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what to do with this owner in a strata property?

Discussion in 'Property Management' started by Pixie, 24th Apr, 2016.

  1. Pixie

    Pixie Active Member

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    Vic & NSW
    In a block of 8, this particular owner (purchased 2 years ago) stopped paying the strata bills in the last 12 months. During this time our old OC manager was fired because of mismanagement.

    Our new OC manager started the debt recovery process.

    However we found out this owner is on a disability pension and has gotten welfare charity involved to discuss the payment plan options. We have waited for many weeks and nothing ever came out from the discussions between the owner and the charity.

    Our building has no sinking fund and its a big pain whenever something needs a replacement.

    What is the best course of action from here on? Continue with the recovery process and send her to bankruptcy to recover our money??

    Much appreciated..


    Pixie
     
  2. Ted Varrick

    Ted Varrick Well-Known Member

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    Pixie, maybe a Special Levy on all owners needs to be considered to top up the Sinking Fund.

    Whilst the other 7 owners should consider amongst themselves whether some lenience should be granted to the offending owner, they should also consider that any purchaser in a strata complex understands that there are ongoing strata fees (and the amount of those fees at the time of purchase) used to maintain the good keeping of the block, and also whether or not the other 7 members are prepared to "carry" the Owner that is in arrears, and if so, for how long, and under what circumstances.

    I'm sure everybody supports the concept of a "fair go", and they might also evaluate how it balances with the fact that "rules" are imposed for the grater good of all owners.

    Good luck.
     
    Russ likes this.
  3. datto

    datto Well-Known Member

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    The fair go is "pay your strata levies when due" ang get your sinking fund in order.

    I'd proceed with legal action to recover the debt.

    I'd also consider raising a special levy to get sinking fund fixed.

    Think of the alternatives: no sinking fund, no timely maintenance , someone gets injured and sues the owners.
     
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  4. D.T.

    D.T. Adelaide Property Manager Business Member

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    Debt collectors
     
    Russ likes this.
  5. markson

    markson Well-Known Member

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    At the end of the day business is business. If I was a fellow owner I would be pissed. Especially if any extra was coming out of my pocket.
     
  6. Chilliblue

    Chilliblue Well-Known Member

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    Stopping payment without advising the other owns leads me to the debt collection route.

    And as the others have said, look at introducing a one off special levy to place some monies into the sinking fund or at the next AGM significantly increase the sinking fund levies.
     
    Russ likes this.
  7. Russ

    Russ Well-Known Member

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    If the Owner could not afford to buy the property and pay the levies, the Owner could not afford to buy the property, period.

    I sympathise with people in financial distress but if the Lot Owner can't afford her contributions she'll only go backwards more quickly paying interest and recovery costs. The sooner a sustainable arrangement (by which I mean living where she can afford to pay levies) is achieved, the better.

    I believe the OC is actually doing the right thing by pursuing collection without pretending there's ever going to be some magic solution / strata-levy-fairy.
     
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  8. Pixie

    Pixie Active Member

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    Vic & NSW
    Thank you all for your valuable input

    That does put my mind at ease when voting in for the debt recovery route.

    I m sure each of us will try our bills if we own a property but somehow this seem to have forgotten by some.