A Body Corporate Manager is a professional engaged by a Body Corporate to assist with its administration, financial management, meetings, maintenance, insurance, records and other responsibilities. 

Importantly, the Body Corporate remains the legal entity responsible for the development. 

The manager is not the Body Corporate, however it is delegated responsibility by the Body Corporate and has the authority given to them under the management agreement and any lawful delegations, to act on its behalf.

Many owners who are not engaged or lack understanding of Body Corporates, often confuse who holds responsibility and who makes decisions regarding the Body Corporates affairs. 

The manager prepares, proposes, and provides guidance to the Body Corporate, to enable them to make informed and compliant decisions, but is not the decision maker. 

Unit title developments involve legal, financial, maintenance, insurance and governance obligations that can become difficult for volunteer owners to administer consistently and compliantly.

A professional manager provides systems, continuity and specialist knowledge while reducing the administrative burden on the Chairperson and/or committee. 

Skyway often has requests to take on existing self-managed Body Corporates, and around half of them will have had recent Tenancy Tribunal cases due to non-compliance. 

Skyway actually can’t profess to being a specialist in Tenancy Tribunal, due to it being such a rare occurrence in Body Corporates under Skyway’s processes and advice. 

Only on rare occasions, but even then, it is not common.  Decisions are deferred to and made in consultation with either the Owners, the Body Corporate or the Body Corporate.

A manager implements those decisions and exercises only those powers that have been properly delegated or authorised. 

Skyway's for example, would seek prior approval to action any items outside ordinary duties, including unbudgeted items, while allowing reasonable emergency action to protect property or the public.

.

The Unit Titles Act 2010 (UTA) is the governing legislation covering all unit title developments in New Zealand. 

Compliance means operating the Body Corporate consistently with requirements applying to matters such as governance, meetings, voting, records, levies, maintenance, insurance, disclosure and decision-making. 

The Act was recently updated by the Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022. 

A professional manager can provide significant compliance support, but appointing one does not transfer all of the Body Corporate's statutory responsibilities to the manager. 

The Body Corporate still has duties and powers under the UTA. 

A manager helps administer processes correctly, maintain records and ensure member communication. 

Each Manager has different inclusions for what they call their Schedule 1 (included duties) and Schedule 2 additional duties.

There is no set requirement as to what is and isn’t included in Schedule 1, in most cases it relates primarily to the governance, compliance and advice aspects for the Body Corporate.  

At Skyway we include administration, financial management, production of financial statements, owner communications, AGM administration, statutory records, levy administration and general governance support as standard. We also include budgeting, insurance placement and some, but not all claims support. 

Skyway also do a few ‘extra’ things that we include in our service, that we don’t want to give away to our competitors too easily. 

There is no single legislated fee structure. All Managers will charge differently, even if they all state ‘per unit charge’. Larger apartments will have a lower rate per unit due to economies of scale. Skyway is a Canterbury specialist, we have a very clear idea on what it costs to serve our Body Corporate members, based on the services they require. We don’t have masses of large complexes like Auckland or Wellington, and thus averages per unit costs are higher in Canterbury.

But that is also buyer beware – those larger complexes will often have a building manager, with that cost being part of the operational budget and not quoted by the manager. A building manager typically will exceed any Body Corporate Manager cost. Building Managers are fairly rare in Canterbury, and thus the Body Corporate Manager fills in this role and charges accordingly. 

There is no single legislated fee structure. All Managers will charge differently, even if they all state ‘per unit charge’. Larger apartments will have a lower rate per unit due to economies of scale. Skyway is a Canterbury specialist, we have a very clear idea on what it costs to serve our Body Corporate members, based on the services they require. We don’t have masses of large complexes like Auckland or Wellington, and thus averages per unit costs are higher in Canterbury.

But that is also buyer beware – those larger complexes will often have a building manager, with that cost being part of the operational budget and not quoted by the manager. A building manager typically will exceed any Body Corporate Manager cost. Building Managers are fairly rare in Canterbury, and thus the Body Corporate Manager fills in this role and charges accordingly. 

Skyway typically charge a per unit fee, subject to a minimum fee ($3042 + GST), and is clear and transparent in regards to any extra fees that a Body Corporate might be charged, both upfront to developers and initial budgets, but also ongoing to our members. 

Skyway provide an estimate in every budget, so it is clear and fully disclosed to the Body Corporate. The budget is then reconciled and the actual fees charged clearly allocated against the estimate – no hidden fees. 

The per unit fee normally refers to Governance, or Schedule 1 Charges. Some managers will be cheaper than others, because they include less in the fixed fee, but make up for it what and where they charge variable fees (we haven’t come across an all inclusive manager yet). 

Repairs and Maintenance are typically not included, including the co-ordination, project and contractor management and oversight.

Many managers will charge an hourly rate of a ‘time in attendance fee’, with prices varying per region and per manager. Ask to see these fees and compare the rates across managers, for what the true costs to the Body Corporate could be. 

Skyway in most cases will charge ‘Maintenance commission’ like any other property manager, to cover the costs of coordinating and arranging those works. This in most cases works out cheaper for the Body Corporate as opposed to Time in Attendance. In  developments were there are high levels of investors, someone needs to arrange the work, and with this varying across properties, having a flexible element to the fee, keeps costs lower. 

At Skyway, we start planning for your AGM the day after the previous one. 

This includes booking and scheduling the next one, and working though the required works for the year that the Body Corporate has agreed.

Skyway will collate feedback and issues from owners throughout the year and take action on request, or defer to the AGM to seek approval from the rest of the members. 

This can include seeking quotes and reviewing the budget, making adjustments, based on what has been raised. 

Skyway follow the Unit Titles Act for sending the required notices and documentation in the prescribed time frames. 

That includes detailed Agendas and details of any proposed motions, legally required motions, and special resolutions. We Then also prepare budgets and financial material, we then manage quorum, voting and proxies.

On the day of the AGM, in most cases the manager will be appointed Chairperson, although in some Body Corporates, they prefer to appoint their own chair – there is no rule on this, although for the sake of compliance and accuracy, the Manager will work closely with the chair on what is to be presented to members. 

Skyway holds all Body Corporate funds in separate numbered Body Corporate Trust accounts, and does not mingle funds. 

Skyway use only cash accounting or book keeping methods, which reconciles money in and money out of the bank account. Bank account records are made available on request, along with the financial statements.

While some Body Corporates prefer other accounting methods, Skyway feel that this approach ensures that the statements are able to be read and understood by non- financial persons, which the majority of members are. Understanding where your money has gone and is being spent should be clear. 

When Skyway process payments in and out of the Body Corporates accounts, it does this be following stringent internal rules and has a number of controls in place to ensure that these are accurate and paid to the correct person. All payments are independently approved to the person inputting them, and another check is made prior to approved payments being processed to the bank. 

Levies fund the Body Corporate's operational and legal requirements. The manager can prepare budgets and calculate or administer levies, but the amounts ultimately arise from the Body Corporate's approved financial requirements and applicable statutory arrangements rather than being independently decided by the manager. Skyway's management agreement defines a levy as a charge or fee approved by the appropriately delegated authority or arising under the agreement to meet operational and legal requirements. 

Skyway’s system automatically applies 10% interest on outstanding levies once they become overdue. 

We then work through an arrears management program, and finally if that is unsuccessful, Skyway will enable a Debt Recovery program which may include using a debt collection agency and/or engaging a lawyer to recover levies. 

There are additional charges applicable to the defaulting owner, once debt recovery is entered into. 

Yes, if agreed and instructed to, Skyway will arrange repairs and maintenance on behalf of the Body Corporate. Some Body Corporates, will choose to undertake this themselves, with support of the Manager.

Long-term maintenance planning is a requirement for all Body Corporates, with its intent to ensure that the Body Corporate has sufficient funds saved for big expenditure, beyond its annual operational costs. 

Long Term Plans and fully funded plans, spread the cost and contributions required by each owner over a period of time, so owners aren’t required to find big sums of money in any one year. 

The preparation of the plan is typically outsourced to experienced providers who provide fully costed and quantity surveyed plans, which allows the Manager to be able to assist with planning and execution as well as set guidance for quotes received for work detailed in the plan, independent of individual contractor pricing. 

Skyway Manages and administers insurance on behalf of the Body Corporate, to ensure compliance with the Unit Titles Act. This includes working with a Broker, procuring an insurance valuation and liaising with members on renewal requirements, and then supporting the Body Corporate through claims.

Skyway can be engaged by members and the Body Corporate committee to act as a neutral administrative point between owners, occupiers and the Body Corporate, in issuing breaches. Skyway will provides guidance to the Body Corporate and those breached to remedy the breach as needed. By acting as the intermediary, this can reduce friction between members, and insulate persons living or working in close proximity from direct confrontation or awkward conversations. 

Record keeping is a statutory governance responsibility, not merely good administration. The 2022 amendments inserted section 84A, "Records to be kept", into the UTA. 

Skyway retains and maintains a document repository on its online portal, making all formally issued documents and guidance available to all members at all times. It also holds within its systems, historical owner, financial, levy and invoice information, contracts etc for periods of up to seven years on behalf of the Body Corporate. Skyway keeps earthquake claim information indefinitely. 

Unit-title sales involve statutory disclosure requirements, called a Pre-Contract Disclosure Statement, followed by a Pre-Settlement Statement. 

Skyway prepares these on request, at a cost to the seller. Skyway will independently provide the requested documentation and complete the disclosures and attest to the accuracy of what is provided.

Skyway will liaise and respond to lawyers and representatives requests for further clarification and information, this ensures that the buyer receives complete and accurate disclosures around the property.  

Absolutely.

Most managers have an initial fixed term, and after that Body Corporates can look to review their arrangements. It may not mean a change, but there could be the opportunity to explore engagement and service standards and expectations between the manager and the Body Corporate.

Body Corporate management contracts typically run for a full year, AGM to AGM, so Body Corporates looking to change, should consider their options six months before their AGM, so that they can give the outgoing manager 90 days notice prior to the AGM. This is a courtesy so that the outgoing manager isn’t starting work on preparing for the AGM, that they will hand over, it also gives them time to handover all of the Body Corporates records, which can take some time to prepare for and do. 

All of the volume based national managers and well established independent managers like Skyway will all have well defined systems and practices in place.

The difference between them is what a Body Corporate wants and expects from the manager and the relationship, and what sort of service they will put up with.

Body Corporates managed by Skyway can expect;

• To be more than just a number, we run less units and Body Corporates per manager. This gives us the time and capacity to be responsive, and not spending your time waiting in a que, or chasing up.

• You aren’t calling a call centre in Auckland, or emailing an offshore accountant, Skyway staff are locals, based in Christchurch. 

• You get value for money. You might pay less with a volume manager, but you get better and more tailored service with Skyway  as we aren’t driven by turnover to keep profit margins per unit. 

• We get to know you and your Body Corporates needs, we are local and only focus on Selwyn, Waimakariri and Christchurch by design, as this allows us to easily attend site, and develop in person relationships with our members and our suppliers. 

• Your manager should be local and continuously evolving. Skyway survey all members each year, to actively seek feedback and we are always investing in our approach and practices, to give our members the best experience. 

• We have low churn. Our rate, since inception is about 1%, most of our members don’t leave us, we don’t mean to brag, but we are often told how much better our service is than other managers that our members work with. 

A 10-unit townhouse development has very different management needs from a 150-unit apartment complex with lifts, security systems, shared facilities, extensive common property and an on-site Building Manager.

Location matters too. Contractor rates, insurance, professional services, maintenance costs and access to specialist suppliers can vary between regions, so the cost of supporting a development will differ depending on where the property is located.

The Committee is a group of owners elected to act on behalf of the Body Corporate between general meetings. Its role is primarily governance, oversight and decision-making within the authority given to it. [unittitles.govt.nz]

At Skyway-managed properties, this generally means the Committee:

• makes operational decisions on behalf of the Body Corporate within its authority;

• oversees maintenance, repairs and services affecting common property;

• reviews and approves expenditure and invoices as appropriate;

• implements decisions made by owners at general meetings;

Skyway support its committees and Chairpersons with individual advice and guidance, and provide a Skyway version of the roles and duties, which is easy for Committee members to understand.

At Skyway, we also don’t hide out in an office or behind a screen assuming we can manage everything remotely – you can’t see the real concerns on google maps!

Being local means we can pop by, have onsite meetings and have a curated list of local suppliers and priority with a number of our trades.  Those personal relationships  are easier to form, when they go beyond email. 

The manager and developer work together to prepare the initial budget. The Manager will typically propose a fully realized budget, to give the purchasers a true picture of long term costs. Many developers prefer to restrict the budget to just the minimum year one operational costs, without indicating additional costs that may occur. 

As the developer ultimately is the Body Corporate at time of inception, they are able to approve a budget that supports sales outcomes. 

Your lawyer should undertake due diligence prior to purchasing be able to explain long term costs with you. 

Get good advice, not just your friends and family, or the real estate agent. 

Body Corporate units can be a great investment and a great home, particularly for those who aren’t interested spending their time doing maintenance, or where you don’t live in the same city. A Body Corporate manager is an outsourced party who maintains your unit on your behalf.  While it costs a fixed amount each year, it reduces the work and stress of individual owners.

Get a good lawyer. Not all are created equal. Not all understand the Unit Titles Act, or how to interpret the property file. Make sure they are actually a property specialist. Engage them to do Due Diligence, before you make an offer. Be wary of cheap levies and no long term fund or no long term plan. These could be future headaches! A well funded Body Corporate, will save you time, money and stress over the long term. 

In our experience, Body Corporate Managers get a bad rap in a number of ways;

• The owner doesn’t understand Body Corporates and is looking for someone to blame, particularly when they cannot afford levies they blame the manager. 

• The Manager has to say no. A lot of members expect that because they own the unit, they can do what they like. The Unit Titles Act says that that is not the case. The manager is the one tasked with ensuring that the interests of all members and the Body Corporate is managed consistently and compliantly, and this involves having difficult conversations with owners who ‘know better’.

• The leaky building issues, namely in Auckland and Wellington high rises, and escalating levies to remediate impacted both Body Corporates and managers. Again, managers being the bearers of bad news and levy increases, bearing the brunt of the anger and frustration of members stuck owning those properties. 

• Managers are often blamed when repairs or maintenance is delayed and jobs not done, and this is common where owners don’t agree to undertake the job and/or don’t fund to be able to pay for the job. In both cases the manger cannot take action, because it must act on instruction and have the funds to do so, but somehow, that is entirely the managers fault.

The don’t get good advice. 

They also mistake the Body Corporate Manager for the Body Corporate itself. The Manager is not the Body Corporate, but they are often the ones blamed when owners are unhappy with the advice or news they are given. 

They blame the cost and the levies on the manager.

Body Corporates will often have fairly fixed operating costs, with very little discretion. The manager advises on the levies, but the budget is voted on by members in order to be finalized. 

We are a premium service manager and we pride ourselves on delivering great service.

We educate our members, and take the time to support them through the journey. 

We are available, members come and visit us in our offices.

We will tell our members when we don’t have the answer, we will work through and come back to them when we do. 

When we don’t get it right, we will reflect, acknowledge and revise our approach or our answer. Know better, do better. 

We are honest and transparent in what we do and how we are paid.

We are constantly improving and take feedback as an opportunity to improve. 

Like New World and Pak n Save, they have the same distributers, and the same products and brands, but the price point is different and they appeal to different people. 

Skyway’s services for most part, are New World, we bag your groceries, we provide a nice ambience and have premium offerings, better service and better staffing ratios. Some people are happy with Pak N Save, and that they won’t get the best service and a basic offering, but its important to note that Pak N Save shoppers do sometimes have to do a top up shop elsewhere to get specific things that they need, as it doesn’t quite meet their needs everytime, or you just have to put up with things a wee bit sub-par.

We do a short survey after each AGM to seek feedback. 

We limit it to short questions and a free comment field, so if members want, they can spend 2-3 mins giving us feedback, if they choose to.