Guide
Switching Property Management 2026: A 5-Step Guide
Unhappy with your property management? You are not alone. Learn how to switch your property manager legally and stress-free – from preparation to a successful handover.
Table of Contents
1. Why Owners Switch Their Property Management
Switching property managers is not a minor decision – but sometimes it is unavoidable. Many homeowner associations (WEGs) put off this step for years, even though dissatisfaction with the current property management has long been noticeable. Yet today, making the switch is significantly easier than it was just a few years ago. Since the WEG Reform of 2020, dismissing a property manager has been considerably simplified.
The Most Common Reasons for Switching Property Managers
Poor Communication
Emails go unanswered for days, phone availability is poor, and owners feel they are not taken seriously.
Lack of Transparency
Financial statements are incomprehensible, supporting documents are missing, and the status of the maintenance reserve is unclear.
Late Financial Statements
The annual statement arrives a year or more late – a violation of the manager's obligations.
Neglected Maintenance
Repairs are delayed, resolutions are not implemented, and the building's condition deteriorates.
Excessive Costs
Management fees are disproportionate to the services provided, and additional special charges are imposed.
Lack of Qualification
The manager does not meet the requirements under § 26a WEG (Professional Certification) or refuses to provide proof of certification.
When a Switch Makes Sense
Not every dissatisfaction justifies an immediate management switch. Sometimes a clarifying conversation or a written complaint is enough. However, if nothing changes despite repeated notifications, if communication remains consistently poor, or if the management violates legal obligations, you should take action. A good indicator: when multiple owners independently raise the same complaints, it is time for a change.
A switch becomes especially urgent when the manager cannot provide proof of certification under § 26a WEG, when financial statements are systematically flawed, or when the association's funds are not being managed properly. In these cases, the homeowner association faces financial losses and legal risks.
Also look into the situation in your region. In metropolitan areas such as the Rhein-Main area around Frankfurt there is a good selection of qualified property management companies that can professionally manage your homeowner association.
2. Legal Framework for Switching Property Managers
The process of switching property managers in a WEG (homeowner association) is governed by the German Condominium Act (Wohnungseigentumsgesetz, WEG). Since the major reform in December 2020, the requirements have been significantly simplified. As an owner, you should be familiar with the key provisions to carry out the switch in a legally sound manner.
§ 26 WEG: Appointment and Dismissal of the Manager
The central provision for switching property managers is § 26 WEG. It governs both the appointment and the dismissal of the manager. The key points are:
- Term of appointment: The manager is appointed for a maximum period of five years. For the first appointment after the establishment of the WEG, the maximum term is three years.
- Dismissal possible at any time: The owners' meeting can dismiss the manager at any time by majority vote. Since the WEG Reform of 2020, a specific cause is no longer required (§ 26 para. 3 WEG). This means: even if the manager has not formally done anything wrong, the WEG can decide to make a change.
- Simple majority: A simple majority of votes cast by owners present or represented at the meeting is sufficient for dismissal. No special quorum is required.
Management Contract vs. Appointment – An Important Distinction
Many owners confuse the appointment with the management contract. These are legally separate acts:
Appointment (Organizational Relationship)
The appointment establishes the manager's legal position as an organ of the WEG. It is granted by resolution of the owners' meeting and can likewise be revoked (dismissed) by resolution. Upon dismissal, the manager's authority to act on behalf of the WEG ends.
Management Contract (Contractual Relationship)
The management contract governs the contractual duties and remuneration. It must be terminated separately. Since the WEG Reform of 2020, the management contract ends no later than six months after the dismissal, regardless of the agreed contract term (§ 26 para. 3 sentence 2 WEG).
Practical tip: It is advisable to resolve the dismissal of the old manager, the termination of the management contract, and the appointment of the new manager as part of a single agenda item at the owners' meeting.
§ 26a WEG: Certification Requirement for Managers
The WEG Reform also introduced § 26a WEG, which sets requirements for the manager's professional qualifications. Since 1 December 2023, any individual unit owner can demand that the manager provides proof of certification. The certification covers expertise in the following areas:
- Legal foundations of WEG management
- Financial fundamentals (bookkeeping, financial statements, budget planning)
- Technical fundamentals (building technology, maintenance, energy supply)
This certification is an important quality indicator when selecting a new property management company. At Verto, all managers are of course certified under § 26a WEG. Learn more about our WEG management services.
Deadlines and Termination Rules
The deadlines involved in switching property managers depend on several factors:
| Deadline | Duration | Note |
|---|---|---|
| Notice period for meeting | Min. 3 weeks | Community rules may stipulate a longer period |
| Dismissal | Effective immediately | No specific cause required since 2020 |
| Contract termination | Max. 6 months after dismissal | § 26 para. 3 WEG – regardless of contract term |
| Document handover | Without delay | In practice, allow 4–8 weeks |
Important: Always review the community rules (Gemeinschaftsordnung) of your WEG. Some older declarations of division contain special provisions regarding the appointment of the manager, which, however, have only limited effect since the WEG Reform of 2020. If in doubt, have the clauses reviewed by a legal professional.
3. Switching Property Management in 5 Steps
Switching property managers follows a clear process. With our step-by-step guide, you can ensure the transition goes smoothly and no legal pitfalls are overlooked.
Document Your Dissatisfaction
Before you initiate the management switch, you should carefully document the reasons for your dissatisfaction. This has several advantages: you can objectively explain to other owners why a switch is necessary, and you create a basis for potential damage claims against the previous manager.
Document the following in particular:
- Unanswered emails and calls with dates and content
- Late or incorrect financial statements
- Unimplemented resolutions from the owners' meeting
- Defects in common property that were reported but not repaired
- Violations of the community rules or legal obligations
Speak early on with other owners and the advisory board (Verwaltungsbeirat). A management switch works best when backed by a broad majority.
Find a New Property Manager and Compare Offers
Search for the new property management company before you dismiss the current manager. This way, you avoid a management gap during which your WEG has no manager. Obtain at least two to three quotes and compare not only costs but, above all, the scope of services.
What to look for when choosing:
- Certification under § 26a WEG – mandatory since December 2023
- Regional presence – no remote management, quick on-site visits
- Scope of services – What is included in the base fee, what costs extra?
- Digital owner portal – 24/7 access to statements and documents
- References – reviews from other homeowner associations, Google reviews
- Personal contact – a dedicated property manager rather than a call centre
Invite your favourite management companies for a personal meeting or a property inspection. This way, the other owners can also form their own impression.
Convene the Owners' Meeting
The management switch must be resolved by the owners' meeting. There are two options:
- Regular meeting: If the next scheduled meeting is coming up soon, the management switch can be added as an agenda item. Make sure the agenda explicitly includes the item (“Dismissal of the manager and appointment of a new manager”).
- Extraordinary meeting: If urgent action is needed, owners can request the convening of an extraordinary meeting pursuant to § 24 para. 2 WEG. This requires a quorum of more than one quarter of all voting owners.
Practical tip: Prepare the meeting thoroughly. Provide the owners with the proposals from the new management company in advance and explain the reasons for the switch. The better informed the owners are, the smoother the vote will go.
Pass the Resolution: Dismissal and New Appointment
At the owners' meeting, the following resolutions are passed:
- Dismissal of the current manager – The owners vote by simple majority to dismiss the current manager. The dismissal takes effect immediately or on a specified date.
- Termination of the management contract – At the same time, the management contract is terminated at the earliest possible date. Since the WEG Reform of 2020, the contract ends no later than six months after the dismissal.
- Appointment of the new manager – The owners resolve to appoint the new property management company and approve the management contract.
It is advisable to introduce the new management company in person at the meeting. This allows owners to ask questions and form their own impression. The resolutions must be correctly recorded in the minutes and entered into the resolution register.
Handover and Transition Phase
After the resolution, the most important phase begins: the handover. The previous manager is obligated to hand over all management documents, accounts, contracts, and keys to the new manager. In practice, this process takes four to eight weeks.
What must be handed over:
- Resolution register and minutes of all owners' meetings
- Budget plans and annual financial statements
- All contracts (insurance, maintenance, caretaker, cleaning, etc.)
- Bank statements and account documents for the WEG accounts
- Reserve fund overview and account balance
- Technical documentation (maintenance logs, energy certificates, building plans)
- Keys, access codes, and passwords
- Open matters (ongoing insurance claims, legal disputes)
The new property management company should prepare a structured takeover checklist early on and schedule a fixed handover date with the previous manager. At Verto, we coordinate the entire handover process and personally introduce ourselves to all owners.
Ready for the next step? Contact us for a free initial consultation.
4. Sample Resolution for the Management Switch
To ensure the resolutions for the management switch are legally sound, they must be correctly formulated. The following sample resolution serves as a guide – adapt it to the specific circumstances of your WEG.
Sample Resolution: Dismissal and New Appointment
Agenda Item X: Dismissal of the Manager and New Appointment
Resolution 1 – Dismissal:
“The owners' meeting resolves to dismiss the current manager [name of the current management company] with immediate effect / as of [date] as manager of the WEG [designation of the WEG, address]. The management contract dated [date] is terminated at the earliest possible date. The advisory board is authorised to issue the termination on behalf of the homeowner association.”
Resolution 2 – New Appointment:
“The owners' meeting appoints [name of the new management company] effective [date] as the new manager of the WEG [designation of the WEG, address] for a period of [duration, max. 5 years]. The advisory board is authorised to conclude the management contract in accordance with the attached draft (appendix to the minutes) on behalf of the homeowner association.”
Resolution 3 – Handover:
“The previous manager is requested to hand over all management documents, account records, keys, and other items belonging to the WEG to the new management company by no later than [date]. The advisory board is tasked with overseeing the orderly handover.”
Note: This sample resolution is for guidance purposes only and does not constitute legal advice. Adapt the wording to the specific situation of your WEG. For complex cases, we recommend consulting a lawyer specialising in condominium law (WEG-Recht).
Tips for Passing Resolutions
- Make sure the agenda item is specifically named. A general heading such as “Any other business” is not sufficient.
- Attach the draft of the new management contract to the invitation so that all owners can review it beforehand.
- Vote on dismissal and new appointment separately, even if both are covered under the same agenda item.
- Ensure the minutes accurately record the voting results (votes for, votes against, abstentions).
5. What Makes a Good Property Management Company
Switching property managers is the opportunity to get it right this time. But how do you recognise a truly good property management company? The following criteria will help you make the right choice.
Certification under § 26a WEG
Since December 2023, owners can demand proof of certification. A good property management company provides it proactively. The certification confirms thorough knowledge of legal, financial, and technical matters. Make sure that not only the company itself but also the individual managers responsible for your property are certified.
Digital Processes and Transparency
Modern property management companies offer a digital owner portal where you can access financial statements, resolutions, contracts, and the status of open matters at any time. Transparency is not a luxury but should be standard. Ask which information is available online.
Accessibility and Response Time
A good property management company defines clear response times and adheres to them. At Verto, you receive a qualified response within 24 hours on business days. Ask for specific commitments regarding accessibility and check whether there is a dedicated contact person.
Personal Service Instead of a Call Centre
Your contact person should know your WEG personally and be present at meetings and on-site inspections. Remote management companies, where you can only reach an anonymous call centre, can rarely meet the individual needs of your WEG. Look for regional presence.
Other important qualities include professional maintenance planning that preserves the value of your property in the long term, clean bookkeeping with timely financial statements, and proactive communication that keeps you informed about relevant developments before problems arise.
Learn more about Verto's values and approach on our About Us page.
6. Common Mistakes When Switching Property Managers
There are several typical pitfalls to be aware of when switching property managers. Avoiding these mistakes will save you time, money, and frustration.
Terminating too early without a successor
Problem
Some WEGs dismiss the old manager before a new one has been found. This creates a management gap: bills go unpaid, insurance claims are not processed, and the maintenance reserve sits idle.
Solution
Always find the new property management company first, obtain quotes, and have the company present itself at the meeting. Only then should you resolve the dismissal and new appointment in a single step.
Underestimating handover deadlines
Problem
In practice, the handover of documents often takes longer than expected. Some previous managers delay the transfer, and documents may be incomplete or unorganised. This significantly burdens the start of the new management.
Solution
Set a specific handover deadline in the resolution and task the advisory board with overseeing it. Prepare a handover checklist and formally request missing documents in writing. An experienced new management company knows how to manage this process.
Failing to review the documents
Problem
Many WEGs accept the predecessor's documents without review. However, these may contain incorrect financial statements, unfavourable contracts, or outdated insurance policies.
Solution
The new property management company should systematically review all transferred documents: Are the financial statements from recent years correct? Are all contracts at market rates? Is the insurance coverage adequate? At Verto, this review is part of our standard takeover process.
Procedural errors in the resolution process
Problem
If the agenda item is not correctly announced or the vote is improperly recorded, the resolutions can be challenged. This delays the entire switch by months.
Solution
Ensure a proper invitation with explicit mention of the agenda item, compliance with notice periods, and accurate recording of the voting results in the minutes. If in doubt, have the draft resolution reviewed by a legal professional beforehand.
Emotional rather than factual arguments
Problem
Sometimes the management switch is discussed emotionally at the meeting, leading to conflicts among owners. Individual owners who have personal relationships with the old manager may block the switch.
Solution
Argue factually and evidence-based. Documented deficiencies, concrete figures, and clear comparisons are more persuasive than emotional accusations. Highlight the advantages of the new manager.
7. Switching Property Management in Frankfurt / Rhein-Main
The Rhein-Main region is one of the most dynamic real estate markets in Germany. The characteristics of the local market also affect the process of switching property managers. If you are looking to switch your property management in the greater Frankfurt area, there are some regional considerations to keep in mind.
Social Preservation Areas in Frankfurt
Frankfurt am Main has enacted conservation statutes (Milieuschutzgebiete, or social preservation areas) in many neighbourhoods. These restrict structural alterations and the conversion of rental apartments into condominiums. For WEGs located in social preservation areas, special permits are required for modernisation works. An experienced local property management company is familiar with the regulations in each neighbourhood and can advise you competently. Learn more about property management in Frankfurt am Main.
International Owners
The Rhein-Main region has a distinctly international character. Many WEGs have owners who live abroad or do not speak German. This places special demands on the property management company's communication. At Verto, we offer multilingual support and a digital owner portal that is easily accessible from abroad.
High Demand, Limited Supply
In the Rhein-Main region, demand for quality property management is high, while the supply of qualified, locally based providers is limited. Many large management companies offer remote management without a genuine local presence. When making your selection, ensure that your new management company is actually based in the region and knows your property personally.
Verto is active throughout the Rhein-Main region and manages homeowner associations in the following areas, among others:
8. Checklist: Switching Property Management
The following checklist summarises all the important steps involved in switching property managers. Use it as a guide so you do not forget anything.
Preparation
- Document dissatisfaction and deficiencies in writing
- Seek discussion with other owners and the advisory board
- Review community rules and management contract for deadlines
- Obtain at least 2-3 quotes from new property management companies
- Verify certification under § 26a WEG
- Research references and reviews
Owners' Meeting
- Formulate the agenda item correctly
- Send the invitation on time (at least 3 weeks in advance)
- Attach the new management company's proposals to the invitation
- Invite the new management company to present itself
- Prepare a draft resolution for dismissal and new appointment
- Conduct the vote and record it correctly in the minutes
After the Resolution
- Issue the termination of the old management contract
- Sign the new management contract
- Arrange a handover date with the former manager
- Prepare a handover checklist for documents
- Arrange account transfers / new WEG bank accounts
- Notify insurance providers, service providers, and utilities
Handover and Start
- Verify completeness of all handed-over documents
- Formally request any missing documents in writing
- Review the predecessor's contracts and financial statements
- Inform all owners about the switch and new contact details
- Obtain new SEPA mandates for the maintenance fee (if necessary)
- Conduct the first property inspection with the new management
9. Frequently Asked Questions
The most important questions and answers about switching property managers – concise and easy to understand.
How long does it take to switch property managers?
Switching property managers typically takes 3 to 6 months. This period includes the notice period for the owners' meeting (at least 3 weeks), the resolution process, termination of the old management contract (usually 3 months to the end of the quarter), and the handover phase. Therefore, plan the switch well in advance and start looking for a new property management company before the meeting.
Can the property manager be dismissed without cause?
Yes. Since the WEG Reform of 2020, the property manager can be dismissed at any time by a majority vote of the owners' meeting – a specific cause is no longer required (§ 26 para. 3 WEG). However, the dismissal only terminates the organizational relationship (appointment), not automatically the management contract. The contract must be terminated separately, with termination possible no later than six months after the dismissal, effective at the end of the month.
What majority is required to dismiss the property manager?
A simple majority of votes cast at the owners' meeting is sufficient to dismiss the property manager. Only owners present or represented at the meeting are counted. No special quorum or qualified majority is required. The dismissal and the appointment of a new manager can be resolved in the same meeting.
What happens if the former manager refuses to hand over documents?
The former property manager is legally obligated to hand over all management documents, bank statements, contracts, resolution records, and reserves to the new manager. If they refuse, the homeowner association (WEG) can compel them through the courts. The new manager should verify the documents against a checklist and formally request any missing items in writing. In practice, it is advisable to set a binding handover deadline early on.
Does the new manager need to be certified under § 26a WEG?
Since 1 December 2023, any individual owner can demand that the property manager provides proof of certification under § 26a WEG (Certification of Professional Qualification). The certification confirms professional competence in legal, financial, and technical aspects of WEG management. At Verto, all managers are fully certified – so this requirement is automatically met.
How much does it cost to switch property management?
Switching property management itself costs nothing. There are no official fees involved. Costs may arise only if an extraordinary owners' meeting needs to be convened (room rental, etc.) or if the former manager has legitimate outstanding claims from the management contract. The new manager typically does not charge a takeover fee. At Verto, the structured takeover is included in our service.
Can owners decide on a management switch without a meeting?
Yes, since the WEG Reform of 2020, resolutions can also be passed by written circulation procedure if all owners agree to this form of decision-making (§ 23 para. 3 WEG). In practice, however, it is often easier and more transparent to resolve the management switch at an ordinary or extraordinary owners' meeting.
How do I find a good new property management company?
Look for the following criteria: certification under § 26a WEG, regional presence (no remote management), transparency in costs and services, defined response times, a digital owner portal, references and reviews from other homeowner associations, and a dedicated personal contact. Obtain at least two to three quotes and have the services explained in detail. Verto offers a free initial consultation where you can clarify all your questions.
Ready to Make the Switch? Contact Verto.
Looking to switch your property management and need a reliable partner in the Rhein-Main region? Verto supports you from the first conversation to the complete takeover. Personal, transparent, and certified under § 26a WEG.