Condo & HOA Collections For Condo & HOA Budget Time

By Mitchell Drimmer, CAM Once a year in every community association the most significant event occurs and that is the formulation of the association’s annual budget. It’s even more important than the annual election because this budget is the road map for how the association is to be run for the next year. The board can decide to on many issues including capital improvements, added amenities, reduced services, and everything in between. However, the one item that always leaves the board and management confused is the disposition of delinquent fees and questionable debt. What can be done to predict the unknown because the more accurate you’re are the more realistic… Read More

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HOAs & Condos…Beautiful Dreams or Horrific Nightmares

The property is beautiful, and the apartment or house is just what you have been dreaming about. This place is shouting “welcome to your new home” as loud as possible. It’s what you have always wanted but the question remains; is this a good place to buy? When you buy a house that is not part of an Association the relationships are between you, the house, and the neighbors. When you buy a property in a Condo or HOA another component is added – you are not just purchasing a house or apartment, but you are essentially entering into a business partnership with a bunch of people that you don’t… Read More

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HOA & Condo Collections

The Needy, The Greedy, & the Seedy. HOA & Condo Collections

Not all HOA & Condo delinquencies are created equal and each one has it’s unique circumstances. However, in most cases the delinquent owners can all fall in to one of three categories: The Needy, The Greedy, and The Seedy. The only question remains is: How do we handle these HOA & Condo Collections? The Needy member of an association may have fallen into bad circumstances either due to unforeseen financial events, unfortunate circumstances, or even by circumstances that often happen at community associations. People lose their jobs and sources of income or have their investments go bad due to no fault of their own, their family economy suffers a loss… Read More

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Communication is good…Solid Information Is Critical

In my journeys through the community association world I go to a lot of conferences, seminars, board meetings and read hundreds of articles about how to best manage and govern a community association.  It has almost become a cliché that communication is the most important aspect in managing an association.  While I don’t disagree I also believe that information and facts are just as important and it is a commodity that is sorely lacking. Every day I am astounded about how little information boards of directors and management companies have regarding the status of their associations, specifically rosters of owners with proper addresses phone numbers & contact information, aging of… Read More

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Help Your Community And Help Your Neighbors By Reporting Delinquent Owners to Credit Bureaus.

A recent study conducted sponsored by a major credit repair firm and conducted by Harris Poll asked specific questions related to what people understand about credit scoring, how they are arrived at, and the information that is taken into consideration to determine them. The study revealed some surprising information.  Eventhough credit scores affect Americans in many important ways including the price they pay for credit and insurance many people are mis-informed about the entire process.  This is shocking as your credit score can not only affect your ability to get credit but also impact on your ability to obtain employment. By not understanding how credit scores are formulated consumers could… Read More

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HOA & Condo Association Collections: How to Collect Unpaid Fees

Note: This article can relate to all community associations but some parts are Florida specific. As part of a community association, it’s common to encounter those one or two owners (or more) who don’t pay their community association fees. Unfortunately, the repercussion of those owners who don’t pay affects those who do. Reliable paying members of an association could face increased fees, special assessments or reduced spending on community maintenance and amenities. Usually in this situation the community association has to enforce the community association’s policy to establish consequences for continued non-payment and for that matter chronic late payments. The Consequences Of Delinquencies To Community Associations Non-payment of community association… Read More

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The Six Ways a Delinquent Unit “Settles Out”

When interviewing a new service provider for an association, one of the first questions asked by the board of directors is: “How long is your contract for?” For most vendors, there is an absolute beginning and a defined end to their tenure as service providers, but for a collection solution, this is a much harder question to answer. If the board of directors is satisfied with their choice of collection solutions, whether  it is an attorney or a collection agency and they do not dismiss them, the end of the agreement for services is almost impossible to predict because it depends exclusively on when the delinquent units “settle out.” Before… Read More

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Condo & HOA Collection Calls…How To Help The Debtor

Calling debtors is always a difficult and sensitive task especially for those people who are delinquent on their Condo or HOA maintenance fees. People are very sensitive about their homes, as they well should be, and calls of this nature can be very disturbing. However, in order for a community to be able to operate properly everybody has to pay their fair share. So how should a call like this sound like?   The most important thing for a professional collection caller to know are the rules that are established by the Fair Debt Collections Practices Act. Any company who is making these calls must first put the caller through… Read More

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Condo & HOA Collections…Can We Sound The All Clear?

  With the economic recovery in full blossom it would seem that community associations are out of the woods and happy days are here again.  Sorry, but no.  You may see new projects popping up all over and prices on the rise but if your association was established before 2013 chances are you are still plagued with delinquent owners, saddled with doubtful debt and are low on reserves.  In other words your association lacks the financial vitality it should have in order for it to be a worthwhile investment.  Curb appeal and amenities aside buyers are now more cautious and considering how financially robust the association is before they make… Read More

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