Owners of apartments in Shortland Flats are charged shareholder levies, in the same way and for the same purpose that owners of apartments in other buildings are charged Body Corporate fees. An important difference, however, is that unlike Body Corporate fees, Auckland Council rates are included in the shareholder levies. Because the apartments are not on separate titles, the company receives and pays the rates bill from Auckland Council - shareholders do not receive a separate rates bill.
These levies cover:
- Auckland Council rates
- Water charges
- Building insurance
- Building Manager fees
- Cleaning and Rubbish Collection
- Accounting fees
- Repairs and Maintenance
- Common Electricity charges
- Contribution to Major Projects
Basic Shareholder Levy - The basic levies are struck each year at the AGM. The levy amounts are proposed by the Board and voted on by shareholders, in exactly the same manner that happens in Body Corporates of other buildings. Owners of front apartments, those facing Shortland Street, are charged a basic levy that is 50% higher than owners of back apartments, reflecting their greater ownership in the Company and the higher desirability or value of owning a front apartment.
Tenanted Apartment Levy - To encourage owner occupancy, if an apartment is tenanted rather than occupied by the owners (or their immediate family), there is an additional Tenanted Apartment Levy, which is equivalent to 65% of the applicable basic levy for that apartment. (This levy was increased from 50% effective 1 March 2017).
Gas Levy - If a gas appliance is used, e.g. a gas heater, then a small monthly charge (per appliance) is levied in addition to other levies, to recover gas costs that are charged to the company. Not all units have gas available.
Carpark Levy - For those owners lucky enough to have a carpark (there is a waiting list), a monthly fee is charged in addition to other levies.
Interest charges apply to any late payment of levies, in the same way that Body Corporates of other buildings charge interest for late payment of fees.
The shareholder levies are paid monthly, in advance, on the first of the month.
Owners and residents of Shortland Flats must abide by certain rules of occupancy.
The rules are defined in the Occupancy License. This is the same way that owners and residents of other buildings must abide by the Body Corporate rules.
If you are considering purchasing one of the apartments, you can request the Shareholder Occupation License from the vendor's agent.