DINUKA LIYANAWATTE/REUTERS

Body corporate rules are changing.

Changes affecting body corporates have been welcomed by a professional manager who predicts fallout for the sector.

Chris Newman, head of apartment body corporate manager Auckland Body Corporate said the shake-up was critical to the future of New Zealand's cities because high-density development could only be undertaken with investment support, which needed greater confidence from property owners.

Apartment and multi-unit owners and managers will have their rights and obligations spelled out more clearly under changes outlined in a discussion paper from the Ministry of Business Innovation and Employment.

In Christchurch, body corporate commercial and residential earthquake claims have taken years to conclude and many repairs are only under way this year because of disagreement among owners and with body corporates.

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Central Auckland has the highest concentration of body corporates but they are increasingly common in Wellington, Christchurch and other centres as more intensive development takes place.

The public submissions over the rules are the first step in revising the Unit Titles Act 2010 covering ownership of apartments and multi-unit dwellings.

Newman said his company had already been brought in by a score of Auckland apartment owners preparing for what they believe will be the weeding out of poor performing body corporate management operations.

He said said some of the changes were aimed at raising the professionalism of the body corporate sector which had been tarnished by the actions of poorly run in-house bodies corporate which he described as "cowboy" operations.

Substandard body corporate management companies will find life difficult under the new regulations, he said.

Newman anticipates the changes will led to consolidation of services administered by professional body corporate businesses.

According to government statistics, there are 145,000 New Zealand households living in apartments and townhouses with this number expected to double by 2040.

The MBIE paper encompasses six main changes including - 

* Better disclosure to ensure potential buyers know earlier in the apartment purchasing process all the relevant information about a unit or apartment, and the associated governing body corporate.

* Strengthening body corporate governance to empower owners to make decisions regarding their development by exercising their property rights

* Increasing the professionalism of body corporate managers by providing a clear governance framework.

* Ensuring long-term maintenance plans are credible and are supported by accurate documents.

* Varying compliance requirements relating to the size of the development, as there is the potential need for differing compliance requirements depending on the size of the complex.

* Improving the accessibility to dispute resolution processes and assessing whether the Tenancy Tribunal is best placed to resolve disputes.

 - Stuff