Fees & contracts
Comparing property managers: how to read offers and what to ask
Short answer
Do not compare only the base fee per unit; compare the whole package: special fees, minimum fee, VAT, contract term and scope of services. Check the licence under § 34c GewO, professional liability insurance and certification. And ask specifically when the annual statement arrives, how damage is reported and how you can inspect documents.
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Why the price per unit tells you little
Offers from German property managers almost always lead with one number: the base fee per unit per month. That number matters, but it is only part of the calculation. Two offers with the same base fee can differ by several thousand euros over a year — and vice versa.
What a manager generally costs and what drives it is covered in our article on property management costs. This article is about comparing specific offers.
The five price components
Base fee (Grundhonorar). Per unit per month, often tiered by property size. Check whether garages and parking spaces count as separate units.
Minimum fee (Mindesthonorar). An amount per property that applies regardless of unit count. For small associations it is often the price that actually matters.
Special fees (Sonderhonorare). Charges for services outside the base scope: additional meetings, overseeing larger building projects, debt collection, consent to a sale, court proceedings, copies and postage. A serious offer lists them all, with amounts.
Takeover or set-up fee. One-off on a change of manager, for taking over data and records. If outstanding statements need catching up, that should be listed separately.
Price adjustment. Index or stepped clauses are common. Check the reference value and frequency so you know what will apply in three years.
And: gross or net? Management services are subject to VAT, and the association usually cannot reclaim it. Convert all offers to gross before comparing them side by side.
The acid test: a typical year
Rather than comparing individual prices, cost out the same year for every offer:
Base fee for all units over twelve months, gross
One ordinary owners’ meeting plus one extraordinary meeting
A mid-sized building project, such as an 80,000-euro roof renovation
One change of owner with the manager’s consent, if the declaration of division requires it
Two collection procedures for Hausgeld arrears
The takeover fee, spread over the contract term
The total says more than any single price. It also shows whether an offer recoups through special fees what it promises on the base fee.
Mandatory credentials
Anyone managing condominium property needs a licence under § 34c(1) no. 4 GewO. A precondition is professional liability insurance with statutory minimum cover (§ 15 MaBV). There is also a continuing training obligation of 20 hours every three years.
Since 1 December 2023, every owner can also demand that a certified manager be appointed (§ 26a WEG, § 19(2) no. 6 WEG). What certification means and who is exempt is explained in our article on the certified manager.
Ask to see all three: licence, insurance confirmation, certificate. A manager who cannot readily provide them is not a candidate.
One more question belongs on the mandatory list: the association’s accounts must be in its own name, not the manager’s. Since the WEG reform, the association itself has legal capacity and holds the accounts (§ 9a WEG). A trust account in the manager’s name is a warning sign.
Twelve questions for the interview
An offer shows what a manager promises. The interview shows how they work. Every candidate should be able to answer these questions specifically:
By when do you deliver the annual statement — as a contractual date?
When does the ordinary owners’ meeting usually take place?
Who is our dedicated contact, and who covers for them?
How and when can we reach you, and what happens in an emergency at the weekend?
How quickly do you reply to written enquiries?
Can owners and the advisory board inspect receipts, resolutions and contracts digitally?
How do you plan the maintenance reserve — flat rate or from a maintenance plan?
How often do you inspect the property, and who assesses its technical condition?
How do you obtain contractor quotes, and above what amount is a resolution needed?
How does the takeover work, and do you catch up on outstanding statements?
How many properties does your team manage, and how many are comparable to ours?
Can we speak to the advisory board of another association you manage?
Pay less attention to answers that sound good than to those that are specific. “We are always available” is a slogan; “damage reports go to an emergency number around the clock” is information.
Warning signs
No list of special fees. If they are not named upfront, they will be named later.
Long minimum term with a compensation clause. The management contract ends no later than six months after removal anyway (§ 26(3) WEG). Clauses meant to secure fees beyond that are generally invalid.
No date for the annual statement. A candidate who will not commit to a date will not keep one.
No access to documents without an office appointment. Owners’ right of inspection is statutory (§ 18(4) WEG); a manager who makes it hard shows how they view oversight.
How to check the contract itself is covered in checking the management contract.
From comparison to resolution
Once you have a favourite, their documents belong in the invitation to the meeting — together with at least one competing offer. The matching draft resolutions are in our templates for changing your manager. In many associations the advisory board prepares this; the process and deadlines are in changing manager: deadlines and handover.
If you are changing because your current manager could not be reached or failed to deliver the statement, check exactly those points most strictly with the successor. More in property manager not responding and annual statement missing.
Ravenica encloses a complete list of special fees and a contractual date for the annual statement with every offer. Our pricing basics are on the pricing page; request an offer for your association via our contact form.
Frequently asked questions
How many offers should an owners’ association obtain?
At least two, better three. When appointing a new manager, the courts generally require alternative offers so the owners have a genuine choice. The offers should be enclosed with the invitation to the meeting.
Is the cheapest offer the best?
Rarely. A low base fee is often recouped through special fees, or the scope of services is narrower. Cost out a typical year — one meeting, a mid-sized building project and one change of owner — and compare that total.
What credentials must a WEG manager have?
A licence under § 34c(1) no. 4 GewO, professional liability insurance and proof of the statutory continuing training. Since December 2023, owners can also demand a certified manager under § 26a WEG.
Are prices in offers gross or net?
It varies, which is exactly why offers are often hard to compare. Management services to a WEG are subject to VAT. Convert all offers to the same basis, ideally gross, because the association usually cannot reclaim the VAT.
What is a minimum fee?
A minimum amount per property that applies regardless of the number of units. It is common for small associations because the baseline workload — meeting, statement, bookkeeping, insurance — barely shrinks with size. An offer should disclose whether a minimum fee applies.
About the author
Julius Launhardt
Founder, owner & managing director of Ravenica · Dipl.-Ing. (TUM)
Graduate engineer (Dipl.-Ing.) and M.Sc. in Management from the Technical University of Munich, IHK-certified property manager, TÜV-certified sustainability manager and long-standing member of the volunteer fire brigade. As founder and managing director of Ravenica in Nuremberg, he is responsible for day-to-day business, processes and long-term strategy. Knows building services, refurbishments, energy and inheritance cases first-hand, and owns several properties himself.
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