Despite the rise in heating and waste disposal tariffs, the number of tenants in debt in Latvia has not significantly increased — managers are working more actively with non-payers, although the prolonged judicial system for small claims remains a problem.
The rise in heating and waste disposal tariffs is making life increasingly expensive, but does this mean that the number of tenants in debt has sharply increased? Ervins Straupe, the chairman of the Latvian Association of Homeowners and Managers, noted in the TV24 program "Uz līnijas" that there has not been a significant increase in recent years.
"Managers have become much more active in dealing with debtors. In the houses of my city, I cannot imagine a situation where there is a debtor with a 20-year history, and even a 2-year history is also absent," Straupe said.
According to him, the principle of going to court has been adopted if the debt lasts more than three months or exceeds 500 euros. However, the problem is that the judicial system for small claims is slow, and the first hearing may take place only after almost a year. "If the manager acts in a timely manner, it is possible to recover the money — if not fully, then at least partially," he added.
Straupe explained that the manager partially acts as a debt collector: "It’s not the 90s anymore, no one is taken to the woods, but if the amount of debt exceeds the monthly income of a specific household, the likelihood of recovery becomes much lower."
He acknowledged that different situations occur in life — loss of employment or temporary financial difficulties. "If a person comes and addresses the issue, the problem can be resolved. It is more difficult with those clients who hide, evade, do not respond, and do not attempt to solve the problem," Straupe emphasized.
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