The importance of qualified property management
Choosing the right property management company is crucial for owners and tenants. While professional property management ensures that properties are well maintained, legal requirements are met and financial matters are handled transparently, unprofessional management can cause considerable problems. This ranges from conflicts within the community of owners to financial irregularities and maintenance arrears.
But how can you tell whether a property management company is really professional? What criteria are decisive in assessing the quality of management work? In this article, we will analyze the most important characteristics and behaviors that distinguish professional management – and typical signs that indicate unprofessional management.
What is the difference between professional and unprofessional property management?
The tasks of a property management company are varied and complex. Regardless of whether it is the management of apartment buildings or homeowners’ associations (WEGs), a qualified property management company should always have the interests of its customers in mind and act proactively. It is responsible for the maintenance of buildings, the legally compliant management of common property and transparent financial management.
However, reality shows that there are major differences in the quality of property management companies. A professional management company is able to master even challenging situations with confidence, while an unprofessional management company quickly reaches its limits. The following sections explain the most important criteria for recognizing a qualified property management company.
These criteria relate not only to professional skills and the quality of communication, but also to aspects such as financial management, responsiveness and the handling of owners’ meetings. A clear view of these characteristics can help owners and tenants to better assess the performance of their management.
Criterion 1: Transparency in communication and decision-making processes
Transparent communication is the foundation of any professional property management company. Property managers are available to both owners and tenants as a central point of contact and ensure that all relevant information is passed on in a timely and comprehensible manner. This ranges from information about planned maintenance measures to taking minutes at owners’ meetings.
Best practice approach:
Professional management provides proactive information on all upcoming issues, whether through regular newsletters, emails or notices in the hallway. At owners’ meetings, emphasis is placed on precise minutes so that resolutions are clearly documented and comprehensible for everyone. The management responds quickly to inquiries and provides complete and comprehensible answers. Problems or misunderstandings are addressed openly and resolved together with those involved.
Unprofessional approach:
Unprofessional property management is characterized by unclear and irregular communication. Important information is either passed on too late or not at all. Minutes are incomplete or inaccurate, so that owners often do not have a complete overview of the resolutions passed. The management is slow or inadequate in responding to inquiries, which can significantly affect the trust and satisfaction of the community of owners.
The result: through transparent communication, professional management ensures that owners and tenants are always well informed and feel involved in decision-making processes. This not only promotes trust, but also cooperation between management and owners.
Criterion 2: Speed of response and problem solving
One of the most common expectations of a property management company is to deal with inquiries and problems quickly and efficiently. Whether it’s a faulty heating system, a leaking tap or a need for organizational clarification – the response time and problem-solving skills of the management are crucial for the satisfaction of owners and tenants. Qualified management acts with foresight and ensures that necessary measures are taken promptly.
Best practice approach:
An administration that works according to the best practice approach has established procedures and processes in place to process inquiries efficiently. It uses modern communication tools such as digital tenant and owner portals to record damage reports directly and forward them quickly to the relevant service providers. Regular maintenance intervals ensure that potential problems are identified and rectified at an early stage before they lead to major damage. The management informs those affected transparently about the progress of problem resolution and checks the quality of the services provided once the work has been completed.
Unprofessional approach:
Unprofessional management is difficult to contact and often takes a long time to respond to inquiries. Important repairs are either delayed or not carried out at all, leading to frustration and dissatisfaction among owners and tenants. In addition, there is often a lack of accurate follow-up of problem cases, which means that complaints can occur repeatedly. This inefficient way of working can lead to higher maintenance costs and a loss of image for the management in the long term.
The result: management that responds quickly and reliably to concerns minimizes conflicts and ensures that owners and tenants feel well looked after. Through proactive action and clear communication structures, the management can not only increase satisfaction, but also sustainably reduce the costs of maintenance measures.
Criterion 3: Professional competence and legal certainty
The management of rental and owner-occupied properties is complex and subject to constant legal changes. Competent management must therefore always be up to date with the latest legal regulations and have extensive specialist knowledge in order to guarantee legal security for all parties involved. This applies not only to tenancy law and the German Condominium Act (WEG), but also to tax issues, building regulations and current developments in the field of property management.
Best practice approach:
Administrations that work according to the best practice approach are characterized by continuous further education and training. They have a deep understanding of the relevant laws and regulations and implement them consistently in their work. They work closely with specialist lawyers, tax advisors and experts on legal or construction-related issues in order to provide owners with comprehensive and legally compliant advice. They also proactively provide information on changes to the law and show how these affect the community of owners.
Unprofessional approach:
Unprofessional administrations often have deficits in legal knowledge and are unable to answer complex questions competently. This leads to legal uncertainties and potential risks being overlooked. There is often a lack of regular further training, which means that the administration is unable to keep pace with current developments and legal changes. In the worst case scenario, this results in incorrect decisions that can lead to costly legal disputes.
The result: an administration with a high level of expertise ensures that all decisions are made in a legally compliant manner and in the best interests of the owners. Through regular training and cooperation with experts, the management always stays up to date and ensures that all measures are implemented professionally and soundly.
Criterion 4: Financial management and billing security
Transparent and accurate financial management is one of the most important tasks of a property management company. From preparing the annual statement of operating costs to managing maintenance reserves – the financial management of a property requires care, precision and a high level of expertise. A qualified property management company ensures that all financial transactions and settlements are traceable and compliant.
Best practice approach:
A management company that works according to the best practice approach provides owners and tenants with punctual and detailed statements that are easy to follow and understand. It ensures that reserves are set aside and documented correctly and provides information on planned investments or maintenance measures. Any surpluses or deficits are shown and explained transparently. Thanks to the use of modern management software, all financial movements can be viewed by the community of owners at any time.
Unprofessional approach:
Unprofessional administration often stands out due to incorrect or incomplete accounting, which leads to misunderstandings and dissatisfaction. Important items are not posted correctly, reserves are incompletely reported or expenditure items are not sufficiently explained. In many cases, the statement is prepared late so that owners do not have a sufficient basis for a well-founded assessment. This can not only lead to dissatisfaction, but also to legal problems for the management.
The result: an administration that operates according to the best practice approach strengthens the trust of the owners through transparent and correct accounting. It attaches importance to careful and clear accounting and thus avoids financial irregularities and uncertainties.
Criterion 5: Dealing with owners’ meetings and conflict management
Owners’ meetings are the central body for decision-making processes in a condominium owners’ association (WEG). This is where important resolutions are passed, financial matters are clarified and future decisions are made. The administrator plays a key role here: they must act as a moderator, lead the meeting in a structured manner and bring together different opinions with confidence. This requires both communication skills and conflict management skills.
Best practice approach:
An administration that works according to the best practice approach prepares intensively for the owners’ meeting and ensures that the agenda items are clearly formulated and sufficiently explained. At the meeting, the administrator acts as a neutral moderator who involves all participants equally. He creates space for discussion, but at the same time ensures that the meeting is goal-oriented and structured. If conflicts arise, they react diplomatically and offer solutions that take into account the interests of the community. The administration then ensures that the minutes are properly kept and that the resolutions passed are implemented promptly.
Unprofessional approach:
Unprofessional administrators often appear insecure at owners’ meetings, are poorly prepared and let the meeting get out of hand. They are unable to steer discussions constructively and allow themselves to be unsettled by conflicts between owners. This leads to chaotic and inefficient meetings where important issues are not adequately addressed. In addition, resolutions passed are often not implemented or only implemented late, which increases frustration within the community.
The result: an administration that leads owners’ meetings in a confident and structured manner contributes significantly to a positive atmosphere and efficient decision-making. Through professional conflict management, it can defuse potential disputes and strengthen the owners’ trust in the management.
Criterion 6: Technical expertise and sustainable maintenance
Another key task of property management is to maintain the long-term value and care of the common property. This includes regular maintenance work, the planning and implementation of maintenance measures and the initiation of modernization projects. In this area, not only technical expertise is required, but also an understanding of sustainable solutions that make both ecological and economic sense.
Best practice approach:
A property management company with a best-practice approach relies on a preventive maintenance strategy. This means that it works with maintenance plans that ensure regular inspections of all technical systems (e.g. elevators, heating systems). For modernization and refurbishment measures, it considers energy-efficient and sustainable solutions, such as the installation of solar systems, energy-efficient facade refurbishment or the installation of e-charging stations. In addition, the administration obtains offers from several service providers for larger construction projects in order to ensure the best quality at fair conditions. When planning and implementing the measures, it works closely with experts such as architects, civil engineers and energy consultants to ensure compliance with technical standards and legal requirements.
Unprofessional approach:
Unprofessional management acts reactively instead of preventively. Maintenance is often neglected so that action is only taken in the event of acute damage. This not only leads to higher costs, but also to longer downtimes of building facilities and a general reduction in the value of the property. When it comes to renovations and modernizations, there is often a lack of technical expertise and coordination skills, meaning that projects are either poorly implemented or completed with delays. The use of sustainable measures is neglected or not even considered.
The result: management that impresses with its technical expertise and sustainable maintenance not only increases the value of the property, but also reduces operating costs in the long term. By acting with foresight, major damage can be prevented and living comfort for tenants and owners improved.
Criterion 7: Use of digital solutions to increase efficiency
Digitalization has become indispensable in today’s world. The use of digital tools and platforms also brings numerous advantages to property management: processes can be automated, workflows accelerated and communication improved. Modern, professional management uses these possibilities to make the service for owners and tenants more efficient and transparent.
Best practice approach:
Management companies that follow the best-practice approach rely on a comprehensive digital infrastructure. Tenants and owners can easily access relevant documents via online portals. This not only improves communication, but also makes administrative work much easier.
Unprofessional approach:
Unprofessional administration often sticks to traditional, paper-based processes. This not only leads to an increased administrative burden, but also to reduced transparency and accessibility. Important documents are difficult to access, requests are processed manually and the flow of information is slow. The introduction of digital solutions is avoided either due to a lack of knowledge or a lack of willingness to invest. This can lead to frustration among owners and tenants, especially if they are already used to digital standards from other areas of life.
The result: an administration that uses modern, digital solutions can make processes more efficient and ensure transparent communication. Owners and tenants benefit from a modern service, while the administration gains more capacity for important strategic tasks thanks to automated processes.
Checklist: How can I recognize a professional property management company?
1. transparency in communication and decision-making processes
Does the administration regularly pass on information on important topics?
Are the minutes of owners’ meetings clearly and fully documented?
2. responsiveness and problem solving
Are repair and maintenance requests processed quickly?
Does the administration provide regular information on the status of ongoing work?
3. professional competence and legal certainty
Is the management informed about the current legal regulations in tenancy and condominium law?
Does the administrative team receive ongoing training?
4. financial management and billing security
Are invoices prepared punctually and in detail?
Is clear information provided on reserves and investments?
5. dealing with owners’ meetings and conflict management
Does the management prepare the owners’ meetings carefully and moderate them in a structured manner?
Are conflicts within the community resolved professionally and diplomatically?
6. technical expertise and sustainable maintenance
Are there regular maintenance schedules for the technical systems?
Are sustainable and energy-efficient measures being considered?
7. use of digital solutions to increase efficiency
Does the administration use modern digital platforms and tools?
Can owners and tenants access documents online?
In conclusion, a qualified property management company is much more than just a service provider – it is a reliable partner that ensures the comfort and value of the property in the long term.
FG Fröhlich Gottas Hausverwaltung GmbH – Your property, our priority
The all-round carefree package from FG Fröhlich & Gottas Hausverwaltung offers numerous advantages for owners and tenants. The cooperation with reliable and specialized service providers in the areas of building services, locksmiths, carpenters and roofers guarantees comprehensive support. The strong network of FG Fröhlich & Gottas Hausverwaltung ensures that all work is carried out professionally and promptly. This leads to a high level of satisfaction, long-term value retention and improved living comfort.
Are you looking for a competent and reliable condominium and rental management company in Leipzig? FG Fröhlich & Gottas Hausverwaltung GmbH is at your side with a comprehensive range of services. From commercial to technical management – find out all about our services and how we can successfully manage your property. Contact us now to find out more about our services. We look forward to hearing from you and finding the best solution for your property management together!
