Apartment building management is often taken on voluntarily, as a matter between neighbors. Legally, however, the position is more serious: the manager is liable to the unit owners in the same way as an agent (Condominium Law Art. 38). In this article, we clarify the scope of the duties and the liability.
When is a manager mandatory?
If the main property has eight or more independent units, appointing a manager is mandatory. The manager is appointed by a majority of unit owners in both number and land share, and is re-appointed each year at the statutory annual meeting; the outgoing manager may be re-appointed.
If the unit owners cannot agree or cannot convene to appoint a manager, the peace court of the location where the property is situated appoints a manager upon the application of one of the unit owners. A manager appointed by the court cannot be replaced by the owners' assembly until six months have passed since the appointment; if justified grounds arise, the court may permit replacement.
Duties listed in the law
The manager's duties are set out first and foremost in the management plan. Unless the management plan provides otherwise, Article 35 of the Condominium Law (KMK) lists the following tasks:
- Implementation of resolutions passed by the general assembly of unit owners
- Taking the measures required for the main property to be used in line with its purpose, and for its protection, maintenance and repair
- Insuring the main property
- Collecting advances until the operating budget is approved, for maintenance work such as general management, security, repairs and cleaning, as well as lift, heating, hot–cold air system operation and insurance
- Accepting payments, settling debts arising from the management, and, where authorised, collecting rents for the independent units
- Acceptance of notices concerning the entire main property
- Taking measures to prevent loss of rights
- Filing lawsuits and enforcement proceedings against unit owners who fail to fulfil their debts and obligations, and registering the statutory mortgage right in the condominium register
- Funds collected and advance payments must be deposited into an account opened at a reputable bank in the manager's own name, but showing the manager's capacity as manager of the real property
- Convening the owners' assembly
- Monthly maintenance and annual inspections of elevators to ensure they are operated safely
Duty to account
Liability as a fiduciary means, in practice, accountability. The manager must be able to show, with documentation, the money collected, the items spent and the remaining balance. The minimum setup for this is:
- A separate bank account in the management's name — never mixed with personal accounts
- A receipt for every collection, an invoice or document for every expense
- Monthly income–expense summary and cash/bank reconciliation
- Debt–credit breakdown per unit owner
- Keeping the decision book in order
When these five areas are handled properly, most accusations levelled at the manager are answered automatically by the documentation.
A manager who fails to do their job
The law provides sanctions for a manager who fails to perform certain duties. In addition, unit owners may convene the assembly to replace the manager where justified grounds exist; in case of disagreement, they may apply to the peace court. Liability for damages arising from the manager's fault is subject to the general provisions.
How to lighten the load
Most managers struggle not because they don't know their duties, but because tracking them manually has become impossible. In a setup where billing, collections, expenses, meters, the maintenance calendar and reporting all come together in one place, the manager's work becomes auditable and transferable. A smooth handover when a manager changes depends on this too.
This article is for general information purposes. In specific disputes, your management plan and legal advice are essential.