Guide
HOA Management: The Ultimate Guide for Property Owners 2026
Everything you need to know as a property owner about HOA Management (WEG-Verwaltung) – from the manager's responsibilities and your rights and obligations to the WEG-Reform and the new certification requirements.
Table of Contents
1. What Is HOA Management? – Definition and Legal Basis
HOA Management (WEG-Verwaltung, or condominium management) refers to the professional administration of the common property of a homeowners association (Wohnungseigentümergemeinschaft, or WEG). If you own a condominium, you own not only your individual unit (known as Sondereigentum, or individual property) but are also a co-owner of the common property – including staircases, the roof, the facade, the heating system, elevators, and outdoor areas. HOA Management takes care of precisely this common property.
Legal Basis: The German Condominium Act (WEG)
The legal foundation for HOA Management is the German Condominium Act (Wohnungseigentumsgesetz, or WEG), which came into force in 1951 and was last fundamentally modernized through the major reform in December 2020. The key sections relevant to management are:
§ 26 WEG
Governs the appointment and removal of the manager. The manager is appointed for a maximum of five years and can be removed at any time by majority vote.
§ 27 WEG
Defines the duties and powers of the manager. Since the 2020 reform, the manager is the legal representative of the community with comprehensive authority to act on its behalf externally.
§ 28 WEG
Governs the budget plan and annual statement. The manager must prepare an annual budget plan and submit a proper statement of accounts.
HOA Management is therefore not a voluntary service but a legally established function. Every homeowners association has the right to proper management – and every individual owner can demand it. Learn more about our HOA Management services.
Who Needs HOA Management?
HOA Management is required whenever a property is divided into condominiums – that is, when there are multiple owners who each hold individual property (their unit) and co-ownership shares in the common property. This applies to classic multi-family buildings as well as townhouse complexes, mixed-use residential and commercial buildings, or underground parking communities. Even in an HOA with only two owners, professional management is advisable to prevent conflicts and fulfill legal obligations.
2. Responsibilities of the HOA Manager
The HOA manager has a broad range of responsibilities that can be divided into three core areas: commercial management, technical management, and legal-organizational duties. A good manager combines expertise in all three areas and ensures that your property is professionally managed and its value is preserved long-term.
Owners Meetings (Eigentümerversammlungen)
The owners meeting is the central decision-making body of the HOA. The manager is responsible for its proper preparation, execution, and follow-up. At least one ordinary meeting must be convened annually.
- Timely invitation of all owners (at least 3 weeks in advance)
- Preparation of the agenda and all resolution proposals
- Professional chairing of the meeting and moderation
- Legally compliant documentation of all resolutions
- Maintenance of the resolution register per § 24 Abs. 7 WEG
- Prompt implementation of adopted resolutions after the meeting
Budget Plan and Annual Statement (Wirtschaftsplan und Jahresabrechnung)
Financial management is one of the core responsibilities of the HOA manager. In accordance with § 28 WEG, the manager must prepare the budget plan for the upcoming year and, after the financial year ends, produce a proper annual statement.
- Preparation of the budget plan with all projected income and expenses
- Calculation of monthly maintenance fee (Hausgeld) contributions for each owner
- Preparation of the total and individual annual statements
- Administration and separate investment of the maintenance reserve
- Professional maintenance fee collection and dunning in case of payment default
- Separate bookkeeping and account management for the HOA
- Preparation of tax certificates for owners' tax returns
Maintenance and Technical Management
Technical management ensures the preservation of your property's value. The manager coordinates all measures for the maintenance, repair, and modernization of the common property and ensures that the building remains in proper condition.
- Regular property inspections and condition documentation
- Coordination of maintenance, repairs, and restoration work
- Obtaining and comparing contractor quotes (at least 3 for major work)
- Long-term maintenance planning and renovation concepts
- Acceptance and quality control of contractor work
- Monitoring of safety obligations (e.g., winter service, fire protection)
- Coordination of energy-efficient renovations and modernization
Insurance
- Taking out and managing building insurance
- Reviewing insurance coverage for adequacy
- Claims handling and communication with insurers
- Optimization of insurance contracts and premiums
- Procurement of liability and legal protection insurance
Bank Accounts and Finances
- Setting up and managing HOA bank accounts
- Separate account management for maintenance fees and reserves
- Regular account reconciliation and monitoring
- Review and timely payment of invoices
- Investment of the maintenance reserve as per owners' resolutions
For a detailed overview of all included services and current pricing, see our guide on Property Management Costs 2026.
3. Rights and Obligations of the Manager
The HOA manager is not just a service provider but the statutory organ of the homeowners association. Their rights and obligations are regulated in detail in §§ 27 and 28 of the German Condominium Act. Since the WEG-Reform 2020, the position of the manager has been fundamentally redefined.
Obligations of the Manager per § 27 WEG
The manager is obligated to implement the owners' resolutions and carry out the ongoing administration of the common property in accordance with the principles of proper management. Their statutory core obligations include:
- Implementation of resolutions: The manager must implement the resolutions adopted by the owners meeting promptly and in full. They may neither ignore resolutions nor unilaterally alter them.
- Proper management: All measures necessary for the proper maintenance and operation of the building must be initiated by the manager – particularly ongoing maintenance and urgent repairs.
- Financial management: The manager must properly administer the HOA's income and expenses, prepare the budget plan, and produce the annual statement (§ 28 WEG).
- External representation: Since the WEG-Reform 2020, the manager is the legal representative of the community of property owners with comprehensive authority to represent the association vis-a-vis third parties (§ 9b WEG).
- Duty to inform: The manager must keep the owners informed about all significant matters and properly maintain the resolution register.
Rights of the Manager
In addition to their obligations, the manager also has rights that enable them to carry out their duties:
- Right to compensation: The manager is entitled to the remuneration agreed in the management contract. This is typically paid as a monthly flat rate per residential unit.
- Authority to represent: The manager can represent the HOA externally in a legally binding manner – for example, when entering into contracts with contractors, utility companies, or insurers.
- Emergency measures: In cases of imminent danger, the manager may take urgent measures and commission work without a prior owners' resolution – for instance, in the event of a burst pipe or storm damage.
- Access to common property: The manager has the right to access the common property in order to fulfill their duties (e.g., for property inspections or damage assessments).
Important: Limits of Representation Authority
Despite the comprehensive authority to represent the HOA externally, the manager is bound by the owners' resolutions in the internal relationship. They may not take any measures exceeding the scope of proper management without a corresponding resolution. If they violate this principle, they can be held personally liable.
4. Rights and Obligations of the Owners
As a condominium owner, you are not just a co-owner of a property but a member of a community with clearly defined rights and obligations. The German Condominium Act creates a framework that governs coexistence within the HOA and ensures that the interests of all owners are taken into account.
Your Rights as an Owner
Voting Rights at Owners Meetings
Every owner has the right to attend and vote at the owners meeting. Voting rights are based on co-ownership shares, unless the community rules (Gemeinschaftsordnung) provide otherwise. You can also exercise your voting rights through an authorized representative.
Right to Inspect Management Records
You have the right to inspect all management records at any time: statements, budget plans, bank statements, contracts, minutes, and resolutions. The manager must make these documents accessible to you. At Verto, you have round-the-clock access via the digital owner portal.
Right to Challenge Flawed Resolutions
If you believe a resolution of the owners meeting violates the law or the community rules, you can challenge it within one month before the competent local court (§ 44 WEG). The deadline begins with the adoption of the resolution.
Right to Proper Management
Every individual owner has a personal right to demand that the HOA is properly managed. This includes the right to require the manager's certification per § 26a WEG and to petition for the manager's removal in case of breaches of duty.
Your Obligations as an Owner
In addition to your rights, you also have obligations as an owner that ensure the smooth functioning of the community:
- Obligation to contribute to costs (Hausgeld): Every owner is required to pay their share of the costs for the management and maintenance of the common property. The monthly maintenance fee (Hausgeld) is determined by the budget plan and must be paid on time. Late payment may result in dunning fees and, in extreme cases, legal debt collection proceedings.
- Duty to tolerate: Owners must tolerate measures for the maintenance and modernization of the common property, even if they cause inconvenience – such as scaffolding on the facade or plumbing work in the individual unit that affects the common property.
- Duty to participate: Owners should attend owners meetings and actively participate in the decision-making process. Although there is no mandatory attendance requirement, every owner shares responsibility for the community.
- Duty of consideration: The use of individual property and common property must be conducted in a manner that does not impair other owners beyond an unavoidable extent. The house rules (Hausordnung) provide specific guidance on this obligation.
5. WEG-Reform 2020: What Changed?
On December 1, 2020, the most comprehensive reform of the German Condominium Act since its introduction in 1951 came into effect. The reform fundamentally modernized HOA Management and strengthened the rights of owners. For condominium owners, the reform brought many improvements that you should be aware of.
Simplified Removal of the Manager
Before the reform, removing the manager was only possible for an important reason. Since 2020, the manager can be removed at any time by a simple majority vote, without any special cause being required (§ 26 Abs. 3 WEG). This significantly strengthens the position of owners: if you are dissatisfied with the management, you can take action. Learn more in our guide on how to switch your property management.
Switching Property Management: A Step-by-Step GuideManager as Legal Representative of the HOA
The manager is now the legal representative of the community of property owners with comprehensive authority to act externally (§ 9b WEG). This means: contracts entered into by the manager on behalf of the HOA are binding for the community. Internally, however, the manager remains bound by the owners' resolutions. This new regulation significantly simplifies legal transactions, as contractual partners can rely on the manager's authority to represent.
Simplified Decision-Making
The reform has fundamentally simplified the voting process. Structural modifications can now be adopted by simple majority (§ 20 WEG). This also applies to measures such as the installation of EV charging stations, fiber-optic connections, accessibility improvements, and burglar protection. Every owner has an individual right to these so-called privileged measures. The costs are generally borne only by those who benefit from the measure.
Digital and Hybrid Meetings
Since the WEG-Reform, owners can resolve to enable online participation in the owners meeting (hybrid meeting). A simple majority vote is sufficient for this resolution. Purely virtual meetings without an in-person option are also possible under certain conditions, but require the consent of all owners or a corresponding provision in the community rules (Gemeinschaftsordnung). The digital option has proven particularly valuable for HOAs with owners residing abroad.
Strengthening of the Community as a Legal Entity
The community of property owners is now fully recognized as a legal entity (§ 9a WEG). It can acquire rights, enter into obligations, and sue or be sued in court. The management of common property is now the responsibility of the community, no longer the individual owners. This significantly simplifies the legal situation and gives the HOA greater capacity to act.
6. Certified Manager per § 26a WEG
The WEG-Reform 2020 introduced a significant innovation: the certified manager (zertifizierter Verwalter) per § 26a WEG. This regulation is designed to ensure the long-term quality of HOA Management and give owners the assurance that their manager possesses the necessary professional qualifications.
What Does Certification Mean?
A certified manager has passed an examination before a recognized body (Chamber of Industry and Commerce, or IHK) that demonstrates comprehensive expertise in the following areas:
Legal Fundamentals
Condominium law (WEG), tenancy law, contract law, insurance law, procurement law, liability law, and current case law. Knowledge of voting competences and the right to challenge resolutions.
Commercial Fundamentals
Accounting under condominium law, annual statements, budget plans, reserve planning, dunning procedures, tax fundamentals, and financial management of the HOA.
Technical Fundamentals
Building technology, maintenance planning, energy supply, fire protection, safety obligations, construction engineering, and hazardous materials in buildings.
When Did the Certification Requirement Take Effect?
The transitional provision initially set a deadline of December 1, 2023. Since December 1, 2024, the regulation is fully in effect: every individual property owner can demand that the manager provides proof of certification per § 26a WEG. While it is not an absolute licensing requirement, it constitutes an individual legal right of every owner.
In practice, this means: if even a single owner demands the certification and the manager cannot provide it, the HOA has the right to treat this as a breach of duty and, if necessary, remove the manager.
Verto: All Managers Certified per § 26a WEG
At Verto, all managers are of course certified per § 26a WEG. The certification confirms our professional qualifications in the legal, commercial, and technical areas of HOA Management. Furthermore, our managers continuously pursue advanced training to always remain up to date with current legislation and case law.
7. How Do I Find the Right HOA Management?
Choosing the right HOA Management is one of the most important decisions for your homeowners association. Good management preserves the value of your property, ensures transparency, and relieves you of the burden of day-to-day administrative work. Poor management, on the other hand, can lead to financial losses, conflicts within the community, and a decline in property value. Here is what you should look for when making your selection.
Checklist: 10 Criteria for the Right HOA Management
Certification per § 26a WEG
Check whether the manager (not just the company, but the person actually responsible) is certified per § 26a WEG. Since December 2024, this is an enforceable right of every owner.
Regional Presence
The manager should be based near your property. Remote management cannot offer the same quality for on-site appointments, emergencies, and meetings as a locally present manager.
Transparent Cost Structure
Request a detailed proposal with a clear breakdown of all services and potential additional costs. Reputable management companies have nothing to hide.
Defined Response Times
Ask for specific commitments regarding availability and response time. At Verto, you receive a qualified response within 24 hours on business days.
Digital Owner Portal
A modern online portal where you can access statements, resolutions, contracts, and open items at any time is standard among good management companies today.
Dedicated Personal Contact
Your property should have a dedicated property manager who knows your HOA personally. Rotating case handlers or anonymous call centers are a warning sign.
References and Reviews
Ask for references from other HOAs and check online reviews (Google, ProvenExpert, etc.). If possible, speak with advisory board members of other managed HOAs.
Professional Maintenance Planning
Good management prepares a long-term maintenance plan and adjusts reserve contributions accordingly. This prevents unexpected special assessments.
Timely Annual Statements
The annual statement should be available no later than six months after the end of the financial year. Delayed statements are a common complaint and indicate that the manager is overloaded.
Personal Initial Meeting and Property Inspection
A reputable management company will inspect your property before submitting a proposal and assess the building's condition. A proposal without knowledge of the property is unprofessional.
In the Rhine-Main area, the selection of HOA management companies is large. Take advantage of this and obtain at least two to three proposals. When comparing, focus not only on costs but especially on the scope of services. In the Frankfurt am Main area, Verto is your local provider offering personalized service.
8. Common Problems in HOA Management
Even in well-managed HOAs, typical problems arise time and again. Many of them can be prevented or quickly resolved by professional management. Here are the most common challenges and how you can address them.
Poor Communication and Availability
Problem
Emails go unanswered for days, no one can be reached by phone, and owners feel left alone with their concerns. This is by far the most common complaint about HOA management companies.
Solution
Agree on specific response times in the management contract. A good management company responds within 24 hours on business days. Before appointing a manager, check whether a dedicated personal contact is guaranteed. At Verto, quick responsiveness is a core part of our service promise.
Late or Incorrect Annual Statements
Problem
The annual statement arrives a year late or even later. Or it contains errors in cost allocation, incorrect distribution keys, or untraceable bookings. This unsettles owners and can lead to the challenge of resolutions.
Solution
The annual statement should be available no later than six months after the end of the financial year. Send a written request to the manager to meet this deadline. The advisory board should review the statement before the meeting. If systematic errors persist, a change of management should be considered.
Insufficient Maintenance Reserve
Problem
Many HOAs build up inadequate reserves because the manager fails to adjust contributions in time or lacks a long-term maintenance plan. The result: when major repairs are needed, owners are hit with costly special assessments.
Solution
Have the manager prepare a long-term maintenance plan (at least 10 years) and adjust the reserve contributions accordingly. The Peters formula (construction costs x 1.5 / 80 years per m² per year) serves as a rough guideline. Professional management companies calculate the actual need individually.
Conflicts Between Owners
Problem
Disputes about noise, pets, the use of common areas, or structural modifications are part of everyday HOA life. Some conflicts escalate and poison the atmosphere within the community.
Solution
A good manager mediates conflicts in a neutral and professional manner. The house rules (Hausordnung) and community rules (Gemeinschaftsordnung) provide the legal framework. For ongoing disputes, mediation can help. During owners meetings, the manager should ensure that discussions remain constructive.
Resolutions Not Implemented
Problem
The owners meeting passes resolutions, but the manager fails to implement them or does so only sluggishly. This leads to frustration and loss of trust.
Solution
Document all unimplemented resolutions and send a written request to the manager with a deadline for implementation. The advisory board should regularly monitor the implementation of resolutions. Repeated non-compliance is a legitimate ground for the manager's removal.
Lack of Financial Transparency
Problem
Owners have no insight into the current financial situation of the HOA. Bank statements are not presented, the level of reserves is unclear, and invoices are paid without traceability.
Solution
Every owner has the right to inspect the management records. Insist on a digital owner portal with a transparent financial overview. The advisory board should review the accounts at least quarterly. At Verto, all owners have online access to all relevant financial data at any time.
If the problems with your current manager are persistent and nothing changes despite your requests, switching management is the right step. Our guide Switching Property Management: A Step-by-Step Guide shows you how to make the transition legally sound and seamless.
9. Frequently Asked Questions About HOA Management
The most important questions and answers about HOA Management – concise and clearly explained.
What exactly is HOA Management (WEG-Verwaltung)?
HOA Management (also known as property management or condominium management) refers to the professional administration of the common property of a homeowners association (Wohnungseigentümergemeinschaft, or WEG). The HOA manager is appointed by the owners and handles all commercial, technical, and legal matters relating to the common property. The legal basis is the German Condominium Act (Wohnungseigentumsgesetz, or WEG), particularly §§ 26 to 28.
How much does HOA Management cost per unit per month?
The cost of HOA Management in Germany typically ranges between 25 and 50 euros per residential unit per month. The exact price depends on factors such as the number of units, the condition of the building, the region, and the scope of services. In the Rhine-Main area, prices tend to be at the upper end of this range. At Verto, HOA Management prices start from 29 euros per unit per month.
Does the HOA manager need to be certified since 2024?
Since December 1, 2024, every individual property owner can demand that the manager provides certification according to § 26a WEG (German Condominium Act). The certification is not an absolute requirement, but every owner has an individual legal right to demand it. The certification confirms professional qualifications in legal, commercial, and technical areas of HOA Management. If the manager cannot provide proof of certification, this may constitute grounds for removal.
Can the HOA manager be removed at any time?
Yes. Since the WEG-Reform 2020, the manager can be removed at any time by a simple majority vote of the owners meeting. A specific cause is no longer required (§ 26 Abs. 3 WEG). The removal ends the appointment as the organ of the association. The management contract must be terminated separately, though it automatically ends no later than six months after the removal at the end of the month.
What are the duties of the advisory board in an HOA?
The advisory board (Verwaltungsbeirat) supports the manager in carrying out their duties and oversees their activities. Its responsibilities include reviewing the annual statement and budget plan, monitoring the implementation of resolutions, and assisting with the preparation of owners meetings. The advisory board is elected by the owners and typically consists of three members (a chairperson and two associates).
What changed with the WEG-Reform 2020?
The WEG-Reform 2020 brought fundamental changes: The manager can be removed at any time without specific cause. The manager is now the legal representative of the HOA externally. Resolutions can be passed by simple majority (simplified voting competence). Hybrid and fully digital owners meetings have been made possible. The community of property owners has been strengthened as a legal entity. Additionally, the certification requirement under § 26a WEG was introduced.
Can owners meetings take place online since the WEG-Reform?
Yes. Since the WEG-Reform 2020, owners can resolve that owners meetings may also be held in a hybrid format (in-person and online) or, under certain conditions, entirely virtually. A simple majority vote is sufficient to enable online participation. Purely virtual meetings without an in-person option require a corresponding agreement in the community rules (Gemeinschaftsordnung) or a unanimous resolution.
How do I find a good HOA Management company in the Rhine-Main area?
Look for the following criteria: certification according to § 26a WEG, regional presence with quick on-site availability, transparency regarding costs and services, defined response times, a digital owner portal, references and reviews from other HOAs, and a dedicated personal contact. Obtain at least two to three quotes and compare not just the prices but primarily the scope of services. Verto offers a free initial consultation where you can clarify all your questions.
What happens if an HOA has no manager?
An HOA without a manager faces significant problems: invoices cannot be paid, insurance claims remain unprocessed, the maintenance reserve lies idle, and the legally required annual statement is not prepared. In extreme cases, any owner can petition the local court (Amtsgericht) for the appointment of an emergency manager. It is therefore strongly recommended to appoint a new manager before removing the existing one.
How often must an owners meeting be held?
The manager is obligated to convene at least one ordinary owners meeting per year (§ 24 Abs. 1 WEG). In addition, extraordinary meetings may be convened when important matters require a resolution. More than a quarter of the owners can demand the convening of an extraordinary meeting (§ 24 Abs. 2 WEG).
Professional HOA Management in the Rhine-Main Area
Looking for reliable, transparent, and certified HOA Management? Verto manages homeowners associations throughout the Rhine-Main area – with personal service, digital tools, and clear response times. Schedule your free initial consultation now.