WEG renovation – from resolution to acceptance

A homeowners' association (WEG) renovation is a maintenance or modernisation measure approved, commissioned and financed by a homeowners' association. Unlike sole ownership, decisions are made by the community rather than one person. This makes planning more demanding because resolutions must be passed, costs allocated and different interests considered.

Key points at a glance

• Since the WEG reform in 2020 (§ 19 para. 2 WEG): many renovation measures can be approved by a simple majority — unanimity is no longer required
• Costs are allocated according to co-ownership shares (MEA) — special levies for larger measures must be clearly regulated in the resolution
• Obtain at least 3 comparable quotes — owners' meetings often decide on the basis of a single quote, leading to overpayment
• WEGs can apply for KfW funding: Federal Funding for Efficient Buildings (BEG WG) up to 150.000 €/dwelling

Since the WEG reform in 2020, many renovation measures can be approved by a simple majority.¹ Nevertheless, renovation projects in homeowners' associations often fail because of organisation rather than technology: unclear responsibilities, missing comparison quotes and disputes over cost allocation. This guide takes you through the entire process.

Step 1: establish the need and prepare the resolution

Before the owners' meeting votes on a renovation, the need must be documented. The property manager is legally obliged to monitor maintenance (§ 27 para. 1 no. 2 WEG). In practice, projects are prompted by owners' damage reports, the energy performance certificate or expert reports.

Typical WEG renovations:

• Façade and roof (the most common)
• Heating system
• Stairwells and communal areas
• Lifts
• Pipework renovation (water, drainage, heating)
• Balconies and terraces

What the property manager should prepare:

1. Condition report with photos and, where appropriate, an expert assessment
2. Cost estimate (approximate, based on experience or preliminary quotes)
3. Financing proposal (maintenance reserve, special levy, loan)
4. Draft resolution for the owners' meeting

Step 2: passing a resolution

The owners' meeting decides on the renovation by vote.

Important for the resolution: It must define the scope of the measure (not just “the façade will be done”, but which works). Financing must be settled, and the property manager should be authorised to obtain quotes and award the contract (within a defined cost limit).

Step 3: obtain and compare quotes

After the resolution, the property manager obtains quotes. In practice, there should be at least three. WEG quotes are particularly difficult to compare because contractors itemise them differently, the scope of work is rarely identical and owners involved in the decision often lack construction expertise.

How to make quotes comparable:

1. Have a bill of quantities prepared: Ask all contractors to quote on the same basis. A bill of quantities costs 200 to 500 euros and saves many times that amount during comparison.
2. Same items, same structure: Request individual prices for each item rather than lump-sum quotes.
3. Create a comparison table: Items in rows, providers in columns.

Sample comparison table:

In this example, provider B is the cheapest, but window reveals are missing (typically 2.500 to 4.000 euros). Actual costs are therefore around 27.000 euros rather than 24.200 euros.

Step 4: cost allocation

The costs of a WEG renovation are shared between owners. The allocation formula is set out in the declaration of division.

Typical allocation formulas:

• Co-ownership shares (MEA): The most common. Owners with more MEA (a larger flat) pay more.
• Living area: Less common, but possible.
• Equal shares: Everyone pays the same amount (rare).

Financing options:

• Maintenance reserve: If sufficient funds have been saved. Often insufficient for major renovations.
• Special levy: One-off payment by owners. Requires a resolution.
• KfW loan (WEG loan): KfW offers loans specifically for WEGs (programme 261). The homeowners' association takes out the loan collectively, and repayments are allocated to owners through the service charge accounts.²

Step 5: construction monitoring and communication

Who does what?

• Property manager: Point of contact for the contractor, organisational coordination, invoice checking
• Advisory board: Oversight role, can inspect the site, reports to owners
• Site manager/surveyor if needed: Worthwhile for larger projects (from approx. 100.000 euros)

Communication with owners:

• Regular updates by circular or email (every 2 to 4 weeks)
• Photos of construction progress
• Transparency on variations: every variation must be justified and documented
• For major deviations (over 10 % of the budget): convene an owners' meeting

Step 6: acceptance and defects liability

Acceptance checklist for WEG renovations:

• Formal acceptance with a written record (rather than implied acceptance through payment)
• Prepare a defects list (ideally with a surveyor)
• The defects liability period starts on the acceptance date
• Agree a retention (5 % of the contract sum for the defects liability period)
• Archive all documents (quote, contract, variations, acceptance record, invoices)

Defects liability: 5 years under BGB. The property manager is obliged to assert defects claims within the defects liability period. If a defect is not notified in time, the property manager may be liable to the WEG.

Common mistakes in WEG renovations

1. No comparison quotes: Some property managers obtain only one quote, often from a regular contractor. Without comparison, there is no benchmark.
2. Blanket resolution without a cost limit: “The property manager is authorised to arrange façade renovation.” Without a cost limit, this is a blank cheque.
3. No variation rules: Variations are particularly problematic for WEGs because they can exceed the special levy.
4. No bill of quantities: Quotes prepared on different bases are not comparable.
5. Acceptance through payment: Final payment without formal acceptance counts as implied acceptance. This starts the defects liability period without defects having been documented.

Provider comparison: professional review

For WEG renovations with contract values of 30.000 euros or more, a quote review is almost always worthwhile. Typical potential savings (missing items, excessive unit prices, unclear clauses) far exceed the review fee.

Frequently asked questions about WEG renovation

What majority is needed for a WEG renovation?

Since the WEG reform in 2020, a simple majority of owners present and represented at the meeting is sufficient for maintenance and modernisation. Only fundamental transformations require unanimous agreement. Structural alterations can be approved by a simple majority, but special cost allocation rules apply.

Who pays for the WEG renovation?

All owners according to the allocation formula in the declaration of division, usually based on co-ownership shares. Financing comes from the maintenance reserve, a special levy or a KfW loan taken out by the homeowners' association collectively.

Can one owner block the renovation?

Not for measures that can be approved by a simple majority. Outvoted owners must comply with the resolution and pay their share. They can, however, challenge the resolution in court within one month if it breaches the law or agreements.

How do I find a contractor for a WEG renovation?

Recommendations from other property management companies, the Chamber of Crafts search and industry portals. Obtain at least three quotes based on a bill of quantities. For larger projects, a designer or architect can handle tendering.

Further guides

• Reviewing a construction quote – 7-point checklist and comparison of review options
• Building work acceptance checklist – Step by step through acceptance
• Avoiding variation costs – The 7 most common variation traps and how to protect yourself
• Comparing contractors' quotes – How to compare quotes properly

Sources

1. German Condominium Modernisation Act (WEMoG), in force since 01.12.2020. WEG reform: simplified decision-making for modernisation.
2. KfW funding for homeowners' associations: programme 261 (residential building loan).