How to Handle Non-Payment of Dues
Introduction
Non-payment of dues is one of the most difficult challenges for co-op, condo, and HOA boards. The reasons vary, from financial hardship and illness to a death in the family or residents withholding payments in protest of fee increases. Whatever the cause, non-payment erodes a community’s financial health and places an unfair burden on residents who do pay. At Jonasvar, we believe the key to handling non-payment is a balanced approach that is firm, fair, and always guided by the community’s governing documents.
Why Non-Payment Hurts Communities
When residents fall behind, the impact is immediate. Budgets are strained, maintenance is delayed, and other residents are forced to shoulder an additional burden. In effect, non-paying households create an additional tax on their neighbors, undermining trust and stability in the community. If non-payment persists too long, boards are often forced to levy special assessments, which further erode community trust.
Jonasvar’s Approach
Our process begins with communication. As soon as non-payment is noted, we reach out directly to the resident. We encourage residents to communicate with us no matter how difficult their situation may be. Understanding their circumstances allows us to determine the most appropriate path forward.
Every step of our process is documented in writing. We provide reminders, formal notices, and if needed, structured payment agreements. If non-payment is due to hardship, we work with residents on payment plans that help them get back on track. This keeps money flowing into the community and avoids unnecessary legal costs.
Balancing Fairness and Firmness
We recognize that non-payment involves families and their homes, which is why we exhaust every reasonable option before pursuing escalation. Our priority is always to resolve matters fairly, while making it clear that dues are not optional. Consistent application of policies across all residents ensures fairness and prevents claims of favoritism.
Legal and Compliance Safeguards
Every step we take complies with the community’s governing documents and state law. Where necessary, we work closely with attorneys or collection agencies to enforce payment. Escalation is always done under the authority of the governing body, with legal counsel guiding the process to protect both the board and the community.
Communication is Key
Clear and consistent communication prevents disputes from escalating. We review the payment process with residents from the very beginning, often during their onboarding interview when they purchase into the community. When issues arise, we outline the process, explain the options, and follow up until there is a resolution.
Where Others Fall Short
Many boards or managers let non-payments linger without a plan, apply policies inconsistently, or fail to follow legal requirements when pursuing collections. This not only jeopardizes recovery but can create liability for the board itself. Jonasvar addresses non-payments as soon as they arise, applies policies consistently, and keeps the financial health of the community robust.
Real-World Value
We have seen payment plans succeed time and again. They provide a way for residents to make progress while keeping cash flowing into the community, rather than heading straight to legal proceedings where costs mount and payments stall. This approach has helped communities avoid financial distress and prevent special assessments that would have penalized paying residents.
The Jonasvar Difference
Poor handling of non-payment puts communities under unnecessary financial pressure. Jonasvar takes a proactive, transparent, and compassionate approach that keeps budgets stable while protecting fairness for all residents.
The Bottom Line
Non-payment is inevitable, but financial distress does not have to be. By acting quickly, documenting every step, communicating clearly, and following governing documents, boards can protect their communities and support residents at the same time.
Let Us Help
At Jonasvar Inc., we manage your property like it’s our own by addressing non-payments early, offering fair solutions, and protecting the community’s financial stability.
Wondering if your board has the right process for handling non-payment?