Q: Recently I missed a payment and didn’t realize it until I received a reminder letter from the strata about 7 weeks after the due date in the post. Although I have elected to receive all my correspondent via emails, but this time it was sent to me by post. The penalty for overdue payment was 10% interest and plus $20.00 for late payment fee (admin fee). Can Strata Managers charge owners for admin fee due to late payment?
I missed a payment and didn’t realized it until I received a reminder letter from the strata, the penalty for overdue payment was 10% interest and plus $20.00 for late payment fee. Can Strata Managers charge owners for admin fee due to late payment? – Cindy, NSW
A: The Strata Schemes Management Act 2015 allows owners corporations to claim as a debt any contribution that hasn’t been paid at the end of one month, along with any interest that must be paid and any costs the owners corporation spends in trying to obtain those amounts back.
Your strata manager is obligated to manage outstanding levies under the terms of your strata managing agency agreement. The owner is charged for these expenses, which are detailed on the lot statement in line with the Agency Agreement entered into between your owners corporation and the strata managing agent.
