The remuneration rates in rental management averaged 26.74 euros per unit per month in 2023, a real adjustment of just plus 14 cents per year compared to the reference year 2010. This means that the increases made each year were recently below the annual inflation rate. These are data from this year’s member survey of the Association of German Property Managers (VDIV). The online survey ran between February and April 2024 and produced 488 evaluable surveys.
VDIV Managing Director Martin Kaßler pointed out that the remuneration could be significantly higher than the determined average values depending on the size of the WEG, region and workload.
Lack of staff leads to rejection of small WEGs
Smaller owners’ associations will have to prepare themselves for the fact that it will be difficult to find a professional management company, as 43 percent of the surveyed property management companies have introduced a minimum size below which they will not accept management mandates. This is most often ten units, with a quarter of the responses. The main reason for refusing mandates is a lack of staff, 63 percent of the time.
Increased investment in hardware and software
Around 25 percent of property management companies were unable to fill staff positions in 2023. This is precisely why many companies are planning to continue to digitize: 69 percent want to further automate their administrative processes in 2024, and 69 percent are also considering using AI-supported software. 92 percent of all companies intend to invest in software and hardware in 2024.
73 percent of companies believe that the virtual owners’ meeting recently approved by the German Bundestag could compensate for the staff shortage to some extent. Of companies that already use digital formats with their customers, 87 percent are in favor of a virtual meeting as a new option.
Administrations see increasing need for further training
The legal requirements for property management companies are increasing. At the same time, there is an increased risk of liability and the requirements for accessibility, speed and digital structures are increasing. The effects of the complex working environment are confirmed by an impressive number: 98 percent of the property management companies surveyed for the VDIV Industry Barometer 2024 expect an increasing need for training and further education. (Editor)
