Here’s How Condo / Co-Op Boards Can Collect Arrears

When a condo / co-op board needs to collect unpaid arrears from a unit owner, they have several options. Depending on the amount owed, some of these are more practical than others.One option for collecting arrears is to sue the unit owner in civil court. This could be necessary if the amount owed is too large for other methods to make sense. However, it can be quite time-consuming and expensive, so it should only be pursued as a last resort.

If the board chooses not to pursue legal action due to cost or other reasons, they may choose to work with a collection agency instead. Most agencies will charge a fee based on the amount collected, so boards should carefully consider which agency is best for their needs.

Finally, boards may also choose to work with the unit owner directly in order to create a payment plan. This option allows them to be more flexible with repayment and gives the unit owner an opportunity to catch up on their dues without resorting to legal measures. However, it is important that boards take steps to ensure that payments are made according to the agreed-upon terms.

No matter which method boards choose, collecting arrears can be difficult but necessary for maintaining financial stability in any condo / co-op association. By understanding all of their options and taking the time to consider which works best for them, they can ensure a successful resolution while keeping costs as low as possible.

For further assistance, it is recommended that condo/co-op boards consult an attorney familiar with the law if they need help. An attorney can provide valuable guidance on the best course of action for a given situation and ensure all steps are taken correctly. This will minimize complications and give the board the best chance of recovering their arrears successfully.

At the end of the day, collecting arrears from unit owners can require effort from the Board but it’s a necessary process in order to keep their finances stable. By understanding all of their options, taking steps to secure payments, and consulting an attorney when needed, boards can make sure that this process goes as smoothly as possible.

It is important to note that some condominiums may have specific laws or regulations regarding how arrears should be collected, so boards should always check their governing documents before taking any action. Additionally, it is essential for any board members involved in the collection process to receive proper training on the relevant laws and best practices. This will help ensure that all actions taken are compliant with state and local laws and follow the procedures outlined in the governing documents. By being properly informed, board members can make sure their efforts are effective and efficient when collecting unpaid dues from unit owners.

Ultimately, the process of collecting arrears from unit owners can be complicated and require effort from the board. However, with a thorough understanding of the options available to them and clear communication throughout, they can make sure that this process goes as smoothly as possible. In doing so, they will help ensure their association’s financial stability for years to come.

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