DEFINITION PROPERTY MANAGEMENT – WHAT IS IT?
Real estate involves a great deal of administrative work. Some condominium owners’ associations (WEG) handle this themselves, while others delegate it to a professional property management company. This is advisable due to the legal obligations and the complexity of WEG law.
Once commissioned, the property management company takes over the organization of the property from both a commercial and technical perspective. Contrary to popular belief, property managers do not take over the tasks of a janitor, but rather supervise them.
The decision as to whether property management should be taken over by a property manager is made at the owners’ meeting of the WEG.
Or in short: “Good management ensures the preservation of value and care of the property of a condominium owners’ association. It provides owners with access to basic infrastructure (electricity, water, gas, telephone, etc.) and ensures adequate insurance.”
TASKS OF THE PROPERTY MANAGER
COMMERCIAL MANAGEMENT
- Settlement of accounts with owners (via professional software)
- If necessary, preparation of service charge statement (via professional software)
- Payment of incurred costs
- Commissioning of utility services
- Accounting
TECHNICAL MANAGEMENT
- Operation and control of facilities
- Control of service providers
- Implementation of maintenance measures
- Organization of a janitor
- Realization of modernizations
LEGAL ADMINISTRATION
- Informing about case law and legislation
- Negotiation with authorities
- Representation of the owner as a legal entity towards third parties
1. What are the advantages of outsourcing property management to an external service provider?
External property management relieves owners by taking over all tasks related to property management. This includes looking after tenants, maintaining and servicing the property and managing rental contracts and accounts. External property managers are experts in their field and bring with them specialist knowledge that ensures that all legal and financial obligations are fulfilled correctly. This saves the owner time, stress and potential errors that could occur with self-management.
2. How can a professional property management company help to maintain the value of a property?
A professional property management company not only takes care of the ongoing maintenance of a property, but also ensures that necessary repairs are identified and implemented at an early stage. Regular inspections and the use of specialists for maintenance work help to ensure that the building fabric and technical systems remain in good condition in the long term. This forward-looking care maintains or even increases the value of the property, which can also have a positive effect on the resale value.
3. Why is property management particularly important for rental properties?
For owners of rental properties, a property management company not only handles the legal and financial aspects, but also takes care of the entire tenant management. This includes selecting new tenants, drawing up and managing rental agreements and communicating with tenants in the event of problems or concerns. Professional property management ensures that incoming rent is checked regularly and that legal action is taken if rent arrears occur. This guarantees a smooth process and ensures stress-free letting.