Reserve fund: spending and oversight
The statutory minimum is not a financial plan for the building's future.
Published: 13 April 2026
Reviewed by: the Practic d.o.o. expert team
The reserve fund is the financial basis for the long-term maintenance of a building. The problem is not only a balance that is too low, but above all the lack of a realistic plan: owners often start talking about financing only when repairs are already urgent.
What is the reserve fund for?
The money is used for maintaining and improving common parts, repaying related loans and other permitted purposes. It is not the manager's money but earmarked funds belonging to the owners.
Who sets the contributions?
Regulations set a minimum contribution based on prescribed criteria, but the statutory minimum is not a financial plan for the building. With an older façade, roof, lifts or installations, a multi-year estimate of needs should be made and contributions adjusted to the actual projects.
A reserve fund must be set up by the owners of a building with more than two owners and more than eight units. The money is the common property of the owners, and by law the manager keeps it separately in a dedicated account (Property Code, Article 119 (opens in a new window)).
The minimum monthly contribution is calculated by multiplying the floor area of the flat or commercial unit by the amount for the building's age:
| Age of building | Minimum contribution (EUR per m² per month) |
|---|---|
| up to 10 years | 0.00 |
| over 10 to 30 years | 0.20 |
| over 30 to 60 years | 0.25 |
| over 60 years | 0.30 |
Example: for a 60 m² flat in a 45-year-old building, the minimum contribution is 60 × 0.25 = EUR 15 per month. After a complete renovation the building is treated as five years old, after a partial renovation as 20 years old (Rules on the criteria for the reserve fund contribution (opens in a new window), Articles 4, 6 and 7).
Who decides on spending?
Spending must have a proper legal and factual basis: a valid resolution, a maintenance plan, a contract or an urgent need to act. Before going ahead, the manager must check that the funds are available and that the decision was taken by the required majority.
How to ensure oversight?
Separate records and documents
For each building, income, expenditure, liabilities and the available balance must be visible. Every expense must be linked to an invoice, contract or other basis.
At Practic every building has its own reserve fund sub-account, so its money is kept separate from that of other buildings. Owners can view the balance, and on request we send the supervisory board a report on the state of the fund.
Comparable offers
For larger works, the scope, materials, deadlines and guarantees should be defined so that offers can actually be compared.
Regular reporting
Owners need not just an annual figure but an overview of planned obligations and risks. A high current balance is not a surplus if expensive works lie ahead.
From records to strategy
A good manager does not just record transactions; it helps owners set priorities, timing and realistic sources of financing.
Would you like a review of your reserve fund and maintenance plan? Write to Practic.
Sources and further information
- Management of multi-apartment buildings – GOV.SI (in Slovenian) (opens in a new window)
- Housing Act (SZ-1) – PISRS (in Slovenian) (opens in a new window)
- Property Code (SPZ) – PISRS (in Slovenian) (opens in a new window)
- Rules on the criteria for the reserve fund contribution – PISRS (in Slovenian) (opens in a new window)