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.
With the economic recovery it would seem that community associations are out of the woods and happy days are here again. Sorry, but no. According to the Community Association Institute (CAI) the average delinquencies nationwide is north of 5% and that is still not acceptable.
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.