The Peter formula is used for the estimation of the annual maintenance cost which can be expected by buildings.

According to this method the pure manufacturing costs (without property or development costs) with the factor 1.5 must be set be multiplied and of it about 65 to 70%, be divided then by 80 years. Basis of this calculation is it that within 80 years of the 1,5-fache value of the construction costses for the maintenance of the building results and of it about 65 to 70% on the Gemeinschaftseigentum. Thereby the height of a necessary annual supply is determined to the maintenance reserve with property living gene. If a landlord wants to determine the annual maintenance cost, also the maintenance cost for the dwelling are to be considered. Then may not be reduced to 65 to 70%.

'' Example: (Construction costses 1,500, - "€/m x 1.5 x 0.7): 80 years = 19.69 "€/m '' after this example would have with construction costses of 1.500, - "€ per year and square meter a maintenance reserve of annually 19.69 "€ per m to be taken into account. During a large dwelling that would correspond to 90 m annually to a reserve of approximately 1,772 "€.

With the example it is to be considered that 1,500 "€ construction costses per m are already very high without property and development costs. For 2002 was to be counted for instance on construction costses at a value of 1.200 "€ per m

Seuss points out however that this amount leads with recent property plants to superelevated maintenance reserves, which contradicts then also the principles of a normal administration. The formula own itself only for older plants. According to a rough rule of thumb professional association for residential property managers is appropriate with new installations an annual assignment to the maintenance reserve from 0,8 to 1.0% of the purchase price starting from completion of building.

Literature

• Peter; Maintenance and repair of residential property. Augsburg 1984
• Seuss; The free-hold flat. 1993
• Bear man/Pick/Merle; Residential property law. Munich 1997, P. 605

Articles in category "Peter formula"

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