Find out how expert building management companies deal with late payment or non-payment of levies through professional property management solutions.
General

Effective Levy Collection Strategies for Professional Property Management

October 30, 2018

Monthly levy collection is an essential part of managing and maintaining a sectional title property scheme. Levies are used to fund the maintenance and operating expenses that exist within running a complex, estate, or any other sectional title. It is perfectly logical to expect timeous payment of levies when the maintenance of the amenities and complex management services within a development are being kept up to a good standard. The importance of levy collection, therefore, means that a standard procedure should be set for the collection of levies, as well as processes to deal with cases of late payment or non-payment.

Dealing with Late Payment

Strategies to deal with late payment should be put into place in order to prevent owners from falling behind on more than on payment. A good preventative strategy is to send out scheduled reminders to alert owners about their payments and when they are due each month. Should owners still be late with their payments there should be a chain of communication which follows this? The chain of communication in question could work as a text message to inform the owner of their missed payment which can be followed up with a phone call a few days later. When addressing late payment, especially with first-time offenders, administrators should primarily take an understanding approach and aim to resolve the issue with the owner as opposed to immediately taking a strict standoff.

Levy Non-Payment

Non-payment should be dealt with in a firmer manner, it is advised that interest is placed on missed payments in order to encourage payers to keep up to date. Administrators can attempt to set up a backlog payment plan on an individual basis with owners in arrears in order to offer a lifeline to offenders who may have just fallen on hard times.

However, if no of these strategies are effective, it is imperative to draft a letter of demand to be sent to the non-payer. If this still does not work, legal action should then be taken from this point in order to recover the payments. It is important to avoid this measure as it does end up incurring more expenses, therefore problems should be resolved before the escalation to legal action.

Competent Complex Management Services

Should you require a building management company to help you with professional property management solutions for levy collections and other the financial needs of your sectional title scheme, contact Mansfield Property Solutions. Mansfield Property Solutions offers financial management services to collect levy payments, allocate funds fairly, payment service providers, and more. They also offer expert complex administration services which will assist with the payment of levies as well because people are more likely to pay their levies on time should they believe that the money is being spent wisely on the maintenance of amenities and services offered within the development.

No Comments

    Leave a Reply

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    %d bloggers like this: