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I wonder how many owners have actually picked this notice up from the Entidad website
Brief precis
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Urgent Notice
The Entidad is experiencing serious cash flow problems as a result of non payment of fees by owners.
Jeopardising services such as rubbish collection, security, road cleaning etc.
The list of debtors will be forwarded to the Town Hall during October whose powers of collection far outstrip those generally available including freezing of assets and withdrawals from bank accounts without recourse.
Over 175.000 Euros or 20% of total was outstanding
Owners are urged to pay urgently
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.Much the same problem as experienced by many of the communities.
Hope you have all paid up.
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Looks like the gardening is already being affected.
When i was at Roda last month i's noticed that Phase 3 (i'm block 78) had not had any gardening done for a long time, weeds every where, grass not cut.
I emailed Housing Info and was told they are dealing with the gardening company.
Can anyone tell me if Phase 3 has had any gardening done recently?
Stuart
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I noticed the same thing last month, there was one area that really stood out. Hopefully the non-payers will be forced to pay.
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whatman
Nice thought and similar to most law abiding middle class citizens in the UK most will oblige, but there is no way you can force owners into signing a direct debit and many will exploit the law for as long as they can , then turn round and say "take me to court then" knowing it takes forever, meanwhile those of us that pay subsidize the debtors. Communities are still going through court proceedings against debtors in 2007 and 08.
shagan
If it is the gardens within your community then it is a community issue and Housing should sort it. For info we on Phase 2 are our our third gardening contractor since 2007. Not easy getting a good job done.
The Entidad is responsible for all the garden areas on the outside of the perimeter road.
Confusing, I know, but probably different gardeners working for different people, though Housing do act for the Entidad as well as most of the communities.
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Hi Hugh
I can’t say I am surprised at your revelation about the debt problems within the Entidad. This level of debt you mention, which has accumulated over such a short span of time, is frightening!! There is no doubt that we do have major issues at Roda with owners who refuse to pay their fees. These owners take the view that it is easy for them not to pay because of the length of time it takes for individual cases to go through the court system. Of course the courts will catch up with them at some point, but by then there maybe nothing left in the pot for us to claw back and in the meantime the problem just keeps on growing.
These individuals show nothing but contempt for the rest of us. They are perfectly aware of the damage they cause to the finances of our Communities, but they just don’t care. Whether it is the Entidad or Community fees, it doesn’t matter to them as long as they don’t have to pay. The longer this goes on, the more significant the problem becomes and as a result the more it will restrict our Communities ability to function.
I don’t know the answer. One thing I do know is, that allowing our investment to go to the wall because of these individuals, is not an option. I think it is time we started to think outside the box on these matters. The large majority of these bad debt owners rent their properties and reap the benefit. We should be doing everything we can to obstruct them from thinking that they can just carry on as normal. I am not talking about breaking the law, but I do think it is possible for us to make things difficult for them. After all I don’t believe for one moment, any one of these individuals, if so aggrieved, would be keen to take of our Communities to court over our actions.
Innes
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Re: posting by Stuart on 19th Nov.
I have a pad in block 75 on ground floor and block 78 is opposite us. I have today come back from Roda and am pleased to say that grass is cut nicely. However, shrubs definitely need attention as they look tired and also need trimmimng.
Arun.
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It should be put to all communities to release the names of these debtors, there phase number & how much they owe. This should also be shown on this forum.
I'm part of another community in Mijas and have similar problems. Those that can't or won't have penalties applied, all are named to other owners by post and finally taken to court. The naming however does appear to work with those that either live there or visit on a regular basis. It's not ideal but when your community & investment are threatened in such a way, the penalties must be severe to achieve a result.
Let's start naming these none payers today.
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We have just been informed that we have 150,000 euro outstanding community fees and the ones who are paying are being asked to pay an extra 2 months fees by the end of February. At last years AGM we gave the go ahead to take legal action against non payers, but obviously this takes time in Spain!!
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SHOCKING!!!!!!! We pay our community fees and the ones that don't pay are able to use the facilities rent out their properties and enjoy the resort. Bloody typical. I hope you can claim back the 2 months extra with interest when you finally nail the non payers?
Paul
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Paul Mountney
www.golfroda.com
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Hi Paul
You’re right, this situation is a disgrace and it appears to be having a major impact on cash flow, hence the need for fee paying owners to bail out the Entidad.
The owners who are causing this problem will be asked to pay the same fee as everyone else, so I agree with your comments when you say that responsible owners should be recompensed for having to pay more.
When the Entidad fees for the coming year are set, the invoice should show the amount of monies we need in relation to the services we require and it should also show separately, the amount required to cover the cash flow issue and this should be in the form of a levy.
If an owner is not in credit when the budget is set at the Entidad AGM, then this owner should not receive the benefit of having this levy repaid to them at a later time, in the form of reduced fees. Only the owners who are in credit should benefit.
From what I gather the Town Hall is on the case of these bad debtors. I believe they have far greater powers to enforce these owners to pay up. Hopefully this problem may not be on going as people realise when their Spanish bank accounts are being emptied of cash to cover their debt.
Innes
This message was last edited by Innes on 17/02/2011.
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Hi - I totally agree it's shocking about the attitude of owners who, as you say, use the facilities or rent out their properties but show a complete lack of interest in sharing in the running costs. But, I have to say this is a situation that is reflected on many other large resorts where running costs are proportionately higher (because of things like security, garden lighting, pool maintenance, block maintenance, etc. etc - you get the picture) than those on a property in an urbanisation that is not resort based.
I have been a sub-community President on another resort and we experience exactly the same. After our AGMs next week we will be taking action through the Spanish courts against Spanish owner debtors (as that is the only way we can do it) and using debt collection agencies in the Uk against UK debtor owners - with regard to the other nationalities not sure what is happening there but no doubt we will get round to that. We use the whole range of name and shame documentation so everyone knows who has paid what. However, we don't have an Entidad - but a General Community - so in this case Roda is probably fortunate that the Town Hall has much more sweeping powers than the General Board of the Community.
With regard to sanctions I don't think apart from the above there is much else you can do - action has to be retrospective. However, on La Tercia, we are introducing a 20% hike in the budget which will be used as an incentive to owners who pay their fees in full, by direct debit or by standing order during the year. They can deduct 20% from their payments. The owners that don't pay have to pay their fees in full plus all the legal charges and costs when taking them to court and also face having their properties embargoed.
It really does stick in our throats that we have to subsidise for a 4th year those parasite owners who don't want to contribute to the Resort running costs. We do really realise how difficult it is for some owners to find the cash to pay their fees - but this is part of the obligation of owning property in Spain and I know that if they contacted the Adminsitrators and Presidents payment plans could be worked out to at least partially settle some of the debt.
These are just a few of my observations and thoughts.
Sandra
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There were long, and heated, discussions at the Entidad AGM yesterday regarding the budget for 2011. Debtors are still at around the €200k mark on the Entidad.
Including IVA the proposed budget for 2011 was a whopping €934k. But to this has been added money to cover bad debts, which the board say we will get back as & when the debts are recovered. So it has been agreed at €1.12 m.
What does this mean?
To apartment owners the fees for 2011 will be and average of €670
(as opposed to about €430 last year)!
Your Community fees should reduce though due to a reduction in Admin fees there
(by a grand total of €24 !)
Last year, Housing didn't charge the Entidad for Admin as they were supposed to be doing the admin for all phases. However, Phase 4 aren't using Housing and of course the Villas don't pay any community fees as they are independant. This was deemed unfair so Housing are now going to swap some of their income from the Communties to the Entity.
They are also adding extra admin costs (€27,000) to cover employing 1 more person who's sole job will be to chase debtors.
It was approved to chase debtors through the Spanish courts and also to use debt collection agencies outside of Spain. Surprisingly this was NOT a unanimous decision !!! This message was last edited by pommers on 27/02/2011.
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Pommers
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So - we are now being penalised for being good payers. This is an absolutely ridiculous situation - these bloodsucking debtors should be absolutely ashamed of themselves.
Has it been absolutely written into the minutes that owners who have paid on time and in full will get a rebate - personally I can't see that happening and will be thinking about discounting my fees by the increase.
I am speechless! (for a change).
Sandra
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Sandra - totally agree with your sentiments about blood suckers. Really ****es me off
The President and the Treasurer both said that we would get it back, and also said the minutes were being recorded for accuracy, so it should be there.
I just hope that it only goes back to "good payers" and the debtors don't get any sorty of reduction on this year.
This message was last edited by pommers on 27/02/2011.
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Pommers
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Surely a simpler idea would be to offer prompt payers a discount on fees as many other communities seem to do.
We will always get the hardened non payers who either cannot or will not pay until property is sold and even then, is it stiil the case that if a property is repossessed the bank is only liable for the last 2 years fees, interesting legislation as it normally takes more than 2 years to get through court system.
You might hope that communities in general could unite and take collective action against habitual non payers, then again
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Surely something can be done along the lines of what we used to see in the U.S. for houses that were up for sale or repossessed in that the agents/banks installed a lock box in the main door locks? This would at least mean that the apartments vould not be rented or used until the fees paid and the key lock box removed?
Just a thought.
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Hi hugh_man
It was indeed suggested by an owner that "good" payers should get a discount for prompt payment. The board said this could be considered in the future but at the moment due to the bad debt this was not possible.
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Pommers
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