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ARTICLE · 25 NOVEMBER 2011

Make ‘Em Pay: The Collection Of Common Expense Arrears

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The collection of common expense arrears is one of the most important duties that a Board of Directors of a condominium corporation undertakes. When common expenses are not paid and collected, the corporation can experience serious cash flow problems.

CanadaReal Estate and Construction
Brad Bain
Brad Bain
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The collection of common expense arrears is one of the most important duties that a Board of Directors of a condominium corporation undertakes. When common expenses are not paid and collected, the corporation can experience serious cash flow problems. This can make meeting the corporation's financial obligations difficult. It is therefore very important for the Board to keep on top of those unit owners who are in arrears.

As most common expenses are paid to the condominium corporation's property management company, the Board should request a monthly report from the property manager. The Board must be aware of the total amount of arrears at any given time.

The following steps are recommended to enable a condominium corporation to enforce payment of common expenses:

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