Most homeowners understand that assessments are a regular part of homeowners association membership. However, some owners—and even board members—may not fully grasp the importance of assessment payments on the community. Assessments are a large part of member benefits and when one member fails to make a payment, the association as a whole can suffer.
Board members know a look at the association budget demonstrates that member dues go towards costs that benefit members directly. Some examples include:
Common Area Upkeep
Member dues goes towards common areas like clubhouses and community pools for the community. This can include both the building and maintenance of these areas so everyone can enjoy them.
Not only do assessments help pay for crucial association expenses like liability insurance and saving for future costs, in some cases they also help provide homeowners with everyday services and utilities like internet, cable, and sewage.
Most homeowners report being happy with the return on their assessments, so it’s unfortunate that a lot of HOAs still struggle economically.
The True Cost of Unpaid Dues
With many associations dealing with vacant homes, the usual revenue from those assessments can cause associations to either raise assessments or neglecting maintenance of benefits like common areas. Worse yet, sometimes owners will stop paying their assessments in protest of the changes.
For this reason, it’s important for board members to communicate to homeowners that not paying dues does nothing but hurt their association and neighbors, possibly even forcing their HOA to increase assessments more for everyone to make up for the delinquent dues.
For homeowners associations experiencing problems with delinquent assessments, it could be beneficial to work with an attorney who is experienced in the workings of homeowners associations. Cedar Management Group can help guide your association through this process and other management needs. Also here is a good article to read up on: HOA Accounting for more information.