Who determines the amount and how? What is the average amount of the allowance?

Can its payment be transferred to the tenants?
Can I reduce my tax base in case of renting an apartment by the contribution to the FO?
How can I recover its payment from the debtors?
These are contributions paid by individual owners of residential and non-residential units for repairs, reconstruction and other investments in the common parts of the building. As such, they are non-refundable and non-accountable. The annual accounts usually reflect only the current balance of the fund and its use within the year.
The common parts of the property and the purpose of the use of the saved money are defined by Government Regulation No. 366/2013 Coll.
The most common reasons for using the repair fund are as follows:



Operation, maintenance, repairs, building modifications and other changes to the common parts of the house,
Revision of technical networks, common technical equipment of the house, fire protection equipment, lightning rods, energy distribution systems including heat, hot water, drinking water and telecommunication equipment,
Maintenance of the property and maintenance of access roads on the property.


The amount of the individual owner's contribution is usually derived from the share of the common parts of the building, which can be found in the land registry extract or in the building owner's declaration, and which usually corresponds to the floor area of the unit.
The owner's assembly then sets a specific rate per m2 of floor area. The average monthly contribution to the repair fund is around 30,-CZK/m2 of floor area. However, it can vary greatly depending on the condition of the property, where it will be much lower for new buildings and higher for houses that need significant investment.
The obligation to contribute to the management of the house and land is enshrined in law and is therefore enforceable. The HOA only needs to send the defaulter a written demand to pay the debt. If the debtor does not respond, the HOA does not have to sue the debtor for the outstanding repair fund fees. He or she can go straight to court and file a petition to sell his or her apartment, which is a very effective solution.
As it follows from the law, the obligation to pay the contribution to the repair fund is the responsibility of the owner of the unit, i.e. the member of the HOA, and therefore it is not possible to transfer this obligation to the tenant. However, this amount can be indirectly reflected in the rent increase.

The good news for the landlord is that the contribution to the management of the building and land is a tax deductible expense, it can be claimed as an expense against the rent received and thus reduce the tax base. However, the landlord must ascertain what the contributions are used for and when. If it is an operating expense, the expense can be claimed at the time the contribution is paid, i.e. in the same year that the rent is received. However, if it is an expense used for technical improvement, according to Section 5(6) of the Income Tax Act, it is possible to reduce the tax base by this expense in the tax year in which the technical improvement was completed. The specific amount of the expenditure on technical improvement is then calculated according to the amount of the co-ownership interest in the common areas.

Recommendation:
Place the funds collected under the repair fund in a suitable savings account.
Determine the amount of the monthly contribution to the fund on the basis of the property's repair plan.
Set up proper insurance on the property so that if the repair fund is drawn down due to a possible accident, you will be restored to its original condition quickly.
If you need consultation on proper repair fund setup, insurance, and other property management issues, feel free to contact the MAHOON Team. Translated with www.DeepL.com/Translator (free version)