Building manager’s apartment
Nadeem asks:
(updated on Wednesday, August 06th 2014)
Are there any laws around on-site building manager apartments? Does the body corporate (BC) have to use that apartment for a manager? What if the manager doesn't want the apartment or if the BC doesn't want to lease it to the manager? Appreciate your help in this regard. Thanks.
Our Experts Answer:
A resourceful, practical and friendly on-site building manager is worth his or her weight in gold to the building’s owners. Generally speaking a term contract is awarded by the BC at the AGM to a building manager for a package including a salary for services and sometimes fully paid or subsidised accommodation within the building. The BC does not own the apartment rather it is owned by a private investor with a lease to the BC for the managers use. It is almost impossible to break this lease prior to the end of the agreed term. Often these leases have a ratchet clause in them which results in a very high rental being paid to the investor. In this case there has been precedent of a lease being renegotiated to a figure more in line with market rent but as I say it’s very difficult and rare to achieve. Practically speaking a building manager will often sublease the manager’s apartment (often a smaller, ground floor unit with limited outlook) and privately rent a larger apartment with views, higher in the building.
Heartland Bank - Online | 6.69 |
SBS FirstHome Combo | 6.74 |
Wairarapa Building Society | 6.95 |
Unity | 6.99 |
Co-operative Bank - First Home Special | 7.04 |
ICBC | 7.05 |
China Construction Bank | 7.09 |
BNZ - Classic | 7.24 |
ASB Bank | 7.24 |
ANZ Special | 7.24 |
TSB Special | 7.24 |
Unity First Home Buyer special | 6.45 |
Heartland Bank - Online | 6.45 |
China Construction Bank | 6.75 |
TSB Special | 6.75 |
ICBC | 6.75 |
ANZ Special | 6.79 |
ASB Bank | 6.79 |
AIA - Go Home Loans | 6.79 |
Kiwibank Special | 6.79 |
BNZ - Classic | 6.79 |
Unity | 6.79 |
Westpac Special | 6.39 |
China Construction Bank | 6.40 |
ICBC | 6.49 |
SBS Bank Special | 6.55 |
Kiwibank Special | 6.55 |
BNZ - Classic | 6.55 |
Co-operative Bank - Owner Occ | 6.55 |
ASB Bank | 6.55 |
AIA - Go Home Loans | 6.55 |
TSB Special | 6.59 |
Kainga Ora | 6.99 |
SBS FirstHome Combo | 6.19 |
AIA - Back My Build | 6.19 |
ANZ Blueprint to Build | 7.39 |
Credit Union Auckland | 7.70 |
ICBC | 7.85 |
Heartland Bank - Online | 7.99 |
Pepper Money Essential | 8.29 |
Co-operative Bank - Owner Occ | 8.40 |
Co-operative Bank - Standard | 8.40 |
First Credit Union Standard | 8.50 |
Kiwibank | 8.50 |