Harmonious HOA Collections – Keeping It Neighborly

One of board members biggest complaints over HOA collections is feeling as if they’re throwing delinquent neighbors to the dogs, like some bone to be chewed on. Let’s face it – that’s a valid concern.

However, there’s a simple solution that works and collects HOA dues while keeping harmony in a community. After all, whether you’re an HOA, COA, or POA, there has to be some middle ground solution between non-payment and legally declaring war on your neighbors, right?

Yes, there is. And you’ll understand its power and harmony the moment you hear it.

The Secret to Keeping HOA Dues Collection Neighborly

The first thing to understand is how important it is to keep your neighbor in a comfortable communication loop while you’re getting them to act. That means keeping collections activity in line with what they already accept, all while adding a simple motivation that may affect them personally.

First off, imagine an HOA collection agency always instructing delinquent members to pay you or your management firm directly; doesn’t that sound like a simple way to remove some friction from the situation? Members never feel comfortable when strangers demand they pay them. Especially when those strangers pile on additional fees.

That’s because strangers are always coming from outside the situation. And in the eyes of your neighbors, strangers have no business even being in the equation. So, always having your members instructed to pay your association or management firm directly removes that hurdle – that friction. Make sense?

Second Simple Step

The next element is to allow the very real potential of being credit reported as a collection account do the heavy lifting. The consequence of being personally credit reported gets people’s attention. When phone counselors simply inform members their delinquent dues will be credit reported – if they don’t act soon – you allow that consequence to gently but surely motivate them.

The third step is to ensure the collection agency has their collection counselors on salary, so there’s no undue pressure poured on your homeowners. Many contingency collection agencies pay their collectors a heavily weighted bonus basis. Their employees are under pressure to “hit bonus” – and you can just guess on whom all that pressure spills out onto.

For members who are just ignoring their dues, being credit reported offers enough motivation all by itself, without any heavy undue pressure being exerted by strangers trying to hit bonus. Over the past several years we’ve found this is the best method – just have salaried people let members know credit reporting will absolutely occur at the end of the collection process if they don’t act soon.

And this simple approach works with nearly two-thirds of the accounts we service nationwide. All without declaring war (legally or otherwise) on your neighbors.

A Harmonious Solution

Always work with an agency that uses all these tools – skip tracing, letters, texts, emails, and phone calls – to harmoniously communicate the impact credit reporting will have, if your homeowners don’t get current soon. The result is always members who pay their dues while maintaining a good relationship with your board.

This simple, harmonious process brings your members back to the table to get current and make amends with their community. You want them to be active members upholding their responsibilities, right? This approach restores respectful accountability to the relationship. Property owners associations, condo associations, and homeowners associations from Florida to Hawaii have discovered how true this is… and are regaining some peace of mind in the process.