Summary Information for Prospective Owners
Pacific Rendezvous is located on a 25 acre (10.117 hectares) peninsula at the entrance to the Tutukaka Harbour. The complex includes 30 units, Manager’s house, pool, spa pools, games/conference room, tennis court, storage sheds, roading etc and was originally set up with the prime purpose of providing a care-free holiday home for individual owners. Each unit is individually owned, and owners individually enter into a contract with Managers who run a motel/resort business letting units to the public when not occupied by Owners, with the management of this handled by the Managers and a group of Owners via a committee. This arrangement not only brings in a small income to owners to cover operating costs, but enables the complex to provide facilities unlikely to be able to be maintained on a private ownership basis alone.
The Owners through a Body Corporate jointly own the entire complex on the peninsula, which has riparian rights with a beach on either side. Owners individually own the property within their own building footprint together with a small amount of land around each unit.
The complex is administered using a Body Corporate structure which is governed by the Unit Titles Act 2010 and administered by About Body Corporates Ltd (15E Vega Place Rosedale, Auckland.)
A Body Corporate levy paid by owners to the Body Corporate covers the cost of maintenance and improvements of the common property, which is everything outside of the area owned by the 30 individually owned units, and also covers insurances, power, and other common overheads. The costs cover everything to do with maintenance & improvements to the central games room area, the Managers’ accommodation, reception & shop, laundry, swimming pool area, tennis courts, pathways to the beaches, bores and infrastructure, and everything else on the rest of the approx 25 acre complex outside of the footprint belonging to the owners. This levy is generally covered by tariffs received from guests, unless the unit is owner-occupied or unavailable for the Managers to let out.
The Body Corporate has a contract with on-site Managers to maintain the complex.
All units are charged on the basis of Utility Interests a proportional % of total costs by way of a Body Corporate Levy to owners, which is set annually at the AGM and currently invoiced in equal monthly installments. A statement is issued monthly for this.
The Managers also let the units out, and a separate letting statement is issued monthly to owners showing the letting income, and the costs related to this. In many cases, particularly throughout the summer period, the Body Corporate levy is more than covered by the surplus from letting the units. Any surplus from letting is utilised to pay the unit’s share of the Body Corporate levy, by way of crediting the Body Corporate statement. Credit balances of the net of these amounts that show on the Owners’ letting statement are paid to owners on a monthly basis.
Owners pay for everything themselves within their own footprint, including rates, maintenance, replacement furniture, electronics, equipment & whiteware replacements, plus improvements inside & outside of their own properties, within the Owner’s own boundary.
As long as the unit is in the Motel pool of units available to let out as part of Pacific Rendezvous, minor items under $25 such as cutlery are covered out of common funds.
All units available to let out contribute to the costs of letting out in several parts, currently:
- A “Marketing & Motel Operations” charge – 12.5% of the gross amount charged to guests. This covers internet, marketing, Sky TV, plus common motel operations expenses, and is a contribution to a pool of owners’ funds set aside for this purpose;
- A commission of 10% of the gross amount charged to guests. This is paid to the Managers directly from the tariffs received;
- A servicing fee paid to the Managers for each night the unit is occupied by either owners or guests;
These all show on the monthly letting statement, together with any offset to pay the monthly Body Corporate levy.
The Act sets out a set of general Operational Rules, rights and legal responsibilities and obligations which are not possible to cover in detail in this document which is intended as a brief guide for potential purchasers. Some items are appropriate however.
The Rules are modified to suit the particular circumstances and requirements of Pacific Rendezvous and are available from the Managers upon request.
Properties cannot be modified without the approval of the Body Corporate, with particular scrutiny placed upon any changes that may have an impact on the existing Unit Title Plan, entitlements, or riparian rights.
An AGM is held each year to elect a committee of Owners, and it is this committee who sets annual Body Corporate levy to Owners for the maintenance of the property, which includes the fixed fee to the Mangers. Separately, Owners agree the same committee members (not acting for the Body Corporate, but acting as a group on behalf of all Owners) sets the level of the marketing & motel operating expenses, the servicing charge, and the commission to the managers.
At the AGM owners agree upon a Long Term Maintenance Plan and a budget, and address any motions proposed by Owners. Each Principal Unit is entitled to 1 vote, but all corporate levies must be paid up to date to qualify. A quorum is 25% of Principal Unit Owners. Ordinary Resolutions require a simple majority of Unit Owners choosing to vote to be passed, whereas Special Resolutions (in simple terms resolutions which affect the whole complex) require 75% of eligible Owners choosing to attend and vote to be passed. Full details of these are in the Rules and the Unit Titles Act.
Insurances are covered by the Body Corporate, and also cover buildings and standard contents when the unit is being rented out. Items of a personal nature or those beyond that of a normal motel operation, such as laptops, jewellery, clothing etc, are required to be covered by owners.
Levies incurred are those normally attributed to Unit Title properties:
- property Managers remuneration
- pool and Ground maintenance
- waste and storm water systems, potable water supply system, roads paths, fences etc
- insurance of buildings
- body corporate secretarial services
- electricity to the extent that a portion is assessed to cover common areas with the balance apportioned on occupancy basis
- long term maintenance plan
The running of the motel/resort business is defined within the contract between individual Owners with the Managers (which are all identical) and in simple terms, it is the Managers’ responsibility to let out and service the Units, run the shop, employ cleaners and the ground maintenance staff.
There is no legal obligation for individual Units to be part of the rental for the motel/resort business; however at the date of this document, all 30 Units are available for the Managers to let out as part of the letting pool. This arrangement has been operating successfully since 1976, as it not only creates a business to help attract good quality Managers to manage the property on behalf of the Owners, but also enables Owners to generate a return from their property while not being used. Should Owners decide to withdraw from the letting pool, costs would be affected as there would no longer be a contribution to motel operation expenses from guest tariffs in relation to the unit.
As the prime purpose of Pacific Rendezvous is to provide a care-free holiday home available whenever and to what extent the Owner wished, the individual agreements do not allow for booking of the units more than 6 months ahead to allow the Owners to coordinate their use.
While the Manager would be responsible to the Committee of Owners in respect of all Body Corporate matters, as a motel operator they would be virtually an independent agent of each owner with an individual letting agreement with the owners who wished to rent their units.
The above summary document is intended as a brief guide for Owners and those interested in becoming involved with Pacific Rendezvous, and is a summary of some items which are covered in more detail in the Owners’ Manual, financial statements, Body Corporate rules, minutes & resolutions of meetings, and other relevant information. Legal advice should be sought to clarify, elaborate and expand upon the above.