This article discusses whether owners are liable for strata recovery charges, explaining that strata managers commonly pass debt recovery and notice costs to owners in arrears under strata laws and by-laws.
Question: Our strata manager charged a fee to send recovery letters to an owner in arrears. What authority requires an owner to pay these “recovery of contributions” charges?
Our strata manager charged our strata company a fee to send letters to an owner in levy arrears. The strata manager raised an invoice on behalf of the strata company to the owner to recover these charges. Is this the usual practice?
What authority requires an owner to pay these “recovery of contributions” charges?
Answer: It is usual for a strata manager to send notices to recover unpaid funds and charge the lot owner for them.
It is usual for a strata manager to send notices to recover unpaid funds and charge the lot owner for them. If unpaid, strata managers generally organise debt collection via legal means and pass these costs onto the defaulting lot owner. Schedule 1 Governance by-laws, listed below, note that the owner of a lo must pay all rates, taxes, and ‘charges’ that may be payable concerning a lot. However, to bolster this, a scheme may also have a debt or cost recovery by-law lodged and can proceed to the SAT Tribunal to seek an order for unpaid contributions and costs.
1. Duties of owner
- The owner of a lot must —
- immediately carry out all work that may be ordered under a written law in respect of the lot other than such work as may be for the benefit of the building generally and pay all rates, taxes, charges, outgoings and assessments that may be payable in respect of the lot.
This post appears in the May 2025 edition of The WA Strata Magazine.
Jamie Horner
Empire Estate Agents
E: JHorner@empireestateagents.com
P: (08) 9262 0400
Hi Dean thanks for your question in regards to the Strata Management Company issuing late or levy arrear notices. The charge will be documentated in their management authority and if there has been an increase in this charge it needs to either be reflected in the mangaement agreement or agreed by the Strata Council.
For a Strata Management company to raise their fee for issuing late notices, do they require CoO or unit owners approval?
Does in fact the strata management company need to disclose these fees to the strata company?