Some instances of service charge non-payment can easily be avoided by following these three simple steps.
Non-payment of service charge by leaseholders can cause serious cash flow problems for landlords, which could ultimately impact on the level of service that they are able to provide.
Taking preventative measures is key to reducing the number of instances of non-payment. Sometimes, problems with payments occur due to misunderstanding, confusion, or lack of communication between landlord and leaseholder.
Take these three simple steps to become more efficient and effective at collecting service charge payments.
Non-payment procedure– Having a non-payment procedure in place and strictly adhering to it can help to deter late payments. Calling leaseholders or sending out a reminder letter soon after the debt falls into arrears can often prompt payment. Following up late payments as soon as possible will help you to resolve problems early on before the debt grows and begins to affect your cash flow.
Communication– Ensure that you are communicating clearly and frequently with leaseholders, making them aware of any extra expenses or significant increases in expenditure. Communicating prior to sending a service charge invoice gives the leaseholder an opportunity to query any amounts that they don’t understand.
Keep records up-to-date– Keeping your records on all leaseholders organised and up-to-date can prevent mistakes occurring when sending communications or requests for payment.
For professional help recovering service charge arrears, speak to us about our pre-legal service charge arrears recovery service(SCAR) by calling our team on 0800 002 9049 for free advice.