Evaluation fees are the vital element of the most important services of a managed community, such as the maintenance, security and administration of the community association. As a result, most communities have the policy to collect evaluation fees in arrears. However, the ability to collect them ultimately depends on having the authority to do so. When the new members of the board of directors are elected, they become familiar with the policy of collecting fees, but they must also know the types of authority that allow them to charge fees; It will help them to dialogue with the community management service provider or with the community lawyer, if the late fees are subject to legal measures.
The Big Picture
The collection of assessment fees in default through legal actions is a reality of the administration of the community association management, but the purpose of a collection policy is to prevent legal action as much as possible while retaining the right to use it if necessary. Most communities have a collection policy that describes a course of action that benefits the HOA. A consideration to be investigated if it is not yet implemented includes a standard procedure that benefits residents: an allowance for payment plans in case of financial difficulties.
The establishment of a tariff collection policy that considers the interest of the Homeowners Association and its residents demonstrates good management towards the community. While a board of directors and its community management service provider have the authority to collect overdue fees, having residents pay the arrears within a reasonable amount of time helps make the legal action the last option, which is what every HOA management wants.
Comments
Post a Comment