Recovering Overdue Strata Levies

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Recovering Overdue Strata Levies

The role of a collection agency when recovering overdue strata levies is to support the strata manager, making their life easier, and at the same time, support the cash flow of the building, enabling timely payment of all essential maintenance, insurance and improvements to the building.

Managing the affairs of a building, is fast-paced, just like running a business and means the life of a strata manager is never dull. The strata manager is responsible for advising on all aspects of legislation and compliance, property maintenance and insurance, developing the building rules and by-laws, financial management and keeping custody of records, taxation and many other important areas of maintaining the asset on behalf of the owners.

The Process

A significant number of unit dwellings are owned by investors and occupied by tenants, and if the owner does not keep their address details current, it presents a problem when attempting to recover levies. Often one of the first tasks of a collection agency is to locate the owner, so the levy notice can be delivered and contact details updated. Such a simple thing can have a big impact upon the cash flow of the building, not to mention the frustration it causes to both the strata manager and all the other owners who pay their levies on time.

The team at AMPAC have been helping strata managers to recover overdue levies since 2003, and over the years have developed a reputation as a trusted provider of a complete range of debt recovery services to the profession. These services include:

Skip tracing. This is the term used for locating debtors and is one of the most valuable services provided by a collection agency. After all, you can’t collect a debt if the whereabouts of a debtor is unknown.
Issuing demands for payment by email, SMS, over the phone and by letter. In AMPAC’s case, all electronic demands contain a hyper-link to AMPAC’s debtor payment portal which enables the lot owner to pay the debt, establish a payment arrangement and conveniently communicate with AMPAC through the portal. Issuing electronic demands has the added advantage of confirmed instant delivery, which is logged in AMPAC’s database.
Managing payment arrangements that are approved by the owners corporation. This is another valuable service provided by a collection agency which significantly reduces the need for legal action, enabling quick and cost effective recovery of the debt. Interestingly, over 95% of all strata debts are satisfactorily resolved before legal action.
Identifying issues of genuine hardship before legal action is commenced. Where a lot owner indicates they are unable to pay their levies due to financial hardship, AMPAC applies a thorough validation process designed to protect the strata manager and owners corporation, but at the same time, ensure the overdue levies are paid as quickly as possible. This valuable service helps to avoid unnecessary legal action, wasted time and supports vulnerable lot owners through the process of paying their debt.
Assisting with legal action in all states and territories of Australia when instructed by the strata manager. AMPAC’s panel of law firms throughout Australia are experts in the unique aspects of recovering overdue levies right through to enforcement and, if necessary, insolvency.
Providing advice to both strata managers and owners corporations on the most practical and cost effective method of recovering complex debts.
Reporting on the performance of individual matters. AMPAC’s online client portal provides a range of real-time reports which are most useful when conducting strata meetings.

With an end in sight to the various COVID related stimulus measures and record levels of consumer debt, it is anticipated that 2021 will see an increase in the rate of default on levy payments. Now is a good time to explore the options that will best serve your owners when it comes to the recovery of overdue debt.

To learn more about how AMPAC supports the strata community throughout Australia please contact us on 1300 426 722 or by email at info@4ampac.com.au

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Recovering Overdue Strata Levies