Changing the property manager is not settled by a simple letter. The property manager is appointed by the general meeting of the co-owners ; their replacement must therefore also be prepared and decided collectively.
The process consists of checking the current term of office, comparing the available solutions, placing the question on the agenda, voting on the appointment of the new property manager and organising the handover of the files. When these steps are anticipated, the change can take place without any break in the management of the building.
Is it a non-renewal or a removal ?
Two situations must be distinguished. A non-renewal occurs when the term of office comes to an end and the general meeting decides not to extend it. A removal ends the term of office before its expiry.
In both cases, the co-ownership must also appoint a new property manager. A letter sent by one or more co-owners is therefore not enough to bring about the change : the decision rests with the general meeting.
Which rules must be checked before starting ?
The property manager's term of office may not exceed three years. Its continuation requires a new decision of the general meeting : there is no tacit renewal.
The appointment and the removal of the property manager fall under the majority of the votes of all the co-owners, whether they are present, represented or absent. If this majority is not reached at the first vote, a new meeting may decide by a majority of the co-owners present or represented (Article 15).
Before taking any steps, you should re-read the property manager's contract, the co-ownership regulations and the most recent minutes. These documents make it possible to identify the exact date on which the term of office ends, the conditions laid down for its termination and the decisions already taken by the meeting.
Step 1: comparing the candidates
It is preferable to request several proposals in order to compare the services, the fees, the availability of the manager, the tools used and the experience gained on comparable buildings. This comparison must remain factual. The aim is not merely to find a cheaper offer, but to enable the co-owners to understand what will actually be covered.
Step 2: placing the decision on the agenda
The change of property manager can only be decided if the question appears on the agenda of the general meeting. The co-owners must receive, sufficiently early, the information needed to examine the applications and understand the conditions proposed. The preparation of this step is developed in the article Preparing and running your general meeting.
Step 3: voting on the appointment
The general meeting decides according to the applicable majority rules. The minutes must clearly state the decision taken, the identity of the property manager appointed and the date on which their term of office begins. To avoid a period without management, the entry into force of the new term of office must be coordinated with the end of the previous one.
Step 4: organising the handover
The co-ownership's documents belong to the co-owners' association. The property manager keeps them on its behalf and must return them at the end of their term of office. The law and the Grand-Ducal Regulation do not set a precise time limit for the handover to the successor. It is therefore prudent to organise this handover as soon as the meeting has taken its decision.
A written inventory makes it possible to keep track of the archives, the accounts, the banking situation, the available funds, the contracts, the digital access rights, the works in progress, the incidents, the disputes and the useful contact details. This inventory should be signed at the time of the handover.
What happens in the event of a vacancy or default ?
When the property manager no longer acts or the co-ownership finds itself without a property manager, the law provides for a specific procedure. After a formal notice that has remained without effect for fifteen days, any interested party may refer the matter to the President of the Court. In the meantime, the supervisory board ensures day-to-day management and urgent acts. This situation must not be confused with a change of property manager prepared in the normal way by the general meeting.
Reference texts
The change of property manager falls in particular under Articles 15, 16 and 22 of the amended Law of 16 May 1975 establishing the statute of co-ownership of built property. The return of the archives and documents held by the property manager is governed by Article 23 of the Grand-Ducal Regulation of 13 June 1975.