When your Condo & HOA collections fall short, and you can’t cover all your bills it can be a big problem. Vendors will start to charge late fees and if your association is a late payer they won’t deliver the good service that you have come to expect. Late Payers get poor service. HOA & Condo Delinquencies come at a price and the good paying owners pay the costs. There is not only a cost to pay due to vendor discontent, but the fees required to collect these assessments are expensive as well.
By: Mitch Drimmer, CAM on HOA & Condo Delinquencies
Managers and board members require a lot of information to be processed to govern well. Everything from water consumption to the amount of parking spots available. Your monthly budget comparison is critical and allows you to take actionable decisions. Yet, many managers and board members are in the dark regarding their delinquency situation. If a unit goes delinquent, you send them to a collection solution (ie. Lawyer or Collection Agency) and that’s good. But what do you know about your delinquent units and what position they are putting your association in? Regarding HOA & Condo Delinquencies, getting in front of the problem goes a long way to preventing a special assessment.
When interviewing a Community Association Collections solution provider for an association, the first question by the board of directors is: “How long is your contract for?” For most vendors there is an beginning and an end to their job, but for a collector this is harder question. It is almost impossible to predict because it depends exclusively on when and how the delinquent unit “settles out.”
Before we discuss the various ways a delinquent unit “settles out” let’s define what the term means. Simply put, when a unit ledger has a zero balance a unit is considered is “settled out.” That is Community Association Collections success.