Late Fees on payment plan.

Does your management company continue to charge late fees to homeowners if they are on a payment plan for their dues and paying as agreed to get caught up? If so, does the homeowner then get a credit at the end of the agreement once all payments have been made as agreed?

Tracy, I know Texas is not Colorado and your statue statutes may be different.

However, in Texas, the HOA may not continue to charge late payment fees/charges if the account is on an approved payment plan and is making payments as agreed. We can charge interest on the past due balance as well as a small administrative fee for managing the payment plan.

We all vary so best ask your MC. Myself, I would want some form of financial punishment for those that did not pay on time but are willing to setup a payment plan.

First off I don't think the management company charges anything the BOD charge the fees the management company collects it and administers it. We charge fees on payment plans and do not credit the money to the person who paid them when they catch up. Our concern is if we did that what would stop everyone from setting up payment plans. I don't see the fees so much as a punishment for being late as I do a deterrent for others being late.

As a management company, we include late payment matters in the schedule of fees we charge our clients. There are additional expenses incurred by the management company when payment is not timely made as we have to begin the collection process immediately.

The late payment expense charged the property owner is intended to recoup the expenses incurred by and billed by the management company to the Association.

Once the payment plan starts, we won't charge late fees as long as the homeowner pays according to its terms (paying on time is one of them). If they're late even once, the board can choose to pitch the whole thing and send the account to the attorney for collection, and this is written in the payment plan agreement. In practice, I never saw this happen because most people would let us know in advance if something weird would delay payment for a day or two. The folks who promised to pay and didn't (and didn't explain why) were another story...