How to avoid late fees on your levies

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One important function of a body corporate is to act as a means for lot owners to pool their money to pay for shared expenses. Owners form a legally binding agreement with the body corporate and as such, must pay their levies in full and on time. When they don’t, the body corporate must take steps to recover these fees and pass on all associated costs to do so.

The good news is most body corporate arrears and subsequent late fees are preventable with this easy 5-point checklist.

Check out our Complete Guide to Body Corporate Levies

1. Update your contact details

After changing your email or postal address, it’s not uncommon for owners or agents to miss updating the body corporate manager. This means levy notices are then delivered to the wrong place.

By law, the body corporate is required to issue the levy notice to the current contact details held for the lot owner, so it’s important this information is up to date. The good news is these records can be easily reviewed and updated online. Log in to BCsystems owner portal to check your current contact details.

Also, consider changing the delivery of your levies from snail mail to email to avoid delays. This can be done online with this form. Make sure BCsystems is marked as a safe sender so the message doesn’t end up in your junk folder.

Make a note of each levy due date in your calendar after the AGM. If you don’t receive your levy notice around this date, you’ll know to follow up.

2. Ensure the transfer forms are completed

When purchasing in a body corporate development, you, your solicitor, or conveyancer will send a BCCM Form 8 to the body corporate manager advising of the purchase and updating the contact details. Until this form is lodged, the previous owner will remain listed and continue to receive levy invoices and all other communication regarding the lot.

This is more common with interstate owners and conveyancers who may be unfamiliar with Queensland body corporate law.

When buying in body corporate, ensure your conveyancer or solicitor has your correct contact details for the purpose of correspondence, and issues the BCCM Form 8 to the body corporate. You will know this is completed when you receive a welcome email from BCsystems.

3. Communicate with your property manager

Many lot owners delegate body corporate levies to be paid by their property manager directly from the rent. While this can be a convenient solution, it’s important to discuss a backup plan if there is insufficient rent to cover the fees.
We suggest discussing the following with your property manager:

Request they withhold enough rent to cover future levies, so even when your tenant moves out or is behind in their rent, there are still sufficient funds to pay levies.
Make a plan if there is no rental income for an extended period of time. This may be that you take over the levy payments directly for that period of time.
Ensure your agent can pay the levy by each due date, or inform you if it is not possible.

4. Work with your body corporate in cases of financial hardship

If you are unable to meet your financial obligations, this can be a stressful period. BCsystems strongly recommend early and honest communication with your body corporate committee in any situation regarding financial hardship.

Start by working out what you can afford to pay. You may be eligible for a levy repayment plan, so discuss this with your body corporate from the outset. Be prepared with details of your income, expenses, and the cause of your financial hardship in case you are asked.

If you are unable to reach a resolution, seek further advice. The National Debt Helpline can offer support and guidance on the correct legal procedure in cases of financial hardship.

5. Don't stop paying because of a disagreement

In some cases, owners refuse to pay levies when they don’t agree or have voted against a particular motion that was subsequently passed. Body corporate levies are mandatory, and motions are determined by a majority of owners. So, even though a minority of owners may disagree with a levy, they are still required to pay it.

Ignoring or refusing to pay levies because you disagree with a committee decision won’t impact on a passed motion. Instead, you will incur a non-refundable late fee and any other costs incurred to recover the funds. If you do not agree with a body corporate decision, there are opportunities to request the decision be reviewed.