I recently attended a symposium for HOA Board Members and served on a panel with other experts addressing HOA Financial Planning. The 200+ Board Members in attendance should be commended for taking time out of their schedule to help their communities prepare for their financial future.
My co-panelists represented HOA insurance and reserve studies. Clearly, you don’t look for insurance in the middle of a claim or a reserve study when starting a major project – you plan ahead so you have the right coverage and resources in place before they are needed.
The same is true for collections. Choosing the right solution now ensures you don’t have excessive legal fees or financial shortfalls in the midst of a recession. Yet, I am surprised at how often I am told “delinquencies are not a problem” by Community Managers and Board Members.
To be fair, it has been over 10 years since we had a serious problem with delinquencies. I expect that many Community Managers and Board Members were not in their current role to experience the challenges of the Great Recession. Hopefully, we never experience that kind of fallout again, but the cyclical nature of our economy says we will have a recession soon (if we are not already in one).
Most financial experts believe the extra savings accumulated by households from COVID stimulus will be gone by the middle of this year. Combine that with further rate increases by the Fed to rein in inflation and we have the recipe for increased delinquencies.
Don’t wait for the problem to appear before you look for a solution. Plan now and you will be ahead of the problem with our unique solution (deferred fees), recovering 100% of your delinquencies at no up-front costs for liens, foreclosures, and filing fees.