Renovation fund and value of a share

Renovation fund

The creation of a renovation fund is not required by law. However, if the regulations provide for the establishment of a renovation fund, this provision must be complied with. It is advisable to create the renovation fund already in the first year after completion of the property. The contributions paid in are earmarked and serve to maintain the value of the property. They are intended in particular for future renovation work, such as on the roof, building technology or on the building envelope.

The amount of the contributions of the condominium owners is determined by the respective value of their shares in the overall property, whereby the total amount is, in turn, based on the value of the building insurance and should amount to approximately 0.5 percent of this value. In principle, the assembly of the owners decides on the use of the funds in the renovation fund according to the same quorums that otherwise apply to such decisions.

Value of a share

The value share in the condominium corresponds to the proportion of a residential unit in the total value of the property, the calculation being based on the raw areas. The value shares of the individual units are recorded in the deed of constitution. The following criteria are suitable as determining factors for the calculation of the value share and are recognised as common practice:

• size of the rooms included in the exclusive right according to area or according to volume 

     if the rooms are of different heights

• size of the ancillary rooms, for example cellar compartments, hobby rooms, 

     laundry rooms, etc.

• the area of parts of the building for which a right of exclusive use exists, such as car 

     parking spaces, parts of the garden parts, terraces, etc.

Living areas are given more weight than ancillary rooms under exclusive right, the use of which is limited in comparison with living areas. The value share of condominiums can be weighted and refined with further factors. The additional criteria and their weighting always apply to a particular property and cannot be transferred from one building to another easily. These include:

• height of the storey
• view
• exposure to the sun
• location in the building
• number of open and closed rooms (especially wet rooms)
• access
• emissions, such as road noise
• room layout

The condition and individual pieces of equipment within the exclusive rights units, for example kitchen appliances, bathroom facilities or floor coverings, have no influence on the value share. They are not permanent and, like the furniture, can be replaced at any time when the owner desires so. The value share would have to be adjusted every time a change is made to the interior. Moreover, the individual equipment has rather little weight in relation to the total value of the property (building including floor).