Handling an early payment discount on management fee

[lkn]

I have heard a few people mention that their condo gives a discount if management fee is prepaid for the full year.

 

If your building does this, maybe you can answer some of these questions:

 

1. How much of a discount do you get?
2. What are the exact terms?
3. How is the discount shown in your budget? For example is there a deficit if everybody pay early?
4. Is it legal?

 

As for the last question, the Thai Condo Act states that joint owners shall pay expenses relative to their ownership ratio and it puts a ceiling on surcharges for late payments. So paying more than your neighbor should only be possible if you pay after the due date, in which case the interest (for the first 6 months) cannot exceed more than 12% p.a.

 

[KittenKong]

1 hour ago, lkn said:

I have heard a few people mention that their condo gives a discount if management fee is prepaid for the full year.

 

 

In my building those who dont pay on time get interest applied. No discounts for anything or anyone. And the whole lot is always due in advance. I've not heard of any other way of doing it.

 

Given that all co-owners have to pay anyway, sooner or later, what would be the advantage for the building to give discounts? Is the building virtually bankrupt with no cash reserves? If it is then perhaps you need to charge everyone more.