Man­agers on no­tice over rules

The Press - - Property - CHRIS HUTCHING

Changes af­fect­ing bod­ies cor­po­rate have been wel­comed by a pro­fes­sional man­ager who pre­dicts fall­out for the sec­tor.

Chris New­man, head of apart­ment body cor­po­rate man­ager Auck­land Body Cor­po­rate, said the shakeup was crit­i­cal to the fu­ture of New Zealand cities be­cause high-den­sity de­vel­op­ment could only go ahead with in­vest­ment sup­port, which needed greater con­fi­dence from prop­erty own­ers.

Apart­ment and multi-unit own­ers and man­agers will have their rights and obli­ga­tions spelt out more clearly un­der changes out­lined in a dis­cus­sion pa­per from the Min­istry of Busi­ness, In­no­va­tion and Em­ploy­ment (MBIE).

In Christchur­ch, body cor­po­rate com­mer­cial and residentia­l earth­quake claims have taken years to con­clude and many re­pairs are only un­der way this year due to dis­agree­ment among own­ers and with bod­ies cor­po­rate.

Cen­tral Auck­land has the high­est con­cen­tra­tion of bod­ies cor­po­rate but they are in­creas­ingly com­mon in Welling­ton and Christchur­ch as more in­ten­sive de­vel­op­ment takes place.

The pub­lic sub­mis­sions over the rules are the first step in re­vis­ing the Unit Ti­tles Act 2010 cov­er­ing own­er­ship of apart­ments and multi-unit dwellings.

New­man said his com­pany had al­ready been brought in by a score of Auck­land apart­ment own­ers pre­par­ing for what they be­lieve will be the weed­ing out of poorly per­form­ing body-cor­po­rate man­age­ment oper­a­tions.

He said some of the changes were aimed at rais­ing the pro­fes­sion­al­ism of the body cor­po­rate sec­tor. It had been tar­nished by the ac­tions of poorly run in-house bod­ies cor­po­rate, which he de­scribed as ‘‘cow­boy’’ oper­a­tions.

Sub­stan­dard body-cor­po­rate man­age­ment com­pa­nies will find life dif­fi­cult un­der the new reg­u­la­tions, New­man said.

He an­tic­i­pates the changes will lead to a con­sol­i­da­tion of ser­vices ad­min­is­tered by pro­fes­sional body-cor­po­rate busi­nesses.

Ac­cord­ing to gov­ern­ment sta­tis­tics, 145,000 New Zealand house­holds live in apart­ments and town­houses. This num­ber is ex­pected to dou­ble by 2040.

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