Delinquency Rates are Climbing ..What can you do?

Is it abuse?

YES! It’s abuse because each
and every homeowner knew prior to closing
on their home that the only way the
association can pay their bills is by all
members collectively putting in their share
of the money. Heck, they even receive a
Budget every year outlining the expenses.
They even know the association is a not-
for-profit corporation which basically
means there should be zero profit at the
end of the year. So why do these
homeowners stop paying their dues? Why
do they think they can get away with not
paying their share of the bills? The answer
is simple. Each homeowner has their own
reasons for not paying their share of the
bills. But that doesn’t mean that as a board
member, which has a Fiduciary duty to all
members, you should sit back and watch as
the asset starts to deteriorate.

Which brings me to my next point. The
solution! What should a board do and how
should they go about reducing
association’s receivables?

The answer is simple. The board should
start by becoming aggressive with the ones
that are not paying. The board should start
by calling every day; send letters weekly;
take them to small claims court; do
whatever it takes to get these folks to pay.

But do you know most boards don’t do
this. When you ask the boards why they
are not aggressive their response varies
from “well, we live amongst them” to “we
feel their pain”

Well what about the pain of the ones
that are paying? What about them? Don’t
they deserve some respect for being on-
time with their payment? Most would
answer YES to that question. In addition,
I’ve found that boards do care. They just
don’t know where to start. If this sounds
something like your association then let
me help by suggesting that you start
becoming aggressive with collections.

How Aggressive? Very! There are a lot of
companies out there that are willing to
help. For example, one company I’m
familiar with will buy your receivables.
However; this company requires a
contract that MUST be reviewed by your
attorney before you do anything.

In my next issue I will discuss what the
state of Florida has put together to help
associations recover some past monies
and how by engaging the right company
you can be on your way to solvency.

If you have any questions or if you would
like a FREE evaluation please call me
today:

561-707-4900 or email
FrankLaMorteLLC@Gmail.com

Licensed Florida Community Association
Manager and Real Estate Broker