Schemes seldom, if ever, budget for arrear levies and certainly not for the associated legal costs necessary to collect outstanding levies which are becoming increasingly prevalent.
There is a direct correlation between rising indebtedness (i.e. increasing levy arrears) and the slowing economy. A number of factors are at play, primarily the legal system is overloaded and the ombud service is still new and unfamiliar.
The impact of this all too often means spiraling cash flow pressures and plummeting values in affected schemes to the detriment of all owners. The dwindling functioning of schemes sees a physical deterioration of buildings that directly impact owners daily.