Serving on an association board can be a balancing act. On
one hand, as a board member, you are obligated to act in the
community's best interest and on the other hand, as a fellow
community resident, you want to maintain positive relationships
with your neighbors. This balancing act can become especially
unwieldy when it's time to turn community residents over to
collections.
A formal collections policy is critical to navigating this
uncomfortable and potentially relationship-straining process.
A documented policy allows much of the collections process
to be delegated to your management company, freeing up
the board's time. It also ensures that the board handles every
homeowner impartially — avoiding leniency with friends and
harshness with disliked neighbors.
In short, a collections policy minimizes inefficiency and
maximizes fairness.
To create a sound policy, answer each of the collections
questions in this template with your fellow board members
and consider the provided sample responses to help you make
decisions. Don't simply copy and paste the example answers into
your template — create a policy that's unique to the operations
and attitudes of your community. And remember to lean on
your community association manager and attorney for guidance
during this process. Once you've completed the template, a
formal collections resolution can be drafted and approved at
your next board meeting and implemented immediately by your
management team.
