Jul 26, 2022
2 min read

What do you do if a tenant doesn’t pay the Building Management fees?

Sometimes we feel that we would be happier to stop transferring money each month to the Building Management, even though it’s one of the most important payments in our daily life. These fees are intended for expenses such as plumbing repairs, cleaning the stairwell, paying electricity bills in the common spaces and maintenance of the elevator.

Who is required to pay Building Management fees?

We will start by noting that Building Management fees are mandatory for every tenant living in a shared building. Not paying them constitutes a violation of the law and this can be found in section 58 of the Real Estate Law, which specifies that every apartment owner must participate in the maintenance expenses of the residential building.

It is also important to note that in most cases, the obligation to pay the fee will apply to the person who actually lives in the property. Hence tenants who live in rented accommodation are also obligated to pay the Building Management fee. If the renters of the property object to paying the fee, the landlord is obligated to pay.

In some cases, there will be additional payments for gardening on the ground floor or equipment for the shared shelter. These expenses are an “extra” since they are not included in the normal routine maintenance of the building, and therefore they can be opposed to and deducted from the common expenses total.

Tenants’ resistance

The Building Management fees are usually determined in the pre-agreed contract of the shared building and are calculated according to the estimated expenses, dividing them equally among the tenants. If one of the tenants thinks that the amount is too high, they can contact the Resident’s Association to appeal. Throughout that time, they must still pay the fees, unless decided otherwise.

If a tenant refuses to pay the fee, the Resident’s Association can, after repeated requests, contact the tenant in an official request letter. If this doesn’t work, the committee can contact a shared home portal or a private lawyer.


How to collect the debt from a tenant who refuses to pay

In cases where tenants refuse to participate in Building Management payments even after repeated requests, there are a number of stages that must take place in order to collect the debt:

Contact the tenant – the reasons for their refusal to pay must be discussed and clarified. If, after the clarification, the tenant still refuses to pay, they must be informed that this step may lead to legal proceedings.

Letter of notice from the Resident’s Association – drafting and forwarding an official letter of notice to the apartment owner regarding the amount of the debt and the deadline for its settlement. This letter will be used in the future as a reference for the first attempt to settle the debt before going to court.

Filing a lawsuit – initiating legal proceedings by filing a formal lawsuit with the Supervisor of Land Registration by a representative of the common building.

Legal hearing – bringing the arguments of both parties before the Supervisor of Land Registration.

Execution of the judgment – if a judgment is given that obliges the tenant to pay, it must be implemented by the deadline given. If the tenant still refuses to pay, the Resident’s Association can apply to the Execution Bureau to enforce the judgment.

Dealing with a tenant who refuses to pay is never easy, as they are a neighbor, a person you smile at in the stairwell. That’s why you need Bllink; we give the Resident’s Association the legal assistance to help face these tenants. Contact us now and we will be happy to assist you in reaching an amicable solution every time.

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