11
CASE STUDY: ASSOCIA
TENNESSEE'S COLLECTIONS
TURN-AROUND
CHALLENGE
When Associa Tennessee partnered with a local community
association, the team discovered that the community was
owed a lot of money—its receivables were at $116,662! As the
management team dug deeper, they found that the community
was indebted due to the management company transition,
inconsistent prior collection practices, slow pay accounts, and
fewer accounts set up for direct debit.
SOLUTION
The management team quickly got to work to correct this.
A financial audit was conducted by an independent CPA.
Two accounts were determined uncollectable, which means
they were almost guaranteed to be unpaid. The board wrote
them off as part of the association's taxes. The remaining
amount was collected by the board, in accordance with its
collection procedures. They specifically focused on strong
communication, courtesy reminders, and one-on-one meetings
with homeowners to discuss their account histories.
RESULTS
After 17 months, the association achieved 100% collection of
the receivables.
2
3
4
5
6
7
8
9
10
11
12
