How delays in collections erode community scheme stability

Across South Africa’s community schemes, a quiet but corrosive pattern repeats itself month after month. Owners fall into arrears. Trustees hesitate to act. Files wait on desks, reminders are sent, and meetings are held, all while debts grow and financial stability weakens.

For many complexes, estates and flats, the challenge is not unwillingness but time. Each stage in the collection process, from trustee deliberation to legal enforcement, is slowed by caution, procedure, or systemic backlog. What should be a disciplined recovery mechanism has become, in many cases, a prolonged and uncertain ordeal.

The first delay often begins close to home. Trustees, mindful of community relationships, resist confrontation. They hope a friendly reminder or payment plan will suffice. Some fear being labelled heavy-handed, others are persuaded by promises to “catch up next month”, but as weeks turn into months, arrears quietly swell, and the shortfall begins to destabilise the scheme’s operations.

Levy income is not ordinary revenue, it is the oxygen that keeps a scheme alive. When one owner fails to pay, the shortfall must be carried by others. Over time, that imbalance chips away at the collective stability that the scheme depends on.

By the time a decision is made to hand over the debt, the second layer of delay sets in. Attorneys, often managing heavy caseloads, must assess, prepare, and initiate proceedings. Incomplete records or inconsistent levy statements can slow the process even further. Weeks pass before summonses are issued, and by then, interest, and frustrations have compounded.

Then comes the slowest stage, the legal system itself. Whether through the Magistrates’ Court, the High Court, or the Community Schemes Ombud Service (CSOS), progress can feel glacial. Court rolls are currently congested, hearings are being postponed, and files are often misplaced. Even once a judgment is granted, enforcing it, through attachment or sale in execution, adds yet another cycle of delay.

The Community Schemes Ombud Service (CSOS) remains the preferred route for most levy recovery matters. It is accessible, affordable, and tailored to community schemes. But as its caseload has grown, so have its challenges. Plagued by staffing shortages, uneven adjudicator practices, and administrative backlogs, CSOS has faced criticism from an industry desperate for relief from surging arrears.

At the 2025 CSOS Indaba, the Ombud revealed that over 60% of the 15,000 disputes before it related to levy recovery. Encouragingly, CSOS has begun prioritising these matters and engaging directly with defaulting owners before disputes escalate to conciliation or adjudication. This proactive shift, alongside renewed recruitment and structural reform, signals progress. Though capacity remains limited, the momentum toward improvement is undeniable.

By the time recovery succeeds, the owner’s financial position has often worsened, and the scheme’s balance sheet bears the scars.

This is the unseen cost of delay, the erosion of value, trust, and confidence. Trustees who sought to protect owners from hardship can inadvertently deepen the scheme’s financial distress. Unpaid contractors, lapsing services, rising insurance premiums, and deferred maintenance all create a ripple effect that undermines long-term sustainability and property values.

To break this cycle, community schemes must foster a culture of disciplined urgency. Early intervention remains the most effective collection strategy. A levy unpaid for 30 days should not reach 90. A reminder should not evolve into a year-long negotiation.

Trustees must safeguard the community’s collective investment by enforcing payments promptly and fairly. Compassion and consistency are not opposites, they are the foundation of responsible governance.

Clear internal arrears policies should set automatic triggers for escalation, reducing the scope for emotional hesitation.

Legal partners play an equally vital role. Attorneys experienced in community scheme law should adopt technology-driven systems, transparent reporting, and measurable timelines. Trustees, in turn, should expect and demand accountability.

At the institutional level, courts and CSOS must recognise that levy arrears are not merely private disputes, they are matters of economic and social stability. Each delayed ruling affects entire communities. Streamlined procedures, improved communication, and adequate staffing are not luxuries but necessities.

Until systemic reform takes full effect, prevention remains the most powerful defence. Schemes that act early avoid the compounding effects of arrears. Regular monitoring, consistent follow-up, and proactive engagement with owners prevent disputes from escalating into crises.

The principle is simple, the sooner an issue is addressed, the easier and cheaper it is to resolve. Delay is not a neutral choice, it is a decision that carries a tangible financial cost.

Despite the challenges, the outlook for community schemes is far from bleak. Awareness is growing, reforms are underway, and innovative financial models are helping schemes weather the storm.

At BC Funding Solutions, we work alongside community schemes, trustees, and managing agents to bridge temporary cash flow gaps caused by arrears and collection delays. Our levy funding solutions allow schemes to remain operational, maintain their assets, and protect property values while legal recoveries run their course.

In an environment where time is money and delay is decay, proactive financial management and access to strategic funding can make the difference between recovery and regression.

Ultimately, delay is the quiet destroyer of financial rehabilitation. It is not dramatic failure that weakens community schemes, but hesitation, inefficiency, and systemic inertia.

Community schemes thrive when they act early, communicate clearly, and maintain discipline even in discomfort. In community living, justice delayed is not only justice denied, it is financial stability denied.