Checklist / template
Arrears communication sequence (rent & levies)
A consistent, dated arrears communication sequence turns ad-hoc chasing into a defensible process — friendly reminder, formal reminder, letter of demand and escalation, each with timing and a paper trail. It is built for rent (under the Rental Housing Act and a signed lease) and for levies (under STSMA, the schemes' rules and CSOS routes), so the same discipline applies whether the debtor is a tenant or a member. Use it to protect cash flow while staying fair, documented and audit-ready.
South African managing agents, trustees, landlords and rental agents who chase overdue rent or levies and need a repeatable, defensible process.
Set the foundation before you chase
- Confirm the trust account is reconciled to the cent so the arrears figure is genuine, not a misallocated or unallocated receipt.
- Verify the debtor's correct legal name, unit and current contact details on file (address, email, mobile).
- Check the signed lease or the scheme's registered conduct and management rules for the agreed payment date, interest and collection terms.
- Confirm the lawful basis and contact preferences for communication so processing stays POPIA-compliant.
- Record the due date, amount, days overdue and any partial payment in one ledger before sending anything.
- Decide and document the standard cadence (for example reminder, formal notice, demand) so every debtor is treated consistently.
Step 1 — Friendly reminder (a few days overdue)
- Send a short, courteous reminder by the debtor's preferred channel once payment is a few days late.
- State the amount due, the original due date and clear banking or payment details.
- Assume an oversight in tone — avoid threats or legal language at this stage.
- Invite the debtor to confirm payment already made or to flag a dispute or hardship.
- Log the date, channel and content of the reminder against the ledger entry.
- Allow a short, defined grace window before escalating.
Step 2 — Formal reminder / first notice
- Issue a formal written notice in writing if the friendly reminder goes unanswered.
- Restate the outstanding amount, days in arrears and any interest or charges permitted by the lease or scheme rules.
- Reference the relevant clause of the lease (rent) or the registered rules (levies) that the payment term sits under.
- Set a clear, dated deadline for payment and explain the next step if it lapses.
- Offer a documented payment arrangement option where appropriate, and require it in writing.
- Send by a channel that gives proof of delivery, and file the proof.
- Update the ledger with the notice date, deadline and any response.
Step 3 — Letter of demand
- Escalate to a formal letter of demand once the formal notice deadline passes without payment or arrangement.
- Itemise the full amount: arrears, permitted interest and any recoverable charges, with the period covered.
- State a final dated deadline and the consequences of non-payment in plain terms.
- For rent, align the demand with the lease and the Rental Housing Act's fair-practice expectations; for levies, note that schemes can refer levy disputes to CSOS.
- Consider whether attorney involvement is warranted given the amount and history before threatening legal action.
- Deliver by a method that proves receipt and keep the signed or stamped proof.
- Record the demand, deadline and delivery proof, and pause further informal reminders to avoid mixed messages.
Step 4 — Escalation and resolution routes
- For levies, prepare a CSOS dispute or other recovery application under the CSOS Act and STSMA once internal steps are exhausted, with the full arrears history attached.
- For rent, weigh Rental Housing Tribunal complaints, attorney-driven collection or lease-breach remedies against the lease terms before acting.
- Hand a complete, dated file to the trustees, landlord or attorney — every reminder, notice, demand and proof of delivery.
- Keep charging and recording permitted interest and costs through the escalation, per the lease or rules.
- Continue allocating any partial payments correctly and updating the running balance.
- Get trustee or landlord sign-off before launching legal or tribunal action, and minute the decision.
- Stop collection activity immediately if the debt is settled, disputed on valid grounds, or placed under a formal arrangement, and document why.
Record-keeping and consistency
- Maintain one chronological arrears file per debtor holding every message, notice, demand and delivery proof.
- Timestamp each step and note who sent it, so the sequence is reconstructable for an audit, tribunal or CSOS.
- Apply the same cadence and deadlines to every debtor to avoid claims of unfair or selective treatment.
- Store personal and financial data securely and retain it only as long as needed, in line with POPIA.
- Reconcile the arrears ledger to the trust account regularly so reported balances stay accurate.
- Report aged arrears to trustees or the landlord on a fixed schedule with the next planned step for each account.
- Review and refresh your template letters periodically against current rules and legislation.
Run the steps in order and never skip a stage — the defensibility of the sequence depends on each communication being dated, delivered with proof and logged before the next one goes out.
A practical operational checklist, not legal, financial or tax advice — adapt it to your scheme/agency and seek professional advice where needed.