Rent reserve in an apartment building: maintenance, accounts and price

In an apartment building with older tenancies, a rent reserve may matter for maintenance, accounting and the purchase price. Buyers should not look only at a current surplus. The relevant questions are how the reserve arose, which expenses it covers and which documents support its use.

Separate the reserve from current income

A rent reserve is not simply a freely available income figure. For a review under section 20 MRG, the account, affected tenancies and maintenance expenditure must fit together. A balance without supporting documents is of limited use in a transaction.

The article on maintenance works covers the building side. This article focuses on the link between accounts, reserve and price.

Support accounts and maintenance costs

The data room should connect accounts, invoices, payment evidence, resolutions and open orders. It should also be clear whether a cost has been paid, commissioned or remains to be allocated.

A reserve may inform the economic assessment, but it does not replace a review of the underlying obligations. Service charges and maintenance must be separated, as explained in the service-charge review.

Do not derive price from one figure

The contract should state who receives the economic benefit of an existing balance and who funds open maintenance works. The effective date, invoice allocation and document delivery must work together.

If the figures are incomplete, disclosure, a guarantee or an agreed price adjustment may be appropriate. A general assumption of all historic liabilities does not create a clear allocation.

Newsletter and next steps

Receive new articles and legal updates through BRANDaktuellen Rechtsnews. For the review, provide accounts, invoices, leases and the draft purchase agreement together.