[ginnie34]

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Hey everyone, I’m on the board of my HOA, and we’re struggling with a few homeowners who consistently pay their dues late. We’ve tried sending reminders, but it’s not working, and I don’t want to escalate things too quickly. What are some effective, yet fair, strategies for dealing with late payments? Any advice on what’s worked in your community would be really appreciated!

[peoniesforme]

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We had the same issue in our HOA. What helped us was setting up an automatic payment system. It cut down on late payments drastically. Also, we send a friendly reminder a week before dues are due, just in case someone forgets. Have you tried making it easier for them to pay?

[shemco]

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Our HOA charges a small late fee after a certain grace period, and we make it clear in the bylaws that late payments will result in a fine. That way, homeowners know there are consequences. But we also try to offer payment plans for those going through tough times. It’s important to be firm but understanding.

[timothadeus]

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In my experience, communication is key. I’d suggest reaching out to those who are late, either through a letter or an informal conversation. Sometimes it’s a matter of personal circumstances, and showing empathy can lead to a solution without it becoming a bigger issue. But I agree with earlh0808, having a system of late fees in place can motivate people to pay on time!

[getpaidauthority@ncsplus.com]

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My suggestion is to take a proactive approach and let the debtor know that there are ramifications for untimely payments.

Here is a copied and pasted sample of a pre-audit letter many of my clients use to cause the debtor to honor their obligation promptly:

Here at (__HOA__), we value your residency. We are always looking for ways to better serve you and reduce overhead. That’s why we are working with the NCSPLUS audit department, an accounting and finance firm that is widely used nationwide to assist in the management of accounts receivable. We are working with them to optimize our billing process and enhance our client communications.
The association audit department reviews our accounts regularly to identify any with balances beyond the 30-day payment terms to prevent default. Your account balance must be paid in full by the due date to avoid an additional audit fee charge.
The purpose of this letter is to provide a courteous reminder to keep your account up to date.
If you should receive a Balance Verification Notice, it will include an audit and recovery charge. Please call Accounts Receivable at (800) XXX-XXXX so that we may review your balance, make payment arrangements, and update your account status promptly.
Thank you for your cooperation and for helping us to continue to expand and enhance our service to you.
Sincerely,

Accounts Receivable Management

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