When changing the building manager pays off
Before you begin, ask yourself this question: why do we actually want this? The most common reasons why chairmen of the building's owners' association contact us:
- Poor communication. The property manager does not respond to emails, you have been trying to reach them by phone for three days, and there is no reporting.
- Hidden costs. The accounting is not transparent; items appear in the final statement that no one can explain.
- Technical failure. The breakdown has lasted a week because the manager lacks a functioning supplier.
- Conflict of interest. The property manager has their own carpenters, plumbers and electricians whom they force the building's owners' association to use at above-standard prices.
- Neglected inspections. Fire safety, electrical, gas: upon arrival you will find that half of the inspections are overdue.
The change takes 2-3 months, requires some effort from the building's owners' association, and you will have headaches in the first few months. But if the reason is legitimate, it is worth it.
Notice period and legal framework
§1189 of the Civil Code and the property management contract
The notice period is standardly 3 months and runs from the first day of the month following delivery of the notice. The notice must be in writing and delivered with proof, by registered post or in person against a signature.
Some contracts include a longer notice period (6 months) or a penalty for early termination. Therefore, carefully review the contract before submitting your notice, ideally with a lawyer.
Also note the generally binding decrees of Prague 1 and 2, which may regulate certain technical aspects of taking over documentation.
Phase 1: Selection of a new administrator (1-2 months)
Step 1: Gather candidates.
Ask other owners in the neighbourhood how satisfied they are with their property manager. A trusted recommendation is worth its weight in gold. Beware of managers who are suspiciously cheap. We discussed the reasons for this in our article on management fees.
Step 2: Obtain quotes.
Contact 3-5 facility managers and request a written quotation with a price breakdown and a sample contract. Compare like with like, identical service scope and response times.
Step 3: Personal meeting.
Arrange a personal meeting at your home with the two best candidates. How do they present themselves? Do they understand the specifics of your house? Have they suggested any improvements between them?
Step 4: Voting at the meeting.
Changing the administrator requires the approval of a majority of all owners' votes. Prepare the invitation in advance and allow the new administrator to introduce themselves.
Phase 2: Preparation for handover
Step 1: Sign the new contract.
Set the effective date for the day after the old manager's notice period expires. There must be no gap during which the building is without management.
Step 2: Send a notice of termination to the current manager.
Recommended with proof of delivery. In the letter, state the effective date of termination and request cooperation in handing over the documentation.
Step 3: Compile the handover protocol.
List of documents to be handed over by the outgoing manager: financial statements for the past 5 years, register of owners, inspection reports, contracts with suppliers, insurance policies, construction documentation, keys to common areas, and access to the building's owners' association email and bank account.
Step 4: Notify banks, insurance companies and utility suppliers.
Send notification of the change of manager and new contact details one week in advance.
Phase 3: Physical handover
Step 1: Meeting of all three parties.
The former administrator, the new administrator and a representative of the building's owners' association. On site, ideally within the building. Checking documents against the handover protocol item by item.
Step 2: Key handover.
Complete set of keys for all common areas, pram room, cellar, attic, boiler room, roof. Count the keys and sign the handover protocol.
Step 3: Digital approaches.
Changing passwords for the building's owners' association email, access to online banking (in cooperation with the bank), and the data box.
Step 4: Communication with owners.
Informational letter for all flats with contact details for the new manager, an emergency hotline and information on where to pay advance payments from now on.
Mistakes to avoid
Mistake 1: Failing to give notice in time.
If you forget about the automatic contract extension, you are bound for another period. Check the contract date and notice period as soon as you start considering a change.
Mistake 2: Failing to verify the quality of the new property manager.
References, reporting sample, service allocation example. Don't let a marketing presentation brush you off.
Mistake 3: Overlooking inspections and deadlines.
When taking over, explicitly request to see the list of all inspections with their due dates. Neglected inspections become the new manager's: and your: problem after handover.
Mistake 4: Not formalising the handover.
Without a signed handover protocol, you will not be able to determine within a year what the previous manager handed over and what they did not.
Frequently Asked Questions
How long does changing the administrator take?
At least 3 months (notice period) plus 1-2 months to select a new manager and organise the meeting. Realistically, allow 4-6 months from the initial idea to a fully functional handover.
What if the old and new managers cannot agree on the handover?
You are right. Request the former manager in writing to hand over the documentation immediately, citing the contract and §1189 of the Civil Code. If they do not respond, legal action follows: a reminder notice, a lawsuit for the release of documents, or potentially compensation for damages.
What are the costs of the change?
Direct costs are usually not high: the notarial record of the meeting and any legal consultation (5-15 thousand Kč). Indirect costs include the time of the building's owners' association committee and the first months of the new manager, which tend to be more expensive due to the consolidation of documents.