Property Management (Hausverwaltung)
Professional management of rental properties
Property management (Hausverwaltung) involves all tasks required to operate a rental property: finding tenants, collecting rent, coordinating repairs, and handling tenant issues. You can self-manage or hire professionals.
What Property Managers Do
Tenant Relations:
- • Finding and screening tenants
- • Lease negotiations and renewals
- • Rent collection and reminders
- • Handling complaints and disputes
Property Operations:
- • Coordinating repairs and maintenance
- • Property inspections
- • Managing service contracts
- • Emergency response
Cost of Professional Management
Typical Fee Structures:
- Full-service management:8-12% of gross rent
- Tenant placement only:1-2 months rent (one-time)
- Rent collection only:3-5% of collected rent
Example: €1,800/month rent → €180/month for full management (€2,160/year)
Self-Management vs. Professional
Self-Management
Pros:
- • Save 8-12% annually
- • Direct tenant relationship
- • Full control over decisions
Cons:
- • Time-intensive (5-10 hrs/month)
- • Need local presence
- • Deal with emergencies 24/7
- • Requires landlord knowledge
Professional Management
Pros:
- • Hands-off ownership
- • Professional tenant screening
- • Scale to multiple properties
- • Legal expertise
Cons:
- • Costs 8-12% of gross rent
- • Less control
- • Variable service quality
When Professional Management Makes Sense
- You live far from the property: Different city or abroad
- You have a full-time job: No time for tenant calls and emergencies
- You own multiple properties: Economies of scale kick in
- Your time is valuable: Earning €75+/hour makes 10hrs/month = €750+ cost
Tax Treatment
Property management fees are fully tax-deductible as operating expenses (Werbungskosten). At 42% tax rate, €2,160 annual fees effectively cost you only €1,253 after tax savings.
Choosing a Property Manager
- Check credentials: Look for IHK certification (Immobilienkaufmann)
- Ask for references: Speak with current landlord clients
- Understand the contract: Notice periods, fee structure, services included
- Local expertise: Prefer managers familiar with your specific area
Related Terms
Operating Costs(Bewirtschaftungskosten)
Operating costs (Bewirtschaftungskosten) include property management, maintenance, insurance, property tax, and utilities. Typically 20-30% of rental income.
Deductible Expenses(Werbungskosten)
Werbungskosten are expenses related to earning rental income that you can deduct from your taxable income. This includes mortgage interest, repairs, property management fees, insurance, and more.