1 November 2023
When Dutch VvE is financial healthy?
Robin Uijtdehaage
Client Director & Financial Specialist

To begin with, the VvE ( Vereniging van Eigenaren)is known as the homeowner association in the Netherlands. The primary objective of the VvE is to manage and maintain property owners' collective interests.

House owner associations have many obligations and duties that must be fulfilled yearly. For example, to manage property maintenance plans and finances, security of the building, maintenance of common areas, insurance and association regulations.

Reasons why healthy VvE is important: 

  • Property value: a well-managed VvE ensures that the common areas and the building are well-maintained. This, in turn, helps preserve the property values of all individual units within the complex.

  • Quality of living: common areas such as hallways, stairwells, and shared facilities like elevators, parking lots, and gardens contribute to the overall quality of life for residents. A healthy VvE ensures these areas are safe, clean, and functional, enhancing the living experience.

  • Personal financial stability is a critical pillar of a well-functioning VvE. When a VvE is in poor health, financial responsibility can rest squarely on individual property owners. For instance, if a major repair, like fixing a damaged roof or heating system, becomes necessary, the burden often falls on the shoulders of the homeowners. In this situation, you must have enough savings to cover the spending expenses. It is good to know that some mortgage lenders consider VvE when calculating the maximum mortgage.

  • Managing finances is a significant aspect of a VvE's responsibility. By collecting maintenance fees, budgeting for repairs and renovations, and investing wisely, a VvE ensures its financial stability. This financial security is essential for addressing unforeseen expenses and avoiding special assessments on property owners.

  • Conflict resolution: in shared living spaces, disputes can arise. A VvE provides a structured platform for resolving conflicts and disputes among homeowners. A fair and efficient system helps maintain a harmonious living environment.

  • Selling or renting a property: when selling or renting a property, potential buyers or tenants often scrutinize the condition of common areas and the overall health of the VvE. A strong VvE can make a property attractive to prospective occupants, potentially increasing rental income or resale value.

Requirements for VvE

What steps can be taken to ensure the well-being of a VvE?

  • Check if VvE is registered at the Chamber of Commerce.

  • Check if there is a fund for maintenance.

  • Read carefully all documents regarding apartment management. Check if the VvE meets all legal requirements.

  • Attend the VvE meetings or review the meeting minutes. Make sure to vote on the General Meeting (AGM), where VvE goes through everything. Keeping the initiative with the VvE will ensure you follow up on the most updated plan and actively participate in decision-making processes.

  • Check if the VvE has a long-term maintenance plan, particularly the funds reserved for the future. Owners' associations must follow one of two options: either have a comprehensive multi-year maintenance plan (MJOP) and accumulate reserves based on it, or set aside a minimum of 0.5% of the complex's reconstruction value each year.

To help you check these requirements, you can use the VvE meter from Stichting VvE-Belang as a checklist for evaluating the homeowners association's quality.

What are my obligations to comply with VvE?

The apartment building is a complex; individual property rights are created by dividing it into multiple homes.
The notary officially documents the division of property in a deed of division.

 Therefore, if you buy an apartment, you receive from the notary the act of division (splitsingsakte). The most important one from this deed is the division regulations, which outline your rights and responsibilities as the apartment owner, including how much each owner should contribute to the costs of expenses among owners.

Request maintenance plan

When you request a financial plan from your VvE, you gain valuable insights into the association's stability and long-term sustainability.

A multi-year maintenance plan (MJOP) is a comprehensive plan that outlines the maintenance requirements and associated costs for various building components, including the facade, roof, elevators, and window frames. You get a clear picture of the budgeting and future decision-making process. So, be proactive in the association and keep up with the board to know more.

Are you looking for guidance on mortgages?

Schedule a free call with our mortgage team

Meet the team
Sezer Yilmaz
Egle Kemezyte
Growth Marketer
Robin Uijtdehaage
Client Director & Financial Specialist
Lisa Grondsma
Financial Specialist