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Market analysis··2 min read

Mandatory Continuing Education for Residential Property Managers Remains, But Without Official Verification

The German Bundestag has passed the Bureaucracy Reduction Act in a form that maintains the mandatory continuing education for residential property managers, but at the same time eliminates official verification of certificates.

AI generatedMandatory Continuing Education for Residential Property Managers Remains, But Without Official Verification – AI-generated illustrative image
Mandatory Continuing Education for Residential Property Managers Remains, But Without Official Verification. Illustrative image generated using artificial intelligence (AI). The image does not depict a real property, person or event and is not a documentary photograph. Labelled in accordance with Article 50(4) of the EU AI Act.

Residential property managers remain obliged to undergo further training. The Bureaucracy Reduction Act, which originally intended to eliminate this obligation for managers and brokers, was passed by the German Bundestag in a modified version. A notable change concerns the abolition of official verification of continuing education certificates, which is viewed critically. The interest group 'Wohnen im Eigentum' (Home Ownership) had, together with other associations, advocated for the retention of the continuing education obligation.

Dr. Sandra von Möller, a board member of the consumer protection association 'Wohnen im Eigentum', stated that retaining the continuing education obligation for managers represents a success, as it ensures quality and legal certainty in property management. A recent survey by 'Wohnen im Eigentum' showed that 89 per cent of the owners surveyed considered the continuing education obligation necessary, and 84 per cent feared negative consequences of its abolition for homeowners' associations. Nevertheless, von Möller would have liked to see a stronger commitment to the ongoing professionalisation of the industry.

Shift in Responsibility Due to Lack of Verification Control

Criticism focuses on the abolition of the obligation for managers to present continuing education certificates for the last three calendar years to the authorities upon request, as stipulated by Section 15b of the Brokers' and Developers' Ordinance. Von Möller remarked that while the elimination of these verification checks marginally relieves the authorities, it weakens a central element of enforcement. This ultimately shifts responsibility to consumers. 'Wohnen im Eigentum' recommends that homeowners' associations actively request the presentation of continuing education certificates. Under the new legal situation, managers are obliged to archive the documents digitally or in analogue form for three years.

The differentiation between brokers and managers regarding the continuing education obligation is justified by their respective activities. Brokerage activities typically aim at one-off mediation. The activity of managers, classified as ongoing fiduciary asset management with continuous duties, however, requires up-to-date legal knowledge. The continuing education obligation is regarded as a proportionate standard in this context. The leading Committee for Economic Affairs and Energy emphasised that managers are among those professions that are permitted to provide legal services as ancillary services for third parties. The current continuing education obligation comprises 20 hours within three years. 'Wohnen im Eigentum' had advocated for an extension to at least 15 hours per year and for a certificate of competence as a professional entry requirement.

Justification of Obligation for Managers

Dr. Sandra von Möller underlined the appropriateness of this differentiation, as managers bear significant responsibility. They regularly manage assets worth millions, including properties, reserve funds, and other monies of homeowners' associations. This circumstance underpins the necessity of continuous professional updating to meet complex requirements and to adequately represent the interests of owners. The regulation now in force thus solidifies the basis for professional property management, but at the same time appeals to the self-responsibility of the parties when checking qualifications.

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