Collecting Assessments Archives - Page 5 of 5

Start Now for Your Association’s 2012 Budget

September 6, 2011January 20, 2020 HOA Management News0

Every community association should have a financial plan that sets forth the proposed expenditure of funds for the maintenance of the common areas/elements under the association’s control and for the management and operation of the association itself. The financial plan, or budget, is the foundation document for the association’s financial operation and stability. It provides a preview of the coming year’s expenses, and provides a benchmark by which the current year’s expenditures can be judged and evaluated.

Don't Publish the Names of Owners who Haven't Paid Their Assessments

August 5, 2011January 19, 2020 HOA Management News0

The economic crisis has impaired the ability of homeowner associations to pay for maintenance, insurance and to properly fund repairs and capital improvements. It is said that “Necessity is the mother of invention” and in other articles and presentations, we have identified smart, prudent ways of minimizing the effect the crisis has had on association operations, including, most recently, the efficient use of small claims court to pursue delinquency claims against owners whose homes have no equity. One idea we do not endorse is the publication the names of association members in a newsletter or other written media distributed by an association or its managing agent. Here are some reasons why publication is unwise.

The Role and Value of Reserve Studies

August 5, 2011January 19, 2020 HOA Management News0

Reserve studies are a critical tool for common interest communities. They play a central role in budgeting and planning for the future costs of capital components. They help the board set priorities for planning and management involvement. They affect potential liability of deferred maintenance and the useful life of the physical assets of the association. They can affect the marketability of homes in an association. Some state law requires them. So what are they?

Collecting Delinquent Assessments

August 5, 2011January 20, 2020 HOA Management News0

Some board members want to avoid legal fees by taking on the position of “collection representative”. They want to be the nice guy and approach the delinquent owner personally by way of a phone call or face-to-face meeting. This personal effort usually only works once. The second time around, the delinquent owner does not welcome the board members as nicely because he or she is embarrassed and does not want neighbors, including board members, to intervene in their personal financial affairs.

The Annual Audit—Taking Your Association’s Financial Pulse

June 8, 2011January 20, 2020 HOA Management News1

The health of your association’s finances can have a dramatic effect on the board of director’s ability to effectively maintain the property’s assets and value. In order to keep the property’s assets in good order and keep home sales on the rise, it is crucial that the board understand its financial position.

Policy for Collecting Delinquent Assessments

February 20, 2011January 18, 2020 HOA Management News0

It is a rare condominium or homeowner association that has yet to face the challenge of the pecuniary consequences of delinquent assessments.
Prior to the economic downturn that began in 2008, there were many portfolio managers, myself included, who managed associations that had never experienced the financially crippling effects of numerous delinquencies. Because they were so rare and infrequent, there was a tendency toward leniency and inconsistency, and legal action was rare.
But when your neighbors cannot pay their association dues, the balance radically shifts and those who can pay must pay extra just to keep the grass mowed, refuse removed and roofs from leaking. In harder hit associations, reserves are compromised to fund basic monthly operating costs.