The VvE reserve fund: has enough been saved?

Why a reserve fund exists

A building wears out predictably. A roof lasts thirty years, window frames twenty, a lift twenty to twenty-five. Those expenses are not a surprise, they are simply large. The reserve fund exists to spread them: everyone pays in a little each month, so the money is there when the roof needs replacing. Without a fund the full bill lands at once, split between whoever owns the apartments at that moment. If you have just bought, you are one of those owners.

What the law requires

Since 2018 a reserve fund has been compulsory for every association. The law gives two ways to determine the annual contribution:

• At least 0.5% of the rebuild value of the building per year, or
• an amount that follows from a current long-term maintenance plan: an MJOP that is no more than five years old.

The second route is the better one: 0.5% of the rebuild value is a crude rule of thumb that can be generous for a well-maintained new building and far too little for an old property with deferred maintenance. From 1 January 2026 it is also checked more strictly whether an association actually has a current maintenance plan, municipalities, insurers and lenders look at this more closely than they did a few years ago.

The calculation you can do yourself

You do not spot underfunding from the balance, but from the ratio between balance and plan. Do this:

1. Take the MJOP and find the expenditure planned for the coming ten years.
2. Take the annual accounts and find the current balance of the reserve fund.
3. Check how much is paid in each year (it is in the budget).
4. Work out: current balance + (annual contribution × 10) against the expenditure planned over those ten years.

If that leaves a shortfall, it is not a theoretical risk but an upcoming extra levy. Divide the shortfall by the number of apartments and you have an indication of what it will cost you. Bear in mind that the split is usually not equal but follows the fractional shares in the deed of division, a larger apartment pays a larger share.

Signs of underfunding

• The fund has fallen in recent years without any major maintenance having been done. Then the fund is being used to cover operating deficits.
• There is no MJOP, or it is more than five years old. Then every contribution is a guess.
• There is an MJOP, but the contribution follows the 0.5% route while the building is old. That is legally allowed and in practice often insufficient.
• Large items sit just beyond the planning horizon. An MJOP running to 2031 with a roof replacement in 2032 looks calm and is not.
• There are payment arrears. If some of the owners do not pay, the contribution to the fund does not come in, however good the budget looks.

What if the fund is too small?

A reserve fund that is too small is not an absolute reason to walk away from the property, it is a reason to price it in. You have roughly three options: negotiate on the asking price with the substantiated shortfall in hand, ask whether the seller will cover an announced one-off levy, or buy the property deliberately with a reserve in your own budget. What you do not want is to find out after the transfer.

This article is general explanation, not legal or financial advice. Where large amounts are involved, it pays to have your notary or an association specialist look at the documents.