by Patrick Hixson, Director of Sales
Is your HOA struggling with collections? If so, you’re not alone. The traditional methods of collecting are time-consuming and inefficient. But what if there was a way to streamline the process and collect smarter, not harder? That’s where we enter the game. We are revolutionizing HOA collections with our cutting-edge API (Application Programming Interface) technology. In this article, we’ll dive into the benefits of using technology in HOA collections and how Axela Technologies is leading the way.
The Problem with Traditional HOA Collections
“Old-school” HOA collections can be a headache for homeowners, management companies, and board members alike. Relying on your treasurer or management company staff to update ledgers, pull reports, and mail notices can lead to delayed payments and confusion over outstanding balances. It can also expose the association and the management company to an increased risk of a lawsuit for violating fair debt collection practices. Additionally, traditional methods can create tension between neighbors and the board, as homeowners may feel personally targeted by repeated collection attempts and notices threatening foreclosure.
Fortunately, technology is changing the game when it comes to HOA collections. Companies like Axela Technologies are leading the way in modernizing the collections process, offering a range of features that make payment collection faster, more efficient, and less aggressive. By leveraging technology, HOA boards can streamline their collections process and improve communication with homeowners, resulting in a smoother, more effective collections experience for everyone involved. There is nothing “civil” about civil forfeiture, which is precisely what a foreclosure is.
How We Are Changing the Game
Companies such as Axela Technologies have emerged as game-changers in the HOA collections industry. By automating the collections process, Axela Technologies offers a faster, more efficient way for HOA boards to collect payments and communicate with homeowners. This innovative approach reduces tension between neighbors and the board and eliminates delays and confusion over outstanding balances. As a result, HOA boards can streamline their collections process and increase revenue by collecting smarter, not harder. It’s not about foreclosure but collecting delinquent debts owed to your association.
Real-Time Access to Reports and Communications
Managers often hear that boards feel like they “don’t know what is going on” and are frustrated with the slow pace at which delinquencies are resolved. But that doesn’t have to be the case. With the help of companies like Axela Technologies, HOA collections no longer must be tedious and time-consuming. One of the many benefits of our technology is that authorized users can log in and access real-time ledgers, reports, and copies of notices from anywhere at any time. This means that the board and manager will always know precisely what’s happening with every delinquency.
Having immediate access to reports and copies of communications is especially beneficial for HOA boards that operate remotely or have members with busy schedules. It ensures everyone is always on the same page, which can help prevent confusion and delays in the collections process. Additionally, HOA boards can use this feature to keep a detailed record of communications with homeowners, making it easier to review if any disputes or issues arise.
Making Collections Fair and Equitable
Not only does using technology for collections increase efficiency, but it can also help reduce tension between neighbors and the board. Automated communication means less room for misinterpretation and missed deadlines, which can often cause friction between homeowners and the board. With the help of Axela Technologies, HOA boards can streamline their collections process and take the pain out of the collection journey.
Leveraging technology can even improve the debtor’s experience. Remember, many delinquencies happen to good people that may be experiencing bad times. Delinquent homeowners feel embarrassed and shameful about their debt. That’s how our self-resolution portal is changing the game. Homeowners that find themselves behind on payments can log in and take action to resolve their debt without ever having to speak on the phone to a customer service representative about the hard times they may be experiencing. And, if they choose to speak to one of our representatives, they’ll be talking to someone trained to use empathy and creative, out-of-the-box solutions to help them bring their account current.
Electronic Signing of Collection Resolutions
Another way that HOA boards can utilize technology to streamline their collections process is through the electronic signing of required collection resolutions. This modern feature allows for a secure and efficient way to obtain signatures from board members when a resolution is approved, not weeks later when the manager finally remembers to send it out for signature. In some states, the board needs to literally sign off on different steps in the collection process, and time is of the essence.
Increased Efficiency and Effectiveness in HOA Collections
HOA boards that leverage technology for collections can increase their efficiency and effectiveness in several ways. One of the primary benefits is the ability to automate previously manual tasks, which frees up time for board members and management company staff to focus on higher-level activities. For example, our automated collections monitoring sends the board and manager reminder notices when an account becomes delinquent. We also use a targeted ticketing system for communications to eliminate unnecessary “reply-all” email chatter.
In addition to saving time, utilizing technology can also improve the bottom line for associations and management companies. By relying on a licensed collection solution that leverages technology, you are relieved of the costs of having staff take collection calls and send notices. In addition, morale improves because no staff member takes phone calls from emotionally reactive debtors.
The HOA and management company are also relieved of liability if a debtor should decide to file a suit claiming that they took wrongful collection actions. The costs for defending those suits are high and, in some cases, like fair housing collection claims, not recoverable even if you win. In addition, even if you have insurance coverage for your legal defense costs, your carrier will likely raise the rate of future premiums. So, being relieved of liability significantly benefits the bottom line.
Lastly, and perhaps most importantly, leveraging technology to collect smarter and faster benefits the bottom line by returning revenue to the association at the front end of the collection process while keeping the homeowner in their home. Security interest enforcement, or what attorneys call collections, returns revenue at the back end of the process, at the brink of a foreclosure action, or when the association forecloses upon the property. This is not optimal. In some cases, this now means the association must assume responsibility for renting or selling a unit acquired in a foreclosure action. Would you rather collect money up-front or wait until someone has lost their home or is about to lose their home to receive funds?
In conclusion, traditional HOA collections can be a headache for everyone involved. But with the help of Axela Technologies and its cutting-edge API technology, the process can be streamlined, resulting in increased efficiency and effectiveness. So, if you’re looking to collect revenue faster and reduce the emotional and financial burdens of HOA collections, contact us today to discuss how you can “collect smarter, not harder.”