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Homeowners and condo associations rely on dues to cover maintenance, repairs, and community services. When payments are late or go unpaid, the entire community can feel the impact. Budget shortfalls may delay important projects, increase fees for everyone, or lead to legal disputes. Collecting dues on time helps maintain property values and ensures shared spaces remain well-kept. However, dealing with late payments isn’t always straightforward. Associations must balance fairness with firmness while following legal requirements. Understanding how to approach collections correctly can help maintain financial stability and good relationships with homeowners.
1. Do: Set Clear Payment Expectations
Clear payment guidelines help prevent confusion and reduce the chances of late or missed dues. Homeowners should know exactly when payments are due, how much they owe, and what happens if they miss a deadline. Associations should outline these details in their governing documents and provide reminders well in advance. Offering multiple payment options, such as online portals or automatic withdrawals, can make it easier for homeowners to stay current. When expectations are clear from the start, homeowners are more likely to pay on time, and the association can avoid unnecessary disputes or collection issues.
2. Don’t: Ignore Delinquent Accounts
Unpaid dues can quickly add up, putting financial strain on the entire community. Ignoring delinquent accounts only makes the problem worse, leading to larger balances that become harder to collect. Associations should have a structured process in place, starting with polite reminders and escalating to formal notices if necessary. Addressing late payments early can prevent drawn-out disputes and reduce the risk of legal action. Consistency is key—when homeowners see that dues enforcement is taken seriously, they are more likely to stay current with their obligations.
3. Do: Keep Communication Professional and Consistent
Respectful and consistent communication can make a big difference when collecting dues. Homeowners are more likely to respond positively when they receive clear, polite reminders instead of abrupt demands. Associations should send notices in writing, keeping a record of all correspondence in case further action is needed. Offering payment plans or discussing concerns in a professional manner can encourage cooperation.
4. Don’t: Violate Fair Debt Collection Laws
Homeowners and condo associations must follow state and federal debt collection laws when pursuing unpaid dues. Harassment, threats, or publicizing a homeowner’s delinquency can lead to legal trouble and damage the association’s reputation. Sending excessive or misleading notices, making false claims, or attempting to collect unauthorized fees can also result in penalties. If legal action becomes necessary, it’s best to seek guidance to ensure that all collection efforts comply with the law and do not escalate into avoidable disputes.
5. Do: Enforce Late Fees and Legal Action When Necessary
Late fees encourage timely payments and help cover the costs of collection efforts. Associations should clearly outline penalties for overdue dues in their governing documents and apply them consistently. While most homeowners will pay after a reminder, some may continue to ignore their obligations. In those cases, legal action, such as placing a lien on the property, may be necessary. Taking a firm but fair approach ensures that unpaid balances do not become a burden on the rest of the community.
6. Don’t: Treat All Delinquencies the Same
Not every homeowner who falls behind on dues is avoiding payment. Some may be facing temporary financial hardship and willing to work out a solution. Associations should assess each situation individually before taking aggressive action. Offering reasonable flexibility can help recover dues without unnecessary conflict. However, consistent enforcement remains important—while some cases may warrant leniency, the association must ensure that all homeowners are held accountable for their financial responsibilities.
7. Do: Seek Legal Guidance Before Taking Serious Action
Before filing liens, initiating lawsuits, or taking other serious collection steps, associations should seek legal guidance to ensure compliance with Massachusetts law. Mishandling dues collection can lead to costly disputes, delays, or legal challenges. LaFountain & Wollman P.C. can help associations understand their rights and obligations while ensuring that enforcement measures are fair and lawful. Proper legal review helps avoid missteps that could expose the association to liability. Taking the right approach from the start can lead to more effective collections while maintaining a positive relationship with homeowners.
Contact Our Experienced Middlesex County Homeowners & Condo Association Attorneys
Handling homeowners and condo association dues collections requires a balanced approach—clear expectations, professional communication, and fair enforcement. By following best practices, associations can maintain financial stability while fostering a cooperative community. If your association needs guidance on dues collection, contact LaFountain & Wollman P.C. to discuss your options and protect your organization’s interests.