We have just discovered that 2 units in our block of 12 are more than $5000 each in arrears with their strata levies. The bulk of the debt for each unit is in excess of 120 days, and appears to be in the vicinity of 3 years in arrears, as our levies are just over $400 per quarter. There is an issue with our strata managers who tend to brush a lot of things under the carpet and can be a bit standoverish when questioned.
We have also found that one of the owners whose levies are in arrears is the contracted mowing/gardening person for the complex (he doesn’t live there) and it seems he is being paid well in excess of what one would normally expect for someone to mow and area of approx. 50-60 sq meters ($200 – $400 per mow !!).
My question is ‘what can we do about the arrears’? Is it possible to lodge a caveat on a property that has excessive arrears? Is there any action we can take against the strata management company if they cannot prove they have addressed the arrears situation?
Any guidance would be greatly appreciated.
Thank you.I’d be speaking to the other owners and be looking to vote out the strata managers and install someone a bit proactive. That level of arrears is completely unacceptable.
In the meantime collections processes should begin with the outstanding amount, which may include sending to a debt collection service. (debt collection fees can be put onto the owner too)
One of my investments is in a strata and had an owner who refused to pay their levies – a sale was forced to recover fees owed.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
@corey, what are the current maximum interest rates that can be charged in Australia on overdue strata fees?
And I agree with you about getting in new strata managers……it seems like its the little things that determine the difference between getting ahead slow or faster……
I don’t know the legislative maximums but all the strata statements I’ve seen have quoted circa 8% though.
-
This reply was modified 9 years, 9 months ago by
Corey Batt.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
-
This reply was modified 9 years, 9 months ago by
You must be logged in to reply to this topic. If you don't have an account, you can register here.
