Switching property management: process, notice periods, checklist

When a change makes sense

To many homeowners' associations (WEGs) under German law, changing the property manager feels like a major project. In practice it follows a clear sequence — and with the right preparation, the new management takes over without friction. What matters is that the community acts in a structured way rather than out of frustration.

Every management company makes the occasional mistake. A change becomes worthwhile when problems keep recurring and conversations lead nowhere. Typical triggers include:

• Poor availability: enquiries go unanswered for weeks and there is no dedicated contact person.
• Late or flawed accounts: annual statements and budgets are regularly delayed or hard to follow.
• Lack of transparency: invoices are difficult to inspect and resolutions are implemented slowly.
• Maintenance without a plan: defects drag on and there is no visible strategy for the building.
• No digital communication: documents exist only on paper and owners have no online access.

Getting to a resolution

The decision to switch rests with the owners' association as a whole — not with the advisory board or individual owners. The route therefore leads through the owners' meeting. It is sensible to obtain and compare two or three proposals from new managers beforehand: scope of services, fees, availability, references, and how the takeover would be organised in practice.

The agenda should then generally cover two items: removing the current manager and terminating the management contract, and appointing the new manager and concluding a new contract. As a rule, a simple majority of the votes cast is sufficient for both resolutions.

One important distinction: the appointment and the management contract are two different things. The appointment is the formal act under association law; the contract governs services and remuneration. Both should be resolved and documented cleanly at the meeting. This article provides general information and is not a substitute for legal advice.

Removal, notice periods and timing

Since the reform of German condominium law, the association can generally remove the manager at any time — good cause is, as a rule, no longer required. The management contract then continues for a limited period, but generally ends no later than six months after the removal. It is still worth reviewing the existing contract: its term and agreed notice provisions determine which route makes the most economic sense.

In practice, switching at the start of a calendar or accounting year has proven effective, as it keeps responsibility for the annual accounts and the budget clearly separated. Allow several months of lead time overall: gathering proposals, preparing the meeting, passing the resolutions and organising the handover.

Many owners can also, as a rule, insist that a certified property manager be appointed. So ask candidates about qualifications, team structure — and who exactly will look after your property.

Handing over the records

Once the management mandate ends, the association is generally entitled to receive all management records. The outgoing manager may not withhold documents — not even in a dispute over fees. A good incoming manager requests the records in a structured way and confirms receipt with a handover protocol.

A complete handover typically includes:

At KF Properties, incoming portfolios are digitised during onboarding; owners then access documents and ongoing matters through the online portal — so the status of the takeover remains transparent at all times.

• The collection of resolutions, meeting minutes and the declaration of division with the community rules
• Annual statements, budgets, accounting records and supporting documents
• Bank records and access to the association's accounts, including reserves
• Ongoing contracts: insurance, utilities, maintenance and service providers
• Technical documentation: plans, maintenance logs, inspection reports, warranty records
• Keys, access credentials and an overview of open matters and proceedings

Checklist: planning the switch

Working through the following steps in order covers the essentials. The advisory board can prepare much of it — but the decisions are taken at the owners' meeting.

• Document the issues and raise them with the current manager first
• Gauge the mood in the community: will a majority support the change?
• Review the existing management contract: term, termination provisions, fees
• Obtain two or three proposals and meet the candidates in person
• Register the agenda items for the meeting: removal, termination, new appointment, new contract
• Pass the resolutions and document them properly in the minutes
• Set the handover date and cut-off, and organise the document handover with a protocol
• Inform service providers, utilities and insurers about the change

Common mistakes — and how to avoid them

Most problems in a management change arise not from the legal framework but from the order of steps. The most common mistake: terminating first and searching afterwards. Without a new manager lined up, the association risks a period without management — and no one can approve invoices, handle contracts or act when damage occurs.

Also common: resolutions that cover only the contract termination but omit the removal or the new appointment; unclear cut-off dates that leave responsibility for the current accounts open; and handovers without a protocol, where documents turn out to be missing later.

Finally, clarify how emergencies are covered during the transition — someone must be reachable from day one. Managers with their own caretaker service and a 24/7 emergency line, such as KF Properties, typically onboard a portfolio so that no gap arises here.