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1900

How to handle debt collection in sectional title schemes

How to handle debt collection in sectional title schemes

Date: 2016-09-30
A steady income stream is extremely important for the financial health of any sectional title scheme, as payments of bills and regular maintenance is what is needed for the scheme to maintain value and be managed properly.

While some owners might have genuine problems with paying their bills each month, be it a loss of income or illness, the bad news is that a plan has to be made to meet their obligations, or they will have to face the consequences of non-payment.

Unpaid levy accounts place a huge strain on everyone trying to manage those accounts, not just the trustees trying to manage the scheme, but for those who are responsible for the awkward task of collecting the debt.

This is where it is better for the trustees to hand the account over to a professional, whether it be an attorney or a company experienced in debt collection in sectional title schemes, as there is no personal involvement and just a carrying out of an instruction.

We find that managing agents and trustees possibly don't have the time it takes to continuously follow up on the outstanding bills, but if they employ a professional expressly to do this job, they can get on with the day-to-day running of the scheme.