Property
MODERNIZATION + MAINTENANCE

Maintenance and modernization are two different types of measures on real estate that differ in their objective, scope, and legal and tax treatment.

maintenance

Maintenance encompasses all measures necessary to preserve the functional and usable condition of a property or, in the event of damage, to restore it. The goal is to maintain the desired condition.

Maintenance measures typically include:

• Maintenance (e.g. heating system inspection, cleaning of the gutters)

• Inspection (determination and assessment of the current state)

• Maintenance/repair (e.g., replacing a broken window pane, repairing the doorbell system, repainting the facade due to wear and tear)

• Improvement (in the sense of minor improvements that maintain the status quo)

modernization

Modernization, on the other hand, aims not only at preservation but also at improvement of the property. It brings the building up to a contemporary technical, energy-related, or functional standard, thereby increasing its value. Modernization is a structural alteration, for which, unlike maintenance, there is no legal obligation.

Typical modernization measures include:

• Energy-efficient renovation (e.g., insulation of the facade, installation of new, energy-efficient windows)

• Increased living comfort (e.g., installation of a modern bathroom, installation of an intercom system, addition of a balcony)

• Adaptation to current standards (e.g., installation of broadband cable connections)

Key differences

The main difference lies in the purpose of the measure:

• Maintenance preserves the existing condition and functionality.

• Modernization creates a new, better condition, increases value and improves comfort or energy efficiency.