› Flat Chat Strata Forum › The Professionals › owners not paying the levy › Current Page
Ditto to all that. You have an obligation to ensure that the insurance is paid and maintenance done. If levies have not been paid you have no choice but to take a loan. I am not so familiar with the NSW details but I expect there is a mechanism to not only charge interest for overdue levies but to charge the extra costs to the owners that have not paid. Even if there is not a mechanism, I would suggest writing to all owners:
Dear Unit Owner,
The EC has no option but to act responsibly and to comply with the Act to do the maintenance and renew insurance. Taking a loan is necessary because two owners have not paid their levies. We have engaged a strata debt collector to act on behalf of the owners corporation. Under section XXX of the Act those owners will be charged 10% interest until the levies are paid and other associated costs to the greatest extent possible.
Then a para reiterating how the previous manager was correctly terminated in accordance with legal advice.
Even though you are only 6 units, I think it is sometimes helpful be formal. If necessary, it will be proof that no owners had any excuse for not being on the same page. I would avoid naming names. Just state the number of units that have not paid and the consequences in firm but neutral, factual tone. The easiest common accusation people make when they really don’t have a leg to stand on is ‘poor communication’.
Dealing with this well should stand you in good stead for the future.