The most persistent challenge for every housing society is collecting maintenance dues. The larger the number of units, the more the chances of defaulting residents. In fact, at any given time, there are likely to be some residents who are always late or refuse to pay the charges. Most Management Committees (MC) or Resident Welfare Associations (RWA) find themself struggling in avoiding any such eventuality.
ApnaComplex automated Accounting and Billing module enables treasurers to improve their collections by streamlining payment functions. With the automated calculation of late payment charges, recurring invoices, timely reminders, and auto-generation of defaulters reports, treasurers can prompt residents to pay society dues on time. Ultimately, this helps in improving and increasing maintenance payments.
Importance of timely Maintenance Payments
Most gated communities charge maintenance fees on a monthly, quarterly, or annual basis. The calculation of maintenance charges can depend on various factors and should be within model bye-laws. However, since these regulations can differ from state to state, there is no standard or fixed formula that applies to all gated communities across the country.
While the calculation of maintenance changes may differ, the purpose is largely the same. These charges are meant for the maintenance and development of common amenities and facilities. It should be noted that the society does not earn any profits from these charges. Without residents paying maintenance dues, the management committee would not have the funds to discharge their essential duties. You can read more about the scope and calculation of maintenance charges in our article here.
Challenges in Collecting Maintenance Dues
In an ideal world, residents would pay their full maintenance dues on time. In reality however, there are always some residents who will either delay or default on these payments. This could be due to negligence, lack of intention, or some dispute over the maintenance amount. In the case of a dispute, the member can write to the treasurer or the management committee. If unresolved, they can pursue this further by writing an application to the Deputy Registrar, ordering the Society to rescind or refund the extra charges.
There could be other challenges as well, such as bureaucratic problems of keeping track of different maintenance charges, calculating late charges and penalties, and making sure that all residents are informed in time.
If the maintenance is not paid in time, a member risks becoming a defaulter. Defaulters are typically not allowed to hold any post in the MC or vote in Annual General Meetings. The MC may also choose to restrict the usage of common facilities like the clubhouse. Finally, the society can refuse to issue an NOC or No Objection Certificate to defaulters for resale or renting.
How can ApnaComplex Help in Reducing Late Payments?
The automated accounting module helps in streamlining billing and collection functions so that residents are informed in time about defaulting payments. Here are some ways by which we can use the module to streamline the collection of maintenance dues:
- Raise and send invoices against all or select flats
- Automate invoice calculations based on formulae or fixed value or both
- Set up automated delivery for recurring invoices on a given date every month.
- Auto-calculate late payments with multiple options for adding penalties
- Automatically collect payments through the Collection Gateway
- Set up a delivery schedule for defaulters reports
- Set up reminder notifications for overdue invoices through Email, SMS or in-app push notifications
In summation, ApnaComplex auto-calculates and sends maintenance invoices, following this up with notifications for overdue payments. This system ensures that no member misses the payment deadline due to oversight or negligence. The option to impose different penalties gives the admin control over the imposition payment charges.
The defaulter report is critical in tracking late payments. It gives MCs an overall picture of the number of defaulters, total overdue payments, and the average outstanding amount each month. As an automated accounting module, ApnaComplex is also seen as an impartial source for collating data and calculating late payments. In case of a dispute, this data can be pulled up to see the actual picture.
To know more about automated collection tools, get in touch with us at support@apnacomeplex. Our team can help you understand and adapt the accounting module to track late payments, send reminders, auto-calculate penalties, raise invoices, and schedule a defaulter’s report.