HERE ARE FIVE WAYS that boards can minimize collection-related legal fees and maximize collectability:
§ Give past-due accounts to the attorney earlier. Now is not the time to delay sending demand letters, filing liens and suing owners. But first try to work it out.
§ Sharpen your collection tools. Follow your collection policy and use all your tools including late fees, interest charges, suspension of privileges, acceleration of assessments, lawsuits, foreclosures and receiverships.
§ Understand the time value of money. Money in hand today is worth more than money in hand months later. Waive some or all late fees and interest to encourage owners to pay up sooner.
§ Provide all information when you transfer a delinquent account to the attorney. Include the homeowner’s bank accounts, employer’s name, phone numbers and vehicle make and model. This will allow your attorney to better evaluate each case as to collectability and tactics to be used to effect collection at the earliest time. It saves time and reduces your cost.
§ Be proactive. Do not wait for the money to come to you.