Changing managers

Verwalterwechsel: deadlines and handover when a WEG changes its property manager

Short answer

The owners’ association can remove its property manager at any time by simple majority; the management contract ends no later than six months after the resolution (§ 26(3) WEG). A regular change therefore only needs a resolution and a successor — in practice, allow at least eight weeks between resolution and contract end for handing over the records.

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Removal and contract end are two different things

Since the 2020 WEG reform, removing the property manager no longer requires good cause (§ 26(3) WEG). A resolution by simple majority is enough, and it takes effect immediately — the manager loses the appointment. The contract, however, continues, but with a cap: it ends automatically no later than six months after removal. During that time the fee remains payable even though the manager no longer manages — minus whatever effort the manager saves as a result.

For the owners’ association, that means: a change practically never fails because of the law. It fails because of poor preparation — no successor appointed, no document list, no plan for transferring the accounts. The process, a deadline calculator and a draft resolution are under changing your property manager.

When a change is really justified

Dissatisfaction alone is not a good trigger. These points are:

The annual statement is late or items cannot be documented

The advisory board and owners wait days for a reply, and damage reports go unanswered

Resolutions on maintenance are not implemented for months

The resolutions register (Beschluss-Sammlung) is incomplete — which burdens every sale of a unit

The manager is not certified and an owner demands a certified manager (§ 19(2) no. 6 WEG)

The manager is giving up the property because they lack staff

What the right to a certified manager covers exactly is explained in a separate article. Not a reason to change, on the other hand, is a single unwelcome resolution or a conflict between two owners that the manager cannot resolve.

The relevant deadlines at a glance

Removal of the manager by resolution
immediate
End of management contract after removal
max. 6 months
Maximum term of appointment
5 years
Maximum term for the first appointment after establishment
3 years
Reappointment no earlier than before expiry
1 year
Notice period for the owners’ meeting
min. 3 weeks (§ 24(4) WEG)
Recommended buffer for handover
8–12 weeks

An appointment may last no more than five years, and the first appointment after condominium ownership is established no more than three years (§ 26(2) WEG). A reappointment may be resolved no earlier than one year before the term expires. If a contract expires normally, the new appointment must be resolved beforehand — otherwise the owners’ association is left without a manager and unable to act, which becomes especially expensive during ongoing building work.

Which records the outgoing manager must hand over

The management records belong to the owners’ association, not to the manager. In particular, these must be handed over:

Resolutions register, complete and kept up to date

Declaration of division, community rules, division plan

Budgets, annual statements and receipts for recent years

Account records including the reserve account and account authorisations

Contracts: insurance, maintenance, utilities, caretaker service

Tradesperson and warranty files with running deadlines

Meter lists and heating cost data for the current year

Minutes of all owners’ meetings and open matters

If records are not handed over, or only in part, the owners’ association has an enforceable claim — and the outgoing manager is liable for any loss the association suffers from the delay. The claim belongs to the association, not to individual owners. In practice, a letter with a specific list and a deadline is usually enough.

The usual process, in order

8–12 weeks before

Obtain and compare quotes

Ask two or three managers and compare the scope of services. Pay attention to extra fees — that is where the differences arise, not in the base fee.

4–6 weeks before

Prepare the draft resolution

Removal and new appointment belong in one resolution, including contract term and fee. The draft is usually supplied by the new manager.

Owners’ meeting

Pass the resolution

A simple majority of the votes cast is enough; there has been no quorum since the reform. Word the minutes carefully: names, term, fee, start of management. The one-month challenge deadline runs from this day.

Afterwards

Transfer records and accounts

Letter to the outgoing manager with a list of records and a deadline; in parallel, transfer the WEG accounts and notify insurers and utilities.

First month

Site inspection and stocktake

Document the condition, record open resolutions and defects, check inspection deadlines. This is the basis for the first budget.

What the change costs

The change itself usually involves no special fee. Plan for three items:

The outgoing manager’s fee until the contract ends. If the contract only ends six months after removal, the fee runs until then. A termination agreement with an earlier end date is often possible and usually the easiest point to negotiate.

The new manager’s onboarding. Some providers charge a one-off takeover fee, others do not. Ask explicitly before comparing quotes. What is included in our WEG management is set out in full in the quote.

A higher ongoing fee. Old contracts are often below today’s market price, because existing prices are only reset when the mandate changes. Plan for a real increase rather than the wishful idea of changing at the old price. What is customary today is in our cost overview and on our pricing page.

If you think the resolution is flawed, you have one month from the meeting to file a challenge — the challenge deadline calculator gives you the exact date.

The three most common mistakes

First: removing the manager without appointing the successor in the same resolution. The owners’ association is then left without a body that can represent it — what that means is explained under WEG without a property manager. Second: switching the reserve accounts too late — until they are transferred, the outgoing manager formally still controls them. Third: not planning for the annual statement of the changeover year. It is owed by the manager in office on 1 January of the following year — so with a change at year end, already by the new manager, not the old one (Federal Court of Justice, V ZR 206/24). Check in the successor’s quote whether this statement is included in the price, and only arrange for the outgoing manager to help where their contract still allows it.

Frequently asked questions

Do we need a reason to change the property manager?

No. Since the 2020 WEG reform, the owners’ association can remove the manager by simple majority without good cause. Good cause only matters if you want to end the contract immediately rather than after up to six months.

Can a single owner dismiss the manager?

No. Removal is a matter for the owners’ association and is done by resolution. A single owner can help bring about a meeting, submit motions and, if management is improper, seek help from the courts.

Can we change in the middle of the financial year?

Yes. The annual statement is then owed by the manager in office when the obligation arises on 1 January — so with a mid-year change, the new manager, including for the predecessor’s months (Federal Court of Justice, V ZR 206/24). They need complete records for that. An interim statement by the outgoing manager as at the handover date helps; they are only obliged to provide one if their contract says so.

What does the change cost the owners’ association?

The change itself costs nothing if the new manager handles the handover. Costs arise from the outgoing manager’s fee until the contract ends, from any additional owners’ meeting, and from the fact that old contracts were often below today’s market price.

The old manager will not hand over the records — what now?

First, a letter with a specific list and a deadline. After that, the owners’ association can enforce the claim for handover in court; in practice, setting a deadline and announcing that step is almost always enough. The management records belong to the owners’ association.

How long does a change of manager take overall?

Realistically three to six months from the first request for quotes to complete handover. The resolution is the quick part; handing over the records is the slow part.

This article is not legal advice. It reflects current common practice; for your specific case, we review the deadlines together with you or a law firm specialising in WEG law.

Julius Launhardt

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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