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How do I get a unit owner to pay the condo fees?

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In a small or self managed condo association this can be very difficult.  For an HOA trustee or board Member to collect fees from their neighbor or friend can be an uncomfortable situation. 

Condo owners may be embarrassed to tell you they are having financial difficulty or other circumstances.  In my state of Massachusetts, Condominium Law Chapter 183 is very specific in outlining the collections process for an association.  All condo associations should adopt a process that automatically happens no matter what.  By publishing and distributing this policy to all owners, there is no confusion.  It is no longer personal but just the process by which fees are collected. 

Currently we are seeing a much larger percentage of delinquencies and late payments of condo fees due to a weakening economy.  To insure the stability of your condo association you need to diligently collect or pursue collection of your condo fees.    

A sample condo fee collection process would be to send a friendly reminder letter after the first payment is late.  Typically after the 15th of the month when most late fees are applied.  Once the second payment is missed a letter explaining legal action will be taken if not paid. 

If payment is not received within a specified period outlined in the letter, you should automatically turn the account over to an attorney.  Not just any attorney.  Find one that is experienced in condominium collections. 

Scott Wolf

Comments

This matter should be assigned to legal counsel.
Regardless of the size of the complex you should not jeopardize other owners rights
Posted @ Tuesday, April 01, 2008 11:59 AM by Ray Dubriske
Missing dues payments can be an indication of serious financial stress. Often the owner is not making other payments either. For example the owner may be behind in his mortgage. Depending on the state that you live in, the association may not be able to lien the property after it goes into foreclosure. So you will want to act promptly if someone is two months behind.
Posted @ Thursday, April 17, 2008 11:52 AM by Bob
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