FAQ – Sondereigentumsverwaltung

1. Do I need a German bank account to get my rental income?
2. Can I use my existing German bank account to receive the rent directly?
3. What is the net income?
4. How often will I receive my net income and how often can I review a summary of my income and expenses?
5. How are any necessary repairs managed for my apartment and will I be informed?
6. Do I need insurance for my property?
7. How do I manage my tax return?
8. Can you support my finance arrangements?
9. Which property documents are needed by condo to manage my property?
10. Does condo take part in the annual homeowners meeting?

1. Do I need a German bank account to get my rental income?
   No. We open an escrow account. Here we collect your rent and pay your bills including running costs, bank charges, property taxes, management fees etc. You can then receive a payment of your net income to an international bank account of your choice.
2. Can I use my existing German bank account to receive the rent directly?
   This is not possible as we are, of course, unable to monitor the necessary account transactions on your personal bank account.
3. What is the net income?
   This is the gross rental income less fees, running costs and taxes ie net income after costs.
4. How often will I receive my net income and how often can I review a summary of my income and expenses?
   We retain, on your escrow account, as a security deposit the first month’s rent as a fund for any future repair works.

   Usually you are able to receive your net income on a monthly basis. A summary as an overview of your income and expenses is normally available every two months or once a quarter. Individual arrangements are possible.

5. How are any necessary repairs managed for my apartment and will I be informed?
   Once a repair or works are identified then we hire an external company to provide us with a proposal and cost estimate.

   Once we have this information, you will be informed by email and only after your authorization will the appropriate work be undertaken.

   In respect of urgent repairs where we have to undertake immediate action then we will contact you by phone and discuss with you the necessary requirements.

6. Do I need insurance for my property?
   Since only the tenant of your apartment can be held responsible for a loss and, or damage then you do not require contents insurance.

   Furthermore, the home owners’ association will organize insurance for the for the external building structure.

7. How do I manage my tax return?
   Legally, we are not authorized to advise or prepare your tax return. We can, however, recommend to you a tax advisor with whom we can provide all the necessary documents to enable your tax return to be filed.
8. Can you support my finance arrangements?
   Some banks in Germany require a contact person who must be resident in Germany for the delivery of documents associated with financing (mortgages). Condo can undertake this for you where we need to arrange a power of attorney to operate on your behalf.
9. Which property documents are needed by condo to manage my property?
   We require the contract of sale or lease, partition deed, deposit management and all correspondence related to your property regarding previous management companies, tax authorities, etc.
10. Does condo take part in the annual homeowners meeting?
    No we do not. When you receive your invitation to attend the homeowners meeting we can translate the contents and give suggestions as to the voting required.

    Then we prepare a power of attorney with instructions for the administrator of the property (typically the apartment house) so that they accept your vote. This means that you are able to know the issues discussed and be able to vote without having to be present.