Since December 2023, only one ‘certified property manager’ is permitted to comply with the legal requirements for the proper management of a condominium owners‘ association.
The introduction of the term ‘certified property manager’ in December 2020 by the Condominium Act (WEG) marks a significant step towards uniform qualification and professionalisation in the industry. According to Section 26a of the WEG, this is a certificate of competence for property managers, which is issued by a Chamber of Industry and Commerce (IHK). This certification has been demanded for many years by various professional associations, including the Association of Property Managers in Germany (VDIV), in order to establish a standardised qualification for property managers and a clear definition of their tasks.
What criteria must a certified property manager meet?
Anyone who has successfully passed the relevant examination set by the Chamber of Industry and Commerce (IHK) may call themselves a certified property manager. The examination, which since 2021 has included an oral and a written component, covers various topics, including residential property law, real estate management and tenancy law.
However, there are exceptions to the examination requirement: fully qualified lawyers, real estate agents, real estate specialists and persons with an academic degree in real estate law are exempt from the examination. Experienced property managers who can demonstrate many years of experience are also not required to take the examination. The aim of these exemptions is to recognise not only qualifications but also experience and competence in dealing with the challenges of mo
It is important to note that the reform of the Condominium Act and the introduction of certified property managers applies exclusively to the management of condominium associations. Commercial managers can continue to operate without certification in the context of rental management.
The costs for the certified administrator examination are estimated at an average of €340 in the explanatory memorandum to the regulation, based on the corresponding costs for the examination of insurance intermediaries.
The financial cost of the certified administrator examination is approximately €340. This estimate is based on the comparable costs for the examination of insurance intermediaries.
Certification does not exempt property managers from continuing education requirements
Despite the certification requirement, the continuing education requirement under the Trade Regulation Act, which has been in force since 2018, remains in place. Commercial property managers must provide evidence of continuing education in property management totalling more than 20 hours every three years.
What does the new regulation mean for communities of flat owners?
As a condominium owners‘ association, you have the right under the WEG to appoint a certified property manager to properly manage the common property. Failure to appoint a certified property manager therefore means that there is no proper management, which a condominium owners‘ association is obliged to provide under WEG law, unless otherwise specified.
Small owners‘ associations with fewer than eight separate ownership shares and where one of the owners has been appointed as administrator are exempt from the obligation to appoint a certified property manager for proper administration.
However, there is a transition period until June 2024 for WEG administrators who have already been appointed. After that, as well as for new management contracts, certification is mandatory.