Forum: Would you let serious levies debts slide?

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It’s been a quiet week on the Forum – at least as far as new topics go; something to do with the blue moon, I guess.

So while there’s a temporary lull, allow me to release a cat among the pigeons and ask a question that’s been getting a bit of traction on the website.  How would you feel if a neighbour has fallen on hard times and was a couple of years behind with their levies?

Do you think …

1. The owners corporation is big enough to absorb one person’s misfortune. Give them all the time that they need to catch up and don’t impose penalty interest?

2. Give them a chance to start paying the debt and penalty interest (10%) but as soon as they fall behind again, call the debt collectors in?

3. Call the debt collectors in as soon as they are more than one year in arrears.  You aren’t subsidising other owners.  Let them sell their unit if they can’t afford to live there.

4. Pass a motion at your next general meeting to raise a loan to cover the shortfall in levies with the penalty interest on the arrears covering the cost?

A few options – all totally valid. Have a look at this post and/or listen to the podcast then let’s start that discussion HERE.

Meanwhile, the mailbox is far from empty with some established threads chugging away.

  • More discussions on upgrading balcony balustrades.  That’s HERE
  • Can we transfer excess cash from the Admin fund to the Capital Works (sinking) Fund without having to pay it back in 30 days?  That’s HERE.
  • Can a company that owns several units appoint a different member to the strata committee for each of them? That’s HERE.
  • Sick of our strata manager – that’s HERE.

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