The service charge is a central instrument of the condominium owners' association and is set on the basis of an annual budget plan prepared by the property manager and approved by the owners' meeting. It typically covers building insurance, caretaking, cleaning, lift maintenance, garden upkeep, and reserve contributions for future repairs. The amount is proportional to each owner's co-ownership share. At year end, an annual settlement is prepared showing credits or additional payments due. For buyers of condominiums, the service charge is an important cost factor, as it significantly contributes to the total monthly financial burden alongside mortgage repayments. Outstanding service charges can be enforced by resolution of the community.