One of the issues taken up by the media this year in their war on strata management, was ‘over the top’ charges for collecting arrears of levies. Some of the cases reported were truly disgraceful.
Strata managers should be paid for collecting arrears. But the charges must be for effective collection work, not just automated and poorly worded reminders and letters of demand.
We participated in roundtable discussions with the NSW government on this topic throughout the year. One thing that became clear is that early intervention results in better outcomes. Leaving collection work until the bills are insurmountable is a recipe for disaster for both the owner and the owners corporation.
This preview is an extract from our Standard Operating Procedure (Victoria) for collecting fee arrears. It features two of the eight sections of the SOP – a description of the task, and common roadblocks and solutions. The roadblocks are the same in every state and territory.
Some of these roadblocks, and the solutions, might seem obvious. But, in the busy day-to-day running of a strata management business, it can be easy to put off the work solutions…. until tomorrow. Then you are under pressure, working late to get them out at the last minute, and you are more likely to make a mistake.
Our Operating Procedures, and solutions to roadblocks aim to help you. They should give you more time today, so you don’t have to put things off until tomorrow.
If you would like to learn more about our Complete Standard Operating Procedures System, book a free 30-minute call with me to discuss your needs.
Michael Teys advises strata management businesses on improving profitability through professionalisation and streamlined operating systems.
He has more than 30 years’ experience as a strata lawyer and academic and has owned 11 strata management agencies throughout Australia. He has a Master of Philosophy (Built Environment) and Bachelor of Laws. He lectures and writes widely about strata management issues in Australia and internationally.
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