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Circular Resolution: Definition, Benefits, and Digital Implementation in Property Management

A circular resolution is a decision reached without a physical owners' meeting. All owners cast their vote outside of a formal session, for example by signature or through a digital portal. It saves time and organizational effort, especially for urgent or straightforward decisions, and digital tools are making it increasingly practical for property management companies.

What is a circular resolution?

A circular resolution allows a community of owners to make decisions without everyone having to gather in one place. Instead of meeting in person, owners cast their vote in writing or digitally. The results are then collected, documented, and entered into the official resolution log.

In practice, this means less back-and-forth over scheduling, less organizational overhead, and faster decision-making for property managers, particularly for straightforward or time-sensitive matters. At the same time, with every additional property under management, the pile of resolution logs, budget plans, and meeting minutes that needs processing keeps growing.

What are the benefits of a circular resolution?

  • Time savings: no need to coordinate a date for an in-person meeting.
  • Flexibility: owners can vote at their own pace instead of being tied to a fixed meeting date.
  • Less organizational effort for the management company, especially for simple or urgent matters.
  • Handling the process digitally through an owner portal cuts down on manual work for follow-ups and documentation.

These benefits only reach their full potential once the process is supported digitally. A combination of an owner portal with self-service access, automatic document generation, and structured templates shifts 50 to 70 percent of owner inquiries from phone calls to the portal, asthe right software solution for property managers demonstrates.

How does a circular resolution differ from an in-person meeting?

Criterion · Circular Resolution · In-Person Meeting

Location · Location-independent, in writing or digital · Fixed meeting venue

Organizational effort · Low to moderate · Higher, including scheduling

Discussion among owners · Limited · Direct and possible in real time

Documentation · Recorded in the resolution log · Recorded in the resolution log

Best suited for · Simple, urgent, or uncontroversial matters · Complex or contentious matters

How can circular resolutions be implemented digitally?

Many property management companies now rely on digital owner portals through which billing statements, resolution logs, and meeting invitations can be accessed. Combined with AI-supported minute-taking, the time needed for follow-up work can be significantly reduced.

For sensitive documents, such as credit checks or separate property management records, an additional access restriction per owner is needed. Owner portals themselves are covered under the performance of a contract basis pursuant to Art. 6(1)(b) GDPR. Companies that roll out the process in a structured way and involve their data protection officer early on avoid having to make corrections later.

Why is the circular resolution worthwhile for growing property management companies?

Operational pressure from staff shortages and rising demands leaves many property management companies with little alternative, in the medium term, but to digitize their administrative processes. A digitized circular resolution is a small but effective building block for handling owner inquiries and administrative tasks more efficiently, without having to hire additional staff.

Conclusion: Is the circular resolution worth it?

For many property management companies, the circular resolution is a practical tool for making simple or urgent decisions faster and without an in-person meeting. Combined with digital portals and automated document generation, it becomes a genuine efficiency lever. Companies that implement it in a structured way, with data protection in mind, free up time for the truly complex tasks in day-to-day operations.

Frequently asked questions

Is a circular resolution legally binding?

A properly executed circular resolution is generally binding and is entered into the official resolution log.

Which matters are especially well suited to a circular resolution?

Circular resolutions are best suited for simple, uncontroversial, or urgent matters where an in-depth discussion at an in-person meeting isn't strictly necessary.

Can circular resolutions be handled digitally?

Yes, many property management companies now use digital owner portals to manage voting, documentation, and follow-up for circular resolutions, which significantly cuts down on manual effort.

What happens if not all owners agree to a circular resolution?

If sufficient owner approval isn't reached, the resolution generally does not take effect. The management company can then bring the matter up again, for example at a regular owners' meeting.

This article was produced with AI assistance and reviewed by a human editor.

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