Bodies corporate, home owners’ associations and share block companies are all too frequently held to ransom by some owners who default on their levy payments, resulting in cash flow problems. The vicious cycle continues with maintenance work falling progressively behind due to lack of funds and accounts falling into arrears, this further exacerbated by necessary legal fees not typically budgeted for given the assumed recoverability of said fees, albeit on completion of the legal process and not upfront. Trafalgar has a solution to this unfortunate, and not uncommon, predicament – Levy Solutions
Levy Solutions is a levy finance product guaranteeing a fixed monthly levy cash flow on the 1st business day of each month. This product aims to rehabilitate the buildings (body corporate, HOA or share block company) cash flow by guaranteeing levy income and delivering intensive credit control support overseen and managed by in-house attorneys; furthermore, all associated and necessary, legal fees are financed by levy solution (on a cash flow basis) ensuring the fastest, uninterrupted, rehabilitation process.
On inception of the product, Trafalgar Financial Services will immediately forward up to 90% of the property levies that are in arrears, thereby immediately relieving cash flow constraints and affording an opportunity to catch up with arrear accounts, maintenance and other priorities and, going forward, forwarding the full levy compliment on a monthly basis ensuring an uninterrupted and predictable cash flow.
Any and all incurred legal fees will also be settled by Levy Solution ensuring that the legal process continues uninterrupted to ensure the fastest rehabilitation.
With a predictable cash flow, the Body Corporate is able to plan and manage more effectively and ultimately this is very important for enhancing the asset value of the property and residents’ lifestyles.
Arrear levies result in:
• A visually deteriorating complex that is unable to make repairs and sustain general maintenance
• Municipal and creditors accounts fall into arrears and interruption of services arises
• A decrease in the return on property owners’ investments.
• Poor resale values.
• Difficulties in selling units as a result of bonds refused to potential buyers.
• Compounding debt may result in special levies being raised – usually an unbudgeted item that places significant financial pressure on home owners.
• The refusal of insurance claims.
• A stressed and unhappy community of home owners.
With Trafalgar’s Levy solutions, you can turn these problems around, resulting in:
• Regular maintenance
• Increased property value.
• Increased rental on such properties.
• Greater opportunity to market and resale units.
• Residual funds to deal with emergencies.
• Bonds will more easily be granted to home owners .
• Enhanced lifestyles of home owners.