The primary function of the HOA is preserving and enhancing property values—something that is impossible to do without collecting monies. HOA fee collections, though not a popular topic, is something that every Association must contend with. In a new statement to the press, Kuester Management Group stresses the importance of having a clear, detailed HOA collections policy.
“Your HOA has a legal, fiduciary responsibility to maintain property values, and that means keeping the utilities on, preserving common areas, buying insurance, and more,” says Bryan Kuester, President of Kuester Management Group. “It’s imperative for HOAs to collect fees from homeowners. Some owners are resistant to even discussing fees, but managing expectations is critical—and that starts with clear communication.”
Kuester says the fees collected help cover two different funds. First there is the operational fund, used to cover everyday expenses. It’s also prudent for HOAs to maintain a reserve fund, where they save money for long-term projects and emergency expenditures.
“In addition to collecting and managing these funds, it’s important to clearly communicate your collections policy,” Kuester says. “Make sure each homeowner has your HOA collections policy in writing.”
A good HOA collections policy will include a few key pieces of information, including what the fees are and when they are due; information about available payment plans; what the late fees are, and how they are enforced; information about other penalties for delinquent payments, such as liens; and information about the owner’s right to appeal a late fee or penalty.
“The bottom line is, your owners should know how much their fees are, when they are due, how they can be paid, and what happens if they’re late,” Kuester comments. “Regular reminders are also useful. Consider automated text reminders, monthly newsletter reminders, or even social media posts.”
In HOA communities, fees are just a part of life—and the best way to approach them, Kuester concludes, is through clear and consistent communication. “Set aside some time to clarify your collections policies sooner rather than later,” he advises.
More information about the HOA management services offered by Kuester Management Group can be found online at www.kuester.com.
Kuester Management Group, a division of Kuester Companies, works to protect property values and enhance the quality of life in each of its managed communities. Providing a full range of association management services, Kuester Management Group has worked to foster strong, resilient, and unified communities across North and South Carolina. The company is proud to offer on-site property managers, all zealous for building strong communities meant to stand the test of time. Other key services include document keeping, financial oversight, and other critical back-end functions.
More information is available at www.kuester.com or @KuesterCompany.
Company Name: Kuester Management Group
Contact Person: Bryan Kuester
Country: United States