Owners’ association management: what does a managing agent do?

A managing agent (administrator) helps the board with the day-to-day running of the owners’ association (ejerforening), for example the budget and accounts, collecting the common charges, the general meeting, insurance and maintenance. Under the standard articles (normalvedtægten), it is the general meeting that decides whether the association should have a managing agent, and the board keeps the management and the responsibility. Exactly what the managing agent does depends on the management agreement.

The managing agent’s tasks in an owners’ association

An owners’ association is a compulsory community of all the owners in the property (§ 2 of the Owner-Occupied Flats Act (ejerlejlighedsloven), in Danish), and under the standard articles (in Danish) its purpose is to manage the common property. The tasks lie with the board, which under § 16 of the standard articles must among other things take care of:

• a budget and accounts for the association’s expenses and income
• checking that the owners pay the common charges
• the usual insurance, including fire insurance and combined property owners’ insurance
• cleaning and snow clearing of the common areas
• a maintenance plan and the maintenance the property requires
• good practice and order in the association.

A managing agent assists the board with the administrative tasks and may also act as an adviser, writes the Ministry of Social Affairs and Housing in the guidance on the standard articles (in Danish). According to the guidance, it is often part of the agreement that the managing agent collects the common charges, and depending on how complex it is, the budget should be drawn up together with a managing agent or an auditor. Beyond the finances, you can hand the preparation of the general meeting, the contact with the insurance company and the coordination of tradespeople to the managing agent. What matters is that the division of tasks is written in the agreement.

What the rules say about the general meeting, the board and the managing agent

The standard articles apply unless the association has adopted something else (§ 5(2) of the Owner-Occupied Flats Act). If your association has its own articles, those are what you should read first. Under the standard articles, the roles are divided like this:

Who	Role	Standard articles
The general meeting	The association’s highest authority. Approves the accounts, maintenance plan and budget, elects the board and auditor, and decides whether the association should have a managing agent	§§ 2, 9 and 18
The board	At least three people including the chair, elected for two years. Handles the day-to-day management and carries out the general meeting’s decisions	§§ 14 and 16
The managing agent	Assists with the day-to-day running of the property. May be neither an owner in the association nor its auditor	§ 18
The auditor	Audits the accounts and is elected every year. Must be an approved auditor if at least a quarter of the owners demand it	§ 20

According to the guidance, the decision to have a managing agent is made by simple majority by allocation share (fordelingstal), and it obliges the board to appoint one. If the general meeting has only decided that there should be a managing agent, the board chooses who. The general meeting can also reverse the decision by simple majority, and then the board must terminate the agreement. If the board has not appointed a managing agent, it chooses a treasurer (§ 16(3)).

If an owner rents out their apartment, the board must be told about the rental and the tenant (§ 30), and if a tenant behaves unlawfully, the association can go directly to the tenant (§ 24). The rent itself is a matter between the owner and the tenant and follows the rules of the Rent Act (lejeloven), which we go through in the article on rent adjustment.

Deadlines for the general meeting in an owners’ association

The ordinary general meeting is held every year no later than six months after the end of the financial year. The agenda must include at least the board’s report, the annual accounts with the auditor’s report, the maintenance plan, proposals, the budget and elections (§ 9 of the standard articles). The deadlines under the standard articles:

1. The board gives written notice of the meeting at least four and at most eight weeks in advance.
2. Proposals must reach the chair no later than three weeks before.
3. The annual accounts, budget and proposals with appendices must be available to the owners no later than one week before.
4. The minutes must be available to the owners no later than four weeks after.

An extraordinary general meeting is called with at least two weeks’ notice, for example when at least a quarter of the owners ask for it (§ 11). The managing agent and the auditor have access to the general meeting and, according to the guidance, an independent right to speak (§ 12). Notices, minutes and other communication may be sent by email (§ 17), but according to the guidance, the general meeting itself must be held as a physical meeting, unless the association has adopted special articles (særvedtægt) on virtual general meetings.

Budget, accounts and collecting common charges

Common charges such as insurance, administration and maintenance of the common property are divided by allocation share, unless something else has been validly decided (§ 7 of the Owner-Occupied Flats Act). The association may only collect money for the running costs and maintenance, but it may maintain reasonable equity, and the general meeting can decide to save up for specific purposes (§ 25 of the standard articles).

The financial year is the calendar year unless something else has been decided, and the annual accounts must include both an income statement and a balance sheet (§ 21). If nobody on the board is skilled in accounting, the guidance says it may be necessary to hand the accounts to a bookkeeper or an auditor, and in larger associations it will often be necessary in any case.

If the managing agent collects the common charges, the board still has a duty to check that the money comes in. According to the guidance, the board can appoint a treasurer to check the payments and approve smaller payments from the managing agent. Otherwise the whole board must handle the checks, and the managing agent’s payments must be approved by two board members. As security for claims against the owners, the association can, by a two-thirds majority, register the articles as a charge of DKK 50,000 on each apartment (§ 4 and § 31).

Insurance and maintenance

The board must take care of the usual insurance, and board liability insurance is taken out unless a majority at the general meeting decides otherwise (§ 16). According to the guidance, there is always a need for insurance against building damage and for property owner’s liability, and the building insurance covers the whole building. Fire insurance is not compulsory, but it is required if there is a mortgage on an apartment. The board should regularly assess whether the cover and premiums are appropriate, for example once a year when the budget is drawn up.

The association maintains the common property, for example doors to common areas, windows, balconies, lifts and shared supply lines, while each owner maintains their own apartment (§§ 26 and 27). The standard articles make a maintenance plan compulsory. It must list the larger works, when they are to be carried out and an estimate of the costs. It is the general meeting that decides on maintenance work on the common property, while the board can start smaller, ongoing work within the limits set by the general meeting.

When does an external managing agent make sense?

The law does not require one, but the board must make sure the association’s affairs are handled properly. According to the guidance, this means the board must seek expert help where needed, for example for the accounts, the budget and the maintenance plan. The board can only be made up of owners, their spouses or partners and adult members of their household. An owner can, however, give their tenant power of attorney, and a company can give power of attorney to a representative (§ 14). So the standard articles do not leave room for a professional external board, and the guidance instead points out that a lack of skills on the board can, as a rule, be solved by engaging a professional managing agent.

A managing agent can be worth considering when:

• nobody on the board has the time or the wish to handle the accounts and collection
• there are arrears that need following up
• large works on the common property are coming up and need planning and financing
• many apartments are rented out, so fewer owners live in the property and want to sit on the board
• the association is so large that the accounts require a professional.

A small association with a committed board, on the other hand, can easily manage with a treasurer and an auditor. The important thing is that the tasks are handled properly.

Questions to ask before you choose a managing agent

Managing agent is not a protected title, and the standard articles set no particular requirements for formal qualifications. The guidance recommends that the management agreement sets out in full the managing agent’s power of attorney and tasks, the division of tasks between the managing agent and the board, the fee, insurance and the terms of termination. So ask these questions, whether you choose a large management company or a smaller managing agent:

1. Which tasks are included in the fee, and what is billed separately, for example extra meetings or building projects?
2. What power of attorney does the managing agent get, and who approves payments from the association’s account?
3. What insurance does the managing agent have for their work, and is there crime insurance that covers embezzlement if the managing agent can access the association’s money?
4. How and how often does the managing agent report to the board on finances and arrears?
5. Who is your regular contact, and how quickly do owners and residents get an answer?
6. What is the notice period, and how are the accounts and documents handed over if you switch?
7. Is the managing agent independent of the association, so it is neither an owner nor your auditor (§ 18(2))?

What does it cost to manage an owners’ association?

There is no fixed price for managing an owners’ association. The fee is a common charge that the owners share by allocation share unless something else has been decided (§ 7 of the Owner-Occupied Flats Act), and the price depends mainly on the size of the association and which tasks are included. When you compare offers, look at:

• the number of apartments and any commercial units in the association
• which tasks are included: bookkeeping, collection, reminders, budget, general meeting, insurance and maintenance plan
• how many meetings a year the managing agent attends
• whether building projects and larger projects are billed separately
• how quickly the board and the owners get an answer.

Ask for offers on the same task list, so you compare like with like. BY Administration manages owners’ associations in Copenhagen and cleans stairwells for owners’ and co-operative housing associations. Read about property management and stairwell cleaning, or book a meeting if you would like to hear what it would cost for your association.

Sources

• Act on Owner-Occupied Flats (lov om ejerlejligheder), Act no. 908 of 18 June 2020, §§ 2, 5 and 7 (retsinformation.dk, in Danish)
• Executive order on standard articles for owners’ associations, BEK no. 1738 of 29 November 2020 (retsinformation.dk, in Danish)
• Guidance on the standard articles for owners’ associations, VEJ no. 9540 of 17 June 2025 (Ministry of Social Affairs and Housing, in Danish)