If you’ve come across the term “PTS plan” in documents related to the housing transaction or heard about it from a broker, you’re not the only one wondering what it means. A long-term maintenance plan is a document that can significantly influence your decision to buy and your future housing costs. We explain why this plan is so important from a homebuyer’s perspective.
What does a PTS plan mean in practice?
A long-term maintenance plan is a document that sets out estimates of the future renovation needs of a housing company’s building and their costs. The plan is usually drawn up for a 10-year period and is based on the findings of a condition assessment or survey.
According to the Housing Companies Act, the board of directors of a housing company must present an annual report to the shareholders’ meeting on the essential maintenance needs for the next five years. The PTS fulfils this legal obligation and has become established practice in many housing companies.
A good PTS includes a clear list of future repairs, with an estimated timeframe and cost. The plan will discuss, among other things:
- Facades, roof and plinth
- Heating, water and ventilation systems
- Windows and doors
- Wet rooms and interior surfaces
- Courtyard areas
The PTS plan is a legal obligation
Yes, PTS is practically compulsory. According to the Housing Companies Act, a written statement by the board of directors must be presented at the annual general meeting on the need for maintenance of the company’s buildings and real estate during the five years following the annual general meeting that materially affects the use of the condominium, the company’s contribution or other costs arising from the use of the condominium.
It doesn’t matter whether the government calls its report a repair programme, a long-term maintenance plan / PTS, a maintenance plan or something else – what matters is that the plan exists and is kept up to date.
How to read a PTS plan from a buyer’s perspective
When you look at the PTS plan, pay particular attention to the following points:
Big renovations in the coming years: what are the major renovations coming in the next 3-5 years? In particular, plumbing renovations, façade renovations and roof renovations can significantly increase the value of the property.
Cost estimates: how much will the repairs cost in total and how will the costs be spread over the years? This will help to estimate the size of future repayments.
Urgency ratings: which repairs are marked as urgent? These may be completed ahead of schedule.
Financing plans: how will the renovations be financed – with a company loan or by increasing the consideration? Is the mortgage to be paid by a mortgage company?
PTS and the increase in the premium – link to the repair debt
The PTS plan will give you an idea of how much the housing company has in so-called repair debt – that is, how much money will be needed for future essential repairs. This repair debt will inevitably be reflected in higher rent in the years to come.
If the PTS has significant revisions for the coming years, you can expect that:
- Monthly fee increases
- Possible extra charges for repairs
- Company loans may be taken out to finance larger projects
What if the housing company does not have a PTS?
If a housing company does not have a PTS plan, this is a worrying sign. This could mean that:
- The housing company does not comply with the requirements of the Housing Companies Act
- No systematic mapping of repair needs
- Future repairs may come as a surprise and cause sudden costs
A missing PTS is a sign of poor management of the housing company and significantly increases the risk of buying. The documentation of the housing company says a lot about the quality of the management of the company.
Let an expert assess the PTS to support your purchasing decision
Reading a PTS plan requires expertise. Mere euro figures do not tell the whole story – it is important to understand the urgency, feasibility and impact on your housing costs.
OUN will review the PTS plan as part of a thorough analysis of the building. We analyse the repair debt, estimate the upward pressure on the consideration and tell you clearly what PTS means in practice in your particular situation. This way, you make a purchase decision based on the right information – not on guesswork.
buying a home?
The PTS plan is one of the most important documents in the housing transaction – but reading it requires experience. Before making a decision to buy, it’s worth knowing what the figures really mean.
OUN® analyses the documents of your housing company for you and delivers a plain-language report within 24 hours. We are 100% on your side – we won’t sell your property to anyone.
