MYHOME REAL ESTATE - THE ORIGINAL SINCE 2014
In Forchheim and the Forchheim district, many condominium owners’ associations (WEGs) face a common challenge: their maintenance reserve is too low to finance upcoming repairs. The 2020 WEG reform clarified the legal framework governing reserves but did not establish specific minimum amounts. Owners who are familiar with the new legal framework and practical calculation rules can make informed decisions about funding their reserve and avoid surprises in the form of special assessments.
The 2020 WEG Reform replaced the term “maintenance reserve” with “preservation reserve.” This is not merely a renaming: Under the new WEG (Section 19(2)(4) WEG, as amended), the term “maintenance” encompasses both maintenance (prevention of damage) and repair (remediation of damage). The reserve is thus intended for a broader range of measures.
According to § 19(2)(4) WEG (as amended), an “adequate maintenance reserve” is part of proper management. The owners’ association must determine what is adequate by resolution-it may consult with experts (property manager, building inspector) in doing so. A resolution that provides for a reserve fund that is obviously too low-such as €100 per unit per year for a 30-year-old complex-can be challenged, as it violates the requirement of proper management.
The legal framework for the reserve fund is intentionally kept flexible: Not every WEG has the same maintenance needs. A new residential complex in Forchheim-Reuth requires a different reserve fund than an older building from 1965 in the city center. The appropriate amount must therefore be determined on a building-specific basis.
The Forchheim Local Court has jurisdiction over WEG disputes arising in the Forchheim district. The Bamberg Regional Court serves as the court of appeals-a regional peculiarity, as Forchheim belongs to the Bamberg Regional Court district, not to the Nuremberg-Fürth Regional Court. This is relevant for owners seeking legal advice in the event of disputes.
There is no legally prescribed minimum amount for the maintenance reserve. In practice, owners and property managers use various valuation approaches as a guide:
| Building age | Reserve guideline (% of building replacement value/year) | Note |
|---|---|---|
| New construction (< 10 years) | 0.3-0.5% | Little maintenance needed yet |
| Young existing property (10-25 years) | 0.5-0.8% | First elements nearing end of service life |
| Mid-age existing building (25-40 years) | 0.8-1.2% | Roof, heating, and windows often due for replacement |
| Older existing building (40-60 years) | 1.0-1.5% | High maintenance needs expected |
| Old building (> 60 years) | 1.5-2.0% | Particularly high maintenance requirements |
Source: WEG Act (as of the 2020 WEG reform + 2026 adjustments), BGB, GNotKG table, Bavarian Justice Portal, Nuremberg/Fürth/Erlangen Land Registry, as of Q1/Q2 2026.
For Forchheim condominium associations (WEGs) built in the post-war period (1955-1975), this means, based on a typical replacement cost of €1.0-1.5 million, an annual reserve of €10,000-22,500 for the entire community. Converted to an 80-m² apartment, this amounts to approximately €100-225 per month in maintenance fees for the reserve fund alone, based on 10 units.
A professional approach is to have a building expert create a maintenance plan. This expert documents the condition of all building components, estimates their remaining useful life, and calculates the annual reserve requirement based on specific replacement cycles (roof every 30-40 years, heating system every 20-25 years, elevator every 25-30 years). Such plans cost €2,000-5,000 for a typical apartment building, but they prevent costly surprises in the long term and simultaneously provide a reliable basis for decisions.
According to Section 27(5) of the WEG (as amended), the property manager must maintain the administrative assets-which include the maintenance reserve-separately from personal assets and other holdings. In practice at Forchheimer Hausverwaltungen, this means: Reserve funds are held in a separate joint account in the name of the WEG.
The European Union’s deposit insurance (up to €100,000 per depositor and institution) protects the reserve up to this amount. For larger reserve balances, it is advisable to distribute them across multiple banking institutions to ensure full protection. Many Forchheim condominium associations began spreading their reserves across multiple banks following the inflation of 2022-2024.
> The valuation tool from leadmarkt.ch provides you with a current estimate of the market value of your Forchheim condominium-including a comparison with properties having different reserve balances.
Safe investment options for the maintenance reserve include money market accounts, short-term fixed-term deposits (up to 24 months), or government-guaranteed securities (§ 1807 BGB). Investments in stocks, mutual fund shares, foreign currencies, or cryptocurrencies are not permitted, as these are incompatible with the requirement for safe investment. The rise in returns on fixed-term deposits in 2021-2022 has contributed to many WEG reserves now earning minimal interest; however, the primary function of the reserve is not capital investment but rather maintaining liquidity for maintenance measures.
Since the 2020 WEG reform, every condominium owner is entitled, pursuant to Section 27(1)(7) WEG (as amended), to inspect the administrative records, including the bank statements for the reserve account. Owners should actively exercise this right-knowing the current reserve balance is crucial, especially when making purchase decisions.
If the maintenance reserve fund of a Forchheim condominium association is too low, there are two ways to replenish it:
The special allocation is a one-time, additional payment that goes directly into the reserve fund. It is determined by a resolution of the owners and immediately increases the available liquidity for future measures. Unlike a special assessment, the special allocation does not cover a specific ongoing measure but serves to build a strategic reserve. The tax treatment of the special allocation is favorable for owners who rent out their units: The payment is deductible as business expenses as soon as the funds are spent on actual maintenance measures.
The increase in the current maintenance fee raises the monthly reserve contribution in the budget plan. This method builds up the reserve gradually but burdens the owners with a higher monthly contribution on a permanent basis. For a condominium association (WEG) that wishes to increase its reserve fund from €50,000 to €150,000 and has five years to do so, this results in a necessary additional payment of €20,000 per year, or €1,667 per month for the association; with 10 equivalent units, this amounts to an additional €167 per apartment per month.
Owners looking to purchase an apartment should check the reserve fund balance and the budget plan before buying. A low reserve fund in an older building is a warning sign, as special assessments or special allocations may soon be required. This is a common problem in older buildings in Forchheim from the 1960s and 1970s.
The city of Forchheim and the Forchheim district are part of the Nuremberg metropolitan region but are administratively assigned to the Bamberg Regional Court district. Consequently, the Bamberg Regional Court has jurisdiction over WEG proceedings in Forchheim, not the Nuremberg-Fürth Regional Court. This particularity is relevant for owners seeking legal assistance or contacting attorneys in the event of disputes.
In recent years, Forchheim has developed into an attractive residential location for commuters to the metropolitan region. Its proximity to the A73 and rail connections to Nuremberg and Bamberg ensure stable real estate prices. The Forchheim Appraisal Committee has reported purchase prices of €2,200-3,400 per square meter of living space for existing condominiums for 2025.
In this market environment, a well-funded maintenance reserve has a positive effect on the purchase price: buyers know they can expect no special assessments in the coming years. Conversely, an insufficiently funded reserve is viewed by informed buyers as a hidden risk and factored into the price as a reduction. Experienced buyers request access to the annual statement and the current reserve balance before purchasing and have these confirmed by the property manager.
The WEG maintenance reserve is not a bureaucratic requirement but a strategic tool for preserving the value of the common property. An adequate allocation-based on the building’s age and a professional maintenance plan-protects against unexpected special assessments and enhances the marketability of condominiums in Forchheim.
Before you take action as a buyer or seller in Forchheim, it’s worth using the valuation tool from leadmarkt.ch-it takes local market data into account and provides you with a realistic valuation, including in the context of maintenance reserves and the condition of the common areas.
Since the 2020 WEG reform, the creation of a maintenance plan has been enshrined in § 19 (2) No. 1 WEG. While the plan is not an absolute legal requirement-it can be rejected by a majority vote of the owners’ association-it serves as the technical basis for appropriate reserve funding.
A professional maintenance plan covers all relevant building components (roof, facade, windows, heating system, elevator, common utility lines), estimates their remaining useful life, and determines the annual reserve allocation required per unit. In practice among Forchheim’s WEGs, such plans are frequently prepared by experts from the BVFI Association of Experts or the IVD Bavaria.
Starting in 2026, there will be another change: The Federal Ministry of Housing, Urban Development, and Construction has published recommendations for minimum reserve fund contributions based on the building’s year of construction. For buildings constructed before 1980, a minimum reserve fund contribution of €1.0-1.5 per square meter of living space per month is recommended. For an 80-m² apartment in an older building in Forchheim, this amounts to 80-120 euros per month-significantly more than is typically set aside in many places.
Homeowners’ associations that fall short of this guideline should vote on increasing the reserve fund at their next meeting. The property manager is obligated to point out insufficient reserves (Section 26(1) WEG).
An important question when buying a condominium in Forchheim: Do you receive the proportionate share of the maintenance reserve that the previous owner contributed?
The answer is yes-but with an important caveat: The maintenance reserve belongs to the WEG, not to the individual owner. When a unit is sold, the seller’s rights are transferred to the buyer-who assumes all of the seller’s rights and obligations, including the share of the maintenance reserve. The seller is therefore not paid out the reserve; rather, the buyer implicitly assumes it.
The reserve is sometimes explicitly taken into account during price negotiations: If the HOA has a particularly large reserve (e.g., a total reserve of 50,000 euros for five units), the buyer can argue that, in addition to the purchase price, they are also purchasing a significant share of the reserve. Conversely, a very low reserve fund can lower the price, as the buyer knows they can expect high special assessments in the coming years.
Buyers in Forchheim should request the current reserve fund balance and the planned budget from the property manager before the notary appointment. Equally important: the minutes of the most recent owners’ meetings, which detail any announced special assessments or planned major repairs.
Compiled by the my-home.de editorial team in collaboration with regional real estate analysts. Data as of: Q1/Q2 2026.
The WEG does not specify a statutory minimum amount. As a rule of thumb, 0.8-1.5% of the building’s replacement cost per year is considered reasonable. For a typical apartment building in Forchheim with a replacement cost of €1.2 million, this would amount to €9,600-18,000 annually for the entire community.
Under Section 27(5) of the German Condominium Act (WEG), the property manager must invest the condominium’s assets, including the maintenance reserve, in a secure manner. Secure investment options include money market accounts, time deposits, or government bonds held at banks covered by deposit insurance. Speculative investments are not permitted.
The maintenance reserve is part of the community’s assets and remains with the community. A seller cannot withdraw their calculated share of the reserve. However, the size of the accumulated reserve affects the purchase price-a well-funded reserve adds value for buyers.
No. The maintenance reserve is earmarked for maintenance and repair work. Using it to cover ongoing operating expenses is not permitted and may give rise to claims for damages against the property manager.
A special allocation is a one-time payment made in addition to the regular maintenance fee, intended to quickly replenish the maintenance reserve. It is established by a resolution of the owners and should be distinguished from a special assessment: the special allocation goes into the reserve, while the special assessment covers immediate expenses.
Responsible Editorial
myhome Redaktion
Note on content
This guide article serves as general information about the real estate market in Nuremberg and the surrounding region. It does not replace individual tax advice, legal advice, or expert valuation in specific cases. For binding information, please contact a tax advisor, attorney, or certified appraiser.
Market data, prices, and statutory provisions may change at short notice. Despite careful research, we assume no liability for the accuracy, completeness, or timeliness of the content.
Article as of March 11, 2026
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