Community Association Looking For A Professional, Cost Effective Collections Solution

Written by Mitchell Drimmer on November 11, 2013. Posted in COLORADO COMMUNITY ASSOCIATION COLLECTIONS, COMMUNITY ASSOCIATION COLLECTIONS, CONDO COLLECTIONS, CONDOS, FLORIDA COMMUNITY ASSOCIATION COLLECTIONS., HOA COLLECTIONS, HOAS, SNAP COLLECTIONS

By Mitch Drimmer, VP Association Financial Services

Community associations are faced with having to deal with collecting delinquent assessments in good times and bad. If a community association were to advertise for a collections company this is how it may appear.

HELP WANTED FOR COLLECTIONS

The board of directors of our community association is looking for a collections solution that will not only help us recover our delinquent assessments, but will not cost us five dollars to collect one dollar. We have been working with our community association attorneys, and although they know the community association business well, they are not effective with their collections efforts. We need more than an attorney placing a lien and then maybe foreclosing on said lien. We need action and we need it now because our collections are costing us an arm and a leg, and we are not seeing any return on our investment with our current solution.

Condo and HOA Collections….How to formulate a Uniform Collection Policy

Written by Mitchell Drimmer on September 3, 2013. Posted in COLORADO COMMUNITY ASSOCIATION COLLECTIONS, COMMUNITY ASSOCIATION COLLECTIONS, CONDO COLLECTIONS, CONDOS, FLORIDA COMMUNITY ASSOCIATION COLLECTIONS., HOA COLLECTIONS, HOAS, SNAP COLLECTIONS

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.

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