A Collections Policy is a written set of procedures that outlines how an HOA handles delinquent assessments and fees. It defines timelines, notices, late fees, interest, payment plans, escalation steps, and when accounts may be referred to legal counsel or a collections agency.
Why It Matters for Self-Managed HOAs
For self-managed HOAs, a clear collections policy protects cash flow while ensuring homeowners are treated consistently and fairly.
- Provides predictable, consistent handling of delinquent accounts.
- Protects the HOA’s financial stability and ability to pay vendors.
- Reduces accusations of selective or unfair enforcement.
- Supports compliance with governing documents and state laws.
- Helps board members enforce dues without personal confrontation.
- Improves transparency so homeowners understand consequences and options.
For Treasurers, a collections policy is essential to maintaining accurate financials and reserves.
How to Use It
“According to the collections policy, late fees are applied after 30 days and accounts are escalated if payment is not received.”
Best Practice or Tip
- Upload the collections policy to HOA My Way’s document library for homeowner access.
- Automate late notices and payment reminders through HOA My Way’s accounting tools.
- Track delinquent accounts and escalation stages in one centralized system.
- Offer structured payment plans when allowed by the policy and law.
- Work with your HOA My Way accountant to ensure balances, fees, and notices are accurate and timely.
Related Terms
