Much of the standard HOA collections process fails communities and homeowners. Going straight to nuclear legal action doesn’t improve the recovery rate, and neither does allowing unchecked debt to fester.
Standard HOA Collections Are…
- Unstructured. Most associations lack an effective collections policy.
- Tedious. Managers are shouldering the burden of delinquency communications.
- Risky. Manual enforcement puts board members and managers at risk of selective enforcement accusations.
- Nuclear… or Nothing. Community associations typically only have two options: They can go nuclear and foreclose, or they can keep sending letters and fines with no real end in sight.
- Expensive and Unclear. Attorney fees rack up and there is minimal communication throughout the process.
The way HOAs and condo communities are expected to handle delinquencies does not serve the needs of anyone involved.
It doesn’t serve management companies. A lengthy collections process leads to frustrated HOA board members and homeowners who place blame on you. Handling their frustration requires managers to work longer days with no extra pay. Dissatisfaction on both sides means you risk losing managers to burnout and losing clients who feel you’re not meeting their needs.
It doesn’t serve community associations or their board members. The community needs healthy finances to function effectively. Delinquencies lead to stifled cash flow and put the community at risk. The longer they stagnate, the more the community suffers. And when the only solution is expensive, drastic legal action, communities lose.
It doesn’t serve delinquent homeowners. No homeowner wakes up one morning and suddenly decides to stop paying their HOA dues without reason. Personal financial decisions are difficult and often painful, and the standard “attorney-first” HOA collections process lacks humanity and empathy. Besides placing unnecessary hardship on delinquent homeowners, this approach can worsen cashflow issues and drag out the collections cycle.
If you’re using CINC Systems as your management software and want to learn more about how Axela’s integration can help your communities recover unpaid assessments faster, download our eBook, Five Fundamental Flaws of the Standard HOA Collections Process.
Not a CINC client? Not a problem.
Axela integrates with management technology providers throughout the industry. While the specific features on the management software side will vary, Axela’s integration can still reduce the time communities spend recovering HOA debt. Contact your Relationship Manager today to learn more about our list of integration partners and how to activate your Axela integration.
Even if your community isn’t using a management software platform, Axela’s Easy Collect can help identify and fix the flaws in your collections process. Click here to fill out a Free Collections Analysis to see how Easy Collect can work for you!
