A Guide to Body Corporate Levies: What Drives Levies and How Are They Set?

August 9, 2024

As a collective of unit owners, you are naturally responsible for the management, repair or replacement of the common property in your Body Corporate. Just like owners of a regular house, if something goes wrong you need to fix it.

 

So, in order to fund the management of the building, the body corporate comes up with a projected budget for what they can foresee will need attention and charges each owner a proportional share (levies).The amount of the levy you need to pay will usually depend on the size of your unit and what assets it includes. 


This shared responsibility ensures that the common areas, such as hallways, elevators, and shared amenities, are well-maintained and functional for the benefit of all residents. These levies are typically set by the body corporate, which consists of all the property owners within the complex. But what drives levies and how are they set?

 

The process for setting body corporate levies involves several steps:

 

1. Budgeting: The body corporate prepares an annual budget that outlines the anticipated expenses for the upcoming year. This budget includes items such as insurance premiums, maintenance costs, repairs, utilities, management fees, and administrative expenses.

 

2. Calculation: Once the budget is finalised, the total cost is divided among the unit owners based on their unit entitlements. Unit entitlements are determined by factors such as the size, location, and value of each unit relative to the whole complex.

 

3. Approval: The proposed levies are presented to all unit owners for approval at the annual general meeting (AGM) of the body corporate. Owners have the opportunity to review the budget and levy amounts and vote on whether to accept them.

 

4. Implementation: If the budget and levies are approved by the majority of unit owners at the AGM, the levies are implemented for the upcoming financial year. Owners are then required to pay their levies as outlined in the budget.

 

5. Adjustments: In some cases, adjustments may need to be made to the levies throughout the year if unexpected expenses arise or if the budget needs to be revised. Any changes to the levies must be approved by the body corporate at a general meeting.

 

It's important to note that body corporate levies may vary from year to year based on factors such as changes in expenses, fluctuations in the property market, and the need for major maintenance or repair projects within the scheme.

What to Expect at Your Body Corporate AGM

By Ben Duflou • June 9, 2025
First Time at a Body Corporate AGM? Here’s What to Expect! Your Body Corporate’s Annual General Meeting is a great opportunity to learn how your building is managed and how you can have a say in key decisions. Here’s a quick rundown of what typically happens: Review of Financials – You'll go through the past year's financial statements and vote on the proposed budget for the next year (including levies). Committee Elections – Want a say in how things are run? This is when the committee is elected for the coming year. It’s your chance to step up or vote for who you trust to represent owners' interests. Key Decisions – From maintenance projects to insurance policies, the AGM is where major property matters are discussed and voted on. Reports & Updates – Get updates from your Body Corporate manager or committee on building issues, completed projects, and what's ahead. Pro Tip: Read the agenda and documents beforehand so you're ready to participate. It’s your investment — make your voice count! Have questions about AGMs? Chat to our team today on 04 970 5435.

Selling Your Unit Property? Don’t Forget Your Disclosure Statement!

By Ben Duflou • June 9, 2025
If you're planning to sell your unit, make sure you’ve got your pre-contract disclosure statement ready to go! Under the Unit Titles Act 2010, it’s a legal requirement to provide this document to potential buyers before any agreement is signed. It outlines key information about your unit, levies, and the body corporate — helping to ensure a smooth and transparent sale process. If you’re part of one of the Body Corporates we manage, we can prepare this statement for you. To request a disclosure statement, simply visit our website ( www.cbcs.nz ) and click on the Disclosure Statements section in the top menu. Then scroll to the bottom of the page to complete a short request form. (Please note: a service charge applies, payable by the unit owner.) If you have any questions or need further clarification, feel free to give our team a call on 04 970 5435 — we’re here to help make the selling process as easy as possible! 

Pet Consent Rules and Pet Bond: Upcoming Changes

By Ben Duflou • May 21, 2025
New provisions regarding pet consent and pet bonds are set to take effect from late 2025, with the exact date yet to be confirmed. These changes will apply to new tenancies only. Below is a summary of the key updates: Key Changes to Pet Consent: •Tenants will be allowed to request written consent from their landlord to keep a pet in their rental property. •Landlords can refuse such requests only on reasonable grounds. •Tenants will be responsible for any pet-related damage that goes beyond fair wear and tear. •Pet bonds may be required by landlords of no more than 2 weeks’ worth of rent (in addition to the general bond) Disability Assist Dogs: Disability assist dogs are excluded from these rules. No permission is needed, and landlords cannot charge a pet bond for these dogs. Further guidance on pet bonds and consents will be made available to support compliance with pet-related rights and responsibilities at the time the pet provisions are due to commence. For more information and updates, visit: https://www.tenancy.govt.nz/law-changes/ Scroll down to the section titled "Pet consent rules, pet bonds and pet damage liability provisions.

Healthy Homes Compliance Deadline Approaching: 1 July 2025

By Ben Duflou • May 9, 2025
The deadline is fast approaching: from 1 July 2025, all rental properties must comply with the Healthy Homes Standards. Until now, properties only needed to be compliant within 120 days of a new tenancy agreement being signed. However, soon, full compliance will be required across the board. If your investment property isn’t already up to standard, now is the time to act. And if it is, maintaining compliance is just as important. For a quick refresher on the Healthy Homes Standards, check out our recent newsletter, the BC Noticeboard, at the link below: https://public2.bomamarketing.com/email/QEMj

Expert BC Management Services in Wellington

By Ben Duflou • April 23, 2025
CBCS is your local Wellington-based body corporate management company. We know the city, its people, and what makes Wellington special. We provide specialist services, expert knowledge, unbiased and independent support, and peace of mind to building owners and body corporates. Our Services Include: New Body Corporate Setup: From budgeting to preparing key documents, holding the first meeting, and creating policies, we make your new Body Corporate setup smooth and stress-free! Administration Services: With expert knowledge of the Unit Titles Act 2010 and a practical approach, we handle everything from meetings, insurance renewals, and communication with owners, to filing and compliance. Financial Services: Managed by our in-house chartered accountant, we ensure accurate financial reporting, budgeting, levy invoicing, and transparency for all committees. Facilities Management: Our dedicated team handles maintenance, cleaning, building repairs, insurance claims, and much more, all while ensuring safety and compliance. Secure Communication: Access key information anytime, anywhere, via our secure portal, and reach us easily through email or our 24/7 phone line for urgent matters. Contact us today at 04 970 5435 to discuss your individual body corporate service requirements and we can provide you with a proposal and quote, at no cost!

The BC Noticeboard - Quarterly Newsletter - April 2025

By Ben Duflou • April 17, 2025
View our April 2025 BC Noticeboard - Quarterly Newsletter - Welcome & Easter Office Closure Dates - Important Notices & Reminders - Staff Update: Liz Ruscoe - Healthy Homes Compliance Deadline Approaching: 1 July 2025 - The Financial Cost of Ignoring Maintenance - Autumn Maintenance Checklist - Stay Connected: Get weekly updates on our Facebook page! https://public2.bomamarketing.com/email/QEMj

Choosing the Best Meeting Format for Your Body Corporate

By Ben Duflou • April 2, 2025
Virtual vs. In-Person Meetings: What’s Best for Your Body Corporate? At CBCS, we understand that choosing between a virtual or in-person meeting depends on the specific needs and preferences of the body corporate. Each format offers distinct advantages, and selecting the right one can enhance participation and decision-making. Virtual meetings are ideal for routine discussions, offering flexibility, cost savings, and increased accessibility for owners who may not be able to attend in person. They work well when topics are straightforward and decisions are clear-cut. In-person meetings are often preferable for more complex or sensitive matters, where face-to-face discussions foster stronger engagement, clearer communication, and more effective decision-making. Finding the right balance is key. Factors such as the size of the body corporate, the nature of the agenda, and owner preferences all play a role. At CBCS, we’re here to help ensure your meetings are as productive and effective as possible—no matter which format you choose!

Looking for BC Management That Goes Above and Beyond?

By Ben Duflou • March 21, 2025
At CBCS, we pride ourselves on delivering exceptional body corporate management with a personal touch. From seamless communication to expert financial oversight, we work hard behind the scenes so your building runs smoothly and your community thrives. What sets us apart? Transparent communication Tailored solutions for every property Fast, proactive solutions Trusted by countless communities Passionate about protecting your investment Whether it’s a boutique complex or a large multi-unit development, our experienced team is ready to help you thrive. Let us take the stress and complexity out of body corporate management! Contact us today on 04 970 5435 and let’s take your property to the next level!

Autumn Maintenance & Healthy Homes Compliance

By Ben Duflou • March 14, 2025
It's almost Autumn! Is your unit property ready for the colder season ahead? Here are the key areas you should be focused on: Complete Necessary Maintenance Tasks: Take the time to inspect your property for wear and tear or damage. Completing maintenance tasks now will help your property perform at its best throughout the colder months and prevent costly repairs later. Healthy Homes Standards Compliance: With the final compliance deadline for Healthy Homes Standards approaching on 1 July 2025, it's essential to ensure your property meets the required standards for heating, insulation, ventilation, moisture control, and draught stopping. These standards are designed to improve living conditions and tenant well-being. We recommend addressing these requirements sooner rather than later to avoid last-minute complications and stress. For detailed information on the Healthy Homes Standards and landlord obligations, visit: https://www.tenancy.govt.nz/healthy-homes/ . Check in with Your Tenants: After ensuring your property meets the Healthy Homes standards, take the opportunity to check in with your tenants. Regular communication—such as during property inspections—helps address any needs or concerns promptly, keeping tenants satisfied. It’s also a great chance to gather feedback on the property’s condition. Taking these proactive steps will ensure a smooth transition into the colder months and a well-maintained property for the year ahead.
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