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 archives and documents of the co-ownership belong to the co-owners' association, which has legal personality. The property manager merely holds them on its behalf (Article 23 of the Grand-Ducal Regulation of 13 June 1975, Mémorial A No 34 of 20 June 1975). Their return at the end of the term of office follows from that capacity as holder and from the rules of mandate, and not from any provision specific to co-ownership: neither the Law of 16 May 1975 nor the Grand-Ducal Regulation of 13 June 1975 names that obligation, nor do they set a 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 ?
The law distinguishes two situations. Where the property manager in office is prevented from acting or fails to act, any interested party may, after a formal notice that has remained fruitless for fifteen days, ask the President of the District Court to entrust all or part of the task either to a member of the supervisory board or, failing that, to a provisional administrator. Where the association finds itself without a property manager, it is the chair of the supervisory board, or failing that any member of that board, who convenes the general meeting with a view to the appointment ; until the new property manager takes office, the supervisory board carries out the acts of day-to-day management, including the calls for funds, and the acts required by urgency. 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 Law of 16 May 1975 establishing the statute of co-ownership of built property (Mémorial A No 28 of 23 May 1975), Article 22 (impediment, default or absence of a property manager) having been replaced by the Law of 22 April 1985 (Mémorial A No 22 of 9 May 1985). The holding of the archives and documents of the co-owners' association by the property manager is governed by Article 23 of the Grand-Ducal Regulation of 13 June 1975 (Mémorial A No 34 of 20 June 1975).