In a perfect world, everyone would pay his or her fair share and everything would be just. Unfortunately, this isn’t always the case, and your HOA likely won’t be either. In most cases homeowners are generally good about paying their dues, but almost every community struggles with one or two homeowners who repeatedly fail to pay their HOA dues.
Below are some effective ways to help recoup delinquent dues and hopefully prevent them:
Communicate
Homeowners are busy and many times paying attention to HOA issues is not on the top of their list. Generally speaking, compliance rates regarding dues is greater when homeowners know what is due, when it is due, and the consequences of not paying. Communicate clearly, let them know what is expected, and most will deliver.
Establish a Billing Policy
Sometimes no matter how well you communicate there are people who just don’t pay. For these people it is important to establish and implement a formal policy. Make sure the policy is reasonable and treats all delinquencies equally to avoid a claim for selective enforcement. To avoid legal issues, we encourage all boards to enlist the help of legal counsel to make sure the policy is both fair and within your association’s legal rights – remember they may vary by state.
Association Attorney
When delinquency reaches a certain point, it’s time to call in the big guns. A good lawyer is necessary to determine if the delinquent member has assets and to examine all various options for pursuing the delinquent member. Again, Legal Counsel is critical because you need to make sure the issue(s) is handled properly and within the HOA’s legal right.
Related: Home Buying Made Safe
Remember, while it is frustrating to see homeowners not paying, try showing them compassion – especially for first time offenders. That doesn’t mean they don’t need to pay the debt in full, but by working with people and offering payment plans or other reasonable accommodations, you’ll generate goodwill and build better relationships. If your board is looking for help dealing with delinquent homeowners, here at Spectrum we are happy to help!
