A 5% delinquency rate is normal. A 20% rate paralyzes the condominium: security payments fall behind, maintenance gets postponed and the neighbors who do pay start asking why they should keep doing so. The good news is that delinquency responds very well to an orderly process. This is the one we recommend.
1. Prevent: make paying easy and not paying visible
Most “early” delinquency (one or two months) is not bad faith: it is forgetfulness, disorganization or not knowing the balance. Three measures cut it dramatically:
- An account statement available at any time. Residents should see what they owe from their phone, without messaging the administrator.
- A reminder before the due date and a notice after. An automatic message three days before and another the day after the due date.
- Several ways to pay, one way to report. SINPE Móvil, bank transfer or deposit, but always reporting the receipt in the same place so reconciliation is fast.
2. Clear late charges and rules, approved at the assembly
The law allows late interest and fines, but they must be approved at the assembly and recorded in the bylaws or the minutes. A surcharge the administrator “decided” on is not enforceable. Define:
- The due date (for example, the 10th of each month).
- Monthly late interest, within legal limits.
- Regulatory consequences of arrears, such as suspension of pool or clubhouse use, if the bylaws provide for it.
What you cannot do: cut water or electricity, block access to the home, or post lists of delinquent owners with personal data in visible places. Besides being illegal, it usually ends in lawsuits against the condominium.
3. Manage by balance aging
Not all delinquent owners are the same. Classify the portfolio by aging and act differently in each bracket:
| Aging | Recommended action |
|---|---|
| 1–30 days | Automatic reminder, no friction |
| 31–60 days | Personal call or message from the administrator, offer a payment plan |
| 61–90 days | Formal letter with debt detail and a 15-day deadline |
| Over 90 days | Debt certificate and referral to court collection |
The key is consistency: if the process is applied equally to everyone, no one can claim persecution, and owners learn that the deadline is real.
4. Written payment plans
A well-drafted payment plan recovers more money than a lawsuit, and faster. Put it in writing with installments and dates, state that missing one installment accelerates the full balance, and record every payment in the system so the account statement reflects the agreement.
5. The debt certificate: the condominium’s legal weapon
When dialogue runs out, Law 7933 gives the condominium a powerful tool. Article 20 establishes that the certificate of common-expense debt, issued by the administrator and endorsed by a certified public accountant, constitutes an enforceable title (título ejecutivo). In practice, this means the court process is an expedited enforcement action, not an ordinary trial where the debt must be proven from scratch.
For the certificate to hold up in court it needs:
- Month-by-month detail of fees, interest and fines.
- Backing in assembly minutes that approved the fee and the surcharges.
- An account statement consistent with the condominium’s accounting records.
This is where a system with a traceable history makes the difference: if charges were generated automatically by coefficient and every payment was recorded with its receipt, the certificate is assembled in minutes and leaves no room for dispute.
6. Court collection and the sale of the unit
In the enforcement process the court can order attachments and, ultimately, the auction of the unit. Also, because the debt is tied to the unit, any prudent buyer will demand a certificate of good standing before signing, which usually forces regularization when the owner tries to sell.
Indicators every board should review monthly
- Delinquency as a percentage of total billing.
- Amount owed per aging bracket.
- Number of active payment plans and their compliance.
- Average time between payment report and confirmation.
If these numbers are not available in one click, the condominium is managing delinquency blind. Also read how to calculate the maintenance fee correctly, because a miscalculated fee is one of the most frequent causes of non-payment “on principle”.
Frequently asked questions
Can water or access be cut off to a delinquent owner?
No. Suspending essential services or blocking access to the home may violate rights and expose the condominium to lawsuits. Legitimate measures are the late charges approved at the assembly, suspension of recreational common areas if the bylaws provide for it, and court collection.
What is the condominium debt certificate?
It is a document issued by the administrator, endorsed by a certified public accountant, detailing the fees, fines and interest owed by a unit. Under article 20 of Law 7933 that certificate is an enforceable title, allowing an expedited court collection process without first having to prove the debt exists.
Does the debt transfer to the new owner if the unit is sold?
Common-expense debt is tied to the unit. That is why, before buying a condominium unit, it is essential to request a certificate of good standing issued by management.