Real estate

Building reserve: how it is determined and what it is actually spent on

18 September 2026 / Regent Split

Summary

The building reserve fund is a common financial reserve of all co-owners, intended for the maintenance of common parts — roof, facade, staircase, elevator, installations — and building management. Each co-owner pays a monthly amount proportional to their co-ownership share, and the funds are managed by the building manager according to the decisions of the co-owners. From 2025, the reserve fund will be regulated by a new Law on Building Management and Maintenance, which prescribes a minimum amount (0.54% of the benchmark construction price per m² annually) and introduces the community of co-owners as a legal entity. The reserve fund is not an expense that "disappears" but a common fund from which repairs are paid that would otherwise fall on an individual at an inconvenient moment.

Key facts

The reserve is a common fund of co-owners for the maintenance of common parts of the building and its management.
The minimum reserve amounts to 0.54% of the standard construction price per m² annually — about €0.36/m² per month.
From 2025, co-owners will form a community of co-owners, a legal entity registered in the Register of Communities of Co-owners.
The reserve is managed by the building manager, while key decisions are made by the co-owners, along with the co-owners' representative.
It is spent on common parts (roof, facade, elevator, installations), not on individual apartments.
When buying an apartment, it is worth checking the status of the reserve fund and any outstanding debts.

Every apartment owner in a building pays a monthly reserve fund, but few know exactly how its amount is determined, who decides on its spending, and what the money actually goes to. For many, the reserve fund is just an item on the bill — a cost paid "because it has to be," without a clear idea of what is received for it. This lack of knowledge leads to dissatisfaction and missed opportunities for co-owners to influence how the building is maintained.

In fact, the reserve fund is one of the fundamental mechanisms of common maintenance and, if well managed, directly protects the value of every property in the building. From working with clients, we see that the state of the reserve fund often determines the impression of a building when purchasing. In this guide, we explain what the reserve fund is, how its amount is determined, who manages it and by what rules, what it is spent on, and how it differs from utility fees — based on the Law on Building Management and Maintenance.

What is the Reserve Fund and What is its Purpose

The building's reserve fund is a common monetary reserve formed by all co-owners to finance the maintenance of common parts and equipment of the building, as well as building management. Common parts are those that do not belong to any single apartment but serve everyone — the load-bearing structure, roof, facade, staircase, elevator, common installations, entrance. Since these parts are used by everyone, it is logical that they are maintained from a common fund to which everyone contributes proportionally to their co-ownership share.

The purpose of the reserve fund is to ensure that money for maintenance exists when needed, instead of being collected for each repair at the moment of a breakdown. Regular monthly payments build a reserve from which both planned interventions and sudden malfunctions are paid, thereby distributing the cost of maintenance over time and among all co-owners. A well-filled reserve fund is actually a sign of a well-managed building.

Professional advice: Don't view the reserve fund as lost money, but as the building's common savings. When the roof or elevator needs repair, a well-funded reserve is the difference between calmly resolving the issue and an urgent extraordinary levy on all co-owners.

How the Reserve Fund Amount is Determined

The amount of the reserve fund is determined at two levels. The first is the legal minimum: according to the Law on Building Management and Maintenance (Article 29), the minimum reserve fund is 0.54% of the reference construction price per square meter of the apartment's value area annually. With the reference price applied to the reserve fund (796.34 euros per m², published in the Official Gazette), this is about 0.36 euros per m² monthly — for an apartment of 55 m², approximately 20 euros. If the building does not have an adopted maintenance program, a five-fold amount is paid, so it is worthwhile for co-owners to arrange the reserve fund's accumulation in time.

The second level is the decision of the co-owners: they can agree on a higher reserve fund than the minimum if the building requires more funds, which is often the case with older buildings or those planning larger investments. The amount paid by an individual co-owner is proportional to their co-ownership share, so the owner of a larger apartment generally pays more. The law also allows for a special provision: for business premises and special parts used for short-term rental, the co-ownership agreement can set a reserve fund up to twice as high as that paid by apartment owners.

Professional advice: If your building only has the legal minimum, and it is older or neglected, initiate a higher reserve fund. A slightly larger monthly amount today is almost always cheaper than an extraordinary levy for urgent remediation tomorrow.

Who Manages the Reserve Fund and Who Decides

From 2025, all owners of special parts form a community of co-owners — a legal entity that manages common property and is registered in the Register of Co-owner Communities. The collected funds are operationally managed by the building manager, to whom the co-owners are obliged to entrust management by contract; the manager is responsible for collection, the building's account, maintenance organization, and reporting. In addition to the manager, the building is also represented by a co-owner representative, who convenes meetings, coordinates the maintenance program, and oversees the manager.

It is crucial to understand the distinction: the manager executes, but decisions are made by the co-owners. For regular management tasks — including the amount of the reserve fund, selection of the manager, and taking out loans — a simple majority of co-ownership shares (Article 39) is sufficient. For investment maintenance and major interventions, a qualified majority greater than 80% is required, and for necessary repairs, the consent of more than one-third of co-owners. Co-owners have the right to inspect the building's account and the manager's annual report, thereby monitoring the targeted spending. Since contributions are divided proportionally to co-ownership shares, it is also worth understanding how the ideal part in co-ownership works.

Professional advice: Exercise your right to inspect the spending of the reserve fund and request the manager's annual report. The biggest cause of dissatisfaction with the reserve fund is the feeling that it is being paid "in vain" — and regular insight precisely eliminates or justifies that feeling.

What the Reserve Fund is Spent On and What Happens When It's Not Enough

The reserve fund is spent exclusively on the common parts of the building and its management, not on individual apartments. The law distinguishes between regular maintenance (service inspections, cleaning, elevator service, common lighting) and extraordinary maintenance, which includes emergency repairs, necessary repairs, and investment maintenance. The reserve fund also covers improvements such as roof or facade renovation, mandatory building insurance against basic risks, and fees for the manager and co-owner representative. The line is clear: the reserve fund covers common areas, while repairs within one's own apartment are borne by each owner individually.

Sometimes the reserve is not sufficient for a large or sudden intervention, such as an urgent roof renovation. In such cases, co-owners usually opt for additional financing — a temporary increase in the reserve fund, an extraordinary payment, or, for large interventions, a building loan repaid from future reserve funds. It is worth noting that taking out a loan for maintenance requires a simple majority, while large investment maintenance interventions require a high threshold of over 80% of co-owners — so planning ahead is crucial. A building with a thin reserve greets every major breakdown as a crisis, while one with a well-funded reserve absorbs such costs without upheaval.

Professional advice: When a malfunction occurs, first clarify whether it concerns a common part or your apartment — who pays depends on this. Boundary malfunctions, such as installations passing through multiple apartments, are the most common source of disputes, so clarify them with the manager.

The Reserve Fund is Not a Utility Fee

It is important to distinguish the reserve fund from the utility fee, with which it is often confused because both are paid in connection with real estate. These are two completely different charges. The reserve fund is a common reserve of co-owners for the maintenance of their own building — the money remains "within the building" and is spent on common parts, and it is managed by co-owners through the manager. It is not a public levy, but a common fund of private owners.

The utility fee, on the other hand, is a public levy paid to the local self-government unit for financing communal activities of broader importance — maintenance of public areas, public lighting, and similar. It does not go into the building's fund nor is it spent on the maintenance of the building itself. In short: the reserve fund maintains your building and is managed by co-owners, while the utility fee finances public services and is paid to the local self-government. More about this public levy is written in a separate guide on communal contribution and utility fee.

Professional advice: When you see both the reserve fund and the utility fee on your bills, know that you are paying for two different things — one for the maintenance of your own building, the other for public utility services. Confusing the two is a common source of misunderstandings about housing costs.

Reserve Fund When Buying and Selling an Apartment

The reserve fund is also relevant at the time of buying or selling an apartment, in a way that buyers often overlook. When buying, it is worth checking the state of the reserve fund and any outstanding debts: are there unpaid obligations of the previous owner, what is the state of the building's fund, and are major interventions planned that could mean future costs. It is also worth knowing that the manager has a statutory lien on a specific part of the building for advance payments for urgent and necessary repairs, so any encumbrances on the property should be checked before purchase. Such a check is best done as part of a property inspection before purchase.

For the seller, it is important that obligations towards the reserve fund are settled, as unpaid debts can complicate the sale and strain the relationship with the new owner. The state of the reserve fund is part of the building's "health" that affects the value and desirability of the property, so it is worth including it in the assessment of every transaction. Moving in is also followed by utility transfer after apartment purchase, which should be handled without delay.

Professional advice: Do you know the state of the reserve fund of the building you are buying? Request insight into the fund's status, any outstanding debts, and planned major interventions — a healthy reserve fund is a sign of a well-managed building, while an empty fund or announced renovation can mean significant costs soon after purchase.

How Regent Can Help You

The state of the reserve fund and how the building is managed are part of the property's "health" that directly affects its value. When buying, we help you check the state of the reserve fund, any outstanding debts, and planned interventions in the building, and when selling, to present the property with a clean status, so that you enter the transaction with a full picture of the costs.

See how buying or selling with Regent works, or contact us for a check before deciding.
Frequently Asked Questions (FAQ)
What is a building's reserve fund?
A building's reserve fund is a common monetary reserve of all co-owners intended for the maintenance of common parts and equipment of the building, as well as building management — roof, facade, staircase, elevator, common installations. Each co-owner pays a monthly amount proportional to their co-ownership share into it, and the funds are managed by the building manager according to co-owner decisions. The reserve fund is regulated by the Law on Building Management and Maintenance, effective from 2025.

What is the minimum reserve fund amount?
The minimum reserve fund is 0.54% of the reference construction price per square meter of the apartment's value area annually. With the reference price applied to the reserve fund (796.34 euros per m²), this is about 0.36 euros per m² monthly — for an apartment of 55 m², approximately 20 euros per month. If the building does not have an adopted maintenance program, a five-fold amount is paid. The amount is adjusted with each new publication of the reference price in the Official Gazette.

What can the reserve fund be spent on?
The reserve fund is spent exclusively on the common parts of the building and its management: regular maintenance (elevator service, common lighting and installations), emergency and necessary repairs, improvements such as roof or facade renovation, mandatory building insurance, and fees for the manager and co-owner representative. Repairs within one's own apartment are borne by each owner individually.

Who decides what the reserve fund is spent on?
Co-owners decide on the spending of the reserve fund, while the manager operationally implements the decisions. For regular management tasks, including the amount of the reserve fund and taking out loans, a simple majority of co-ownership shares is sufficient. For investment maintenance and major interventions, a qualified majority greater than 80% is required, and for necessary repairs, the consent of more than one-third of co-owners. Co-owners have the right to inspect spending and receive an annual report.

What is the difference between the reserve fund and utility fees?
The reserve fund is a common reserve of co-owners for the maintenance of their own building, managed by co-owners through the manager, and which remains within the building. The utility fee is a public levy paid to the city or municipality for financing public utility services, such as the maintenance of public areas and public lighting, and is not spent on the building itself. These are two different charges with different purposes and recipients.