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Establishing a fair debt policy with the help of HOA management services

Written by Admin


Debt collection can cast a pall over the relationship between the residents and managers of an HOA community, but recovering delinquent payments is very important for maintaining a financially successful neighborhood. Additional, more damage can be done to community relationship when a neighborhood lacks a perfect collection policy than when it has one. If the process of recovering payments drags on, the debtor and the collector become increasingly upset, and less likely to come to terms. Having a perfect collection policy stops this from happening. For board members, the key is to plan which constitutes a fair policy – a task with which HOA management firms can help.

Social personality

 Because they have a position that needs them to interact with the community, and must dialogue with the board about the work they oversee, managers should perfect posses a social, friendly personality. Those who do not can accidently project an image of aloofness that makes a dirty impression on residents, and makes them seem unfriendly.

Establishing a perfect policy

Debt collection policies change from community to community, but all association-governed neighborhood perform well to implement certain basics in their policy — rules that support the community meet money obligations. Below are examples of rules that providers of HOA management service advised neighborhoods to add in their collection policy.

Begin with a friendly request

Nothing gets the collection process off to a dirty start like an email, officious letter, or telephones call that makes the debtors money seem more vital than his humanity. Residents who own cash know that the process can escalate until it reaches the legal level, so there is no harming in starting the process with a friendly request for repayment. In many cases, such a request produces the wanted result.

Treat all debts the same

Some boards make the error of pursuing huge amounts of money more vigorously than little amounts. In addition to make the association seem unfair and money hungry, pursuing one debt over another can make those who own little amounts feel as if repayment is not important – a point with which HOA management firms would conflict. If the board does not have time to follow every arrearage, it should delegate debt recovery to a provider of HOA management services.

Let a third party manage the process

Using HOA management firms to recover late assessment fees is a clever move on 2 levels: it stops strained relations between the residents and board members, and it stops residents from using personal relationships with a board member for leverage in payment negotiations. If board members in your community experience problem recovering late fees, they should consider outsourcing the job to a 3rd party.

Conclusion

Recovering late assessment charges and other debts is very important for meeting the financial obligations of an association-governed community. If your neighborhood needs support recovering delinquent payments, hiring a HOA Management Gilbert services is the top choice.

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Admin