The VvE contribution: what is in it, and when is it too low?
A low association contribution feels like an advantage when comparing apartments. Often it is the opposite: saving too little now means a bill later.
In short
- The VvE contribution consists of two parts: running costs and a contribution to the reserve fund.
- The split between owners follows the fractional shares in the deed of division, not the number of square metres.
- A strikingly low contribution usually indicates under-saving, not efficient management.
- The contribution is set each year by the general meeting and can therefore change after your purchase.
Where does your monthly contribution go?
The association contribution (also called service charges) covers two very different things:
- Running costs: buildings insurance, cleaning, energy for communal areas, lift maintenance, garden maintenance, administration and management fees, minor repairs.
- The contribution to the reserve fund: the savings portion for major maintenance.
That second part is where it gets interesting. With two equivalent apartments paying the same contribution, one may be saving €40 a month and the other €5. Over ten years and twenty apartments that is a difference of almost €840.000 in saved maintenance money.
How is the contribution divided?
Not by floor area, as many people think, but according to the fractional shares in the deed of division. Those were set when the building was divided and appear as, for example, 118/1000. That means you carry 11.8% of the shared costs. Fractional shares usually correlate with the size of the apartment, but not always, in older deeds they can diverge from the current situation, for instance after a conversion or a merger of units. So always check for yourself which fractional share belongs to your apartment; it also determines your voting weight in the meeting and your share in any one-off levy.
When is a low contribution a warning?
Never compare the contribution in isolation from the building. A few guiding questions:
- Is there a lift in the building? Lift maintenance and inspection are structurally expensive.
- How old is the property and when was the last major maintenance carried out?
- What share of the contribution goes to the reserve fund? Ask this explicitly; it is in the budget.
- Has the contribution been left unchanged for years while costs rose?
An association that has charged the same contribution for eight years while insurance, energy and contractors became considerably more expensive has not managed efficiently. It has pushed the correction ahead of itself.
What else do you pay, besides the association?
Do not forget that the association contribution does not cover everything. Maintenance inside your apartment is yours: kitchen, bathroom, boiler (if it is individual), interior decorating, floors. Exactly what is communal and what is private is set out in the deed of division, and with older deeds that sometimes works out differently than you expect, for window frames, balconies and sun blinds, for example.
Frequently asked questions
Is a high VvE contribution bad news?
Not necessarily. A high contribution of which a good share goes to the reserve fund means maintenance gets paid for without unexpected extra invoices. Always ask how the contribution is built up before calling it high or low.
Can the VvE contribution be increased after my purchase?
Yes. The general meeting sets the contribution each year when approving the budget. An increase does not need the consent of individual owners.
Why does my neighbour pay less when their apartment is the same size?
Because the split follows the fractional shares in the deed of division, and those were set when the building was divided. In older buildings they no longer always match the actual situation. Changing them is possible, but in principle requires the cooperation of all owners and a notarial deed.
Unsure about the documents for your dream home?
Analyse your property documents