The right management makes all the difference: WEG vs. rental management
Property management is an essential task for owners that requires expertise, time and commitment. Especially for owners of apartment buildings or apartments in large residential complexes, the question often arises as to what type of management they need. The focus here is on two central forms of management: condominium management and tenant management. But what are the differences? Why is it important to know these two forms and what impact do they have on owners? In this blog post, the most important differences between condominium management and tenant management are explained in detail so that owners can make informed decisions.
What is WEG management?
WEG management, or management of the homeowners’ association, is relevant for properties in which several parties each own their own apartment but share the building and its common areas. As soon as there is a condominium owners’ association (WEG), professional management is usually commissioned to look after the interests of the common property.
The tasks of a condominium management company cover many aspects relating to the maintenance and organization of the property. This includes managing the common property, i.e. the areas that belong to all owners in common, such as stairwells, elevators, outdoor facilities or the roof. In addition, the condominium management regularly organizes owners’ meetings at which important decisions are made, such as renovations or structural changes.
Another central component of condominium management is the implementation of the resolutions passed at the owners’ meetings. These can relate to construction measures, but also to financial decisions such as the determination of the house fee that each owner must pay for the maintenance and administration of the community.
The condominium management is also responsible for financial management, i.e. it draws up the economic plan, manages the community’s reserve accounts and ensures transparent accounting. It also takes care of the maintenance of the common property by commissioning tradesmen, organizing maintenance and responding to any damage.
In legal terms, condominium management is based on the German Condominium Act (WEG), which regulates the rules for coexistence and management within a community of owners. This law sets out the duties of the administrators and defines the rights of the owners.
What is rental management?
Tenancy management, also known as special property management, deals with the management of individual rented apartments or properties belonging to one owner. In contrast to WEG management, which manages the common property of several owners, rental management focuses on the management of rental properties that are let to third parties. This form of management is particularly relevant if you, as the owner, rent out one or more apartments and do not want to take care of the day-to-day tasks and duties yourself.
The tasks of tenancy management are varied and primarily include the management of tenancies. This begins with the search for tenants: the tenancy management department is responsible for advertising the apartment, selecting suitable tenants, conducting viewings and checking the creditworthiness of potential tenants. As soon as a tenant has been found, the administration department takes care of concluding the tenancy agreement and handles all the associated administrative processes.
An essential part of rental management is rent accounting. It ensures that rent is received regularly and punctually and prepares utility bills that comply with legal requirements. In the event of rent arrears, the management takes over communication with the tenants and, if necessary, also takes legal action.
In addition, the tenant management takes care of the maintenance of the rented apartment. It is the point of contact for tenants in the event of problems or damage, commissions tradesmen and ensures that repairs are carried out promptly. Regular maintenance work, such as checking the heating or sanitary facilities, is also organized by the management.
Rental management acts on behalf of the owner and ensures that the owner is relieved of legal and administrative obligations. It ensures that the rental property remains in good condition, that the tenants are satisfied and that the owner complies with the legal requirements of tenancy law.
The most important differences between WEG management and rental management
In order to choose the right management for your property, it is important to understand the key differences between condominium management and tenant management. Although both forms of management have to do with real estate, their tasks, responsibilities and legal bases differ considerably.
Management of common vs. special property
The biggest difference lies in the property under management. WEG management is responsible for the common property of a community of owners. This concerns all areas that are jointly owned by several owners, such as the roof, façade, stairwells and outdoor facilities. Tenant management, on the other hand, focuses on the individual property – i.e. individual, rented apartments that belong to one owner and have been handed over to tenants.
Legal basis and obligations
Another significant difference concerns the legal framework. Condominium management is based on the German Condominium Act (WEG), which regulates the rights and obligations of the community of owners and the manager. This law defines how the community functions, what resolutions can be passed and what responsibilities exist. Tenancy management, on the other hand, is primarily based on tenancy law and the individual contracts between owners and tenants. This involves compliance with rent payments, the preparation of utility bills and the proper condition of the rented property.
Target groups
The target groups of the two forms of management also differ. WEG management is aimed at communities of owners, i.e. groups of people who jointly own and manage a building. Tenant management is relevant for individual owners who rent out their property or an apartment and wish to outsource the tasks associated with the tenancy.
Areas of responsibility
The tasks of condominium management primarily concern the common property and include things such as managing reserves, convening owners’ meetings, maintaining common areas and implementing resolutions. Tenant management, on the other hand, is mainly concerned with looking after the tenants, billing the rent, managing repairs within the apartment and fulfilling obligations under tenancy law.
Why is it important to know the difference?
Understanding the differences between condominium management and tenant management is crucial for owners. The reason for this lies in the different requirements that each form of management entails. These differences have a direct impact on management costs, workload and legal obligations.
Different responsibilities and legal frameworks
One of the most important findings is that WEG management and rental management follow different legal requirements. Condominium management is governed by the German Condominium Act (WEG), while tenancy management is mainly based on tenancy law. For owners, this means that they must observe different obligations and legal frameworks depending on the type of property they own. Choosing the wrong management can lead to conflicts or even legal problems.
Avoidance of misunderstandings
Misunderstandings often arise when owners do not clearly distinguish which form of management is responsible for which area. A typical example: An owner expects the condominium management to look after the interests of their tenant. However, the condominium management has no influence on the separate property or the tenancy – the tenant management is responsible here. Such misunderstandings can lead to dissatisfaction if tasks are not fulfilled because they simply do not fall within the area of responsibility of the respective administration.
Optimal selection of management
Depending on the ownership structure, it is crucial to choose the right form of management. If you only own one rented apartment, tenant management is usually the most sensible choice. However, if you own an apartment in a larger community of owners, condominium management plays a central role. In some cases, such as when an owner rents out several apartments within a condominium, it may even be necessary to combine both forms of management in order to cover all areas.
More control and overview
Understanding the differences allows owners to have more control over their property management. They can control exactly which management services they need and avoid paying for unnecessary services. Knowledge also helps to keep track of the different areas of responsibility so that it is clear who is responsible for what.
Tips for owners on choosing the right management company
Choosing the right management can determine the long-term success and value retention of your property. Regardless of whether you need condominium management or tenant management, you should consider a few key points to ensure that your property is optimally looked after.
Criteria for choosing a competent WEG management company
When choosing a condominium management company, it is crucial to look for experience and expertise. A good management company knows the legal provisions of the Condominium Act (WEG) and can professionally manage the legal and financial interests of the community. Here are some specific criteria:
– Transparent communication: A good condominium management company provides regular information on all important developments and ensures a transparent presentation of finances and decisions. This also includes the timely convening and recording of minutes of owners’ meetings.
– Reliability and responsiveness: The management should be able to react quickly to problems, whether it be maintenance measures or the organization of repairs. A professional network of tradespeople and service providers can be an advantage here.
– References: Ask for references from other condominium associations. Positive reviews and long-standing partnerships speak for the competence of the management.
What to look out for when choosing a rental management company
When selecting a tenant management company, other criteria are in the foreground. The main focus here is on relieving the owner of the burden of dealing with tenants and the day-to-day tasks of letting.
– Tenant support: A good tenant management company takes care of all aspects of tenant support – from finding tenants to drawing up tenancy agreements and regular communication. Make sure that the management company has experience in handling such tasks.
– Legal expertise in tenancy law: Tenancy law issues can quickly become complex. Make sure that the management has in-depth knowledge of tenancy law and can also assert itself in court in the event of disputes.
– Maintenance and repairs: The rental management should take care of all tenant concerns, such as repairs or maintenance work. A quick and reliable response to such requests not only ensures satisfied tenants, but also helps to maintain the value of your property.
Transparency, communication and service quality as key factors
Regardless of whether you choose a condominium or rental management company, transparency, communication and service quality are the key factors for good cooperation. Regular reports on the condition of the property and the measures taken as well as clear and comprehensible accounts should be a matter of course. Professional management is always available and responds promptly to inquiries or problems – both when dealing with owners and tenants.
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!
