Question: would this make you cranky?

[tarheels]

I'm the HOA president. Our neighborhood is new construction, and the HOA just took over from the developer. The developer did a crap job of collecting dues and keeping records. We've been trying to get on top of it.

We're a small neighborhood, just 25 houses, with dues of just $35 month. In total today, people are $5,000 in arrears. People were $9,500 in arrears when we took over in September - persistent phone calls on my part have brought in $4,500. We're about to be in a bad spot and not be able to pay our bills.

Dues are historically collected in one lump sum in January, though we've just created a monthly payment system for people who'd prefer to do it that way. In theory, we should have an influx of cash coming in January. That money, though, only adds to the amount due for people (ie, they'll owe $420 on Jan. 1, but they still owe $235 now, for a total of $655 due Jan 1).

Would you send a personal letter to every person in arrears NOW before the holidays? Would it piss you off the be the recipient of such a letter at this time of year? Or would it be good to know to rein in your Christmas spending? I'm not sure what to do. This job requires delicacy and diplomacy, and upsetting people will not get me far.

Oh, and about 80% of homeowners are OOT. This is a college town, so most of these homes are owned by parents for their college aged kids. It's not like I can knock on doors and have a friendly conversation - I have to send letters or make calls.

ETA - they last received a letter with their amount due at Labor Day.

[mrsemilys]

I would want a reminder. I would send a letter. Good luck....it sounds like a sucky situation for you to be dealing with.

[kaylie]

Personally, I would appreciate the heads up so that I could plan my holiday budget accordingly. I wouldn't be annoyed in any case though. It's a bill I haven't paid and you have a right to ask for payment (though you really shouldn't have to if people are keeping up and being responsible).

[salsaverde]

I would not be annoyed and I would actually be ashamed that I have to be reminded once again, I mean these homeowners know they are behind, correct?

[jhawks482]

I'd send out letters. I mean, it's not like you're asking for donations- you are asking for money that's PAST due, or about to be due. As a homeowner in an HOA, you should expect to pay dues or expect to get a letter about paying said dues.
Is there any incentive you could add in to get people to pay dues (like 5$ off if paid in full)? Also, in our HOA, we are looking to improve the commons- new trees and possibly some benches around the lake, and it's not possible if peeps don't pay their dues. Is there anything for the homeowners to be able to look forward to (besides lawn care for commons)? I always go to HOA meetings, so things like this are constantly on my mind.

[ssmjlm]

Send the letter, but upfront. You owe X, we won't be able to pay out bills b/c we are in the hole, etc.

Send it certified, delivery receipt too.

[adhdfashion]

Maybe offer to take the total amount due for rears and new. Divide it up into monthly payments. So everyone one can be paid up in full by the end of next year??? Make them call to arrange this?

[lys]

Full payment due in Jan for 2013. Monthly payment plan (in addition to full payment for 2013) for those in need to pay overdue amounts.
Send statements NOW with 2013 payments due Jan 30th.

[emjacobs]

Send statements with a letter via certified mail. Yes its before the holiday. Yes it sucks. Sure people are going to be cranky. But you know what? They should have paid their stinkin bills.

Honestly collections isn't a real viable option considering that you have $5,000 split across multiple debtors. Collections companies purchase the debt at a discounted rate, so you make part of the money that you needed and their payment is collecting the full amount. Buying $5,000 lump sum debt might be reasonable, but buying portions of $5,000 all at discounts can cut in.

Also have a notice of Januarys Due's amount listed in the statement that you send.

[emoflamingo]

I'd send them. Suck it up, people. You bought a new construction home with a HOA for your kid. You pay the HOA fees. AND ON TIME.

Kick ass and take some names.