Introduce interest surcharge for non-paying members

gebbel

Registered User
Messages
1,005
At our upcoming AGM, I would like to propose that outstanding management fees will have interest penalties imposed. We have a situation where a few owners with fees owed are refusing to engage with us, most are not owner occupiers.
We just don't have the money to pay a solicitor to send letters to these people. And it seems that the threat of such a punitive measure might be the only option. I get asked sometimes "what am I doing about non-paying members"?
I have sent letters and rang these people, with limited success. It makes me angry that they don't really care.

Is it a good idea to go down this road?

Thanks
 
Firstly you need to ensure that the lease provides for charging interest.

Then you need to consider will the interest be paid.

I think outstanding service charges issues is getting worse in a lot of cases an I'm not sure if adding amounts to debts that won't be paid is of any use.
 
Thanks Joe, I'll check it out. My view is that the threat of a penalty might get people engaging with us. Some of these people are renting out their units. Are there any other ways of encouraging payment I wonder?
 
The lease will outline all your powers before court is an option.

If these are houses then options are limited except court unless parking allows for measures such as parking control measures to be implemented.

If its apartments then I would imagine there are a range of measures you can look at subject to your lease and building.

Access and TV are two such services that OMCs provide through common entrances and allowing permission for unit owners to mount devices on external walls. Breach of contract would allow the company to remove said services. Anything else that puts pressure on the unit owner prior to court is cost effective and saves the company and those hard working, decent honest people who do pay paying out money for those who don't.

Make sure you go through a thorough process of notification in advising what will happen and why and the timeline. If the unit owner is 'playing the system' and has not provided an address then advise the tenant but avoid any reference to non payment of fees. Due to actions by your unit owner is sufficient as an explanation.

Are tenants using loft spaces to run cables for sat or TV? If the company owns these spaces then this is trespass and you can have them all cut and removed. Any junk they have in there can be removed and the loft hatch locked to prevent unauthorised access. The company typically has a full right of access to inspect and maintain its property. If they refuse such access and you suspect that they are storing flammable or dangerous items in the loft but they refuse to allow you access then you would be within your rights to gain access to check this as violation of the block insurance policy is a very serious issue. I once found three large gas cylinders being kept in an apartment loft space and a canister of petrol.

No harm in 'advising' the PRTB, revenue, hid mortgage provider (get the land registry docs for 5quid) and dept of welfare that you cannot contact a landlord because his property has been rented out from xxxx/xx/xx until present and you cannot contact him. There is a process with the PRTB to gain a landlords details under certain circumstances. Again antisocial behaviour such as storing things where they shouldn't etc. For everyone else they wont respond to you but it puts a degree of pressure on the owner.

Bins stores can be locked. This can cause issues though, it depends on the tenant. If you have time you could set up CCTV and record the tenant dumping and report them to the litter warden.

A less than ideal system overall. Read your lease, pick the easiest and simplest methods and apply them to try to get results. Taking someone's sky TV away usually sends them bonkers enough to start screaming down the phone to the landlord or move out.

Remember that the landlord has no trouble taking a nice rental from the hands of his tenants.

Also, any block insurance claim is null and not possible until ALL outstanding fees have been paid in FULL. Same for all other repairs and services. If their roof needed repairing they can pay the money and you will happily repair it!
 
Back
Top