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Condo Associations Need Extra Effort to Collect Late Condo Fees


Question:

In a small or self managed condo association this can be very difficult.  In larger condo associations, property managers can assist with collections. For an HOA board member or condo board member to collect condo fees or HOA dues 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 that may put them near default.  In my state of Massachusetts, Condominium Law Chapter 183 is very specific in outlining the collections process for a condo association.  All condo associations should adopt a process to collect condo fees that automatically happens no matter what.  By publishing and distributing this condo association policy and rule to all condo owners, there is no confusion.  It is no longer personal but just the process by which condo fees or condo dues are collected. 

Currently we are seeing a much larger percentage of delinquent acounts and late fees and HOA dues because of the weakening economy.  To insure the stability of your condo association or HOA you need to diligently collect or pursue collection of your condo fees or dues.    

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

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

Scott Wolf


Answers (34)

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