Maintenance reserve

The maintenance reserve is a financial cushion that is saved by all owners of an owners' association. This means that each owner pays in a portion every month. The money saved is then used for maintenance measures on the communal property, i.e. when the facade needs to be repainted, the roof replaced or the heating system replaced.

The maintenance reserve is part of the house fees. This means that it is not something you can pass on to your tenants. The amount of the monthly reserve payment is not fixed by law. Normally, the property management proposes an amount, which is then accepted or rejected by the owners' association. The amount depends mainly on the age of the property. The older a building is, the more likely it is that renovations or modernizations will have to be addressed, obviously. Amenities are also a factor: the more luxurious, the more costly it is to maintain.

If it turns out at the end of the business year that payments into the maintenance reserve were too high, the owners' association can decide to reduce them. Conversely, if the maintenance reserve is not sufficient to pay for an upcoming roof renovation, for example, all owners are required to make a special payment to make up the difference. The basis for the amount of this special contribution is then your share of the common property according to the declaration of division. This means: If you own 10% of the common property, you also pay 10% of the outstanding amount.