How much to rent Kesselbauer Special

Property management - what can and should it cost?

What does property management cost per square meter or per apartment? Why Choosing the Cheapest Property Manager is Often Not the Right Way - Information about the costs of a residential property management. No question about it - it is always much easier to be familiar with the actual property purchase and financing than with the subsequent administration. Numerous guides explain more or less in detail what exactly buying a property is about. And what if the condominium was then entered in the land register for the new owner? So what? Who administers the special and communal property? What are the costs then for the owners? Can this be passed on to the tenant? Not all owners have commissioned rental management, but manage them themselves. It is therefore advantageous to know your way around.

Question after question. If you look at the activities that a well-trained and, in the best case, motivated and serious property manager must undertake, you will notice that the range of tasks is broad. This does not work without certain costs - those who save on the manager's remuneration often pay on it elsewhere.

List of property managers (by city)

The competence of the property manager is not available for free!

In addition to the social skills that are essential for a sometimes conflict-laden WEG structure, a good administrator detailed legal, technical and commercial knowledgeto take care of a property competently. And what does a property management company cost, how much can it cost Administrator remuneration of a WEG be scheduled at all? As is so often the case, the cheapest offer is not always the best option that your property or your special and communal property will benefit from in the long term! The subject of costs is particularly relevant for the WEG administrator if you are planning to rent out the condominium: The costs for the WEG manager may not be passed on to the tenant. It is not a question of allocable ancillary costs!

Many factors play a role in the cost of home administration!

There are rough guidelines that vary greatly depending on the federal state, location, equipment / size of the property. Property managers naturally have higher fixed costs in a large city than in a rural environment, whereby long distances to the property are also taken into account. The costs for the WEG administration are usually stated per apartment or unit and month, with prices ranging from € 12.00 to € 30.00. As always, the small print is in the contracts of the property managers and that is actually not only very relevant for the apartment owners including the advisory board, but also very interesting for assessment.

It often happens that property managers offer a very low base price of around € 12 and then let themselves be paid for all the little things such as telephone costs and getting cost estimates. This is not consistent with proper administration, but first of all you have to know that in the first place.

Quite a few property managers simply cheer their customers on with further costs. This is often the case when an incompetent advisory board has signed an unfavorable contract in which the administrator charges himself extra for cardinal obligations such as postage and telephone costs. The following services must be covered by the costs for property management:

What the property management company may charge additional costs for:

  • Invitation and holding of an extraordinary owners' meeting (if this was not caused by the administrator).
  • Billing of household-related services [§ 35a EStG.].
  • Creation of the administrator's consent when a change of ownership is pending.
  • Dunning procedures such as claiming outstanding housing allowance amounts and asserting arrears at the court.
  • Administrative effort related to the refusal of the direct debit.
  • Complex renovation measures or structural changes that go beyond the usual extent (from € 5,000 reference value, Düsseldorf Higher Regional Court 10.1998).
  • Increased administrative effort when taking over a new WEG from a previous administrator who, for example, only had a loose collection of notes.

For which the administrator may not charge additional costs, for example:

  • Inspection of the WEG documents by the apartment owner in the administrator's office.
  • Maintenance of the collection of resolutions.
  • Planning and holding an ordinary owners' meeting including travel.
  • Preparing and sending the invitations and minutes of the annual owners' meeting.
  • Obtaining offers from craftsmen / external service providers as well as for placing orders.
  • Special payments without a resolution and those that go beyond a normal amount or a normal hourly rate. So owners don't have to put up with an hourly wage of € 500 for an extraordinary owners' meeting!

Why low costs for property management can be fatal!

How motivated can a property manager be who only charges a low price for someone in need of renovation with a difficult clientele? Negligence in terms of repairs and maintenance as well as the associated renovation backlog are real damage to assets and returns! A dubious property management company will provide you with details such as obtaining offers charge an additional amount for minor repairs. Unfortunately, only a few owners know what exactly has to be covered in the costs for the administrationand what is actually in the management contract. In the worst case, the Administrative Advisory Board doesn't know what to do and has signed a contract that is extremely disadvantageous. Of course, the question arises as to the competence of the property management and whether this is horrendous despite it WEG administration costs can still keep track of things. A good WEG administration is very familiar with many areas and qualified and / or experienced employees work there, whose training and further education, e.g. to become a real estate specialist, may not have been short. Can a manager who should like to manage with a high level of motivation do this for a price of € 13?

Especially at the beginning of self-employment, it is possible that an administration company or a registered merchant puts the costs far too low. The quite high ancillary costs that arise in self-employment as well as the difficult owners in numerous WEGs, which cost a lot of time and effort, are usually underestimated.

It is not uncommon for merchants to miscalculate themselves when preparing an offer for a WEG! However, if there is already a well-coordinated administration team on site that knows the craftsmen well and can save a lot through optimized internal processes, it may well be that the Costs for the WEG do not have to be set so high.In order to understand which factors all play into the costs of property management, many aspects have to be considered. General information on how high Management costs can therefore not exist.

With regard to the costs for the WEG administration, the following points must be considered:

  • Size of the WEG: A small property with three owners is valued higher than a community of owners with over 100 apartments.
  • Year of construction and condition of the property (s) on WEG: If a lot of renovations and repairs are to be expected, the administrative costs increase due to the work involved.
  • Location of the property: In the rural north or east it is cheaper than in the metropolitan areas of southern or western Germany. In Düsseldorf, for example, it will be more expensive than in Erfurt.
  • Structure of the owners / residents of the WEG. If conflicts, for example, can already be seen in the earlier minutes of the owners' meetings, because the advisory board has already pissed off many gardening services, then more money is set.
  • Type of management: Is it just a pure owner-occupied house or is it also a Additional work due to the rental management expected?

Further influencing factors on the costs for the WEG administrator ...

You see that one general statement about that Costs of a residential property management not possible. The management contract, which is signed when a new WEG manager is appointed, provides information about the actual costs that will be incurred for the owners. It is not easy for property managers to be referred to as yield killers when they are planning to rent out the property. Also keep in mind that an administrator, which initially seems expensive, can save a lot of money on a WEG through good contacts to craftsmen and sound technical and legal knowledge of a property!

Little committed or completely dubious administrators who do not implement resolutions because they know that there is no one in the WEG who is interested, sometimes cause a lot of damage. Simple repairs or maintenance measures are not implemented and not professionally approved by him, the renovation backlog grows and at some point it becomes really expensive!

The same applies in the event that an administration already knows in advance that there are difficult co-owners who cannot or do not want to understand anything (any more) and who are at odds with one another or regularly scare off service providers. If it is already clear in advance that no owners' meeting lasts less than five hours, then this will certainly be reflected in the costs for the administration.The wide range of around € 13 to € 30 results from many factors that you as the owner can only influence to a limited extent. If the competition is fierce and the area is rural and the property is large and well-maintained, an established administration may be able to set the money lower. Small properties with only two or three condominiums in Munich, for example, have to pay significantly more and are certainly around € 30.

Tips for estimating the costs of a WEG administrator:

  • Be sure to show reference objects and speak to relatives, acquaintances and colleagues who live in a well-kept property and who manage it there. If necessary, have the owner meetings show you contracts and minutes to get an accurate picture.
  • Many administrations provide a sample contract with the exact conditions a while before the presentation for the election of the administrator. Ask your management advisory board for a copy / forwarding of the e-mail if they have not given the other owners any advance information. So you can see the contract details and the exact costs for the administration.
  • Find out a little beforehand and take your time which services may and may not be charged. It would be good for your WEG if you can identify an unsuitable and dubious administrator in advance.
  • If there is a lot of competition, many WEG administrators will be forced to set their wages low. On the other hand, if there is no competition in the region, the price for property management tends to skyrocket.
  • If the manager addresses the fact that he wants special payments, this can only be done through a resolution that you take in the context of an owners' meeting (alternatively and in the case of small WEGs, by way of circulation).
  • Without a resolution, the administrator may not simply increase his fee in the context of a contract extension, for example - unless he has already noted a changed / increased rate in the contract.