When a unit owner or HOA member misses a few payments or stops paying common fees and assessments altogether, most HOAs or condo associations turn to an attorney to help them collect. While this process is common and traditional, it is antiquated and further taxes the resource of the association and creates large attorney fees that will only be collected if the attorney successfully collects from the debtor. This practice is risky to the association, expensive, and unnecessary. Quite frankly, paying by the hour for delinquent collections at your HOA or Condo is crazy!
Community Financials offers our clients a simple and inexpensive way to avoid paying attorneys for delinquent fees and their costs which they may or may not recover for the association. Our Easy Collect Program puts the needs of the association front and center while working closely with the delinquent homeowner to collect the money they owe the association without further burdening the association or homeowner with unnecessary and exorbitant legal fees. We partnered with a national collection agency that is a licensed debt collector. The fee for this service is the late fee and interest income successfully collected from the delinquent owner. We turn a losing situation into a “win/win” for all involved. More importantly, we do this without putting the association at any risk of losing additional money due to uncollected common fees and attorney fees.
Regular and reliable revenue from homeowner assessments is at the core of a healthy HOA or community association. The Board of Directors adopts a budget that allows the community to be maintained to its standards while balancing the impact of assessments on the members. Because associations are not for profit, there can be significant consequences when some owners fail to make their contributions. Sometimes, even a few delinquencies can cause a hardship to the other owners and interrupt vital services and projects. The need to collect revenue from all owners is often the reason Community Financials Easy Collect Program is engaged. We do a meticulous job of fairly and consistently enforcing your collection policy and insulate the Board from uncomfortable conversations with neighbors. We review your collection policy and then cause it to be enforced. Our team is available to assist with updating your policy for compliance with your bylaws and state law.
Placing a homeowner into a collections program is a “worst-case” scenario for most associations. They’re both financial and emotional costs involved. Community Financials Easy Collect Program minimizes both. Put our strength to work for you today and do the most to minimize your risk from delinquency.
If you liked this post you may enjoy reading more about Enhanced Collections for Homeowners Associations and Condo Communities.