Service charges for an apartment

The key points at a glance

When you buy an apartment, there's a good chance you'll pay service charges, for example for a lift or a parking garage you can use.

1. What are service charges for?

Service charges cover a number of different things and vary depending on the Vereniging van Eigenaren (VvE, the homeowners' association) you're automatically a member of. There are no legal guidelines for what must be included, so it's worth looking into this carefully before you buy. You pay your share of the shared costs for the building, such as cleaning the stairwell, maintaining and repairing the lift.

You also pay for things like heating the shared areas and any collective insurance policies. In particular, the buildings insurance (opstalverzekering) for the complex plays an important role, as it covers damage to the building. There may also be glass insurance in place, for example.

2. Maintenance and the level of service charges

There are no legal guidelines for what elements make up service charges, but there are guidelines for maintenance. Every VvE is required to maintain a reserve fund to pay for major maintenance work. This fund can be used for things like replacing the sewage system or the roof, which require significant investment. A VvE can decide to charge for the reserve fund separately or to include it in the service charges. The level of service charges mainly depends on the age and condition of the building and the facilities it has.

3. Current payment and reserve status

If you're thinking about buying an apartment, it's a good idea to check whether there are any arrears on service charge payments. Did the previous owner pay on time, or is there an outstanding bill? There's a chance you could end up being responsible for it, so check with the VvE board or the property manager directly. It's also worth finding out how the VvE's reserve fund for major maintenance is doing: is there enough money in the pot, or will there be a new funding round soon to top it up?

4. Calculating your mortgage with service charges

Bear in mind that service charges affect your income and expenditure, which means they can influence the calculation of your maximum mortgage. A provider looks at your (gross) income and then at your outgoings, such as any existing credit commitments. What's left over determines the budget available for your monthly costs.

If service charges are high, this reduces your available monthly budget. So high service charges can lower your maximum mortgage, which is something to factor in alongside the other additional costs of buying a home.

Frequently asked questions

What are service charges?

Service charges are usually paid when you own an apartment and cover the shared maintenance of the building.

What are service charges used for?

Service charges generally cover repairs and maintenance to the building and collective insurance policies.

How high are service charges?

The amount depends on the age and condition of the building and what shared facilities are available.

Do service charges affect my maximum mortgage?

Since service charges increase your monthly costs, your maximum mortgage may be lower as a result.