When it comes to paying dues, property owners are generally diligent about meeting deadlines and cooperating with managers. However, homeowners association (HOA) collections can be challenging at times—especially during periods of economic uncertainty or when dealing with difficult clients.
It’s critical to have a well-documented process in place for owners, staff members, and partners that explains exactly how to collect HOA dues, including how to collect delinquent HOA dues. Read on to learn what an HOA dues collection policy is and some tips for improving the process.
What is an HOA collections process?
An HOA collections process is a detailed plan that outlines every aspect of your company’s HOA strategy. For the best results, the process should clearly state how long property owners have to pay dues and explain how delinquent HOA dues will be collected. The policy must also cite specific actions the HOA will take to enforce payments.
By creating and enforcing a dues collection policy, your property management company can ensure that it receives HOA dues in a way that is fair, effective, accurate, and amicable. At the same time, it can also reduce disputes and ensure a positive experience for property owners and employees alike.
How can you improve your HOA collections process?
You don’t have to go overboard when creating a dues collection process. However, there are a few steps you can take to enhance the process and make it more effective and efficient.
Make your policy easily accessible.
Property owners are bound to have questions about HOA dues from time to time. Posting your HOA collections process online and making it accessible to owners is a great way to provide self-service and educate property owners. This can potentially reduce incoming phone calls and eliminate questions or problems before they arise.
Offer financial resources.
Owning a property can be a major financial burden, and owners sometimes need help making ends meet. However, they don’t always know where to find it. Property managers can help by partnering with financial providers, real estate professionals, and community groups to step in and offer services or advice and help see owners through difficult situations. This is a way to show that you care while potentially enabling faster resolutions.
Mobilize your communications strategy.
According to one study, customers strongly prefer communicating with businesses via text. In fact, almost two-thirds of respondents said they would switch to a company that offers text messages as a communication channel.
You should consider offering mobile communications services via SMS and through apps such as WhatsApp and Messenger. This is a convenient way to keep property owners in the loop during the process. While you’re at it, you may also want to offer mobile payment services such as Zelle, Venmo, and PayPal to collect payments quickly and easily.
Use technology to enhance the owner experience.
Ultimately, there are a variety of technologies that you can use to reduce friction and enable easier payments. For example, many property managers now offer web-based management portals that enable them to collect HOA dues online while allowing owners to ask questions, submit requests, and view transaction histories.
You can also use email services to automate follow-up emails about payments or automatically trigger collection processes. Automation services reduce manual labor and free staff members to focus on other priorities.
Review your policy annually.
HOA collection processes evolve as needs change and new technologies emerge. For this reason, it’s a good idea to revisit your plan annually and make adjustments to ensure it remains up to date and effective. Throughout the year, you can also collect feedback about the process from property owners. This strategy shows property owners that you are serious about working together to achieve the best possible results.
Looking to improve your HOA collections process? Netintegrity can help!
Netintegrity offers a cutting-edge property management platform that makes it easy to collect HOA payments, correspond with stakeholders, and access comprehensive reports.
To experience how Netintegrity can help your business get to the next level, request a demo today.