Recovering delinquent homeowner payments can be a time-consuming and costly endeavor for HOAs. Even just a few delinquencies can wreak havoc on your HOA’s budget. Here are some strategies that have helped our HOA clients improve their on-time collections.
Mention online payments in your coupon books
A payment made online will reach your bank account sooner than a check. So be sure to promote online payment options within the coupon books you send homeowners. Along with the url they need to visit, include any specific instructions necessary to make the payment online.
Your payment vendor might even be willing to help you with printing coupon books if you plan to promote online payments.
Make payment instructions very clear on your website
Again, payments made online will shave a few days off your collection time. A homeowner is very likely to visit your website if they want more info on how or when to make a payment. Put a “Pay Online” button on your website, preferably above the fold so it is immediately noticeable. The last thing you want is for a homeowner to visit your website and decide that writing and mailing a check will be easier than figuring out the online payment system.
Send email or text reminders to your homeowners
Since homeowner payments are not typically due every month, it can be easier to forget when a payment date approaches. Help your homeowners stay on top of upcoming payments by providing them extra reminders. Email reminders, particularly those that include a Pay Online button in the text, are highly effective for reducing late payments.
Be consistent with the consequences for delinquent homeowners
In every community, there will always be people who think their circumstances will be the exception to the rule. By consistently enforcing penalties for ALL delinquent payments, you lower the risk of homeowners thinking a late payment can slide or go unnoticed.