How do property companies avoid defaulting on property fees?

The law does not clearly stipulate that property companies should collect late fees for property fees in arrears. Whether to collect late fees for property fees depends on the stipulations of the property service contract.

If there is a late fee clause in the contract, the property company can collect the late fee according to the proportion agreed in the contract. If there is no overdue fine stipulated in the property contract or the agreement is unclear, the property company has no right to collect overdue fine. Even if the property requires it, the owner may refuse to pay the late payment fee.

Therefore, when the owner defaults on the property fee, the property management company can charge the corresponding late payment fee according to the property management contract. It is worth noting that if the late payment fee is considered too high, the owner can ask for a reduction or even exemption. If the two parties fail to negotiate, the owner may request the court to reduce the late payment fee during the court proceedings.

There are usually reasons for the owners of residential quarters to default on property fees, such as inadequate property services and property companies involved in embezzlement of property assets. But for whatever reason, as long as the property company has actually provided property services in accordance with the property contract, even if the service is defective, the owner should pay the property fee.

Of course, owners also have the right to ask for a reduction in property fees. If the two parties fail to reach an agreement through consultation, the owner should actively collect evidence to sue the court for compensation, rather than default on property fees.