arrears are one of the main challenges faced by building managers, administrators and residents of condominiums in Brazil. Late payment of condominium fees directly impacts cash flow, undermines the delivery of essential services and can force future fee increases to cover financial shortfalls. A recent survey by UCondo shows that arrears in Brazilian condominiums have reached levels that are not only significant but historic. In the first half of 2025, the rate of arrears exceeding 30 days reached 11,95%, the highest level since 2022, driven by high interest rates and squeezed household budgets.

Although arrears can vary considerably depending on the region and profile of the condominium, for example, data from Lello shows that in São Paulo there was a decline in some cases among managers who use technology and friendly collection methods, yet the problem remains significant in many developments.

In this complex financial context, good condominium management relies on a robust anti-arrears plan, capable of reducing delays, preserving the condominium's financial health and ensuring stable conditions for maintenance and investment. The building manager's role in this process is fundamental — especially in presenting, approving and implementing measures at the condominium general meeting, where residents and management discuss the community's priorities.

Understanding the impact of arrears in condominiums

Before taking any action, it is important to understand the impact of arrears in condominiums. When a significant number of residents fail to pay fees on time, the condominium budget is compromised and essential services such as cleaning, concierge, lift maintenance, electronic security and lighting are at risk of disruption or reduced quality.

Furthermore, arrears increase costs for everyone, particularly for residents who pay on time, since unpaid expenses must be covered through reserves or future fee adjustments, thereby placing an extra burden on paying residents. This dynamic can create a vicious cycle: higher condominium fees to offset arrears can, in turn, trigger even more delays.

Non-payment rates vary considerably by region, led by the north of the country with over 18% in arrears. Next in the ranking is the Northeast with around 14%, the Southeast with nearly 12%, the Midwest with 10% and, lastly, the South with just over 9%.

Therefore, the location of the condominium is also an important factor to consider when drawing up an anti-arrears plan. If the non-payment rate is high in a condominium in the South of the country, for example, the problem can likely be eased more easily through internal organisation. In a condominium in the North, however, more drastic measures and a more assertive plan may be necessary.

The influence of the national economy

Arrears in condominiums do not occur in a vacuum: they are strongly shaped by the performance of the economy and the financial circumstances of households. Macroeconomic variables such as inflation, interest rates, unemployment, cost of living and household income directly affect residents' ability to meet their condominium obligations. Understanding this connection is essential for building managers and administrators to plan effective financial management and arrears-prevention strategies.

Macroeconomic indicators show that arrears in Brazil have risen significantly in recent years. According to a survey by Serasa Experian, around 76.6 million Brazilians were in arrears in April 2025, representing approximately 47.1% of the adult population — a record since the historical series began in 2016. This trend points to a picture of greater household indebtedness and a reduced ability to meet financial commitments.

Household finances reflected in the condominium

These broader economic figures are directly reflected within the condominium context. One of the key reasons for this scenario is that, during periods of economic pressure, families tend to prioritise payment of expenses considered absolutely essential, such as food, water, electricity and rent, leaving services and fees related to quality of life or collective organisation — such as condominium fees — as a lower priority. Serasa reports indicate that, in April 2025, electricity and water bills were still a priority for consumers, even against a backdrop of rising arrears overall.

The data from Superlógica, a financial solutions platform for the condominium market, confirms this relationship. According to the company's index, the national average arrears rate on condominium fees reached 6.80% in September 2025, the second-highest rate of the year, rising compared with previous months. Superlógica's experts noted directly that “rising inflation and interest rates reduce people's purchasing power and, consequently, increase arrears — particularly condominium arrears, given that people prioritise paying more expensive bills first”, such as credit cards, rent and other essential commitments.

Another economic factor influencing arrears is the increase in condominium fees themselves over time. A recent survey showed that condominium fees in Brazil rose by around 25% over three years, reaching an average of R$516 in the first half of 2025. This rise in condominium costs increases residents' monthly financial commitments, at a time when they are already facing inflation and other economic pressures, and tends to put further pressure on arrears when income fails to keep pace with this rate of increase.

Fees, interest rates and unemployment

The role of unemployment should not be underestimated either. In times of economic slowdown or a more precarious job market, more families face loss of income or unstable income, which is directly reflected in their ability to keep up with payments. Although specific unemployment data is not presented directly alongside the arrears series, the correlation between employment, income and arrears is widely recognised by economists: when unemployment rises, the volume of defaulters across different categories also tends to rise.

Furthermore, the composition of household debt, as highlighted in broader reports on arrears, shows that a large part of total non-financial debt — which includes utilities, bills and consumer expenses — sits outside traditional banking systems. This suggests that families' payment difficulties are not limited to credit debts but also extend to monthly commitments, such as condominium fees.

Regional economic variations are also reflected in condominium arrears. Data from different states shows that regions with lower average income or greater economic pressure have higher rates of condominium arrears. For example, the North region of Brazil has higher rates compared with other regions, which may be associated with structural differences in income and access to economic opportunities.

These cumulative macroeconomic factors show that arrears in condominiums are, to a large extent, a reflection of the economic conditions residents find themselves in. Inflation, high interest rates, unemployment and rising cost of living reduce disposable income, shift payment priorities and increase the risk of delays or non-payment of condominium fees.

Arrears in condominiums and the building manager's role in tackling the problem

The building manager, as the person responsible for administering the condominium, plays a key role in tackling arrears. Brazil's Civil Code states that the building manager must take diligent steps to collect condominium fees, which includes not only sending payment reminders but also implementing collection policies that do not infringe residents' rights.

Management that does not act in a structured way tends to perpetuate delays and harm the collective budget. For this reason, the anti-arrears plan should be formalised, clearly communicated and approved at a condominium general meeting, to ensure legal backing and residents' buy-in for the proposed measures.

Detailed diagnosis: understanding the condominium's reality

The first step of the anti-arrears plan is to gain a thorough understanding of the specific situation in each condominium. This includes:

• Quantifying the current arrears rate (percentage of units in arrears and amounts overdue);

• Identifying the average delay period;

• Reviewing records from the past 12 months or more;

• Mapping units with recurring delays (more than 3 occurrences in a year).

Without this diagnosis, any action risks being superficial or ineffective. Building managers can use condominium management systems or specific software that not only organise financial reports but also make this monitoring and data visualisation easier.

Segmenting arrears by bracket (for example, delays of 0-7 days, 8-30 days and over 30 days) also helps define differentiated approach strategies, avoiding generalisations that can be ineffective or even lead to conflict. Other suggested ways to segment include total amount owed and type of unit (for condominiums with units that have varying fee amounts).

Structured communication with residents

Communication is a fundamental piece of tackling arrears in condominiums. Residents often fall behind on payments not out of bad faith, but due to forgetfulness or a lack of clarity about amounts, dates and where the fees go.

Effective communication involves:

• Reminders sent ahead of the due date for the fee;

• Automated messages on the due date and after it;

• Clear explanations of how contributions are used in the budget;

• Use of multiple contact channels (email, WhatsApp, management apps, noticeboards).

Technological tools make it possible to schedule reminders and notifications at regular intervals, reducing the need for manual work and increasing the rate of positive responses.

It is also important to keep residents informed about the collection policy and what triggers escalation. This transparency prevents conflicts and the feeling of "being caught off guard" on the part of the resident.

Escalating collection policy approved at the condominium general meeting

One of the pillars of tackling arrears is having an escalating collection policy, approved at a general meeting. Such a policy sets out clear, progressive collection stages, protecting the condominium and demonstrating fairness and transparency.

This policy can include:

1. Friendly reminders — initial contact to remind of the due date;

2. Formal notices — more direct communication after a few days' delay;

3. Notices sent by registered post — when there is still no response even after the formal notice;

4. Referral to legal counsel — if there is still no response or resolution;

5. Legal action — in cases of persistent arrears.

Collection processes without a defined sequence tend to generate conflict and legal uncertainty. Formalising these stages at the condominium general meeting provides legal backing and demonstrates that the community has collectively decided how to deal with delays. In this way, it is no longer just the building manager chasing payment, but the whole condominium doing so, voiced through the building manager.

Facilitating payment methods

Ease of payment is one of the most effective ways to reduce arrears. The simpler and more accessible it is to make a payment, the greater the likelihood that residents will pay their fees on time.

Recommended facilities include:

• Digital invoices with a direct payment link;

• PIX as an instant payment option;

• Direct debit authorised by the resident;

• An online portal with a duplicate invoice available 24/7.

Studies on effective collection show that integrating payment technology and automated reminders significantly reduces delayed payment flows, lessening the need for more severe measures further down the line.

However, keeping traditional payment methods becomes essential when dealing with elderly residents. This group tends to find change unsettling and struggles to adopt new technologies, so keeping something familiar, such as a printed invoice, can avoid confusion and, as a result, delays.

Instalment plans and personal negotiation

Not as rare as one might think, arrears can be the result of temporary financial difficulties faced by residents. In such cases, a well-structured instalment plan can be a solution for recovering revenue without immediately resorting to legal measures.

For instalment plans to be effective and fair, the recommendation is to:

• Formalise the agreement in writing;

• Set deadlines and instalments the debtor can realistically meet;

• Record the commitment internally in the condominium's system.

This type of negotiation, besides recovering revenue, demonstrates a proactive and human approach to management — something that can often encourage future cooperation and even influence the payment of future fees.

Proportional escalation of collection

When all friendly attempts and negotiations fail to produce results, a firmer approach becomes necessary. Proportional escalation includes:

• Legal notices;

• Letters sent by a lawyer;

• Inclusion in credit reporting agencies;

• Condominium enforcement action.

This process must be applied carefully, based on clear policies previously approved at a general meeting. Once legal action becomes necessary, it is essential to involve specialised professionals to ensure legal backing and minimise the risk of it being challenged.

Financial education and budget transparency

Part of tackling arrears in condominiums involves educating the community about the importance of condominium fees and how they are used. Many residents do not realise that delays can directly affect essential services, such as security, structural maintenance and cleaning of common areas.

For this reason, management should use general meetings, notices and reports to explain:

• The relationship between the monthly contribution and condominium services;

• How arrears affect the collective budget;

• The anti-arrears plan and its rationale.

Budget transparency is a powerful tool for reducing resistance and helping residents understand the collective value of paying on time.

Ongoing monitoring and performance indicators

Once the previous steps have been implemented, it is essential to monitor results and keep the arrears database up to date. The building manager should track indicators such as:

• Arrears rate (overall and by delay bracket);

• Monthly recovery rate;

• Number of active instalment agreements;

• Average delay period.

These indicators make it possible to assess how effective the actions are and adjust the strategy as needed, ensuring that the anti-arrears plan is a dynamic process that adapts to the condominium's reality.

How to propose the plan at the condominium general meeting in a technical and consensual way

The condominium general meeting is the legal, collective forum for approving the anti-arrears plan. When presenting the plan, the building manager should:

1. Present concrete data — show current and historical arrears rates without disclosing individual names;

2. Demonstrate financial impacts — explain how delays affect services and the budget;

3. Present the escalating plan — explaining each stage in a clear, educational way;

4. Use neutral, technical language — avoiding accusations or emotional language;

5. Open the floor for questions and clarifications — building understanding and consensus.

Throughout the presentation, it is useful to show comparisons with market practices, demonstrating that the proposal follows good practice and is not an isolated punitive measure.

Technology and innovation in tackling arrears

Beyond traditional strategies, technological solutions are proving to be valuable allies in tackling arrears in condominiums. Tools that use automation to send reminders, dashboards with financial indicators and even artificial intelligence to predict which units are at greater risk of delay have become widespread in the market, helping building managers anticipate problems and act more effectively.

NewSun Partner: a financial ally for the building manager

Alongside managing arrears, reducing expenses is a key component of maintaining financial balance. One innovative initiative in this regard is the NewSun Partner programme. Through this partnership between building managers and NewSun, condominiums can:

• Reduce electricity costs through clean energy solutions;

• Track spending on a transparent management platform;

• Receive cashback of 3% to 5% of the total value of the contract signed with NewSun.

This additional amount can be used strategically to strengthen the reserve fund, offset losses caused by arrears or fund improvements that increase resident satisfaction — a smart way to make the condominium more financially resilient.

Conclusion: tackling arrears with strategy and transparency

Arrears in condominiums should not be seen merely as a collection problem, but as a management challenge that requires a structured approach, transparent communication, technology and collective backing through the condominium general meeting.

An effective anti-arrears plan combines detailed diagnosis, escalating collection policies, easier payment options, personal negotiation and ongoing monitoring. When approved and implemented in a technical and consensual way, the negative financial impact is reduced and the condominium's financial health is strengthened.

Combining this plan with the smart use of technology and initiatives such as NewSun Partner delivers not only revenue recovery but also value creation and financial sustainability — essential strategies for tackling the contemporary challenges of condominium administration.