Management Companies

The management of the building is taken care of by all owners together in the home owners association and all of these are equally responsible and liable for decisions. Meetings happen once a year unless urgent reasons require the owners to meet. Topics which are discussed and decided during these meetings:

• Agreement with yearly anticipated outgoings / incomings (“Wirtschaftsplan”)
• Appointment of manager for day to activities
• Agreement about house rules
• Agreement of repairs

The management of the individual apartment falls upon the respective owner whereby one can decide to hand these responsibilities over to a management company in exchange for a monthly fee.

About 35% of all flats and apartments which are rented out in Germany are still owned by communal property companies (according to Murfeld, Egon). These companies per definition always maintained and managed their properties internally. As the government allows these companies to sell a certain percentage of their stock to the public year by year, the numbers are reduced annually.

Danziger & Weibezahl has a long track record in working closely with developers and communal property companies and many of the properties displayed on this website are owned by property companies.

Once privately owned the purchaser has the option of leaving the ongoing management with the “previous owner”, the communal property company for a management fee.

Advantages when appointing a management company:

• Knowledge of German property law
• Practical experience as they are managing huge amount of other properties
• Aiming at high yield for owner ( increased rent, decrease in outgoings)
• Hassle free receipt of report once a year
• Company takes over direct communication with tenant for repairs, problems, notice etc.
• Mgt company responsible for increases ( every 3 years or when improvements done to flat)

Obviously every apartment owner is welcome to maintain and manage the apartment personally, we however believe that the hassle and extra work is not worth the small amount management companies are asking for.

Useful links

• If you are looking to purchase Berlin property as an investment enter here to view our portfolio.
• Read about our Berlin investment property services here
• Discover the top ten reasons for purchasing Berlin property

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