06
STEP #3:
DETERMINE
DELINQUENT
POLICIES
With your fee structure established, the board
can move on to deciding how they'll manage
homeowners who are delinquent on payments.
This may also be explained in your governing
documents, but the process usually begins
with your management company sending out
reminder notices before the account is turned
over to collections.
In your collections policy, state:
• When reminder notices are distributed
• When the final notice letter is sent out
• If/how homeowners will be charged during
the process
• When accounts are turned over to collections
following the final notice
Each state addresses collections differently.
For example, in Illinois, the procedure is to
send a 30-day demand notice and then begin
a Forcible Entry and Detainer Action, with the
power to take possession of a unit and evict
the homeowner if balances aren't paid. Make
sure your delinquent policy specifies the rightful
actions of the board and is aligned with your
association's governing documents.
7
6
5
4
8
9
10
3
C
