Subscribe to Blog

Your email:

Follow Us

Looking for answers?

condo association blogCan't find the answer you're looking for?  Ask your question here and we'll post it in our blog.

Browse by Topic

Condo Association Management Blog

Current Articles | RSS Feed RSS Feed

Condo Associations - How To Make Your Own HOA Demand Letter

  
  
  
  
  
  
In today's environment, most condo associations and HOA's are dealing with delinquent condo owners and late or unpaid condo fees.  Condo Associations must get proactive and help themselves get paid.  Sending an official 30-Day Notice of Demand for your Condo Association or HOA is the most impactful, yet cost-effective way to make delinquent owners pay. Traditionally, about 30%-60% of delinquent owners pay, in full, upon receipt of initial demand and collections letters.

The first step can be to send a payment demand letter, which the condo association board can do themselves.  This letter put the delinquent owner on notice that the association has the right to place a lien against the condo owner after a certain amount of days.  Each state is different; make sure to look up your state's law on liens. 

Here is what is normally included in an HOA payment demand letter.  This is the most impactful, yet cost-effective way to make delinquent owners pay.  Delinquent member notified of outstanding balance and Association's right to take legal action in 30 days in the form of a lien.

  • Delinquent member notified of outstanding balance and Association's right to take legal action in 30 days in the form of a lien.
  • Letter also notifies delinquent owner that the association is considering a 3rd party collection option.
  • Notification strongly recommends delinquent member directly rectifies outstanding debt with association prior to end of 30 day window.

See a sample HOA payment demand letter from our download section

Comments

How much can the board/mamangement company charge for owner for such demand letters. Can they change the price of the demands with out notifing the community? Our use to be 25 dollars now its 75 all the sudden. NEW TO THE COMMUNITY!
Posted @ Wednesday, January 13, 2010 8:41 AM by amanda_amburgey@yahoo.com
that sounds expensive. hoa collection demand letters are nothing more then pre-made boiler-plate letters. I think there is a sample demand letter on this site you can just use yourself
Posted @ Saturday, January 23, 2010 5:34 AM by Evan
The problem with writing your own demand letters is there is nothing you can put in the letter that is not already known to the client. Different in every state- the homeowners know you can foreclose or will have the attorney file a lien/judgment, but there is nothing you can put in the letters or legally do that will affect them right now. Any if you are in a state that most properties are upside down, then those traditional legal options are going to be a waste of the associations money. However collection agencies can use the threat of placing the debt on their credit bureaus which is an immediate consequence if they do not pay.
Posted @ Friday, April 09, 2010 10:38 AM by Todd French
Nice to see that the Demand letter we sent has just about been completely fulfilled by our Board. The mold shouldn't be an issue because the Board has finally fixed the leak problems over three storage lockers - by ripping out the decks above and replacing the rotted membranes, plywood and deck boards. Thereby having to remove the drywall that was damaged/moldy in the ceilings below. Insulation has to be put back into the locker ceilings and will be held up by new drywall - so all in all, the Board who has consistenly "dictated" they were not responsible for repairing the damage, just the leaks in the the storage areas (limited common area)now must fix it. Eating crow I believe is what it's called. If they don't - we have huge holes in our fireproof ceiling in the garage and the city inspectors will be over to cite the board to repair. Hope we don't have to go that far (again). Lesson learned - the Board may make it difficult and refuse to do repairs on a timely basis - but we all pay our taxes and the city ordinances control. And to our Board at the Oaks, a battle well fought to keep the owners at bay. Attorney fees???? Should be paid out of the Boards pockets - repairs are repairs and they should be made no a timely basis, not due to a Demand Letter.
Posted @ Monday, April 12, 2010 8:31 AM by Maryann Manion
IF A CONDO SELLS AND THERE ARE UNPAID MAINTENANCE FEES DOES THE NEW OWNER ASSUME THESE UNPAID FEES ARE IS THE SELLER STILL HELD LIABLE? IN THIS CASE A LIEN WASN'T FILED BECAUSE THERE WAS ONLY 1 MONTH DUE AND WE DON'T FILE A LIEN UNTILL AFTER 2 MONTHS.
Posted @ Monday, August 23, 2010 9:14 AM by Jerry
Jerry check your state Condo Act. here in IL we can get 6 months back assessments but only in the event of a forciable entry and detainer was filed or a lien. THe problem in our state is if the condo goes in F/C the foreclosure superceeds any prior leins. However a forciable entry and detainer assures you 6 months money back assessments that the new buyer will have to pay in order for the association to release the sale. In many cases there are more then 6 months owed.. But thats all the Assc. can get by law..
Posted @ Monday, August 23, 2010 10:49 AM by amanda
Thanks for your comment on this matter. For further clarification, in this case were under Kentucky law and the sale was a normal sale. I reviewed the statutes and the situation does not seem to be addressed. 
 
Were just not sure if we should bill the new owner or bill the previous owner who actually owed the month dues. The new owner has stated they will refuse to pay it. 
 
I thought the maintenance fee's would go with the condo such as taxes do. This should have been addressed at the real estate closing by the realtor or title company but that didn't happen. 
 
Thanks again.
Posted @ Monday, August 23, 2010 10:57 AM by Jerry
I guess you could take it in to open court but since the sale is done I doubt you will be able to recover anything. The association is suppose to send that info with closing paper work. If that did not happen the title company would not have addressed it. The assocaition is not to sign off on sale till back mainetence fees are paid.
Posted @ Monday, August 23, 2010 12:51 PM by amanda
When our owners become delinquent by 3 months, we file a lien against their property. We have 2 units in foreclosure now - the bank is paying one of them and whomever wants to purchase the other unit will have to pay the back dues.
Posted @ Monday, October 04, 2010 10:00 AM by Carolyn Renaud
Welcome to cheap Monster Beats and Cheap Dr Dre Beats sale official shop.Latest and fashionable Cheap Beats by Dre Outlet, 5-10 days Fast Free shipping to worldwide.
Posted @ Friday, September 02, 2011 2:13 AM by cheap beats by dre
 
Thank you for sharing your great article and I like it very much. Welcome to Canada Goose Parka. 
Posted @ Thursday, September 29, 2011 11:01 PM by Canada Goose Parka
good flat irons 
best flat iron 
discount flat irons 
Posted @ Monday, October 10, 2011 8:54 AM by canada goose
Our prior board and current board had spent our roof fund for Building A,C,F to replace the roofs of their condos owned by the Board members,its Presidents and the property management company for the association even though our condos were built in 1995 and their condos were built in 1997- 1999 two years ago. Now, the property manager keeps not to replace our roofs which are badly needed to be replaced. The Boards delegate authority to the property manager who pays $120 hour rate for simple woodwork. The Board and the manager do not know how to prepare budget and no balance sheet. The cash report has NO beginning balance and the ending was marked as $20000 net loss. The Board has not agreed to replace our roofs. What can I do to fix the problem? I filed to the Indiana Attorney General and BBB.
Posted @ Saturday, November 05, 2011 6:02 PM by Kit Wong
thanks for some great responses 
but the questions remains ...are there any studies or statistics that show which condo's communities make better investments ie high rises and how many units? or low-rise how many units etc 
what about professionally managed vs association managed 
thanks
Posted @ Saturday, January 14, 2012 5:18 PM by paul d
Post Comment
Name
 *
Email
 *
Website (optional)
Comment
 *

Allowed tags: <a> link, <b> bold, <i> italics