HOAs have a large role in creating and enforcing collections of defaulted home mortgages, real estate liens, and IRS tax liens. They have to meet government standards for collecting annual dues, late fees and appropriate them for community maintenance.
Most HOAs would rather avoid going through the process of collecting delinquent payments. It can take weeks of phone calls, notices, and negotiations to finally get paid. For any unpaid accounts, the HOA is unable to perform necessary functions for the community repairs and amenities. Outsourcing an HOA collections company can help take the strain off the staff and automate billing functions.
To make an informed decision regarding an HOA collections service provider, it takes some research. Go online and look for companies that have been in business for a while and have the latest technology to integrate their services. Have them explain how they set up the software and the different abilities it has to work with all accounting from bill collecting to payroll. Analytics software offers reporting features to keep up with delinquent accounts, send out the notices as required by law, and maintain communication until you are paid in full. Reporting features allow you to see progress in all areas of bookkeeping and taxes, so you are aware of potential problems before they occur.
Residents will do their best to avoid or negotiate a collection of past due HOA dues. You can provide them with accurate details on their payment records and reduce any confusion on responsibility. The collection company handles the conversation and follow up. If your staff is overburdened with outdated collection processes, it’s time to find a better solution. Responsible HOA members should not be penalized by defaulting residents. By actively pursuing payment with automated responses, you can stay on top of the problem from the very beginning making collections more successful.
Homeowners want a community that offers activities, enjoyable landscaping, and clean properties. It is important to have the funds to make that happen. Without happy residents, they begin to move out, and no new buyers move in. Many businesses in all types of industries are integrating new software and hiring providers to monitor systems that improve all kinds of operations. A homeowners association needs to take the necessary steps to run the community as a business entity too. The sooner you update, the easier it is to update other software and processes to become more efficient. You can make your community one of the best around.
If you have unpaid accounts, late fees, and suffering financially, it is time to make a decision about HOA collections companies. The investment will actually increase your revenue as payment problems are resolved in a timely manner. You will have better accounting systems in place and reporting at your fingertips. Be sure to ask other homeowner associations what company they are using, then go online to compare services with a few more options. Set up an appointment to have your collections process assessed and move forward.