Before purchasing an apartment it is crucial that the VvE works efficiently. This body provides maintenance on common areas like hallways and stairwells as well as maintaining a reserve fund to cover major work, while creating rules and regulations.
Service costs from owners are also managed through this structure and any home insurance policies for the building should they exist. Be sure to read meeting minutes and verify whether there is enough money in reserves.
Maintenance
As soon as you purchase an apartment in the Netherlands, you are automatically enrolled into a VvE (Vereniging van Eigenaren or Owners’ Association). Your financial contribution to this association is mandatory – failure to do so may result in you losing it altogether.
The VvE fee covers maintenance expenses such as garden care, cleaning of stairwells and elevators and building insurance premiums. Landlords may pass these VVE Servicekosten onto tenants if stipulated in the rental agreement.
An effective VvE improves the living experience in shared buildings and can reduce expenses for maintenance and repairs, so when evaluating one it’s essential to take several factors into consideration:
Insurance
In case of unexpected maintenance costs, it’s essential that a VvE have sufficient financial reserves. As per legislation, they should strive to save at least 0.5% of its insured rebuilding value each year.
Matrixian research indicates that many VvEs do not adhere to this legal minimum threshold and therefore, large and unexpected costs could be passed onto individual homeowners.
As a prospective owner, it is crucial that you understand how your VvE operates and its policies. Take time to check that there are sufficient financial reserves, meetings are managed effectively and a multi-year maintenance plan (meerjarig onderhoudsplan) drawn up. Furthermore, ask about its building insurance policy as well as whether co-insurance exists; Alpina offers an all-encompassing Actiefvve VVE package with mandatory building insurance, liability and legal expenses coverage options available – you could choose glass insurance, directors’ liability or legal expenses coverage!
Cleaning
Living in a shared apartment building or complex often necessitates paying for VVE services, often included as part of monthly rent payments to your landlord. One question often raised in relation to passing on these costs to tenants resides on whether you may pass them along as contribution or not; according to court case ruling from Amsterdam Subdistrict Court this was permitted as long as such contributions solely involved user costs.
All owners are required to become members of the VVE (Vereniging van Eigenaren, Owners’ Association). This means they share in responsibility for maintaining the entire building or complex, contributing to maintenance costs as part of a collective responsibility agreement.
The VVE is accountable for formulating and enforcing internal regulations which set rules regarding noise nuisance, pets and the use of common areas. They also oversee building management as well as cleaning common areas like hallways, stairwells, elevators and the roof.
Electricity
A properly functioning VvE ensures shared areas such as hallways, stairwells and parking lots are safe and functional, improving quality of living and financial health of your building. A strong VvE can also assist in the application process for mortgage loans as some lenders factor VvE contributions into maximum mortgage amounts when calculating maximum loans amounts.
As an owner, you are required to pay a monthly contribution to the VvE in accordance with subdivision deed and division regulations. The amount is calculated based on fractions that represent your share in VvE.
Of course, electricity costs also include both delivery and commodity charges – the former is set by your provider as a fixed rate per kWh used, while commodity charges represent your total usage in an accounting period. Being aware of these additional costs will help prevent any unpleasant surprises when your bill arrives!
