How to collect unpaid strata debts

Paying strata levies or fees is not optional if you own a lot in a strata complex – that’s a legal requirement

Many lot owners fall into arrears because of financial hardship, forgetfulness, or refusal to pay in the case of a dispute. If you’re experiencing difficulties with strata debts, read on to see how to collect unpaid strata levies.

Here are three areas that will help you learn how this problem can be addressed in your strata property:

  1. What happens when people don’t strata levies pay?
  2. How do you collect unpaid strata levies?
  3. What should you know about levy recovery?

What happens when people don’t strata levies pay?

When someone in your strata managed building doesn’t pay, it puts pressure on everyone related to strata living. For example:

  • It puts financial strain on the other owners who may have to make up for the shortfall
  • It could create a deficit in the budget outlined by your owners corporation to manage the property and maintain it up to standards – they may be unable to pay plumbers, electricians, and other professionals involved in managing strata property matters
  • If owners get away with not paying, it sends a message to others that they don’t need to pay either, leading to a snowball effect
  • The cost of collecting unpaid levies can mount up, leaving the owners’ corporation in an even worse situation financially
  • Owners who don’t pay or have arrears at the time of voting in general meetings are deemed ‘unfinancial’ and therefore excluded from voting in property matters
  • When people don’t pay, it causes friction and negative sentiments with their neighbours and other property owners. This can be overcome by getting your strata managers to chase the unpaid levies.