body corporate fees Archives - Apartment Specialists

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The Body Corporate takes care of running the finances for your apartment building. The 3 biggest costs are the insurance, building manager and the Body Corporate administration company.

The first cost is the biggest and that is insurance. Insurance covers the whole building. This includes fire, flooding, cover of accommodation if needed and so on.

The second biggest cost is the building manager. The building manager co-ordinates all the maintenance and all the day to day including cleaners, looking after and maintaining common areas, security updates and so forth.

The third main cost is the Body Corporate administration company, these are companies like BCA, Crocker’s or First Street. This is the company who is solely employed by the building and runs the administration and day to day running of the building. Like collecting levies, paying bills, financial reporting, organising.


Good day, Andrew Murray here from the Apartment Specialists talking about the expenses a body corporate has to pay each year. There are three main things that always stand out as being the most expensive. Obviously, you have one off things, like if a lift has to be replaced or there’s the painting of the building that needs to be replaced. But continuously each year, there are always three main expenses that are always there and are the main ones.

The first one is insurance, and this covers if there’s fire, there’s flooding, or an earthquake. It means that if there are one of these things it’ll basically pay to replace the whole building and give you income or a place to stay in the meantime while it’s fixed. So that is number one, it’s always the largest.

Number two is generally the building manager. So, this is the man or woman who coordinates all the maintenance, and everything that’s happening in the complex from day to day. It can be from the cleaning, from the lift maintenance, from getting the code compliance from the council each year for the building, right through to carrying out the long-term maintenance planned activities on behalf of the body corporate committee and body corporate.

Now the next one is the body corporate administration company. And now this is what a lot of people think is the body corporate. It’s not. You as an owner, and you need to understand that the owners are the body corporate; you employ a company to do all the administration. So, this is taking care of all the accounts, the balance sheets, collecting all the money, making sure it’s coming in, making sure if people aren’t paying.

Companies like Crockers, Body Corporate Admin, which is called BCA, or Strata or First Street. So these are charged and they’re are generally charged per unit, and that’s generally the third biggest expense. After this, you’re talking about your miscellaneous. Your things like, obviously as I mentioned earlier, your long-term maintenance activities like doing up the garden, or the painting the building.

It could be things that just gone wrong during the year. Maybe the lift needed to be fixed, or maybe light bulbs needed to be replaced and just things like that. Anyway, I hope that helps. So yeah, just recapping, the three main expenses of every body corporate, which are the most expensive, that happen every year are:

  • Insurance
  • The building manager
  • Employing of the body corporate administration company

If you have any questions, flick me an email at or call +6421 424 892 and I’ll be happy to help you with your queries.

Cheers. Thank you!

Apartment Specialists Podcast No: 158


Pools and gyms are great added attractions for many apartment buyers. However, is it wise to buy an apartment in a building or complex with pools and gyms? Would these facilities add value or cost you more? What are the pros and cons of having these facilities in an apartment complex. Find out more from the video.

Swimming Pools, Gyms: Do they ad value or just cost you more?

If I was to give a generalized answer: They are a complete waste of time and money.

I own several apartments and do I ever use them? No. Do they increase my Body Corporate fee?Absolutely; and there is always something going wrong with them.

Then on the odd occasion that I do want to use them, someone else is.

Now there is an exception to the rule. If the Apartments facilities are exceptional.

i.e. The Pullman – where you have a pool that you can actually do laps in; or in the Metropolis where the GYM has all the equipment and multiple machines or roof top pool at the Heritage.

Then it does bring value.

So how do you decide?

Just think… If that GYM or Pool is the size that would be someone’s average house, it’s not going to add value. It will just cause you problems and increase your body corporate fee.

This is why some complexes are even going to the extent of filling them in.

If however that GYM or Pool you could see being used as a small GYM or Day Spa where people would pay money alone to use, it’s a definite yes.

So when you see a pool that is for 100 apartments, plus say at complexes like the Eclipse, or the Volt for example, it is a complete waste of money and you will end up paying for it.

Do you have any questions so you can get the best deals when buying an apartment in Auckland? Download our Buyers Guide to get much sought after insights. You can also email or call +6421 424 892 and we will happily answer any questions you might have.


Andrew Murray from Apartment Specialists. Is an apartment complex with swimming pools, gyms and tennis courts, do they add value or just increase your body corporate fees?

Now if I was going to give a generalised answer across the board, I would be saying they’re a complete waste of money. There’s always something going wrong with them. You never actually use them. I own several apartments and I live in an apartment complex, I never use it and the whole time I think of using it, there’s someone else using it. So if I had a blank board again at the end, I’d say they’re a complete waste of money.

Now there’s always an exception to this rule and that’s if these facilities are outstanding. For example, The Pullman, you’ve got a pool you can actually do laps in and you can actually sunbathe around the side. They usually take away the roof. Or in Metropolis, you’ve got a gym where you’ve got multiple machines.

The good way of looking at it is does the gym or the pool free, or would someone actually pay to use that as a stand alone. If they could, then that a small gym in itself, or a small pool in itself? And in that case, yes it definitely adds value, but otherwise it’s just a complete waste of money.

Some examples of this is you’ll see these apartments or these complexes that have these pools that are probably a couple of meters wide. Some are eight meters long and they’re basically washing machines. I see a lot of them with these off the plan apartments, I’ll give you an example is the Queen Residences. I saw the photos of how they’re selling the apartment. I looked at the pool, and I said, “That would be great at my house, but not for 280 plus apartments.”

Anyway, I hope that helps. You decide when you’re looking at that apartment complex, does that pool or gym actually achieving or increasing the value or is it just going to cause you problems?

Cheers, bye!

Do you have any questions so you can get the best deals when buying an apartment in Auckland? Download our Buyers Guide to get much sought after insights. You can also email or call +6421 424 892 and we will happily answer any questions you might have.

Apartment Specialists Podcast No: 110


This podcast will discuss the computation of body corporate fees using the schedule of unit entitlements. Andrew Murray also provides key insights on the technicalities. Get the full detail from this video.


Good day, Andrew Murray here from the Apartment Specialists, and today we’ll be talking about body corporate fees, unit entitlements and how it’s all worked out.

If you are an apartment owner, then you pay a portion of the budget, which is called your body corporate fee. This was worked out by your unit entitlement, which is basically the value of your apartment. A penthouse has a higher unit entitlement than a studio on the bottom floor.

These unit entitlements are provided when the apartment is first built. They are actually set out in the title. Generally, on a pages further down, four or five, something like that. In there, there will be a schedule of unit entitlement of every single unit.

I have got this in front of me right here. As you can see this off the title here, a schedule of unit entitlements. In the entitlement, you will see the number of unit and the floor area. You also got your unit entitlement and the heights, and so on.

Here, this is all car parks, and you can see that this figure of the unit entitlement for each unit. Now there are 49 units in this complex. If you add all these together, including the carparks, that will come to 10,000. It is a share of 10,000 and you can see a total unit entitlement equals 10,000.

You then go, “Okay, how do we work out the body corporate fee for a particular unit?”

Obviously, your nominated real estate agent gives it to you or a body corporate gives it to you. This is how you can work it out. You go to, say, unit 4D. That is my particular unit. It has a unit entitlement of 265. 265 divided by 10,000 – which is the unit entitlement – gives you .0265%. That means my body corporate fee is 2% or 2.65% of the overall budget. It is my share. If we then go to the budget which is $205, 030.

Okay, let us work out the budget. I’ll go, okay, so we will go 205,030 (sorry about my writing) times .0265, which is unit entitlement percentage of the overall budget. If I do that on my calculator now, on my phone as you do. Okay, $205,030, as you can see times .0265. I’m not too sure if you can see that equals my unit, my body corporate fee of $5,433.00. Which is spot on and that helps you figure out your unit entitlement or your body Corporate’s fee from the overall budget.

Okay? So that was 5,433. I love this. My handwriting, it is shocking. $5,433 from my unit entitlement.

Anyway, I hope that helps. Bit of a different way of doing it. And yeah, cool. If you have any questions about unit entitlements, figuring it out. If you are struggling to do it, give me a ring or flick me an email to

Talk soon.

Cheers. Bye!



coverage body corporate fees

Apartment Specialists Podcast No:87


In this podcast, Andrew talks about body corporate fee and what it covers. He also explains the extent of the coverage and the legal components of a body corporate fee. This is an important topic, since it’s one of the basic things every apartment buyer should know about.

For more information on Body Corporate and to be an informed buyer, download our Buyers Guide.


Good day, Andrew Murray from Apartment Specialists talking about Auckland apartments for sale, and a question I often get asked – what does a body corporate fee cover?

Now, it covers basically everything to do with the building on general terms outside your unit in general terms. This is a bit of a general answer because some buildings do differ, so look at it this way. The biggest item, the most expensive item that has to do with body corporate fee is insurance. Now that covers what happens in an earthquake, a flood, or a fire. What it doesn’t include is home contents. What’s in your apartment.

What it does include on top of these is if there’s a fire or if there’s flooding in your apartment, something like that. It will cover up to, in most cases, 12 months of income. So, if you can’t meet your apartment amount, you get income for 12 months. You get the rental income or if you can’t live in your apartment, you have accommodation for 12 months. That’s the general terms. Some are 18 months and obviously, the premium will change.

The next biggest item is obviously the building management. You obviously have your body corporate. Secretarial company, they’ll charge a per unit fee. That’s not too huge. A lot of apartments will have a live-in building manager, or a building manager will come and he’ll have a series of buildings. That’s usually one large cost. There is a bit of difference between the two, obviously. If I’m living in an apartment, I prefer to have a building manager because that means you’ve got someone to call and for security reasons and that kind of thing.

The other costs are all your maintenance and all of your common areas. You’re paying for your power, your water. All of that involved in your common areas. Your lighting – those common areas at night, cleaning them, your cleaning costs and your building washes. You also look at your contingency fund which is the amount you put aside for your maintenance plan. You get a roof fixed and that needs to be maintained in five years’ time. A body corporate fee looks after the building but not the inside of your unit.

Having said that, there are a few buildings which will have water included, so that means everybody’s water is paid for. The disadvantage of that is you could be somebody that doesn’t use that much water. In the same way, some body corporate fees will cover all the power used in the building and everybody shares according to the use entitlement.

Again, you could not use much power and have somebody who does and you’re getting disadvantaged there. I hope that helps regarding the general theme of what body corporate fee covers on the apartment and the legal components. I hope that helps and talk again soon,


P.S. If you want to know more about Body Corporate fees, here are a couple of great posts I know will help you: