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.
Serving on a body corporate committee is a valuable way to contribute to your building's community, but there may come a time when you need to step down. Resigning responsibly ensures a smooth transition for your fellow committee members and keeps the body corporate running efficiently. Here’s a step-by-step guide to resigning from a committee: 1. Review Your Body Corporate Rules Before taking any action, check your body corporate’s governing documents. These usually outline the process for resigning from a committee, including notice periods and any specific requirements for handing over responsibilities. 2. Provide Written Notice to the Chairperson, Commitee and Body Corporate Manager. Giving written notice is required under the Unit Titles Regulations 2011. A clear letter or email ensures there’s a formal record of your resignation and allows for the Chairperson to efficiently organise a new committee member election process, if needed. Your notice should include: Your intention to resign The effective date of resignation Any relevant information about ongoing tasks or projects 3. Give Adequate Notice While some committees may allow immediate resignation, it’s courteous to provide enough notice for the committee to plan for a potential replacement. A notice period of 3-4 weeks is common, but refer to your governing documents. 4. Offer a Handover If possible, provide a handover of your responsibilities. This may include: Key contacts or service providers Access to important documents or records Status updates on ongoing projects A smooth handover benefits both your BC committee and the community you’ve served. 5. Attend a Final Meeting (If Possible) Attending your final committee meeting is a professional way to say goodbye, tie up loose ends, and answer any questions from remaining members. 6. Stay Positive Resigning from a committee doesn’t mean disengaging entirely. Leave on a positive note, thanking fellow members for the experience. This helps maintain good relationships and keeps the door open for future involvement. At Complete Body Corporate Solutions , we understand the complexities of committee management and are here to support smooth transitions. If you or your committee members need guidance on resigning or filling committee opportunities, don’t hesitate to reach out to our team.
One of the most effective ways a body corporate committee can protect its building, and the investment of every owner, is through regular property inspections. Small maintenance issues can quickly turn into expensive problems if they are not identified early. Routine inspections help spot concerns before they escalate, ensure common areas remain safe and compliant, and give committees clarity when planning future budgets. Proactive oversight not only saves money, it reduces stress, supports long term asset value, and helps create a well maintained environment residents are proud to call home. At CBCS Complete Body Corporate Solutions, we carry out regular inspections and provide clear, practical reporting so committees can make informed decisions with confidence. If you would like to ensure your building is being managed proactively and professionally, our team is here to help.
It’s one of the most common questions we hear from owners. Levies aren’t just a bill. They fund the ongoing care and protection of your building, including: Building insurance Cleaning and common area maintenance Gardening and landscaping Electricity for common areas Lift servicing and fire compliance Contributions to the sinking (capital works) fund Every dollar collected is allocated to keeping your scheme compliant, well maintained, and financially prepared for the future. Understanding where levies go helps make AGM budget discussions clearer and more productive. If you have questions about how your scheme’s levies are structured, our team is here to help.
Annual General Meetings don’t have to be long, frustrating, or unproductive. When run well, they’re one of the most important tools for protecting your building’s future. Here’s what helps make an AGM productive: Clear, well-prepared agendas - So everyone understands what’s being discussed and voted on. Accurate, easy-to-read financials - Transparency builds confidence. Constructive discussion - Focus on solutions, not personal opinions. Prepared committee members - Reviewing reports and motions beforehand saves time. Respectful communication - Everyone deserves to be heard. A well-run AGM sets the tone for the year ahead, from budgeting and maintenance planning to community harmony. If you’d like guidance to ensure your upcoming AGM runs smoothly and efficiently, our team is here to help. Get in touch to start preparing early.
AGMs (Annual General Meetings) can seem daunting at first, but they’re a key way for Body Corporate members to speak up, make decisions, and keep the building running smoothly. Here’s what typically happens at an AGM: 1. Welcome & Minutes - The meeting starts with a review of last year’s minutes. 2. Financial Review - Budgets, accounts, and fees are presented so members understand how money is being managed. 3. Committee Reports - Updates on building maintenance, projects, and any issues from the past year. 4. Voting on Decisions - Members vote on key matters like budgets, repairs, or bylaw changes. 5. Q&A Session - Your chance to ask questions or raise concerns. Pro Tip: Read the agenda beforehand, come prepared, and don’t be shy to ask questions. A little prep goes a long way to a smooth AGM! With the right support, every AGM can run smoothly - and that’s where we come in, helping committees and members feel confident and informed every step of the way. Have questions about your upcoming AGM? Give us a call today on 04 970 5435
If you own a unit title property, like an apartment or townhouse, you can’t opt out of being part of the Body Corporate. Membership is automatically tied to property ownership under NZ law, so it’s not optional like a club membership. Being part of a Body Corporate means you share responsibility for your development’s maintenance, insurance, compliance, and shared spaces. You also contribute to decisions that protect your investment and help keep your property running smoothly. If you’re ever unsure about how your Body Corporate operates, how decisions are made, or how to get involved, CBCS is here to provide expert guidance and support for both owners and committees.
Summer is almost over! Is Your Property Ready? Now’s the perfect time to check common areas and individual units, complete outdoor maintenance, and get your building ready for the cooler months ahead. Did you know that CBCS can help organise your property maintenance or provide personalised suggestions based on your property? We make sure everything runs smoothly so your body corporate property and grounds stay in top shape. Get in touch on 04 970 5435 to learn more!
View our December 2025 BC Noticeboard - Quarterly Newsletter - Merry Christmas & CBCS Out-Of-Office-Dates - Important Notices & Reminders - New Pet Consent Rules & Pet Bonds - Effective as of 1 December 2025 - New Resource: The Body Corporate Committee Meetings Handbook - Conflict Resolution: What to Do Before It Escalates - Quick Tips: Stay On Top of Your Committee Meeting Agenda - Summer Maintenance Checklist - Stay Connected: Get weekly updates on our Facebook page! https://public2.bomamarketing.com/email/GzdW
Owning a unit in a body corporate community means sharing common spaces, amenities, and responsibilities - and with that can come the occasional disagreement. Whether it’s noise complaints, parking disputes, or a by-law breach, it’s important to address issues constructively and follow the correct process. Below, we’ve put together a brief guide on what unit owners should know about resolving conflicts in a strata environment before they escalate. 1. Start with a Calm, Direct Conversation Many issues can be resolved quickly through a respectful, private conversation. If you’re comfortable doing so, approach the other party directly and politely explain your concern. Sometimes, the other person may not even be aware there’s an issue. 💡 Tip: Avoid approaching someone in the heat of the moment - wait until you can speak calmly and clearly. 2. Check the By-Laws First Before making a complaint, it’s worth confirming whether the issue actually breaches a by-law. Common by-laws cover: Noise limits Parking rules Use of balconies or common areas Pet ownership Renovations or alterations If you're unsure, contact your body corporate manager (that's us!) for guidance or request a copy of the by-laws. 3. Put It in Writing if Needed If a direct conversation hasn’t resolved the issue (or if you don’t feel comfortable initiating one), the next step is to submit a written complaint to the body corporate or strata manager. Be clear, factual, and avoid emotional language. Include: The nature of the issue Dates/times of incidents (if applicable) Any steps you’ve already taken 💡 Reminder: The body corporate can only act on matters that fall within its authority - private disputes that don’t breach by-laws may be outside its jurisdiction. 4. Give the Process Time to Work Once a complaint is submitted, the committee or manager will assess the situation. This might involve issuing a breach notice, seeking further information, or inviting both parties to discuss the issue. It’s important to give the process time - rushing or pushing for immediate outcomes can sometimes inflame the situation. 5. Mediation or Dispute Resolution If informal approaches and formal notices don’t resolve the matter, you may need to escalate the issue through mediation through services like Disputes Tribunal or Tenancy Tribunal (which can handle body corporate disputes). Mediation helps find a compromise without going to court. If mediation fails, you may escalate to formal hearings or court action, but this should always be a last resort. 💡 Tip: Document everything - emails, notes, or reports - if you believe you’ll need to take the matter further. Final Thought Disputes are never pleasant, but they can often be resolved without legal action if handled early and respectfully. As a unit owner, knowing the correct process protects both your rights and your community’s peace of mind. For more information on dealing with disputes, please don't hesitate to get in touch with our team at 04 970 5435. You can also refer to your scheme’s by-laws.
