to the owner: regular accounting and reporting on the unit
You can read more about the individual service areas under condominium management Frankfurt, rental management Frankfurt and individual-unit management Frankfurt.
Property management in Frankfurt and the surrounding area
In the Frankfurt market, with its mix of period buildings in Bornheim and the Nordend, new-build quarters in the Europaviertel and let condominium flats across the wider Rhine-Main region, a local, reachable manager matters. Short routes to tradespeople, knowledge of local fees and assessment rates, and proximity to the responsible authorities are a tangible advantage in practice.
Whether an owners association, a let flat or a single unit within a WEG: what matters is a manager who knows their duties, fulfils their responsibilities and accounts transparently. That is precisely the standard of an owner-run property management.
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Sources
Editorial responsibility: digo.immo Verwaltung & Invest - certified residential property manager under § 26a WEG (IHK Frankfurt), licence under § 34c GewO. About the certification
This article provides general information only and does not replace individual legal advice. Legal status: 22/06/2026; laws and case law may change. No warranty is given as to completeness, accuracy or timeliness. When in doubt, please seek qualified advice.