Managers and board members require a lot of information to be processed to govern well. Everything from water consumption to the amount of parking spots available. Your monthly budget comparison is critical and allows you to take actionable decisions. Yet, many managers and board members are in the dark regarding their delinquency situation.
If a unit goes delinquent, you send them to a collection solution (ie. Lawyer or Collection Agency) and that’s good. But what do you know about your delinquent units and what position they are putting your association in? Regarding HOA & Condo Delinquencies, getting in front of the problem goes a long way to preventing a special assessment.
What Are the Things You Should Know About Your HOA & Condo Delinquencies?
You should know how many units are delinquent. That’s an easy one and your manager should be able to give you this information with the press of a button. Having a handle on the percentage of HOA & Condo delinquencies could mean the difference between a successful or failed budget. But what are the other things you should know?
Are your HOA & Condo Delinquencies trending up or coming down? This data point can let you know in advance that there is trouble brewing and allow you to act fast. HOA & Condo Delinquencies delayed are collections denied. The quicker you seek out resolution the sooner they will be resolved.
How about the quality of your delinquencies? That’s right, some delinquencies are better than others. Units that have equity in them are more likely to be resolved then units that are underwater. Do you know how many of your delinquent units have or don’t have equity in them? You should.
Aging is a must have data set regarding HOA & Condo Delinquencies. If you have units that have not paid in more than 6 months you have a tremendous problem. These delinquencies cannot be allowed to fester, or they will infect your entire community.
There is also a way to project if you will experience HOA & Condo Delinquencies in the future. Knowing how many units are underwater is a sure sign that you will have delinquencies in the future.
How Do You Get the Data Required to Make Actionable Decisions in HOA & Condo Delinquencies?
In the “Age Of Information” there are firms that specialize in providing community associations very specific data. Axela Technologies, a licensed and insured collections agency, has a service called Accounts Receivable Snapshot ™. Axela Technologies can interface with most community association software programs such as TOPS and provide a monthly report to your management team and board. If you knew the delinquency rate, the average delinquency, aging of your delinquencies, the equity or lack of equity in delinquent units, the percentage of units in your community that have no equity, and then get a blended score on these data points you could plan to get in front of a problem before it happens. If you already have an issue with HOA or Condo Delinquencies, Axela can provide a customized action plan that will cure these problems at no cost and no risk to the association. Axela even has funding features that can pull your association out of the hole if your HOA & Condo Delinquencies have already gotten out of hand. Sticking your head in the sand and ignoring the problems you have will only result in acting too late. Understand your Accounts Receivable position and avoid problems before they happen. Accounts Receivable Snapshot ™ from Axela is free of charge and there is no obligation to buy anything or engage any of their collection’s solutions. There is nothing to lose and a whole lot of information to help you manage your community association. End HOA & Condo delinquencies when they are happening and act quickly when they do happen.