Property Management Agreement for Germany

Property Management Agreement Template for Germany

A comprehensive legal agreement governed by German law that establishes the relationship between a property owner and a professional property management company. The document outlines the scope of property management services, responsibilities of both parties, fee structures, and operational procedures in accordance with German Civil Code (BGB) and Housing Property Act (WEG) requirements. It includes detailed provisions for property maintenance, financial management, tenant relations, compliance with local regulations, and reporting obligations, while ensuring alignment with German data protection laws (DSGVO) and relevant property management regulations.

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What is a Property Management Agreement?

The Property Management Agreement is a crucial document used when a property owner wishes to delegate the management and operation of their real estate assets to a professional property management company in Germany. This agreement is structured in accordance with German law, particularly the German Civil Code (BGB) and the Housing Property Act (WEG), and outlines comprehensive terms for the professional management of residential, commercial, or mixed-use properties. It defines the scope of services, responsibilities, reporting requirements, fee structures, and compliance obligations. The document is essential for establishing clear operational guidelines, ensuring proper maintenance and administration of the property, and protecting the interests of both the property owner and the management company while maintaining compliance with German property management regulations and data protection requirements.

What sections should be included in a Property Management Agreement?

1. Parties: Identification of the property owner(s) and the property management company, including full legal names, addresses, and registration details

2. Background: Context of the agreement, including property details and purpose of the management arrangement

3. Definitions: Key terms used throughout the agreement, ensuring clarity and consistent interpretation

4. Appointment and Term: Formal appointment of the property manager, duration of the agreement, and renewal terms

5. Scope of Services: Comprehensive list of core property management services to be provided

6. Manager's Obligations: Detailed responsibilities and duties of the property manager, including reporting requirements and standard of care

7. Owner's Obligations: Responsibilities of the property owner, including provision of information and cooperation requirements

8. Fees and Payment Terms: Management fees, payment schedule, and reimbursement of expenses

9. Insurance and Liability: Required insurance coverage and allocation of liability between parties

10. Data Protection: GDPR compliance measures and data handling procedures

11. Termination: Grounds for termination, notice periods, and post-termination obligations

12. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction for disputes

What sections are optional to include in a Property Management Agreement?

1. Emergency Services: Additional provisions for 24/7 emergency response services, used when the property requires round-the-clock availability

2. Construction Management: Specific provisions for overseeing renovation or construction projects, included when significant works are planned

3. Marketing Services: Terms for marketing vacant units, included for commercial properties or residential complexes with high turnover

4. Special Requirements for Commercial Properties: Additional provisions specific to commercial property management, used when managing business premises

5. Sustainability Management: Specific provisions for environmental and sustainability initiatives, included when the property has green building certifications or requirements

6. Staff Management: Terms regarding on-site staff management, included when the property requires dedicated personnel

7. Asset Management Services: Enhanced provisions for strategic asset management, used for large commercial portfolios

What schedules should be included in a Property Management Agreement?

1. Property Details: Detailed description of the managed property, including address, size, facilities, and specific features

2. Fee Schedule: Detailed breakdown of all management fees, additional service charges, and payment terms

3. Service Level Agreement: Specific performance metrics and service standards

4. Maintenance Schedule: Planned maintenance programs and schedules for regular inspections

5. Emergency Procedures: Detailed protocols for handling various types of emergencies

6. Required Insurance Coverage: Specific insurance requirements and minimum coverage amounts

7. Reporting Templates: Standard formats for various required reports and documentation

8. Contact List: Key contacts including emergency services, preferred contractors, and stakeholders

9. Power of Attorney: Format and scope of power of attorney granted to the property manager

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Germany

Publisher

Genie AI

Document Type

Lease Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Property Management

Facilities Management

Commercial Property

Residential Property

Property Development

Professional Services

Building Management

Asset Management

Relevant Teams

Legal

Real Estate

Property Management

Operations

Facilities Management

Asset Management

Contract Administration

Compliance

Finance

Maintenance

Client Services

Relevant Roles

Property Manager

Asset Manager

Facility Manager

Real Estate Manager

Operations Director

Property Management Director

Building Manager

Real Estate Portfolio Manager

Property Administrator

Maintenance Coordinator

Legal Counsel

Contract Manager

Real Estate Investment Manager

Property Services Director

Compliance Officer

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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