What to Do When an HOA Member Won’t Pay Dues
As an HOA manager, you have several things you must attend to daily, monthly and yearly to give your members the best possible HOA. This includes managing your properties, complaints and dealing with members who do not pay their dues. If you have experienced this, you understand how difficult this situation can be. However, there are ways to handle an HOA member who refuses to pay their dues in a professional manner. HOA dues keep your HOA moving, here is how to ensure they keep coming in.
Utilize Late Fees
Although no one likes to be the bad guy, sometimes you must enforce your rules with efficiency. By utilizing a late fee for late HOA dues, your members will be more inclined to pay quickly and on time. You should be careful to not create a late fee that is too high, but you do not want a late fee too low. Check with other HOAs to find comparable options for you. Then, make sure your members know that a late fee does exist.
Offer a Payment Plan
If your member is having trouble paying dues because of hardship, you may offer a payment plan to ensure your HOA needs are met while allowing for easier payment. You must be diligent in preparing the payment plan by making sure it is something attainable for your HOA member. Give them a set number of payments over a set number of months. However, make sure there is a consequence to not meeting the months’ worth of payments. It is important to remain steadfast.
Utilize Grace Periods
If you have some HOA members with incomes that are sporadic, you may wish to offer a grace period for late payments. However, a grace period does not give them a free ride from their dues each month. If they are still unable to pay, make sure there are consequences in line and that they are communicated to your members.
National Property Management can direct you in the right direction when it comes to difficult management issues such as lack of payment. We have the tools necessary to take back your HOA. Give us a call to see what we can do for you!
National Property Management Group
25115 Avenue Stanford A300
Valencia, CA 91355