How to Improve Your HOA Fee Collection Rate
The collection of homeowner’s association (HOA) fees in full and on time is crucial for the proper maintenance of your community and its amenities. The fees assessed from homeowners protects the future of their investment, so the guidelines for these payments must be defined, understood, and abided by to ensure a successful environment for each and every resident in the short and long term of the community. The relationship between the board and residents of a community may create difficulty for enforcing HOA guidelines, so as an HOA management company in Tampa, we offer the following advice for recovering HOA fees on or before their due dates.
BE INFLEXIBLE ON FEE PAYMENTS
The policies for collecting HOA fees should be clearly defined to set an expectation of fee scheduling compliance from all homeowners. If you allow a grace period for one homeowner facing financial distress, then that same exception should be carried throughout the entire community. Keep in mind, if one grace period turns into another grace period that leads to another missed deadline, your community could be in trouble. If this happens with multiple homeowners, how will the HOA budget for the next year or make improvements to the community?
If you find it consistently difficult to collect HOA fees from multiple homeowners, it may be time to speak with Tampa HOA management companies that have the expertise and legal knowledge to identify issues in your payment system. Poor collection rates directly lead to budget deficits and cutting corners in property maintenance and upkeep, which over time, will devalue every property in your community.
CREATE AND ENFORCE POLICIES
If you decide it is in the best interest of the community to develop or update policies for HOA fee scheduling, consult with the entire HOA board and a Tampa HOA management company to determine the best course of action for dealing with delinquent payments. First, analyze where your current problems are and look for opportunities to close those gaps. Then, define exactly how the board or management company will address delinquency and each subsequent action that will be taken if the matter is not resolved. Also, have a plan in place should legal action be a necessary step in recovering deferred payments.
Once policies are finalized, ensure a clear expectation and understanding of the board’s position on delinquent fees by communicating changes to all homeowners in the community.
Protect the longevity of your community by putting guidelines in place for your HOA collection fees. While one delinquent payment may not seem devastating to the community, over time, they could cause major problems. If you recognize a continued issue with collecting HOA fees, consult with a Tampa HOA management company to find ways to improve your current system.
For information, please call us at (813) 968-5665, or submit our proposal request form.