BY: SUSAN MCCANN, ARREARS DEPARTMENT TEAM LEADER
Imagine if your boss continuously paid your salary late. How would you pay for your food, mortgage, electricity, internet or other bills? And, what about that family weekend trip you needed to book, or that dinner with your friends you planned weeks ago and suddenly couldn’t afford? It’s not hard to realize that constantly being paid late, or not being paid at all, will make it difficult for your life to function.
Just like personal finances, strata communities also depend on a steady cash flow in order to operate. Hence it is important that owners understand that their body corporate/owners corporation relies on them to pay their levies on time so the committee can organize and pay the bills.
Not For Profit
A body corporate/owners corporation is a not-for-profit organization that only bills what it needs in order to meet is financial commitments each year.
The committee decides the budget for the coming year based on different factors, depending on what work and maintenance is required for the specific period in time.
The body corporate/owners corporations a cooperative community with all owners as its members. Even if only a few owners neglect to pay into the pool of funds needed, it creates massive problems. It would be the same as your income suddenly lacking thousands of dollars each month. How could you then pay your usual expenses?
There are benefits of paying on time and they are present in your community; whether you are an investor or owner occupier, your community will be well maintained, the pool(s) clean, the lifts running and the garden neat if the payments have been made.
More importantly, the majority of bodies corporate/owners corporations allow up to 20 percent discount to owners who pay on time.
However, if you contributions are paid late, you will not only lose out on the discount, but you will be charged penalty interests up to 2.5 percent per month (so it makes sense to pay on time).
The Number One Tip
You might have figured it out by now, but the number one tip to keep your community function is: pay your levies on time, every time.
However, if you do have problems with your personal finances, contact us so we can help you set up a payment plan.