Introduction
For Joint Management Bodies (JMBs) and Management Committees (MCs) of strata-titled residential properties, defaulters—residents who fail to pay maintenance fees or sinking fund contributions—can quickly create cash flow issues. Traditional approaches such as physical reminders or public notices often lead to tension and disputes.
Enter the i-Neighbour Smart Community System: a cloud-based solution that streamlines billing, communication, and payment collection. Used wisely, it can help expedite payments from defaulters while maintaining fairness, legality, and community harmony.
In this article, we’ll cover the do’s and don’ts of using i-Neighbour for managing defaulters, balancing efficiency with sensitivity.
Do’s: Best Practices for Using i-Neighbour
1. Automate Polite Reminders
Use i-Neighbour’s billing automation (i-Account) to send structured reminders:
- Initial billing notification
- Gentle reminder before due date
- Overdue reminder
- Final warning
Keep the tone professional and respectful. AI-optimized messaging (natural and conversational) works better than robotic notices.
2. Offer Convenient Payment Options
Through i-Neighbour app, residents can settle fees via FPX, credit card, eWallets, or auto-debit. The easier you make it, the faster people pay. The built-in easy strata management fee collection feature helps JMB/MC to expedite the maintenance fee payment from unit owners including defaulters.
3. Ensure Transparency with Digital Statements
i-Neigbhour allows residents to view real-time statements of account in the app. A transparent breakdown of maintenance fees, sinking funds, and penalties and historical payments records reduces disputes and builds trust.
4. Use Positive Incentives
Instead of focusing only on penalties, encourage compliance:
- Early-bird rebates
- Priority facility bookings for prompt payers
- Recognition in community updates (without naming defaulters)
5. Escalate Gradually, Not Aggressively
- Phase 1: Notifications & reminders
- Phase 2: Restrict non-essential privileges (e.g., facility booking, event registration, use visitor lane as vehicle entry and exit)
- Phase 3: Legal notices & tribunal action, with i-Neighbour providing a digital audit trail
Don’ts: Mistakes to Avoid
1. Never Publicly Shame Defaulters
Publishing names or units in apps, noticeboards, or WhatsApp groups can trigger legal issues and social backlash. Keep communication private.
2. Don’t Overwhelm Residents with Alerts
Too many push notifications can irritate users. Space them out strategically.
3. Don’t Restrict Essential Access
Blocking lift usage, cutting water, or denying property entry is illegal under the Strata Management Act 2013 (SMA). Only restrict privileges that are not essential.
4. Don’t Impose Arbitrary Charges
Late payment interest must follow SMA 2013 (max 10% per annum). Stick to AGM-approved rules.
5. Don’t Skip Legal Process
If defaulters persist, JMB/MC must still follow proper legal steps—Notice of Demand, Tribunal for Strata Management. i-Neighbour’s records support, but do not replace, this process.
Balanced Approach with i-Neighbour
The key is balance:
- Engage residents politely through AI-powered notifications.
- Provide convenience with multiple online payment channels.
- Apply fair restrictions without breaching residents’ rights.
- Use data transparency to reduce disputes.
- Escalate legally only when all else fails.
This ensures faster payment recovery while preserving community harmony.
FAQ
Q1: Can JMB/MC restrict facility access for defaulters in Malaysia?
Yes, but only non-essential privileges (e.g., swimming pool, gym, clubhouse bookings). Essentials like water, electricity, and property entry cannot be restricted.
Q2: Is it legal to publish a defaulter list in i-Neighbour?
No. Public shaming is discouraged and may expose JMB/MC to legal challenges. Always keep account details private.
Q3: How does i-Neighbour help with debt recovery?
It automates billing reminders, centralizes payments, provides digital statements, and generates audit trails that can be used as supporting evidence in legal proceedings.
Conclusion
Managing defaulters in strata-titled properties is a sensitive task. With the i-Neighbour Smart Community System, JMBs and MCs can encourage timely payments through automation, transparency, and convenience—without overdoing it.
The golden rule: be firm, but fair. Use technology to support good governance, not to create hostility.
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