Property Management: Meeting of Owners, Manager, and Administrative Advisory Board
Homeownership involves any number of administrative chores. In a housing estate with several owners, the property management is the responsibility of the home owner association (HOA). Its body, meaning the meeting of owners., tends to convene once a year to consider and possibly approve motions concerning the estate. It also votes on the budget and the annual accounts.
The Manager – the Home Owner Association's Executive
One of the key tasks of the meeting of owners is to appoint a manager who takes care of the property management. This is actually a legal requirement to which the meeting of owners is obliged pursuant to the German Condominium Act (WEG). The management can either be outsourced or delegated to one of the members of the home owner association. As a rule, the meeting of owners appoint a manager by a simply majority vote.
The duties of the manager are also set forth in the German Condominium Act. One of the manager's primary tasks is to implement the resolutions of the meeting of owners. The manager is moreover in charge of finances, that is, he or she accepts the condominium fee payments and settled expenditures as they accrue. Another task of the manager is the maintenance and reinstatement of the housing estate. He or she has to initiate any necessary measures, report any need for repairs, and accept completed construction work. He or she is moreover responsible for enforcing the house rules. This includes, for instance, ensuring that all emergency escape routes are unobstructed. The manager is liable for neglect of these duties. In addition, the manager compiles the budget plan for the following financial year and the annual accounts of the year concluded, and convenes the meeting of owners. The condominium declaration, the condominium regulations, the management contract, or the resolutions passed by the meeting of owners may expand the manager's sphere of ownership beyond these duties.
The Administrative Advisory Board – a Non-Mandatory Body in Housing Estate Administration
The administrative advisory board constitutes a third body involved in the administration of the housing estate. The board consists of no less than three owners, and supports the manager. The administrative advisory board audits the annual accounts and the budget compiled by the manager, and mediates between the manager and the home owner association. The German Condominium Act does not mandate the election of an advisory board. So it is up to the condominium declaration or the condominium regulations to mandate or rule out the election of such a body. Instituting an administrative advisory board is particularly sensible for the property management of large home owner associations, and here the board may consist of more than three members.
Whether Prior to an Acquisition...
Even ahead of an acquisition, the Accentro Real Estate Encyclopaedia offers interesting facts and decision guidance: We will coach you through the first steps on your path to homeownership. For instance, it provides information on the process flow of a condominium purchase. It will also tell you what sort of documents you need in order to buy property, and where to obtain them.
... or after – Our Real Estate Encyclopaedia Provides the Answers You Need
Once you have bought a property, you may wonder who is going to manage your condo and how. After all, caretaking your property is one of your main obligations as a condominium owner. In addition to numerous tips and suggestions, you will find answers here to many questions involving the property management subject, such as: What does “individual freehold ownership” mean? What exactly do “condominium regulations” govern? And what does the term “condominium fee” imply? In addition, we elaborate subtle differences between terms such as “real estate management” and “corporate real estate management.”
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