For homeowners living in communities with a homeowners association (HOA) or condo association, paying annual dues is a key responsibility.
Between funding essential services and maintaining property values throughout the community, dues keep the neighborhood running smoothly.
While most HOA members dread paying said dues, ignoring them can result in several negative situations for themselves and the community.
Let’s explore why staying current on dues is so crucial and how professional HOA management companies like Proper HOA Management can help your association stay on top of payments.
What Do HOA Dues Cover?
HOA dues aren’t a sneaky payday for association managers. In fact, they’re in place to cover a wide range of expenses that benefit the overall community.
Maintaining Common Areas
A major portion of dues goes towards landscaping services like lawn mowing, tree trimming, fertilization, weed control, etc. for common grassy areas, parks, gardens.
If your community has amenities like pools, parks, tennis courts, gyms, clubhouses, etc., dues pay for maintaining, cleaning, repairing and improving these areas.
For communities with private roads or parking lots, dues cover repaving, pothole repairs, painting lines, and other maintenance.
Security & Insurance
Costs for security services like entrance gates, cameras, guards, and lighting are funded by HOA dues.
Dues also pay for various insurance policies that cover common areas, amenities, and other community property against various hazards.
Community Events & Activities
You know those block parties and related community events the HOA throws? The budget for the gatherings that brings the neighborhood together comes from HOA dues.
Administrative Needs
In addition to the aforementioned duties to the community HOA dues are also used for:
- Handling management company fees
- Legal compliance and regulatory fees
- Record keeping and accounting
- Office equipment, supplies, and utilities
- Reserve funds for future repairs and replacement of common elements
The Importance of Timely Dues Payment
When homeowners fail to pay their dues on time, it creates a domino effect of issues for the HOA. With less revenue coming in, the association may struggle to pay contractors and staff on time, keep up with landscaping and maintenance schedules, make timely repairs or replacements, restock supplies and replenish reserve funds.
Along with these struggles comes a decline in community appearance, property condition, and home values.
What if Residents Become Delinquent?
The more residents become delinquent, the harder it becomes for the association to remain vibrant and functional as a . To avoid this, HOA boards and association management have rules and processes regarding late payments.
Aside from late fees and interest accrued on unpaid balances, liens can be placed on properties with overdue HOA debt.
In extreme cases, the HOA is able to foreclose on the home to recover the debt.
These consequences can quickly ramp up and highlight why paying dues punctually is so crucial from both an individual and community-wide perspective.
How Proper HOA Management Helps Your Dues Come in On Time
At Proper HOA Management, we take an proactive approach to keeping dues payments up-to-date for the communities we serve. Our comprehensive services include:
Online Payment Portal
Homeowners can easily view statements, make payments, and manage their account 24/7 through our secure online portal. We accept payments via credit/debit card, eCheck/ACH, or recurring bank drafts.
Transparent Record Keeping
We maintain detailed records of all revenue, expenses, and homeowner accounts. Homeowners have full transparency into how their dues are being utilized.
Consistent Communications
We send regular payment reminders via email, text, mail, and calls to ensure homeowners are aware of upcoming dues. We also update homeowners on community projects and other news impacting dues.
Delinquency Procedures
Our team closely tracks late payments and follows the HOA’s pre-defined protocols for late notices, interest charges, violation letters, and collections procedures when needed.
Board Support
We brief HOA boards on financial and payment metrics each month. Our experts advise boards on best practices for dues amounts, policies, and rules regarding collections.
With Proper HOA Management handling the administrative and financial side, community associations can focus on higher priorities while staying on stable financial footing.
Join the Proper Family Today
Don’t let delinquent dues put your HOA or condo community at risk. Reach out to Proper HOA Management today for quality community management that exudes our decades of experience. Our team is ready to discuss your needs and provide a free quote on our industry-leading management services.
Through our advanced technology, proven processes, dedicated staff and decades of experience, we’ll keep your community running smoothly and your HOA’s finances healthy. Contact us today to join the Proper family!
