Service charge collection: a practical guide for estate committees

Why collection is really a trust problem

Owners don’t withhold service charge because they can’t pay. They withhold it when they can’t see where it goes. Committees are usually volunteers, records live in one treasurer’s notebook, and by the AGM nobody can agree what was collected or spent. Fix visibility and most of the collection problem dissolves.

1. Set a clear budget before you invoice

People pay a plan, not a demand. Agree an annual budget — security, garbage, water, repairs, a reserve — and share it. When an owner knows their levy funds a line they can point to, the levy stops feeling arbitrary.

2. Invoice every owner the same way

Set a per-unit levy, a due date, and invoice everyone identically. Consistency removes the “why am I paying more than my neighbour” argument before it starts. Send the invoice with the Paybill and the unit’s account number on it.

3. Make paying effortless

Collect by M-Pesa, with each unit paying to a Paybill using its own account number so payments reconcile themselves. Every extra step between an owner and paying is an excuse to delay.

4. Give every owner their own statement

The single biggest trust-builder is letting each owner see only their own balance, invoices and payments — any time, without asking the treasurer.

When statements are self-service, disputes drop, because there is nothing to dispute — the record is right there.

5. Track arrears without the drama

Keep a simple aging list: who is behind, by how much, for how long. Send gentle, automated reminders before you ever need a hard conversation. Most arrears are forgetfulness, not refusal.

6. Report at the AGM in one page

Walk in with budget vs actual, arrears, and reserve balances. When the numbers reconcile and every owner has already seen their own statement, the AGM becomes a formality instead of a trial.

Where software fits

You can run all of this on spreadsheets — until the estate grows, the treasurer changes, or a dispute needs an audit trail. TENari’s Service Charge app does the mechanical parts for you: levy invoicing, M-Pesa collection, per-owner dashboards, arrears aging, budget vs actual, and an AGM-ready pack — with every action logged.