How to Establish Apartment Management? First Steps and Legal Requirements

For the orderly and trouble-free operation of a building, establishing a professional management system is essential. So, how to establish apartment management? What steps should you follow, and what legal requirements should you pay attention to? In this guide, we explain in detail the fundamental processes and legal obligations of creating apartment management.

1. Establishing the Apartment Management Board

Apartment management becomes official through a management board elected by the unit owners. The following steps should be followed to form this board:

a) Organizing the Unit Owners Meeting

• The meeting notice must be made in writing at least 15 days in advance.
• The meeting agenda should include topics such as building issues, budget planning, and management board election.
• The meeting quorum is achieved with the participation of at least half of the unit owners.

b) Management Board Election

• The management board typically consists of a chairperson, secretary, and treasurer.
• Elections can be held by open voting or secret ballot.
• The term of elected members is generally 1 year, after which re-election takes place.

2. Preparing the Apartment Management Plan

The management board must prepare a management plan to determine the operating rules of the building. This plan should include:

3. Legal Processes and Legal Obligations

For the legal validity of apartment management, the following steps must be completed:

a) Keeping the Management Board Decision Book

• Decisions taken must be recorded in a notarized decision book.
• Meeting minutes become official with the signatures of unit owners.

b) Opening a Bank Account

• For tracking apartment income and expenses, a bank account in the apartment's name must be opened.
• The account is managed with the authority of the board chairperson and treasurer.

c) Tax and Social Security (SGK) Obligations

• If there are employees (janitor, cleaning staff), SGK notification must be made.
• Apartment revenues (dues) are not subject to tax, but if working with a professional management company, invoices must be issued.

d) Management Board Notification to the Land Registry

• The elected management board must be registered as apartment management at the land registry.
• This process is carried out by the owners' application to the land registry directorate.

4. Working with a Professional Management Company (Optional)

For large complexes and buildings, management companies can lighten the workload. These companies offer the following services within a corporate framework:

• ✔ Accounting and dues tracking
• ✔ Maintenance-repair organization
• ✔ Legal consulting
• ✔ Security and cleaning services

Conclusion: What to Do for a Trouble-Free Apartment Management?

Acting in compliance with the law when establishing apartment management will prevent future disputes. If the process seems complex, you can get support from a professional management company.