Your Priority is Protecting Your Community
You just spent a ton of money on a closed-circuit TV security system in your community. That will make you safer from crime.
You installed hand sanitizers all around the property. That protects you from the spread of diseases.
On top of all that you put up a new gate at the entrance. Nobody is going to illegally drive on your property.
So far you are doing really good. Now, what are you doing to enhance your community association recovery of delinquent funds?
You may not think of this as a security issue but it most certainly is.
Delinquencies Constitute Financial Harm to A Community
HOA Delinquency puts the entire association in harm’s way. When bills are not paid and normal maintenance service is not performed bad things will happen.
Communities who do not consider their HOA fund recovery may have to reduce services. Services such as landscaping, security, and maybe even pool maintenance. These reductions in services may seem mild but it makes the community a target of crime and other life safety issues.
HOA Collections are critical to the health of the community and need to be addressed by the board of directors.
Prioritize Recovery over Punishment
Sending units straight to your association attorney should be the action of last resort. Having a professional collection agency work on your community Association Fund Recovery is the first step.
The association and management company cannot engage owners in meaningful community association collections as that may be a violation of either the federal or state Fair Debt Collection Practices Act.
Condo Collections need to be managed by professionals and, in order NOT send good money after bad, you need to hire a professional. Board members have a fiduciary duty to the community in the same way that board members of a business must protect the business’s assets, so too must the board member protect the community’s future.
Bring in a Licensed Professional that Specializes in Association Debt
Most businesses do not send their delinquent accounts receivable straight to an attorney. Rather they send their delinquencies to a third party debt collection agency.
Community associations also have the option to utilize collection agencies. The secret is they have to find a specialized collection solution focused on community association fund recovery, with the latest technology and most responsive customer service agents.
If your community association wants to reduce delinquencies, time is of the essence. To lower your HOA delinquency rate it is critical that your HOA collection agency maintains the delinquent ledgers properly. This means adding maintenance fees, fines & violations, late fees & late interest as per your governing documents, and making the ledger available to the delinquent owner. Anything less is a job not properly done.
Recovery of your community association funds is a full-time job and should be handled by a properly licensed and trained collection agency. It is about collecting the money NOT foreclosing on a neighbor’s property. Contact Axela Technologies today for a complete analysis and an action plan to recover your HOAs funds.