Collecting HOA Dues
As you may understand, prevention is always far better than a cure. Similarly, it is better to prevent late HOA fees entirely than need to deal with them when they arise. Delinquent homeowner’s association dues can be extremely detrimental to the operating budget of your HOA. If collecting HOA dues is a problem in the past with your HOA, using HOAStarts homeowner association management software is another way to avoid HOA delinquent dues.
What are Homeowners Association Dues
An HOA fee is either a monthly, quarterly, semi-annual or annual due paid by homeowners or condo owners living within the HOA community. The dues are paid to help maintain all properties, amenities, and common areas within the association. When you buy a property in a neighborhood where a mandatory HOA exists, you will have to join the homeowners association and will be required to pay the monthly dues. When HOA dues are
Here are some ways you can protect against late HOA fees in your association:
Create a Delinquency Policy
Establishing a written policy is an excellent method to prevent residents from getting behind on their HOA dues payments. A written plan that addresses HOA late fees, what happens if residents don’t pay HOA fees, helps to notify members of the effects of not paying their HOA fees. The HOA fee delinquency policy should lay out the steps that will undoubtedly be enacted in the event of a delinquent HOA payment. Have an attorney inspect the outstanding HOA payment plan to ensure that it is watertight and an applicable HOA late fee policy for the HOA and the members.
Not paying HOA fees is not an option. With that in mind, make it clear in your HOA delinquency payment policy is that a fine will be imposed for late payments, including HOA late fees. The cost can be bargained by the board as well as included in the plan. A fine can prevent members from back-pedaling their charges. Make sure that the amount of the HOA late fee penalty is reasonable. In some instances, past due to HOA fees can c. When unsure, it is a great suggestion to check with your attorney on fees, assessments, and easements that may be due.
Be Open to Payment Plans
When it pertains to exactly how to resolve HOA late fees, often, seasoned boards learn that it is best to collaborate with the delinquent property owner. The HOA should be open to a payment plan of the late fees in addition to their month-to-month repayments. This type of open communication and concession can keep the peace between the board and the homeowner. Keep track of these communications in your management software. Also, again, make sure to speak with your real estate attorney to ensure that if any changes to the covenants, conditions, and restrictions of the HOA might be essential to enable the payment plan to be applied.
Use Automated Options
The most effective means to get homeowners to pay their dues promptly is to purchase an HOA management software program that allows residents to set up an automated month-to-month repayment. Let’s face it; numerous property owners forget to pay the dues. This online choice is convenient and straightforward to set up with the proper software application or financing monitoring business.
Outsource Dues Collection
There are small HOA monitoring companies that can collaborate with you on how to collect delinquent HOA dues; they can help to create an HOA collections policy, in addition to an HOA late cost policy. They can also help you with all kinds of financial administration jobs and back-office services, consisting of charge collection. HOA boards are typically active in managing multiple tasks simultaneously, so getting in touch with an HOA management software business will aid tremendously. And also, generally speaking, remote HOA monitoring services typically accomplish excellent results for half the expense.