Forum: Cashflow crunch as levies debts rise


Senior couple at home reacting to many bills

There’s an issue gathering a head of steam in strata right now and it’s related to the rising cost of living, and owners facing mortgage stress.  

It seems that in too many schemes the numbers of owners who just stop paying their levies is increasing and it’s certainly down the list of financial priorities for a lot of people – well below, food, energy and mortgages themselves.

But strata schemes have to pay their bills too, so what do you do? Owners corporations were never meant to be bankers for their owners but as Julie McLean says in her article, it may come to that.

Schemes may have to take loans to cover their running costs until such times as they can recoup the money from the levies debtors.

Meanwhile they can claim 10 per cent penalty interest on levy debts and even employ debt recovery companies (including some strata law firms) who will take the steps to recover the money at no cost to the strata scheme.

It’s hard but there comes a point when the majority of people who pay their levies are entitled to expect not to have to carry the load for others who choose not to do it.

You can read about that HERE.

Elsewhere in the Forum

  • Committee won’t repair common property wall.  That’s HERE.
  • How long do we have to wait for the results of a vote at an EGM?  That’s HERE.
  • Who checks what is and isn’t common property – lot owner or strata committee?  That’s HERE.
  • Is it right that an owner can go door to door collecting signatures with a view to forcing a re-vote on an issue they lost?  That’s HERE.

How to ask and answer questions

Anyone can read our posts anytime but you have to be registered to ask or answer questions. However, there are several easy ways you can search, access, ask questions and reply to others’ queries once you have registered.
The best way these days may be to click on “Forum: Your Qs & A’s” on the top menu bar on a computer screen or on the drop-down menu (three lines) on the right of the screen on phones and tablets, under the Strata Choice ad. Then click on the topic title that interests you, and off you go.
Alternatively, you can look at the list of “Your latest questions and answers” under the ads on the right of the page on a computer screen. Or at the bottom, after the ads and stories, on a tablet or phone.
Or you can go “old school” and go to the Forum Home Page and work your way through the topics there. Whichever route you take to get there, the best way to keep up to speed with what’s happening is to register (if you haven’t already done so), then login and subscribe for free to the topics that interest you most.
That way you’ll get an alert whenever the discussion moves forward, and you can also chip in with your own comments and questions. Have a look HERE at our instant guide to getting online.

Leave a Reply

scroll to top