Your HOA needs funds to maintain neighborhood grounds and common areas, as well as plan for expansion and new amenities. To obtain the money needed for those projects, you have to efficiently collect HOA dues from homeowners. If you don’t, then you’ll find your coffers falling short, the quality of your neighborhood declining, and the value of your property decreasing.
What can you do to ensure that you’re collecting the dues owed to your HOA?
There are several strategies that you can implement here. This includes:
- Sending out demand letters so that homeowners are put on notice that they’ve missed the dues deadline. This is an effective way to recoup funds that weren’t paid by those who simply forgot to pay their bill prior to the deadline.
- Setting up payment plans for homeowners who are struggling to make ends meet.
- Pursuing payment from renters if the homeowner is renting the premises and refuses to pay the dues.
- Revoking homeowners’ rights and privileges until they pay their dues. This includes prohibiting them from taking advantage of neighborhood amenities.
- Utilizing a collection agency to help you pursue owed dues.
- Placing a lien on the property to try to force a homeowner to make good on their fees.
- Filing a lawsuit against delinquent homeowners. You might even be able to garnish the homeowner’s wages if needed to recoup what your HOA has lost.
Develop the collection strategy that’s right for you
The specific collection strategy that you utilize is going to depend on how you want to interact with your homeowners, the reputation you want in your community, and the effectiveness you desire from your enforcement strategy. If you’d like to learn more about what you can do to set your HOA on the path to successful dues collection, then be sure to dig down deeper into those enforcement strategies that are most appealing to you.