Can Property Management companies charge all residents for debt collection?

eddddy

TripleH said:

Fees for debt collection are an acceptable business expense. Yes recovering them from those who owe the money is the best option, but if that is not possible then the entity that is owed the money should bear the cost. 

TBH, being an "acceptable business expense" isn't relevant.

The lease (and the law) says what costs can be added to a service charge bill.

I guess you could say that office cleaning costs, stationery costs, mobile phone costs, laptop costs are all "acceptable business expenses" for the management company - but they can't be added to service charge bills (unless the lease says so).


In this case, the law (Commonhold and Leasehold Reform Act 2002) specifically says that extra fees can be charged to a tenant who pays late. The law doesn't say that those extra fees can be charged to tenants who haven't paid late.