One in five Dutch homeowners associations has no money for critical maintenance

Almost 20 percent of homeowners associations, or VvE’s, in the Netherlands currently lack sufficient reserves to cover essential maintenance in the coming years, according to research by Vereniging Eigen Huis. Many associations reportedly save too little on a structural basis, putting them at risk of deferred maintenance.

The situation is described as "especially concerning" amid the government’s push for sustainability upgrades for VvEs. For more than half of associations, completing major maintenance is a prerequisite for starting sustainability measures. While 56 percent have already implemented some upgrades, these mostly involve LED lighting in communal areas. Large-scale sustainability projects, such as insulation and sustainable installations, reportedly remain largely unaddressed.

Vereniging Eigen Huis is calling on the Ministries of Housing and Climate to expand current loan options so that maintenance and sustainability can be tackled together. Loans must also be more accessible to apartment owners who cannot afford rising costs, to prevent financial hardship or forced sales of apartments.

Financial pressure on associations has reportedly increased sharply. The average monthly VvE contribution rose by sixty-five euros over the past five years, reaching 270 euros per month. In 13 percent of cases, monthly contributions rose between 100 euros and 200 euros, and in 4 percent of cases, the increase exceeded 200 euros.

Despite rising costs, 65 percent of apartment owners said they are willing to pay more for proper maintenance. Still, 18 percent of VvE’s do not have enough money in their reserve funds to cover necessary repairs. Almost one-third of owners, or 29 percent, worry about the long-term affordability of contributions, and for 3 percent, the current fee is barely manageable. Vereniging Eigen Huis reported some residents have faced increases of up to 500 euros over five years, generating significant concern.

Many homeowners see improved financing as a solution. Fifty-six percent believe borrowing for major maintenance should be more accessible for VvEs. Existing loans, such as those offered through the Nationaal Warmtefonds and SVn, primarily target sustainability or large associations and often do not jeopardize the financial capacity of owners.

Cindy Kremer, director of Vereniging Eigen Huis, said, “Current loans must be made much more available for maintenance and smaller VvE’s. When the roof is leaking or the window frames are rotting, that is the first priority for a VvE. Sustainability can then be smartly linked—for example, by insulating the roof when replacing it or installing high-efficiency glass in new windows.”