Is a property manager mandatory in Austria? What the law says

Does an Austrian condominium actually have to have a property manager? The question tends to surface exactly when the relationship with the current Hausverwaltung turns sour, or when the fee goes up yet again, and the answer surprises most owners: the law does not oblige you to appoint an external property manager. Austria's WEG 2002 (Wohnungseigentumsgesetz, not to be confused with Germany's law of the same name) assumes, on the contrary, that owners can manage their building themselves. Legally, self-management is the default; the hired manager is the exception that everyday practice has turned into the norm.

Before you terminate the contract and take over, though: self-management does not mean fewer duties, it means the same duties in different hands. How it is organised, who represents the community externally, and at what point a professional manager earns their fee, let's take it step by step.

Is an external property manager mandatory?

No. The WEG 2002 regulates in detail what rights and duties a manager (Verwalter) has once one is appointed, but nowhere does it force the owners' association (Eigentümergemeinschaft) to appoint one. Austrian case law likewise treats self-management by the co-owners as the baseline the statute envisages.

A manager is appointed and dismissed by simple majority, counted by co-ownership shares (Miteigentumsanteile), not by heads. The same majority that hired a management company years ago can therefore decide at any time to end the contract and switch to self-management.

Note: ordinary termination of the management contract is possible under § 21 WEG 2002 with three months' notice to the end of the accounting period. In cases of gross breach of duty, early termination for cause can be demanded, through the courts if necessary.

How does self-management work in practice?

Two models have proven themselves. Either the community appoints one of the owners as manager: the law does not require a trade licence, and the appointed owner then carries the same statutory duties as a professional. Or the owners manage jointly, without a formally appointed manager, and share the workload.

Either way, certain obligations remain, because the law imposes them on the community rather than on any management firm:

• The annual accounts (Abrechnung): under § 34 WEG 2002, within six months of the end of the accounting period, with the usual calendar year, by 30 June
• The reserve fund (Rücklage): funded continuously, at least at the statutory minimum rate, in a separate dedicated account
• The owners' meeting: convened at least every two years, as § 25 WEG 2002 requires
• The financial forecast (Vorausschau): an outlook on planned expenditure and the development of the reserve under § 20 WEG 2002

The most common failure in self-managed buildings, by the way, is not the bookkeeping: it is the documentation. Resolutions taken verbally in a stairwell conversation do not legally exist. If you self-manage, put every resolution in writing and make it verifiably accessible to every owner; that is where self-managed communities lose in court, not for lack of professionalism.

Who represents the community without a manager?

The owners' association is a legal entity: it can sign contracts, sue and be sued.

If no manager is appointed, § 18 WEG 2002 has it represented by the majority of owners, again counted by co-ownership shares. The insurance policy or the plumber's work order does not need a single person with a title; it is enough that the majority of shares stands behind the decision. In practice it still pays to designate a fixed contact person, so that tradespeople, insurers and authorities know who to call. And there is a safety net: if self-management runs off the rails, any individual owner can apply to the court to have a manager appointed (§ 23 WEG 2002). Self-management stands and falls with the basic consensus in the building.

At what size does a professional manager pay off?

Typical fees in Austria run at around 20 to 35 euros per unit per month, depending on region, building size and scope of services. Small buildings pay proportionally the most because of minimum fees: with six units, 1,800 to 2,500 euros a year add up quickly, money a well-functioning community with manageable infrastructure can reasonably save.

The bigger and more complex the property, the faster the maths flips. Many units, an underground garage, a lift, a major renovation on the horizon, or entrenched conflicts between owners: those are the situations where a professional with liability insurance and routine is worth the price. Conversely, a building of four to ten units, one owner with time and a head for numbers, and no maintenance backlog is the classic candidate for self-management.

The traditional stumbling block (keeping payment schedules, receipts, resolutions and the annual accounts in order) has also lost much of its terror: community management software such as Vecinly takes over precisely the part where self-management used to fail most often, from communicating with neighbours to documenting every resolution without gaps.

With or without a professional manager, the duties of the owners' association stay the same: the law simply lets you choose who fulfils them. What matters is not the name plate but that accounts, reserve fund and meetings run reliably. Assess that honestly for your own building and you will make the right call, one you can reverse later with the same majority that made it.

Information updated July 2026. This article is for general information on Austrian law and does not constitute legal advice.