Strata late fees incurred because not enough $ in PM trust fund

[Lawry]

Hi, some time back i stopped paying the strata fees on our IP myself, and had the PM do it on our behalf.

Just checking the latest strata accounts I see we've been hit with some late payment fees.

When I questioned the PM he said it is because when the quarterly strata fees were due, there was no/ insufficient money in our account, so they had to wait until the tenant paid the next month's rent before he had the funds to pay the strata.

I have to check the dates cos i am not sure the reason is valid, typically there would be some payment/grace period. I want to check if the PM could have paid sooner

But, is this normal/ anyone experience the same? any way around it? I want the convenience of the PM paying all the bills, but not if we are going to regularly incur late fees..

 

[beachgurl]

Yep it happens. I've asked my PMs whether if makes sense to send me the bill or at least call me to say there's not enough money in the account. Each seem perplexed that I've asked them to do such a thing.

 

[Terry_w]

Pay them yourself, get the points on your credit card and know that they are going to be paid.

also can be part of the debt recycling strategy.

 

[J_aco]

Hi Terry,

Are you able to elaborate on how it can be part of the debt recycling strategy please? Thanks!

 

[Terry_w]

Hi Terry,

Are you able to elaborate on how it can be part of the debt recycling strategy please? Thanks!

borrow to pay investment expenses and use the funds you would have normally used to pay down non deductible debt.

 

[danwatto]

Does your strata allow less than 30 days to pay?

I can't see how the rent would not cover it, unless you had major repairs that month.

Or if you have hugely expensive strata?

 

[Scott No Mates]

Hi, some time back i stopped paying the strata fees on our IP myself, and had the PM do it on our behalf.

Just checking the latest strata accounts I see we've been hit with some late payment fees.

When I questioned the PM he said it is because when the quarterly strata fees were due, there was no/ insufficient money in our account, so they had to wait until the tenant paid the next month's rent before he had the funds to pay the strata.

I have to check the dates cos i am not sure the reason is valid, typically there would be some payment/grace period. I want to check if the PM could have paid sooner

But, is this normal/ anyone experience the same? any way around it? I want the convenience of the PM paying all the bills, but not if we are going to regularly incur late fees..

Sign of a lazy PM. If they cannot work out a budget what hope have you got? It doesn't take much for the PM to diarise when you are due to have strata levies, anticipate it be withholding sufficient rent from the disbursement to cover the payment.

I know when the strata levies, water rates & council charges are expected so advise owners to expect a reduced disbursement. It is a PIA having to go cap in hand to the owner to request a top up or direct payment of the outgoings.

 

[Jaggannath]

My PMs work all this out, the only time they ask me for money is if something breaks unexpectedly.

 

[Salvatore1]

In 11 years one late payment charge because the owner handed the bill to me when it was due and I had paid him the day before. Normally Strata companies send out their invoices 4-6 weeks before they are due.

 

[Lawry]

thanks for your responses, I will follow up with the PM.