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How to enhance condo association collection efforts

Posted on Wed, Aug 11, 2010 @ 07:24 PM
  
  
  
  

I am not a member of our Condo Association Board of Directors, but my wife and I are owners in a condo. I believe that the property management company that collects past due condo association fees is not particularly effective in its efforts.  The management company uses perfectly legal but highly bureaucratic letters to do the condo fee collection efforts.

Are there any creative legal actions, letters and communications that can be used speed up such collections? The condo association board seems afraid to make waves in the fear that the various homeowners will not pay.

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COMMENTS

You certainly have the right to see what the reasoning (and any supporting documentation) is behind the $2,500 special assessment. My assumption is that there are bids that the board received and the work amounted to $40,000. ($2,500 x 16 units) If you cannot see the bid or if they won't tell you who it is os you can talk with the contractor yourself, you should see legal counsel to get a court to intervene. 
 
 
 
The fact that it's twice what the governing documents say shouldn't be a consideration. Most, nearly all, allow for the board to levy special assessments for maintenance regardless of the amount. The governor in the documents is usually for capital improvements not repairs. 
 
 
 
If none of these work, talk with your neighbors. If all of you are upset and don't want to pay, then you can demand a special election and vote them out. You will then need to take up the leadership role on the board to replace the folks you just fired.... Read More 
 
 
 
Darron Hay 
 
HOA Receivables Management 
 

posted @ Tuesday, November 24, 2009 10:51 AM by Darron Hay


I have a few questions and then some comments. 
 
Do you know the method of collection? 
 
Is there a collection policy that defines the method? 
 
What is the concern about collection? 
 
Collections is a sticky business. There are usually state statutes and other laws regarding collection, usury fees and methods of collection, including the Fair Debt Collection Act. Many times it depends on what state you live in.  
 
Remember, the management company advises the board and carries out their directives. There also needs to be some method - after all, as a management company, all we have to sell is our time and knowledge, much like an attorney or an accountant. 
 
Find out what the process is. Don't be afraid to make recommendations or ask questions. The final recommendations should be passed through legal counsel, because collection is a legal matter.

posted @ Tuesday, November 24, 2009 1:23 PM by Joe Schuirmann


We specialize in the collection of delinquent assessments. Goto our site and read about our service. If you want more information you can contact me.

posted @ Thursday, January 14, 2010 7:19 PM by Todd French


I'm sorry, I managed to respond to the wrong post. 
 
To your question about collections, yes there is absolutely a more effective way to collect. 
 
We are a licensed collection agency that specializes in collecting association receivables. We are effective at times where attorneys are not because of our ability to report to credit and our communication with the debtor. In some cases, a collection agency will work on a contingent basis. This measns they will keep part of the money they collect. Our model is to charge a small fee for the service so the association makes a full recovery and in most cases they actually turn a profit. 
 
I would encourage you to try a collection service to see if you have any greater success with collecting assessments. 
 
Feel free to give me a call or shoot an email and I will give you some further input. 
 
Darron 
 
HOA Receivables Management

posted @ Tuesday, February 16, 2010 11:37 AM by Darron


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