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Defaulters of Maintenance Payments

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makarelk

Has anyone else on this platform had problems with property owners who refuse to pay their maintenance fees?

Does anyone have any helpful information on this topic?

mbohills57

My friends complex has no pool no lift no bin collection it dire all because owners don't pay fees ..they just accept it as way of life now

Toon

Plenty of complexes have this issue.. debts are rife on many..I always advise anyone contemplating  buying on complex to ask for a current set of accounts from the vendor ..... That identifies how well run the complex is.... If refused then walk away.... My view is that albeit maybe against the complex constitution and possibly law for that detail to be given to a non owner I believe it to be essential details on which you make or break a purchase decision. It's not something any purchaser wants to find out after you commit to buy.. also  complex issues are not always obvious and will not necessarily be declared by an owner or agent


Sadly legal routes of recovery are more or less useless expensive and usually takes many years with little or no chance of a "win" ... Nobody wants to pay for that either even those who are subsiding the non payers..as they just see their fees rising every year with no advantage or benefit

Toon

Your complex committee can place a court approved lien on the property so that it cannot be sold untill such time as the debt is cleared .. 


The new IPL (when it gets passed)  I believe is expected to include a legally enforcible clause to bar any indebted property being rented out.

Toon

Other complexes with debt issues .. have installed barriers at access points to the complex and also if they have facilities such as on site gyms indoor pools etc ....only accessible with a fob .. those fobs only allow access to payers.. non payers dont get them.  If at some point they fail to pay their fobs get cancelled.. that action alone makes the property access difficult and unattractive for holidaymakers in Airbnb type properties that are owned by non payers

Toon

Best advice I can offer is identify the defaulters.. rate them in order of likelyhood to pay up and pick off the low hanging fruit first, concentrate in getting at least one to pay then follow up with legal letters and broadcast via committee to owners that the actions that have and will continue to be taken.. it's not an overnight thing it will take time money and concerted efforts to be effective.

Toon

I knows this sounds extreme but I know one committee who's members track and trace the non payers and research their potential ability to pay....and if they are not resident get bailiffs in to retrieve the debts even in UK....  Expensive but can be worth it  for big debts recovery..

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