Arrears is simply defined as, “money which is owed that was required by the due date.” The arrears process, or the collection of overdue contributions is a very important function in your Body Corporate or Owner’s Corporation. It enables the Body Corporate or Owner’s Corporation to meet its budget and maintain the cashflow required to meet the expenditure of the complex. Without the amount budgeted each year, basic maintenance and repairs may suffer resulting in property disrepair and workplace health and safety.
I am in arrears, what is the process to get out of arrears?
Now we know what arrears are and why they are so important to the success of your Body Corporate or Owner’s Corporation, we can briefly explore SSKB’s process to ensure arrears are collected.
The SSKB process can be broken down into the following 6 steps:
- Reminder notice
- Overdue notice
- Letter of demand
- Letter of demand follow up
- Committee resolution
- Legal Action
The process has been designed to ensure that A) your strata scheme can run effectively by ensuring cash flow and budgets are met, and B) that owners have more than sufficient time to pay their bills and are being treated fairly throughout the process.
If you would like to learn more about arrears, click here to watch our videos!
