Having strong financial support is essential for running an effective HOA; without adequate funding, the wellbeing of the community is in jeopardy. That means setting appropriate dues and ensuring that members are paying on time. Kuester Management Group has released a statement to the press regarding strategies for handling delinquencies and promoting timely payments.
“Late payments can be detrimental to the HOA because the association relies on these fees to pay utilities, fund reserves, and make repairs and improvements within the community,” says Bryan Kuester, President of Kuester Management Group. “If the HOA is tight on cash, it may resort to special assessments or even fee increases to cover these gaps and continue effective operations.”
Kuester encourages associations to establish clear payment and collections policies and consistently enforce them. Send reminders to members as deadlines approach so they can manage their own finances in order to pay dues on time and in full. If members realize ahead of time they will have difficulties making payments, they can discuss this with the board to negotiate a solution.
“Everyone goes through hardships sometimes,” says Kuester. “When members have a strong track record of paying on time, the association is more likely to work with them to develop a payment plan or other solution if they are unable to pay their dues. The board should work with each homeowner to understand their situation and come up with a feasible plan.”
When payments are delinquent, check bylaws for policies regarding past due notices. There are often specific procedures to follow for when letters are sent and what the consequences are for late payments. The association can work with its property manager or legal team to craft a formal notice outlining next steps. Members may get multiple warnings before legal action is taken.
“Filing a lien or foreclosure is the last thing the HOA wants to do,” says Kuester. “They are on the homeowner’s side and want to do everything they can to reach an agreement and put a plan in place for payment before legal action is taken. It is important for homeowners to talk to the board so that they can work together to resolve the problem.”
If legal action is necessary, the HOA should work with its attorney on this process. However, maintaining clear communication, establishing a formal collections policy, and working with homeowners experiencing hardships can go a long way in resolving issues before it gets to the point of legal action. It is also beneficial to remind homeowners of the importance of paying on time and how funds are used to support the community they call home.
A property management company like Kuester can support HOAs in establishing effective policies and communicating late payment notices to members. Kuester Management Group assists HOAs with a wide range of services and serves as a trusted resource for communities. For more information, contact Kuester today at www.kuester.com.
ABOUT:
Kuester Management Group, a division of Kuester Companies, works to protect property values and enhance the quality of life in each of its managed communities. Providing a full range of association management services, Kuester Management Group has worked to foster strong, resilient, and unified communities across North and South Carolina. The company is proud to offer on-site property managers, all zealous for building strong communities meant to stand the test of time. More information is available at www.kuester.com or @KuesterCompany.
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Company Name: Kuester Management Group
Contact Person: Bryan Kuester
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Phone: 704-973-9019
Country: United States
Website: www.kuester.com
