The key facts at a glance
- There is no statutory fee schedule: the fee is freely negotiated. The usual model is a monthly base fee per unit plus additional fees for defined extra services.
- As a non-binding benchmark: WEG management often runs around 20 to 40 euros per apartment per month, depending on the region, property size and scope of services.
- Management costs are not recoverable operating costs: they cannot be passed on to tenants through the service charge settlement.
- Landlords deduct the costs as income-related expenses. Owner-occupiers use the itemized shares for household-related services and tradesmen's services under Section 35a EStG.
- Only compare quotes with an identical scope of services: what matters is the schedule of services in the management contract, not the base fee alone.
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How property management companies charge
There is no statutory fee schedule for property management companies in Germany. The fee is freely negotiated between the management company and the owners. That sounds confusing at first, but in practice a clear and fair model has become the standard: a monthly base fee per managed unit plus additional fees for precisely defined extra services.
The base fee covers day-to-day management. Additional fees only arise when the respective service is actually performed, for example an extra owners' meeting. In rental property management, besides a fixed amount per unit, billing as a percentage of the net rent (excluding service charges) is also widespread.
For you as an owner, this model has two pleasant properties. First, it is predictable: the base fee is fixed and can easily be projected across the year. Second, it is fair: costly special cases are paid for only by the property where they actually occur, instead of everyone financing them through a flat rate.
The most important sentence of this guide therefore comes right at the start: what matters is not the single number, but the schedule of services in the management contract. It defines which services the base fee covers and which are billed separately. Two quotes with the same base fee can therefore be calculated very differently.
Benchmark figures: what to expect
How much a management company charges depends on many factors. The following ranges nevertheless give you a realistic feel for the order of magnitude.
Please note
All figures in this section are non-binding benchmark values, not binding prices. The region, the size and condition of the property, and the scope of services significantly influence the price. The individual quote for your property is always what counts.
Use the ranges as a plausibility check: if a quote is well below or above them, that is not a knockout criterion, but it is a good reason to read the schedule of services especially carefully.
WEG management
For managing the common property of a condominium owners' association, the monthly base fee is often around 20 to 40 euros per apartment. Smaller associations usually pay more per unit than large ones: core tasks such as the annual budget, the annual service charge statement and the yearly owners' meeting arise for every property, and with small buildings this fixed workload is spread across correspondingly fewer units. The condition of the property also plays a role, as it helps determine how much ongoing work a building generates.
Rental property management
The management of rented buildings is also frequently billed per unit per month. Alternatively, a fee as a percentage of the net rent (excluding service charges) is common, often around 4 to 7 percent.
Management of individually owned rental units
The management of individual rented condominiums (Sondereigentumsverwaltung) is usually charged per unit per month, often at a level similar to rental property management.
Garages and parking spaces
Garages and parking spaces are managed at a much lower per-unit rate than apartments.
What the base fee includes
Which services the base fee covers is defined by the individual management contract. It typically includes:
- Bookkeeping and payments: the property's ongoing income and expenses, properly recorded and paid on time
- Annual budget and annual statement: the plan for the coming financial year and the service charge statement for the year just ended
- One ordinary owners' meeting per year: the association's regular annual meeting
- Day-to-day operations: organizing the everyday running of your property
- Correspondence: the ongoing communication and paperwork around the property
- Commissioning and supervising tradesmen: within the scope of the resolutions passed
The exact scope differs from contract to contract. So for every quote, check which of these services are included in the base fee and which are listed as additional fees. You will find more fundamentals about your property in our knowledge section for owners.
Common additional fees
The term "additional fee" may sound like hidden costs at first. It means the opposite: services that do not arise every year and not at every property are only paid for when they are actually needed. That is common and legitimate. The only thing that matters is that all items are stated transparently in the contract. Typical additional fees are:
- Extra or extraordinary owners' meetings: every meeting beyond the annual meeting included in the base fee.
- Dunning and debt collection: when outstanding receivables have to be pursued.
- Overseeing major maintenance or renovation projects: often agreed as a percentage of the construction costs.
- Assisting with a sale: for example the manager's consent when an apartment is sold.
- Takeover or setup fee: a one-time item at the start of the management engagement.
When comparing, ask to see the complete list and note how each item is measured: as a fixed amount or, for large construction projects, as a percentage of the construction costs. That way you know before signing which costs can arise on top in an eventful year. For comparing quotes, what always counts is the overall picture of base fee plus the list of additional fees, not the monthly price alone.
Who bears the costs
In a condominium owners' association, the management fee is paid out of the monthly service charge (Hausgeld). By default it is allocated to the individual owners according to their co-ownership shares; the association's community rules may provide for a different allocation. Rental property management or the management of an individually owned unit is commissioned by the respective owner, who accordingly bears those costs as well.
Important for landlords
The costs of WEG management and rental property management are not recoverable operating costs: administrative costs are excluded under the German Operating Costs Ordinance. They therefore cannot be passed on to tenants through the service charge settlement.
This clarity has an upside too: if you budget the management costs as a separate item from the outset, you calculate your property realistically and avoid disputes with tenants over the service charge settlement.
Taxes: what you can claim
How the management fee affects your taxes depends on how you use your apartment.
Rented apartment
Owners who rent out can deduct the management costs as income-related expenses against their rental income. They count as an ongoing cost of operating the property.
Owner-occupied apartment
Owner-occupiers cannot deduct the management fee itself. What is interesting for them, however, is Section 35a of the German Income Tax Act (EStG): the shares for household-related services and tradesmen's services shown in the annual statement (for example the caretaker, stairwell cleaning, garden maintenance, servicing and repairs to the common property) can be claimed for tax purposes: 20 percent of the labor costs up to the statutory maximum amounts.
Tip
A good management company itemizes the Section 35a EStG shares in a separate certificate accompanying the annual statement. Feel free to ask about it when discussing quotes: the certificate saves you a lot of digging at tax time.
As with all tax topics: the details depend on your personal situation. This overview shows the basic options; binding advice for your individual case comes from a tax advisor.
Comparing price and service properly
The monthly price alone says little about a quote. A comparison only becomes meaningful once you lay quotes with an identical scope of services side by side. What to pay attention to:
- Identical scope of services: which services does each base fee cover?
- The complete list of additional fees with prices
- Contract term and termination rules
- Digital services: an owner portal and digital document access
A proven trick for the comparison: project every quote onto a full year, that is, twelve monthly fees plus the additional items that will realistically arise at your property. That turns abstract price lists into concrete annual amounts that can be compared honestly.
When looking at the totals, a simple trade-off applies: a very low base fee can end up more expensive through many additional items. Conversely, a higher base fee with a broad scope of services can be more economical. There is no blanket verdict. What matters is which services your property actually needs and how much of that is already included in the base fee.
For owners' associations, there is one formal point on top: before appointing a new manager, case law requires that comparison quotes be obtained; three is customary. How the switch works in detail, from the deadlines to the handover, is covered in our guide Switching property management companies.
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Frequently asked questions about property management costs
To finish, the most common questions about management fees, answered concisely.
What does WEG management cost per apartment?
There is no statutory fee schedule; the fee is freely negotiated. As a non-binding benchmark: the base fee is often around 20 to 40 euros per apartment per month, depending on the region, the size and condition of the property, and the scope of services.
Why do small owners' associations often pay more per unit?
Because the fixed workload is spread across fewer units. Core tasks such as the annual budget, the annual service charge statement and the yearly owners' meeting arise for every property. The fewer apartments share this workload, the higher the fee per unit.
Which additional costs are common?
Typical additional fees cover extra or extraordinary owners' meetings, dunning and debt collection, overseeing major maintenance or renovation projects (often as a percentage of the construction costs), assisting with the sale of an apartment, for example the manager's consent, and a one-time takeover or setup fee at the start. Such items are common and legitimate, but they should be stated transparently in the contract.
Can we pass the management costs on to our tenants?
No. The costs of WEG management and rental property management are not recoverable operating costs, because administrative costs are excluded under the German Operating Costs Ordinance. They therefore cannot be passed on to tenants through the service charge settlement.
Can I deduct management costs from my taxes?
Owners who rent out deduct management costs as income-related expenses against their rental income. Owner-occupiers cannot deduct the management fee itself, but they can claim the shares for household-related services and tradesmen's services shown in the annual statement under Section 35a of the German Income Tax Act (EStG): 20 percent of the labor costs up to the statutory maximum amounts.
Is the cheapest management company automatically the best choice?
Not necessarily. A very low base fee can end up more expensive through many additional items, while conversely a higher base fee with a broad scope of services can be more economical. What matters is weighing price against service on the basis of the schedule of services in the management contract.
How do I compare quotes properly?
Only compare quotes with an identical scope of services. Pay attention to the list of additional fees, the contract term, the termination rules, and digital services such as an owner portal with digital document access. Before appointing a new manager, case law requires that comparison quotes be obtained; three is customary.
What is a takeover or setup fee?
A one-time additional fee that some management companies charge for taking on the management of a property. It is one of the common extra items and should be stated transparently in the quote and in the management contract, so that you can factor it into your comparison.
Related guides
This guide was prepared with great care (last updated: July 2026). All price figures mentioned are non-binding benchmark values, not binding prices; the individual quote is always what counts. This article does not replace legal or tax advice in individual cases.