How Much Must Your VvE Save? Reserve Fund, MJOP, and the 0.5% Rule Explained
If you own an apartment in the Netherlands, you are automatically part of a VvE (Vereniging van Eigenaars). By law, every VvE must have a reserve fund (reservefonds).
This is the savings account of the association. It is used only for major maintenance (groot onderhoud), the big jobs such as roof replacement, painting the façade, or repairing balconies.
But how do you know how much money should go into this fund?
The law gives two options:
- Save according to a Meerjarenonderhoudsplan (MJOP, multi-year maintenance plan)
- Or, if you don’t have an MJOP, save at least 0.5% of the building’s rebuild value (herbouwwaarde) each year
Here’s what that means in practice.
The Reserve Fund – Always Required
The reserve fund is mandatory for every VvE, no matter how small. It cannot be used for daily costs like cleaning, gardening, or small repairs. Those belong in the annual budget.
For small associations (for example, 2–6 apartments), it’s common to underestimate future costs. But even small buildings need to save, roofs, paintwork, and balconies all wear out over time.
Option 1: Saving with an MJOP
An MJOP is a plan, usually prepared by a building expert, that looks ahead 10 years or more. It sets out:
- Which repairs will be needed
- When they are likely due
- How much they will cost
If your VvE has an MJOP, you are required to save according to its advice.
Advantages of an MJOP:
- Based on the real condition of your building
- Spreads costs fairly over time
- Avoids sudden one-off payments
- Increases trust from banks and potential buyers
For small VvE’s, an MJOP can feel like extra work or cost, but it usually pays off. It gives a clear picture of upcoming expenses and helps avoid unpleasant surprises.
Option 2: Saving 0.5% of the Rebuild Value
If your VvE does not have an MJOP, then you must save at least 0.5% of the rebuild value (herbouwwaarde) of the building each year. The rebuild value is the cost to rebuild the property if it were destroyed, and it is listed on the building insurance (opstalverzekering).
Example
- Rebuild value: €2,000,000
- Required annual savings: €10,000
Advantages:
- Very simple to calculate
- Guarantees a minimum level of savings
Disadvantages:
- Not tailored to your building
- May be far too low for older buildings or if a major repair is coming soon
For small VvE’s, the 0.5% rule can feel manageable, but it is often not enough if, for example, a roof replacement is expected within a few years.
Why an MJOP Is Usually Better
The 0.5% rule is a minimum requirement. It’s a safety net, but it doesn’t look at your building’s specific needs.
Without an MJOP, small VvE’s often save too little. When major work comes up, owners are faced with large one-time bills, sometimes thousands of euros per apartment. With an MJOP, the costs are planned and distributed more evenly.
Key Takeaways
- Every VvE, no matter how small, must have a reserve fund.
- You must either:
- Save according to a multi-year maintenance plan (MJOP), or
- Save at least 0.5% of the rebuild value each year if no MJOP exists.
- For small VvE’s, an MJOP is strongly recommended. It gives clarity, helps prevent disputes, and protects both your apartment and its value.
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Buur Ben•Jun 24, 2025