Payment Portal vs ACH or Mail-in

PegH (Iowa)
Posts: 1

Posted:

We recently switched from a PM company that had a portal to make payments for dues. We have since switched to a new company, but they do not utilize an online portal, but have options for ACH setup, accept checks, and Bill Pay. (Probably accept cash too)

Since the switch, a couple of homeowners have complained that they have to "go old school" and get checks because they refuse to set up an ACH or use Bill Pay.

We have tried explaining that while unfortunate there isn't a portal (that we had to pay for) to use anymore, but there are multiple options.

Now they seemingly are on a missing to flood our private FB group with comments/memes/etc about how horrible it is that this new company won't do this.

How do you handle these "petty" grievances? (Petty to me as there are multiple ways to pay)

MichaelT21 (Arkansas)
Posts: 501

Posted:

I've lived in our community for 10 years, and I have paid using my banks BillPay system. They mail a check to the HOA lockbox once per quarter. They have never missed a beat, it's easy to change the amount due, and it takes no time at all. I think that is a perfectly functional and reasonable option for our homeowners. I don't know yours so I can't say that is sufficient for yours but it should be fine too.

Here's the deal. When an HOA is being run well, people complain that HOAs spend too much money. Of course they do as it costs money to run an association. Then Boards cut back (for example, stop paying for the expensive online portal that allows payments) and then people complain that they don't have the features that they liked. HOAs are honestly darned if they do and darned if they don't.

I can't speak to your Board's threshold about the volume of complaints or whether you should listen to them. Social media tends to attract complainers and once two or three people complain, then others join the chorus.

MichaelT21 (Arkansas)
Posts: 501

Posted:

We also get complaints about making it too tricky to pay dues, and some have pointed out that we'd get more on time payments if we made it simpler to sign up for auto pay. I have considered this, but then realize that we receive about $5000 to $7000 in late fees each year. This is a nice additional revenue stream for us, so I am not sure I want to make it much easier for owners to pay.

SheliaH (Indiana)
Posts: 6,964

Posted:

I agree with you - ACH is automatic withdrawals from the account and many banks have Bill Pay, so if you have an account, you can set up the bill with your OWN bank and dictate how much and when the payment should be made. My bank pays so many local vendors this way, that when you set up your payment, they already have the name and address in the system, so all you have to do is provide the account number with that vendor to ensure it's credited properly. You can even schedule several months worth of payments in advance.

You can't make 100% of the people happy 100% of the time, so if the vast majority of homeowners are ok with the current options, I'd thank these homeowners for their comments and move on. It's a new company, after all, so give it a few months - eventually, they'll adapt to whatever option is best for them. The only people I see complaining about this are people who don't have internet access, but even that's not an excuse because many Bill Pay services are accessible by phone.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

JohnC46 (South Carolina)
Posts: 14,265

Posted:

No matter the payment system, some will bytch.

SheliaH (Indiana)
Posts: 6,964

Posted:

Quote:

Posted By MichaelT21 on 08/04/2022 8:02 AM
We also get complaints about making it too tricky to pay dues, and some have pointed out that we'd get more on time payments if we made it simpler to sign up for auto pay. I have considered this, but then realize that we receive about $5000 to $7000 in late fees each year. This is a nice additional revenue stream for us, so I am not sure I want to make it much easier for owners to pay.

Then you're doing it wrong (and then you come to this website complaining about your neighbors being nit-picky or do nothing board colleagues). Homeowners already have a legal obligation to pay assessments, so you should NEVER have to rely on fines or late fees to pay your bills. You'd rather spend more time and money on sending out late notices????? What's wrong with you?

Get over yourself - if your bank can accept auto pay, set it up and tell the homeowners when it'll be available and how to use it. Or suggest they contact their own bank and set up auto pay

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By SheliaH on 08/04/2022 8:11 AM

Posted By MichaelT21 on 08/04/2022 8:02 AM
We also get complaints about making it too tricky to pay dues, and some have pointed out that we'd get more on time payments if we made it simpler to sign up for auto pay. I have considered this, but then realize that we receive about $5000 to $7000 in late fees each year. This is a nice additional revenue stream for us, so I am not sure I want to make it much easier for owners to pay.

Then you're doing it wrong (and then you come to this website complaining about your neighbors being nit-picky or do nothing board colleagues). Homeowners already have a legal obligation to pay assessments, so you should NEVER have to rely on fines or late fees to pay your bills. You'd rather spend more time and money on sending out late notices????? What's wrong with you?

Get over yourself - if your bank can accept auto pay, set it up and tell the homeowners when it'll be available and how to use it. Or suggest they contact their own bank and set up auto pay

I agree.

MichaelT21 (Arkansas)
Posts: 501

Posted:

Quote:

Posted By SheliaH on 08/04/2022 8:11 AM

Posted By MichaelT21 on 08/04/2022 8:02 AM
We also get complaints about making it too tricky to pay dues, and some have pointed out that we'd get more on time payments if we made it simpler to sign up for auto pay. I have considered this, but then realize that we receive about $5000 to $7000 in late fees each year. This is a nice additional revenue stream for us, so I am not sure I want to make it much easier for owners to pay.

Then you're doing it wrong (and then you come to this website complaining about your neighbors being nit-picky or do nothing board colleagues). Homeowners already have a legal obligation to pay assessments, so you should NEVER have to rely on fines or late fees to pay your bills. You'd rather spend more time and money on sending out late notices????? What's wrong with you?

Get over yourself - if your bank can accept auto pay, set it up and tell the homeowners when it'll be available and how to use it. Or suggest they contact their own bank and set up auto pay

I'm sorry but I don't understand.

When a homeowner doesn't pay on time, we have a 15 day grace period for them to pay without penalty. If they still don't pay by the 15th of the month, they are assessed a $35 late charge. $10 goes to the property management company and $25 goes the association. All delinquency notices are handled by our property management company.

We get about $5000 to $6000 in revenue from late fees. Yes, it's a nice bonus for our association.

MaxB4
Posts: 3,513

Posted:

Quote:

Posted By MichaelT21 on 08/04/2022 7:45 AM
I've lived in our community for 10 years, and I have paid using my banks BillPay system. They mail a check to the HOA lockbox once per quarter. They have never missed a beat, it's easy to change the amount due, and it takes no time at all. I think that is a perfectly functional and reasonable option for our homeowners. I don't know yours so I can't say that is sufficient for yours but it should be fine too.

Here's the deal. When an HOA is being run well, people complain that HOAs spend too much money. Of course they do as it costs money to run an association. Then Boards cut back (for example, stop paying for the expensive online portal that allows payments) and then people complain that they don't have the features that they liked. HOAs are honestly darned if they do and darned if they don't.

I can't speak to your Board's threshold about the volume of complaints or whether you should listen to them. Social media tends to attract complainers and once two or three people complain, then others join the chorus.

Expensive??? Portals cost $10.00 a month.

MaxB4
Posts: 3,513

Posted:

Quote:

Posted By MichaelT21 on 08/04/2022 8:02 AM
We also get complaints about making it too tricky to pay dues, and some have pointed out that we'd get more on time payments if we made it simpler to sign up for auto pay. I have considered this, but then realize that we receive about $5000 to $7000 in late fees each year. This is a nice additional revenue stream for us, so I am not sure I want to make it much easier for owners to pay.

In my opinion, you're no better than a thief!

LetA (Nevada)
Posts: 2,679

Posted:

Quote:

Posted By MichaelT21 on 08/04/2022 8:23 AM

Posted By SheliaH on 08/04/2022 8:11 AM

Posted By MichaelT21 on 08/04/2022 8:02 AM
We also get complaints about making it too tricky to pay dues, and some have pointed out that we'd get more on time payments if we made it simpler to sign up for auto pay. I have considered this, but then realize that we receive about $5000 to $7000 in late fees each year. This is a nice additional revenue stream for us, so I am not sure I want to make it much easier for owners to pay.

Then you're doing it wrong (and then you come to this website complaining about your neighbors being nit-picky or do nothing board colleagues). Homeowners already have a legal obligation to pay assessments, so you should NEVER have to rely on fines or late fees to pay your bills. You'd rather spend more time and money on sending out late notices????? What's wrong with you?

Get over yourself - if your bank can accept auto pay, set it up and tell the homeowners when it'll be available and how to use it. Or suggest they contact their own bank and set up auto pay

I'm sorry but I don't understand.

When a homeowner doesn't pay on time, we have a 15 day grace period for them to pay without penalty. If they still don't pay by the 15th of the month, they are assessed a $35 late charge. $10 goes to the property management company and $25 goes the association. All delinquency notices are handled by our property management company.

We get about $5000 to $6000 in revenue from late fees. Yes, it's a nice bonus for our association.

$35 DPM late fee split, that'a criminal.

JohnT38 (South Carolina)
Posts: 1,631

Posted:

Quote:

Posted By MaxB4 on 08/04/2022 8:50 AM

Posted By MichaelT21 on 08/04/2022 8:02 AM
We also get complaints about making it too tricky to pay dues, and some have pointed out that we'd get more on time payments if we made it simpler to sign up for auto pay. I have considered this, but then realize that we receive about $5000 to $7000 in late fees each year. This is a nice additional revenue stream for us, so I am not sure I want to make it much easier for owners to pay.

In my opinion, you're no better than a thief!

Not uncommon for CEO's.

LoriM15 (Florida)
Posts: 1,009

Posted:

Our management company has a payment portal, we send coupon books with the lock box address to anyone who wants one, we have ACH and of course accept bill pay checks. And we still have homeowners who cannot/will not use any of the above methods and insist on bringing checks to the office for the admin to enter into the system. We stopped accepting payments at the office for a while but decided to accept them again once we got complaints.

Our new property manager told me yesterday that she didn't know when she took the job she was the manager of a nursing home. Sometimes that's the way it feels - and we aren't even an official oer 55 community.

DerekW2 (Washington)
Posts: 5

Posted:

I use bill pay through our bank and set it up for quarterly deductions and don't worry about it. the only draw is that our process will take almost 20 days for the check to clear and that's due to the bookkeeper waiting for multiple checks to be received.

we have some that continue to complain and send it to our main HOA drop box and then we have to send it to the bookkeeper. (minor inconvenience).

have discussed switching to payment portal, just the outlook on the extra fees that maybe included.

just know, not everyone will be happy and move on.

president