Changing managers
How to spot a good property manager: criteria, warning signs and a checklist
Short answer
You can recognise a good property manager by three things: it meets the legal requirements (licence under § 34c GewO, professional liability insurance, certified manager), it keeps the association’s money in an account held by the WEG – and it answers reliably, implements resolutions and delivers the annual statement on time. Price alone says little.
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Why this is so hard to answer
You don’t buy property management like a washing machine. Its value only shows when something goes wrong: the roof leaks, an owner stops paying, or the heating fails in January. At the first meeting, everyone promises to be reachable and reliable.
There are, however, criteria you can check beforehand – some in five minutes, some with a few targeted questions. This article sorts them into what is mandatory, what makes good work and what should make you suspicious.
What every manager must have
These points are not quality features but minimum requirements. If one is missing, the conversation is effectively over.
Licence under § 34c GewO. Anyone who manages owner-occupied or rented flats commercially has needed a licence from the chamber of commerce (IHK) or trade authority since 2018 (§ 34c(1) sentence 1 no. 4 GewO). It is only granted if the manager is reliable and in orderly financial circumstances.
Professional liability insurance. It must cover financial losses of at least 500,000 euros per claim and 1,000,000 euros per year (§ 15 MaBV).
Certified manager. Every owner can demand the appointment of a manager who has passed an exam before the chamber of commerce under § 26a WEG (§ 19(2) no. 6 WEG). The only exceptions are very small associations where an owner acts as manager. What certification involves is explained in our article on the certified manager.
Continuing education. Managers and the staff involved must complete 20 hours of training within three years. Feel free to ask what the topics were last time.
How to recognise good work
The money sits in the association’s account
Your owners’ association’s assets belong to the association, not the manager. The account agreement should reflect this: the account holder is the owners’ association (Gemeinschaft der Wohnungseigentümer), and the manager only holds a power of attorney. A trust account in the manager’s name is not just less transparent – it is dangerous in an emergency. More on this in our article on what happens when a property manager goes insolvent.
Answers come – and they say something
The most common complaint about property managers is not “too expensive” but “unreachable”. Ask how requests reach the manager, who handles them and how you can track progress. An owner portal holding receipts, minutes and statements saves both sides a lot of time. If your current manager has stopped responding altogether, our article on what to do when your property manager doesn’t respond can help.
Resolutions are implemented
A meeting is only worth what happens afterwards. Good managers send the minutes promptly, keep the register of resolutions (Beschluss-Sammlung) properly and report when each contract was awarded. Ask for an example from another building.
The annual statement arrives in spring, not December
The law sets no fixed deadline for the annual statement (Jahresabrechnung, § 28 WEG). In practice, three to six months after year end is considered proper. If the statement regularly arrives just before New Year’s Eve, that is a serious problem – especially for owners who let, who must bill their tenants within twelve months. How to check a statement is explained in our annual statement checklist.
Technical matters are understood, not just passed on
With heating replacement, roof renovation or fire protection, owners have to decide on a lot of money. A good manager doesn’t just forward contractor quotes but puts them in context: Is the quote complete? Is the work needed now or can it wait? That often saves the association more than the manager costs in a whole year. A good test: does your manager know whether all meters in the building are remote-readable by the end of 2026?
The contract is understandable
A good management contract shows at a glance what the base fee includes and what costs extra. Long lists of extra fees without a cap are a reason to ask questions. What to look for in detail is covered in our article on reviewing the management contract.
Warning signs to take seriously
No proof of the § 34c licence, liability insurance or certification when asked
Service charges flow into a trust account of the manager or a pooled account for several buildings
Access to receipts is delayed, charged for or refused
Annual statements and budgets regularly arrive in autumn or later
Resolutions from the last meeting still haven’t been implemented months later
You hear about damage to the building from neighbours, not from the manager
Extra fees for services that really belong to core management
Frequently changing contacts who don’t know your building
A single warning sign doesn’t have to mean the end of the relationship. You should pay attention, though, if a lot suddenly changes after your property manager has been sold. When several signs pile up, it is worth looking at alternatives – how a change works is explained on our page about changing your property manager.
Questions for the first meeting
When your association asks for quotes, put the same questions to every candidate. That makes the answers comparable:
Can you show us your § 34c licence, insurance confirmation and certificate under § 26a WEG?
In whose name is the association’s account held?
How do we reach you, and how do we track our requests?
When did you send this year’s annual statements for your buildings?
Who exactly is responsible for our building, and who covers for them?
What does the base fee include, what costs extra – and how often does that typically arise?
How do you handle emergencies outside office hours?
How does the handover from our current manager work?
How to lay the answers side by side afterwards is shown in our article on comparing property management quotes.
What the price tells you – and what it doesn’t
Property management has become more expensive. According to the industry barometer of the managers’ association VDIV, the average fee for owners’ association management in 2025 was 29.12 euros net per unit per month; for 2026, managers plan an average increase of just over nine per cent. Small associations pay considerably more per unit than large ones.
A quote far below the market is therefore not a bargain but a reason to ask: how does that add up? Conversely, the Federal Court of Justice allows some leeway: a fee above the usual rates is not automatically uneconomical (BGH, judgment of 5 July 2019, V ZR 278/17). What property management typically costs in Nuremberg is covered in our article on property management costs.
Feel free to ask us exactly these questions. Ravenica is a property management company for Nuremberg, Fürth and Erlangen – request a quote for your association via the contact form and check us against this list.
Frequently asked questions
What proof must a WEG property manager be able to show?
A licence under § 34c(1) sentence 1 no. 4 GewO, professional liability insurance covering at least 500,000 euros per claim and 1,000,000 euros per year (§ 15 MaBV) and – for most owners’ associations – proof that it is a certified manager under § 26a WEG. Ask for these; a reputable manager will show them without hesitation.
How can I tell whether our association’s money is kept safely?
Ask who the account holder is. It should be an account in the name of the owners’ association itself (often called a WEG own account). A trust account in the manager’s name is a warning sign, because the money is harder to secure if something goes wrong.
Is the cheapest manager the best choice?
Rarely. The association doesn’t have to pick the cheapest provider if another is more convincing. A very low base fee is often offset by extra fees – or by little time for your building. Compare the scope of services and total costs, not the number on the first page.
When should the annual statement arrive?
There is no fixed statutory deadline. In practice, a statement within three to six months of the year end is considered proper. This matters for owners who let, because they must bill their tenants within twelve months.
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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