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STEP #1: CONSULT WITH YOUR
COMMUNITY MANAGER
& LEGAL TEAM
Collections practices vary by region, so the first step in developing your policy is to meet
with your community association manager and attorney. These pros should know the ins
and outs of HOA collections, and they can answer your questions, provide tips, and confirm
your policy adheres to relevant laws and regulations. Key questions to discuss and address
in your policy include:
• What are standard late fee amounts, and on what day of the month are payments
considered late?
• What notices are sent to delinquent homeowners before their file is turned over for
collection, and at what intervals are they sent?
• When is a file turned over to the legal team for collection?
• Does the association accept payment plans, and are there circumstances when they
wouldn't be accepted?
• What's the maximum length of time for payment plans?
• Is the association willing to reinstate a payment plan after default? If so, how many
times?
• Are repeat collections offenders treated the same or differently from homeowners
facing collections for the first time?
• Will the board consider waiving any late fees?
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