Maintenance Reserve Fund (Instandhaltungsruecklage)
Maintenance reserve fund (Instandhaltungsruecklage) for condominiums in Germany: obligation, appropriate amount, and what buyers should consider.
Management
§ 19 Abs. 2 Nr. 4 WEG
Also known as: maintenance reserve, repair reserve fund, sinking fund
The maintenance reserve fund (Instandhaltungsruecklage) is a capital reserve for future maintenance work on common property under German condominium law. As a rule of thumb, annual contributions of approx. 7-10 EUR/sqm for new buildings and 10-15 EUR/sqm for older buildings are recommended. The reserve belongs to the homeowners' association (WEG) as an entity and does not transfer proportionally to the buyer upon sale. (§ 21 Abs. 5 Nr. 4 WEG)