Why should I need property management

Why is property management necessary?

Reading time: 3 minutes

Why homeowners need management, what their duties are and what constitutes good property management

There are numerous administrative tasks involved in a multi-party apartment building. These include cleaning, maintenance and operating cost accounting. Since owners usually neither have the professional qualifications nor the necessary resources to carry out these services, they resort to property management. These are professionals who specialize in precisely such services. You are assigned by means of a power of attorney. Tenants have no say in property management.

Property management companies have different company sizes. Smaller administrators are usually more personal and are characterized by flexibility. Large companies often have their own departments for legal issues, internal technicians or are already more active in the area of ​​online property management. This means that you can give owners extensive online access to data on reserves or balance sheet status at any time.

What is a property manager responsible for?

Property managers take care of the commercial and technical management of a building. Your area of ​​activity is regulated by law in the Condominium Act (WEG). The most important responsibilities can be roughly summarized as follows:

  • House cleaning and maintenance
  • Implementation of maintenance work
  • Billing of operating costs
  • Settlement of heating costs and hot water
  • Creating reserves

What are the duties of a property manager?

The Austrian Condominium Act also stipulates the duties of property management. According to the law, it must represent the homeowners' interests vis-à-vis third parties. One of the resulting obligations is that costs for maintenance and cleaning of the building usually have to be communicated to the owner in advance.

If maintenance measures are necessary, it depends on the scope: If they fall into the so-called orderly management, the property manager can act without the owner's decision. This applies, for example, to replacing broken windows or repairing water damage. In the case of extraordinary administration, a simple majority of the owners must make a decision in advance. This involves construction work and repairs that go beyond maintaining the house. Classic examples of this are the retrofitted lift or the heating conversion to an ecologically more sustainable technology.

In addition, the property management company has to submit an annual utility bill to the owners. It is also legally obliged to call a general meeting at least every two years. At this time, the owners will be informed about the condition of the house and what future expenses are due.

What is good property management?

It is particularly important that there is a trusting relationship between the owners and the property management. After all, the manager works with the owners' money. Personal contact and a fixed contact person for all questions are also of great importance. The owners should also feel that they are well looked after by other employees in property management, such as technology or accounting.

Income and expenses must be listed precisely and be traceable. Questions about the current amount of the reserves or companies to be commissioned should be answered at any time. In addition, a good property manager makes investments that by law do not necessarily have to be discussed with the owners, nevertheless and transparently on their own initiative.

How much does property management cost?

How much money you have to spend as an owner on property management services depends on how many apartments you have to look after and how big the property is overall. Not only the living space itself, but also the shared areas such as the laundry room are used for the calculation. In general, there are no fixed rates for a property manager's fee. Usually, for example, a percentage of the sum of the rent per year is used. A per thousand rate of the new building value of the property is also possible. Agreements on contributions per square meter and usable area or per residential unit are also the rule. As part of the operating costs, the landlord can pass on part of the administration fee to the tenant. This is currently 3.60 euros per square meter and year.

Is it easy to change a property manager?

In principle, the owner of the home agency can cancel if he is not satisfied with the service. If the building is owned by several owners, the majority must agree to the termination. The notice period is three months. However, as a rule, termination can only be made at the end of the year. Ideally, the termination takes place by registered mail or at the house meeting. At the same time, you have to look around for a new property management company. It is important to obtain very detailed offers. However, there are exceptions to the termination: If the property manager has grossly violated his duties, it is possible to apply for the termination of the contract in court. (maka)

On the subject: