Make the New Year the Time to Change Your Property Manager
Anyone wishing to start the new year with a new property management company should begin preparing now. This applies to rental properties, owners’ associations, individually owned apartments and mixed-use properties alike. There are several steps between deciding to change property managers and completing a well-prepared handover.
ELOVATE Immobilien supports property owners and owners’ associations in Berlin and Brandenburg throughout this transition.
When Waiting Turns into Another Year
An enquiry goes unanswered, a promised response never arrives, a necessary repair is postponed once again. Owners follow up and give their property management company a little more time. Perhaps cooperation will improve after the next conversation. Perhaps the outstanding matter will finally be resolved.
Our experience in property management shows that the decision to change often comes late. We frequently receive enquiries just a few weeks before the desired takeover date. By then, decisions have been postponed, further discussions have taken place, or the necessary majority within the owners’ association has yet to be secured.
Naturally, a change of property manager should be carefully considered. Every property has its own history, existing contracts and ongoing matters. However, the hope of improvement should not allow significant shortcomings to persist over an extended period.
Property ownership comes with responsibilities. These include regularly reviewing a property’s maintenance and financial development. When necessary tasks are continually postponed, additional costs and damage can result.
New Property Management Requires More Than a Contract
Obtaining proposals, comparing services and reviewing contractual terms: even selecting a new property management company takes time. For an owners’ association, the necessary resolutions must also be prepared. Under Section 24(4) of the German Condominium Act (WEG), the notice period for an owners’ meeting should be at least three weeks, unless there is a case of particular urgency.
Preparing for the actual takeover is equally important. A joint property inspection, a review of available documents and an overview of ongoing work help the new property management company become familiar with the building and its particular characteristics.
Especially for larger owners’ associations, extensive rental portfolios or mixed-use properties, technical systems, responsibilities and existing contracts should be discussed at an early stage.
The turn of the year is often a suitable takeover date. Whether that date can be met depends on existing contractual arrangements, the necessary resolutions and available capacity.
Knowledge Must Be Handed Over Alongside the Documents
A change of property manager involves handing over files, keys and bank account documentation. Knowledge about the property is at least as important: previous damage, known defects, outstanding receivables and agreements with service providers.
In practice, this knowledge is not always fully documented. Previous contacts have left the company, agreements were made only verbally, or documents cannot be found. The new property management company must then first reconstruct the background before it can continue handling these matters.
A careful handover cannot eliminate such gaps entirely, but it can significantly reduce them. In particular, it should remain clear which works have already been commissioned, which resolutions still need to be implemented and where urgent action is required.
Damage Claims and Investments Continue Beyond the Changeover
An open insurance claim does not resolve itself when the property manager changes. Has the damage been reported? Which documents have been submitted? Are expert reports or invoices still missing? Which deadlines must be observed?
Particularly in cases involving water damage, leaking roofs or major repairs, missing information and unclear responsibilities can significantly delay further progress.
The financial position must also be established at an early stage. This includes outstanding receivables, pending statements of account, ongoing maintenance contracts and investments that have already been approved. Which measures have been prepared, and what funds are available?
This information helps the new property management company set priorities and continue work already underway together with the owners.
How ELOVATE Supports the Takeover
At ELOVATE, we encounter a variety of starting situations. Some handovers from the previous property manager are well prepared; others initially require a comprehensive assessment. We consider the background objectively and focus on the tasks that now matter to the property or its owners.
As a property management company with certified expertise in WEG management, we combine legal, commercial and technical knowledge. Our aim is to gain as comprehensive an understanding as possible of the building or owners’ association and their respective requirements from the outset.
Within the scope of the agreed property management services, we coordinate the handover with the previous property management company, review the documents and record ongoing matters. Depending on the scope of the appointment, this also includes coordinating banking authorisations and account access, reviewing existing service provider contracts and recording outstanding damage claims.
Owners, service providers and tenants—where covered by the appointment—are informed of their new points of contact. If documents are incomplete, we record the identifiable gaps and agree on the next steps to clarify them.
This creates a clear, traceable basis for the property’s future management.
What Applies to the Existing Contract
For an owners’ association, a distinction must be made between removing the property manager from office and terminating the property management contract. Under Section 26(3) of the German Condominium Act (WEG), the association may remove the property manager from office at any time by resolution. The contract ends no later than six months afterwards, unless it ends earlier.
It should therefore be clarified in good time when the new property manager can be appointed and which obligations towards the previous property management company remain. This may include a requirement to continue paying the management fee until the contract effectively ends.
For rental property management, the management of individually owned units and other individually agreed management services, the options for termination depend on the respective contracts and applicable statutory provisions. Whether early termination or termination for cause is possible depends on the circumstances of each case.
Existing contracts, notice periods and possible service failures should therefore be reviewed at an early stage, and outstanding matters should be clearly documented. When reviewing existing contracts, we also consider potential savings when entering into new contracts. Where legal issues are disputed, additional advice from a specialist lawyer is recommended.
Your New Property Management Starts with a Decision
If important tasks have remained unresolved for some time, or the working relationship no longer meets your expectations, it is worth discussing the practical options for a change.
Whether you own a rental building, belong to an owners’ association, own an individual unit or have a mixed-use property, ELOVATE Immobilien is your point of contact in Berlin and Brandenburg. Together, we assess your current situation, clarify the requirements for a takeover and discuss a possible start date.
Are you looking for a new property management company? Contact us for an initial consultation with no obligation.
ELOVATE Immobilien GmbH
Email: info@elovate-immobilien.de
