Maintenance reserve: how much is adequate?

What the law requires

Proper management includes building up an adequate maintenance reserve (§ 19 (2) no. 4 WEG). What is adequate depends on the building: age, condition, size and equipment such as a lift or underground car park.

Rules of thumb are only a start

Calculation models such as the Peters formula derive an annual amount per square metre from construction costs. Such values help with orientation but do not replace a look at the actual building.

A maintenance plan is more reliable: which components are due in the next ten to fifteen years, and what are they likely to cost? Roof, façade, windows, heating and pipework are the big items.

Saved too little?

Then a larger project leaves only the special levy, and that does not hit every owner equally. Raising the contribution step by step is usually the gentler route.

Good to know: the reserve belongs to the association, not to the individual owners. An owner who sells gets nothing paid out of it; the buyer simply joins the association. A notional share of the reserve is often stated in the purchase contract, but according to the Federal Fiscal Court it does not reduce the real estate transfer tax.

For landlords: the contribution to the reserve is not yet a tax-deductible expense. The amounts only count as income-related expenses once the association actually spends them on a measure.