How To Collect Delinquent HOA Dues and Fees

dues.jpg

Learn simple, effective and low-cost ways to collect past-due homeowners association fees.

If you own property that is managed by a homeowners association, then you know the importance of the fees that are collected from each owner. Those association fees cover common expenses, help maintain the property and finance any amenities your property affords.

So when some owners in your association don’t pay their fair share, it affects everyone—and could have negative financial consequences such as deferred maintenance, shuttered amenities and decreased property value.

But there are ways to collect.

Follow your bylaws.

Check your association’s bylaws and governing documents for collection procedures and act on them to the letter. Contact attorneys, accountants or collection agencies as necessary to help you.

Change your bylaws.

If your rules are outdated or simply aren’t effective, your board has the power to modify them. When changing the rules, however, remember that they must be applied uniformly to all owners.

Work with the owner.

Sometimes the money just isn’t there. If the delinquent owner is going through financial hardships, be willing to negotiate. Perhaps late penalties can be waived and a payment plan can be set up. Remember, this isn’t just a delinquent owner—they’re also your neighbor.

File a lien.

If you’ve done all you can and still can’t collect, a lien can be filed against the delinquent owner’s unit. A lien is a legal claim placed on a property that has to be paid off when an owner sells.

While homeowners associations are usually third in line to receive payment (after federal/state taxes and the bank), filing a lien shows that the board is serious about collecting. Once the lien is filed, notify the bank that holds the owner’s loan—you may received added support in the way of pressure applied to the owner from their bank.

Go to small claims court.

When you’ve exhausted all your avenues and still can’t collect delinquent fees, it may be time to go to court. The dollar limit for small claims court varies from state to state, but in most cases will cover delinquent association fees. (Find information on small claims court, including the dollar limit for your state.)

Throughout all these steps, it is important to be diligent, be professional and be firm.

This article contains general information. Individual situations are unique; please, consult your attorney, accountant or other professional before utilizing any of the information contained in this article.

Related Articles

Source: HabitatMag.com, MSN Real Estate, The New Jersey Cooperator
Search All Articles
Related Articles
Money Tips for Young People
TaxespreadsmFinancial matters can seem complicated as a Millennial.
Are You Prepared for a Blizzard?
Blizzard2017 saw some of the most extreme weather in years
5 Things To Do in a House Fire
FireAs soon as you hear a smoke detector go off, smell smoke, or see fire, get out as soon as possible.
How to Prevent House Fires
05fire-jumboThere are several things you can do to prepare and prevent disaster from striking your home.

More...
Most Popular
Effective HOA Communications
Blocparty_thTips to help the HOA communicate effectively with its members.
So You Lost Your Job?
LostjobthumbLooking for a job in today’s market is much more than a looking at the classified ads over breakfast. Learn what to do!
What is Cap and Trade?
CaptradethumbLearn about Cap and Trade, if it will work, and why there is so much debate about the issue.
Adjustable Rate Mortgage
Housecalculator120Looking to own a property for just a few years? An ARM can save you money.

More...

Zip Code Profiler

Neighborhoods, Home Values, Schools, City & State Data, Sex Offender Lists, more.

Instant Home Value!