One of the most important functions of a Florida condominium or homeowners association is to ensure it timely collects assessments from its members. Dealing with delinquent homeowners is a frustrating reality facing most associations. Bad debt prevents the association from properly carrying out its functions and places an unfair burden on the other members who must not only pay their assessments, but also be responsible for covering the budget shortfall.
At Ansbacher Law, we work closely with our association clients to develop effective collection procedures. When properly implemented and consistently applied, a written collections policy has proven to encourage timely payment of assessments and reduce the number of delinquent accounts.
The best practice is to have a time-based collections policy based on aging of the account, rather than a policy based on a threshold amount due. We recommend associations adopt, by resolution of the board of directors, a written collections policy that specifies the steps the association will take to secure payment of assessments from its members before referring their delinquent accounts to our collections attorney.
To avoid legal problems or even social problems with neighbors making claims of favoritism, an association must enforce its collections policy uniformly as to all members.
A collections policy should specify:
Ansbacher Law’s dedicated collections team is here to help. To speak with our collections attorney about developing and implementing a collections policy for your community, please call us at (904) 737-4600 today. We look forward to the opportunity to serve you.