The maintenance reserve is a German condo association's financial immune system: it decides whether a new roof is a resolution – or a crisis.
"Proper administration and use include in particular the accumulation of an adequate maintenance reserve."
— § 19 (2) no. 4 WEG (translated)
How much is "adequate"?
The statute is silent – practice uses two approaches:
- Peters' formula: (construction cost per m² × 1.5) ÷ 80 years ≈ annual reserve per m². At €2,500/m² that yields about €46/m² per year – ambitious but honest.
- Leaning on § 28 (2) of the II. BV: €7.10–11.50/m²/year depending on building age – best read as an absolute floor.
A forty-year-old building with deferred works needs several times what a well-kept new build does – the key is the maintenance plan: roof, heating, façade, elevator with remaining life and cost estimates.
Legal guardrails
- The reserve is earmarked: withdrawals for running costs are improper.
- It must be held separately from the operating account; the asset report (§ 28 (4) WEG) discloses the balance.
- For letting owners: contributions are not deductible when paid – only when actually spent on maintenance.
In the eigentumwerk dashboard, owners watch their reserve share build up continuously – which takes much of the terror out of special-levy debates at the meeting.