Strata Plan committees or their managing agents are often required to recover unpaid strata levies from unit owners. This can be costly and time consuming. The costs for doing so should not have to be borne by the other unit holders so the system, within reason, allows the reasonable costs of doing so to be recovered from the recalcitrant unit owner.
They are known as Section 81 expenses and can include the legal fees and disbursements incurred in recovering the unpaid levies. It is not unlimited. In other words, you cannot incur $5000 in legal costs in seeking to recover $1000 in unpaid levies but only what is reasonable.
It ensures that the unit owners who do the right thing and pay their levies are not lumbered with the costs involved in having to chase their fellow unit owners who don’t do the right thing and pay their levies when required.
Acting for strata managers has allowed us to develop best practice and cost effective systems to recover unpaid strata levies. Let us know if we can assist you.