Pay Up! The Subtle Art of Collecting Arrears

 In the tough economic environment that has hit our nation over the past few  years, many condo owners have faced job loss, pay cuts or just financial  uncertainty. Unfortunately, the signs of the times sometimes leads to an owner  not paying their common charges.  

 “This is the weirdest, craziest market I’ve ever seen and I’ve been working in real estate in South Florida since 1978,” says Margaret Antoon, president of ACM Real Estate Inc. and Property Management  in Lighthouse Point. “Generally speaking, everyone is getting hit hard by non-payment right now. The  high-end, luxury market is because in most cases they are overpaying, and the  lower end market because they can’t pay. Here in Florida it’s getting worse and I don’t think people realize what’s going to happen in the next year. I believe we are going to see a lot more  foreclosures in condominiums because people can’t make the payments in the associations. The unemployment rate is high in  Florida and the job creation is like zero in South Florida.”  

 “We are seeing people struggle today more than they have in a long time and we’re not seeing a huge improvement in the economy,” agrees Melissa L. Nash, president of ARI, a full- service collection agency  based in West Palm Beach that specializes in homeowner associations. “What we have now is a better attitude toward debt and an obligation to paying  off that debt. Before we had people who were like, ‘We are not paying our mortgage so deal with it.' I do see an attitude change  toward homeowner association dues. In many cases people want to pay them, but  are not in the financial position to do so.”  

 When unpaid, overdue debt is not collected, it can wreak havoc on a condominium  association. In smaller communities, it can quickly cause the association to  have trouble meeting operating expenses, while even larger associations will  eventually feel the effects of the shortfall if multiple units fall into  arrears. “Everyone wants to live in a financially, vibrant community,” says Nash “At the end of the day that is everyone’s goal. Everyone wants to be on track.”  

 Associations should distribute a written procedure to everyone in the community  so that residents know exactly the way things are done—and more importantly, that things are done consistently for all unit owners. It’s vital for boards and managers to take a proactive role in collecting common  charge arrearages to ensure that their condominium association remains  financially stable.  


Related Articles

CAI Releases Statement on Foreclosure Moratorium

Calls for 'Flexibility, Understanding, and Business Continuity'

What to Do About HOA Finances & Arrears During Coronavirus

How Associations Should Respond

Q&A: Peeved in Port St. Lucie

Q&A: Peeved in Port St. Lucie



  • Ms. Antoon doesn't understand the law, a very disappointing situation given her job. . A condo that forecloses for non-payment of fees will have absolutely no obligation to the mortgage. The mortgage is a contract between lender and borrower Our condo association aggressively forecloses so the units don't deteriorate and suitable renters can pay the fees, and then some, of the former owners. We dont pay taxes either; at some point in the next 2 years the banks foreclose and it's all their problems anyhow. The rent income is all unexpected, positive cash flow, after deducting the costs of foreclosure and normal maintenance costs. These rentals keep our fees downa nd help reduce the arrears amassed by former owners