What is a Homeowners’ Association in New Zealand?

• What is a Residents’ Association
• What is a Body Corporate
• Key points for homeowners
• Homeowners’ Association FAQs

A Residents’ Association is the closest structure to a traditional US-style HOA, particularly in newer developments like townhouse complexes, terraced housing, or subdivisions with shared facilities. 

• Managing common areas: They are typically established to own and manage common property shared by the residents. This can include driveways, communal carparks, landscaped green spaces, playgrounds or shared infrastructure like private stormwater systems.  
• Maintenance and upkeep: The association is responsible for the maintenance, repair and insurance (where applicable) of the common areas.
• Enforcing rules (covenants): They often enforce restrictive covenants. These are rules registered on the property titles that govern how properties look and are used within the development. These rules might cover things like the acceptable exterior colour palette, fence heights, maintenance standards (e.g., keeping lawns mowed), or restrictions on commercial activities. 

Residents are typically required to pay an annual fee, which can vary based on the property. You can expect to pay anywhere from $500 to $1,000 per year, so it pays to do your due diligence before you purchase to ensure these additional costs are factored into your budget.

While both structures manage shared property, a key difference is that with a Residents’ Association, you typically own the land beneath your home (e.g., a townhouse), but you co-own the common areas. This differs from a Body Corporate, where you generally only own the ‘unit’ itself and co-own the entire building and land.

When you buy an apartment, unit, or townhouse in New Zealand, you can expect to become part of a Body Corporate. A unit title automatically has a Body Corporate attached, and membership is compulsory for all unit owners.

The Body Corporate will cover:

• Maintenance and upkeep: Similar to Residents’ Associations, fees cover the cost of carrying out repairs and maintenance on shared facilities and areas. 
• Managing finances: Setting, receiving and managing body corporate fees from all residents. 
• Rule setting: Putting operational rules (or bylaws) in place around things like noise, rubbish, and in some cases, things like exterior paint colours.

The Body Corporate run an Annual General Meetings (AGM), which give owners the opportunity to have their say and vote on matters relating to the building and common areas.

Body Corporate fees are typically a lot higher than Residents’ Association fees, and often average between $4,000 and $6,000 per year.

Read our full guide to body corporates. 

When purchasing a property in a multi-unit or planned development in New Zealand, it’s essential to carry out thorough due diligence and check if it’s part of a Residents’ Association or Body Corporate. 

• Read the rules (Constitution/Bylaws): Always review the association’s constitution, bylaws and restrictive covenants before you buy. These documents dictate what you can and can’t do with your property. 
• Budget for fees: Understand the current and future fees (levies) and what they cover. Fees can vary significantly based on the number of common amenities and the state of the long-term maintenance plan. 
• Governance: As an owner, you have the right to attend and vote at the AGM and participate in the governance of the association or body corporate.

A homeowners' association (Body Corporate or Residents' Associations in NZ) is an organisation in a planned community, subdivision, or condominium/apartment building that makes and enforces rules for the properties and residents. The goal of a homeowners' association is typically to manage and maintain common areas, preserve the aesthetic standards of the development, and ensure a consistent quality of life for all residents. Members are required to pay regular fees (or levies) to fund these operations.