Debt Collection

Debt Collection

We take a personalised, hands on approach in relation to debt collection to ensure that all levy’s due are requested and collected in a timely manner. Solid debt collection processes are in place to ensure any outstanding levy’s are paid. We also take a personalised, hands on approach in relation to debt collection and take all practical steps possible to recover money’s before proceeding to litigation stage.

What are strata levies?

A strata management levy is a fee that is collected from the owners of units in a strata property to cover the costs of managing and maintaining the common areas of the property, such as hallways, elevators, parking areas, and other shared facilities. These fees are usually collected on a regular basis, such as monthly or quarterly, and are determined by the strata budget, which is developed by the strata council.

The collection of strata management levies is an important aspect of strata management, and it is the responsibility of the Owners Corporation to ensure that all owners pay their levies on time. This can include sending out reminders and invoices, and following up with owners who are in arrears.  Strata One undertakes these items on behalf of the Owners Corporation.

What happens when owners fail to pay their levies?

If an owner fails to pay their strata management levies, the Owners Corporation may take legal action to collect the debt. The strata corporation has the right to take action in the state of their jurisdiction, which may include:

1. Issue a warning letter: The strata corporation or the strata manager can issue a formal warning letter to the owner outlining the outstanding debt and requesting payment.
2. Issue a breach notice: If the debt remains unpaid, the strata corporation may issue a breach notice, which sets out the amount of the debt and the date by which it must be paid, and advises that further legal action may be taken if the debt remains unpaid.
3. Legal action: If the debt remains unpaid, the strata corporation may take legal action against the owner to recover the outstanding amount, this may include taking the owner to the court, and if necessary to the state’s debt recovery department.

It’s important to note that, strata management levy collection and debt recovery are important aspects of strata management, but it’s also important to keep in mind that it’s not the only aspect. The strata council, or the strata manager, should have a holistic approach that not only deals with collecting debts but also engaging with the owners, working on solutions that would benefit all the parties.