All associations need a UCP (Uniform Collection Policy) but they are not as easy to formulate as you would think. Here are some suggestions on how to go about putting together a UCP, and enforcing it:
The first thing that has to be done is for the board and manager to read through the governing documents to understand what you can and cannot do, and when you can do them. From your governing documents you need to find the following:
- The due date of your association’s assessments (first of the month, fifteenth of the month ect.).
- The grace period allowed (10 days after due date, end of month ect.).
- 3. See if your governing documents allow for a late fee
- See if your governing documents allow for late interest
With that information you are now prepared to establish a plan of action, but you have to make a few decisions first. These decisions really speak as to what your board of directors “expects” from collections. We all know that everybody wants total recovery of the money that is owed, but that is just the result. You have to actually determine what you expect from your collection solution.