Another change will come into force on 1 July 2026, when the key issues will be whether residents of an apartment building know the technical condition of their property and whether they have prepared a long-term repair and maintenance plan based on it. If such a plan has not been prepared and approved, and the building is not in good condition, a coefficient may be applied to the minimum reserve contribution rate, increasing the mandatory amount by two to four times.
Andrius Soikinas, Head of Residential Development Projects at Civinity:
The minimum reserve contribution rate introduced in January was a signal for residents of apartment buildings to find out the condition of their property by the summer and agree on how it will be maintained over the coming years, or even decades. Today, it is important to understand that without a long-term repair and maintenance plan, the contribution rate may be determined not by the residents’ decisions but by the condition of the building itself, which is why it is particularly important not to lose control of this process.
The first step, from which everything begins, is an assessment of the building’s condition. This is not a mere formality or the property manager’s interpretation. The condition of the building’s engineering systems, roof, structures and other common areas must be periodically inspected by maintenance specialists.
A long-term repair plan cannot be conjured out of thin air: it must be based specifically on the condition assessment – what defects are already visible, what structural risks the building poses, what needs to be addressed first and what can wait. If it becomes clear today that the greatest risks involve the roof, plumbing, balconies or the heating system, this must be reflected in the plan. The plan is not a wish list – it must be based on technical expertise. When an apartment building skips this step, it essentially leaves its future expenses unmanaged.
It is also important to dispel a common fear: a long-term repair and maintenance plan is not an order for work. Some residents avoid it because they believe that as soon as the plan is approved, the administrator will immediately begin all the work outlined in it, and costs will suddenly skyrocket. However, this is not the case. A long-term plan is a road map for building maintenance spanning several years that allows for prior agreement on priorities, the sequence of work, preliminary costs and the pace of fund accumulation.
It is also essential to note that specific works must still be agreed with residents. They are not automatically started simply because a plan has been prepared. In practice, this means the plan allows decisions to be spread over time: some works may be carried out earlier, others later, depending on their importance and residents’ decisions. This helps avoid situations where a sudden fault or emergency requires a large sum of money to be collected urgently.
Soikinas:
Residents sometimes confuse a long-term plan with mandatory repairs that must be carried out immediately. In reality, the plan helps monitor the situation and make rational decisions over time. Without a plan, buildings often operate from one breakdown to the next, which almost always ends up costing more. That is precisely why, from 1 July 2026, the change in the contribution rate will depend not only on the minimum rate introduced at the beginning of the year, but also on whether the building has done its ‘homework’.
These changes are not intended to make residents pay more. They aim to ensure that older apartment buildings are not left with unresolved problems and that their condition is managed consistently. Renovated and newer buildings usually have fewer technical issues, so their maintenance needs are lower and the pressure to accumulate larger funds is less significant. However, even new buildings deteriorate over time, which is why they must also be maintained, monitored and have necessary works properly planned.
So, what needs to be done before 1 July? First of all, residents should find out when the building administrator or specialists appointed by the homeowners’ association conduct periodic assessments of the building’s condition, or arrange for one if they have not been conducted. It is important to know what has been identified, which defects are considered the most significant and whether the building’s condition is currently assessed as good, average or poor.
Second, residents should determine whether a long-term repair and maintenance plan has been prepared and approved based on this assessment. If not, it is important to initiate its preparation now rather than leaving it until the summer. Third, residents should participate in the vote and not be afraid of the plan itself – it does not automatically trigger repairs; it serves as a tool to prevent an automatic increase in the contribution rate from inaction.
Fourth, it is worth checking the current contribution rate the building is accumulating and whether it is sufficient for the actual work likely to be needed in the future.
Soikinas concludes:
Residents can, by mutual agreement, increase the contributions or – if there is no need – even reduce them to the minimum level. However, if they do not take the initiative, they will lose this option. They will have to accumulate the amount determined by the building’s condition and the status of the long-term repair and maintenance plan. When a community has clear answers to these questions, decisions become much calmer and more cost-effective.
From 1 July 2026, coefficients may be applied to the minimum reserve contribution rate:
Good condition – the rate remains at the base level;
Average condition – the rate may double;
Poor condition – the rate may triple;
Very poor condition – the rate may quadruple.
In practice, if the base rate is EUR 0.1025 per sqm, for a 50 sqm apartment the monthly contribution would be approximately EUR 5.13, EUR 10.25, EUR 15.38 or EUR 20.50, depending on the building’s condition.