Automating HOA Collections

Written By: Richard Thompson
Friday, September 30, 2016

One of the biggest expenses and hassles for a homeowner association is collecting the regular homeowner fee. Every month, checks, money orders and cash are processed, tallied, bank deposits made and books posted. Then, letters are sent to those that havent paid for one reason or another. Followup phone calls are made, sometimes two or three to the same person before connecting. All of this takes time and money. Meanwhile, the HOAs finances suffer since there is no government bail out to fill the coffers. Isnt there a better way? Absolutely.

Many folks already take advantage of automated bill paying for mortgage, auto, utilities and a myriad of other regular payments. Automated payments ensure that bills are made on time and in full. Vendors know it works and welcome those that take advantage of it. Heres one of the most important factors: Folks set up for automatic payments ra>

So how does your HOA take advantage of this boon? First, set up the system with your bank or find a bank or financial service that has the capability. An alternative is available from Vanco Services at vancoservices.com which provides an internet based option. Then, offer a financial incentive to all members that use the automated payment system. Your budget may need to adjusted somewhat to pay the fees but eliminating most of the collection problems more than offsets the cost.

The HOA can also make automatic payment mandatory as part of the Collection Policy. There is nothing sacred about check payments. If its in the HOAs best interest to go paperless and it is, the board should formalize it as policy. Then, every member should receive the information, forms, etc. required to get set up for the plan. A transition time of 30-60 days is more than enough time.

This collection strategy is simply too good to pass up. It gets to the root of the HOAs greatest need: money to pay the bills. By eliminating most collection problems, the HOA will come closer to the ideal than previously thought possible. Automate and enjoy some of that carefree living the developer marketed.

For more innovative HOA management strategies, subscribe to www.Regenesis.net. Thanks to Tom Fisk of Rochester MN for his contribution.





Copyright© 2017 Realty Times®. All Rights Reserved
Instagram
Youtube
Find out what your home is worth
Updated: Sunday, December 17, 2017

What To Do When Your Home Isnt...
When sellers start the home-selling process, no one wants to think ...

How to Keep Your Mortgage Appr...
You know how tough it is to qualify for a mortgage.Proof youve g...

Copyright ©2017Realty Times®. All Rights Reserved

Real Estate Resource Center
Louise Touchette Client Login
New Listing Email Alerts