Body Corporate Bill - Charged Administration Fee for Money Owed

mavis30551 on 29/03/2022 - 16:18
Last edited 29/03/2022 - 17:17 by 1 other user

TLDR:

  • Owe body corporate debt
  • Body Corp emailed me a few times for money owed which i was paying off regularly
  • Realised every time they emailed me they charged a $44 admin fee - fees now equal $132 + interest

What to do?

Long story:
I have been in a new apartment for about a year - its a new building and I'm the first owner.

I had not received any body corporate bills for about 8 months when I decided I better do some due diligence and follow up with body corporate. About 10 months in they hit me with the 3 quarters that had past and the 1 that was coming up. A years worth of body corporate which is just shy of $4k, before Christmas.

I was a bit shook and annoyed but took it as a lesson, I called about the timing and poor form from strata but was told not much could be done, a payment plan could be put in place but I said not to worry I'd pay the majority of it now and the rest when possible.

Fast forward to the new year - January - and I had payed off most of the debt - I received an email asking when I would finalise payment from strata - so I paid a bit more leaving about a few hundred left over.

I received another email in February but couldn't afford it so ignored it.

I received another email in March and this one got my attention - it mentioned debt collectors which made me giggle a bit as it seemed quite excessive when I mentioned the first conversation we had that I would pay the debt off before off before the next bill due late April.

However - They have cheekily slugged me with a $44 admin fee every time they hit me up with an email for money. 44 X 3 emails. I looked at legislation and it looks like they can charge interest but does anyone know the avenue I can take?

Am I just going to have to cop this as well? I feel like replying with an invoice with a $44 fee every time I have had to reply to their email.

Home & Garden Body Corporate

Comments

  • SF3 on 29/03/2022 - 16:23
    -8

    A years worth of body corporate which is just shy of 4k,
    Location
    ACT

    $4k strata / yr… that's crazy.

    It's no wonder body corp sold as a business.

    • mavis30551 on 29/03/2022 - 16:24
      +1

      Its more like 3800 but yeh, its pretty standard tbh

    • salmon123 on 29/03/2022 - 17:40
      +5

      that's crazy.

      What are you basing that statement? You don't know anything about the strata scheme … for all you know it's an ultra premium building with a full-time door man and shoe shine person.

      It's not like a house is without expenses too. At a minimum strata will include building insurance and maintenance of common areas. Is 4k/year cheap or expensive compared to home ownership? I don't know, but your comment certainly shows your ignorance.

  • Muzeeb on 29/03/2022 - 16:28
    +9

    I recieved another email in February but couldnt afford it so ignored it.

    Great LPT

  • GG57 on 29/03/2022 - 16:29
    +3

    Are you on the owners' corporation?
    If not, get yourself on there and make a decision.

    • skid on 29/03/2022 - 16:51
      +3

      Same thing happened to me at my place. I was at the next AGM and got it changed. Ridiculous cookie cutter bylaw.

  • tsunamisurfer on 29/03/2022 - 16:36
    +12

    I had not recieved any body corporate bills for about 8 months when I decided I better do some due dilligence and follow up with body corporate.
    About 10 months in they hit me with the 3 quarters that had past and the 1 that was coming up. A years worth of body corporate which is just shy of 4k, before christmas.

    You would have been advised of the strata levies BEFORE purchasing the property. A reasonable person would have placed / budgetted that money aside even if you have not been billed.

    I recieved another email in February but couldnt afford it so ignored it.

    Why did you purchase an apartment with high strata fees if you can't afford it? Ignoring outstanding debt letters is not prudent.

    However - They have cheekily slugged me with a $44 admin fee every time they hit me up with an email for money. 44X3 emails.
    I looked at legislation and it looks like they can charge interest but does anyone know the avenue I can take?

    It costs time and effort to chase people for payment. I support the $44 / email, again thats on you for ignoring their correspondence, what did you expect them to do, let it slide?

    Am I just going to have to cop this as well?

    Yes because you caused this.

    I feel like replying with an invoice with a $44 fee everytime I have had to reply to their email.

    You want to invoice them for rectifying your non-payment.

    Where did you learn logic?

    • mavis30551 on 29/03/2022 - 16:50
      -3

      Of course I budgeted for it, thats why I was able to pay most of it it off before christmas, a rediculously expensive time of the year for me.

      You think its ok to charge $44 for sending an email? I hardly call this chasing people for payment, especially when you can see its being paid regularly - and I only ignored 1 email correspondence - which was a waste of time replying to because I would of told them the same thing as the 2 previous correspondences, the full amount will be paid before the next bill cycle.

      When did you learn its ok to charge outrageous fees for doing absolutely nothing? do you work for a bank? there was a whole royal commission into why this isnt OK, and honestly I wonder if its legal, which is why I would like advice on rather than holyer than though rediculous comments.

      Must be nice on your high horse

      • Muzeeb on 29/03/2022 - 16:52
        +5

        My lawyer charges $275 to send a fax so $44 for an email seems reasonable.

        • [Deactivated] on 29/03/2022 - 17:46

          I didn't realise they still have fax machines

          • SBOB on 29/03/2022 - 18:05
            +4

            @[Deactivated]: That's why it's so expensive….
            It's $44 to send the fax, $231 for fax machine upkeep….

      • pharkurnell on 29/03/2022 - 16:59
        +1

        When did you learn its ok to charge outrageous fees for doing absolutely nothing?

        Can you give us the address of the rock you've been living under?

        wheres the 3000 kid setting off the fire alarm thread

      • tsunamisurfer on 29/03/2022 - 17:10
        +7

        Of course I budgeted for it, thats why I was able to pay most of it it off

        So…..you didn't budget for it.

        the full amount will be paid before the next bill cycle.

        Why the F should the rest of the owners prop you up while you take TWELVE MONTHS to settle something you 'budgetted for'.

        I am on the council of owners and always support the aggressive chasing of people in arrears, they have my full approval to apply any fees to said extra work.

        And it is extra work, because this is probably not in their standard scope of work can can be itemised and charged accordingly.

        If you don't pay your levies on time this means the strata's books are in shortfall, exposing the management to not being able to carry out planned works or having to dip into reserves.

        which is why I would like advice on rather than holyer than though rediculous comments.

        My advice was to pay,

      • TheBird on 29/03/2022 - 17:21
        +1

        I see you've never done anything with body corporates before.

        Body corporates charge for correspondence. $44 seems a little on the high side for simple correpondence, there may be compliance issues I'm not cluey. That being said, for an issue where you've missed multiple payments in the past, I wouldn't be surprised if this was pushed through to the committee for a motion/decision on what to do with your case. If that's the case, then $44 is very cheap. For all we know, it's a $44 late payment fee.

        I'm surprised they didn't send it to debt collectors much earlier. You're lucky they didn't. That can get very expensive, very quickly for you.

      • dasher86 on 29/03/2022 - 17:37
        +3

        Admin fee isn't so bad when it makes people actually pay on time.
        what makes you think that the body corporate has the funding to allow you to pay in your own time and not when the bills were due?

        Paying off by the next bill cycle… no it's overdue now, you owe your fellow owners money.

  • garetz on 29/03/2022 - 16:38
    -1

    They cannot charge you directly for that, an admin fee should be charged to the body corporate, not you directly.

    • GG57 on 29/03/2022 - 17:08

      Not always; it depends on the specific owners' corporation.

  • AndyC1 on 29/03/2022 - 17:03
    +6

    Summary:
    1) OP bought a place
    2) OP knew there were body corporate fees
    3) OP was shocked that he had to pay outstanding fees.
    4) OP did not read the last invouice as it was to be paid in the future at some data if correct.
    5) So for just under a year he was living there or renting out and did not pay any dody corporate fees.
    6) No mention of a payment plan that was agreed to by body corp, only
    7) OP said he would pay
    8) OP still has not paid outstanding amounts
    9) OP did not want a payment plan

    So the body corp rightly so has had enough of this and has said if you do not pay all of the outstanding amounts by X date then we will have to put the outstanding amount in the hands of a debt collector. This is reasonable given the time frame.

    Different states can change some additional fees for overdue body corporate fees. There is also interest the accrues when it is overdue. These may be the fees and without the body corporate invoice sent out no one will know as OP will say "fee".

    Op needs to call the department in his state to see if the "fees" are allowed or not, but the debt needs to be paid or an agreement with the body corporate for payment needs to eb agreed to as a one sided payment plan is NOT a plan.

    • mavis30551 on 29/03/2022 - 17:09
      -1

      Thanks - do you know what the department is in ACT?

      I just want to check if the fees are allowed or not, if I can get out of paying it I will, if I cant then ill cop it and move on

      • AndyC1 on 29/03/2022 - 18:23

        Google it.

  • djones145 on 29/03/2022 - 17:42
    +1

    can I bill you 8 bucks for reading your post????

    • mavis30551 on 29/03/2022 - 17:51
      +1

      Why not. it probably took more effort than strata would of done after I had to chase them for an invoice - which is meant to be quarterly not, yearly..

  • DashCam AKA Rolts on 29/03/2022 - 18:30
    +1

    "rather than holyer holier than though thou rediculous ridiculous comments." FTFY

  • happydude on 29/03/2022 - 19:02
    +1

    Pg 55 - If a unit owner does not pay by the due date an interest fee is charged at 10%.
    Pg 14 - Owners corporations do not have the authority to issue “fines” or “fees” for breaking the rules.

    https://www.parliament.act.gov.au/__data/assets/pdf_file/001…

    My view is they can charge the owners corporation but not you. That $44 should be covered by the interest.

  • timthetoolman on 29/03/2022 - 19:51
    +1

    I can't offer you any help but I really appreciate the TL:DR at the start of your post.

  • Lastchancetosee on 30/03/2022 - 08:21

    The high late repayment fee is to act as a deterrent, as well as cover administration costs.

    The only way to avoid the fee in future is to pay on time.

  • TilacVIP on 30/03/2022 - 08:49

    OP, maybe now in future you will pay on time.

    I learnt this too, by not paying a speeding fine on time. Next time I received the payment reminder it went up about $50.

    Paid it, lesson learnt.

  • thestig on 30/03/2022 - 09:32
    +1

    Did you receive a schedule of body corporate fees when you purchased the apartment? This usually has all the applicable late payment fees/interest that applies. All owners agree to this at the time of purchasing. Your conveyancer could confirm 100%, however I believe it's a requirement that the seller provides this to you at the time of purchasing.

    On a side note, if you own a property I'd try to build up an emergency fund of at least $10k for unexpected expenses. This should be in addition to your normal savings.

  • zzap on 30/03/2022 - 15:48

    Ask for them to waive the fees.

    I haven’t looked up the legislation, but I am the chairman of my OC committee. From time to time lot owners are charged interest on late payments, and on occasion they ask for the interest to be waived. When this request is received by the OC Manager, they raise it to the committee, and in general, especially if the lot owner doesn’t have a history of late payments or other issues, the committee waives it.

    I recommend you write a very brief sob story about how you were experiencing financial stress, and kindly request the committee to wave your interest and other fees in relation to late payment.

  • 82norm on 30/03/2022 - 17:21

    Just pay the bloody fee and move on.

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