Thin Planned Reserve Contribution
What does it mean?
The budget plans only a small annual contribution to the maintenance reserve per unit. For an older building this is weak forward funding — when a big repair (roof, façade, pipes) comes due, the reserve won't cover it and owners face a Sonderumlage (special assessment).
Is this a problem when buying?
Something to clarify before buying. Not an automatic deal-breaker, but worth checking.
What you should do as a buyer
Check the building's age and the current reserve balance against the planned contribution. A thinly-funded reserve is a leading indicator of a future Sonderumlage you may inherit.
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