Baedex Levy finance
Escaping the levy trap
Non-payment of levies is the single biggest threat to safe, affordable sectional title living. Schemes in financial distress suffer from physical neglect, punitive special levies and falling property values. Chronic levy defaults fast lead to a ‘levy trap’, a cycle of deterioration where levy paying owners flee failing schemes and are replaced by less reliable residents.
The solution: Baedex Levy Finance
Baedex provides levy finance solutions to Bodies Corporate. This entails:
*Financing arrear levies owing at the date of inception of a relationship with Baedex
*Fast, efficient levy collection
*Guaranteed monthly payment equivalent to the full levy roll
*Funding for property maintenance and improvement projects
Immediate access to funding allows trustees to quickly address a scheme’s pressing needs. Efficient collection and guaranteed monthly levy payments will permanently reverse the cycle of deterioration caused by levy defaults.
All owners are charged a monthly collection fee. Defaulting owners carry the full cost associated with the collection of arrears levies. This includes interest and legal fees. Technically, Baedex contracts with a Body Corporate and all costs, including interest, are charged to the Body Corporate. Practically, these costs are only recovered from the Body Corporate once owners pay up.
Find out more
Contact Willem le Roux on 021 974 3617 or willemleroux@baedex.co.za for more information on how Baedex’s Levy Finance and Collection Solution can help Bodies Corporate avoid the levy trap.