Maybe one answer is to tell all owners before any of them get into debt that there could be serious consequences for falling too far behind in their levies.
In that case, they can talk about a payment plan before things get too serious
OR
- Be hit with 10 per cent mandatory penalty interest rates, as dictated by strata law.
- Face having to pay what they owe plus ALL the costs of debt recovery (and there are specialist strata debt recovery firms out there who will do that for you).
- Possibly have their rent income garnisheed (diverted to the strata scheme) until the debt is paid off.
- Possibly have to sell their property as a “distressed” sale if they can’t meet all their financial commitments.
This may sound like a threat but it’s only fair to all owners – including those who pay on time – that everyone knows that not paying your levies is not the free ride that it may seem.