Waiver of Late Fees

Started by KirkW1 • 3 replies • 2234 views

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KirkW1 (Texas)
Posts: 1,665

Posted:

I was made aware today that we have had a number of residents request waiver of late fees this year. The people requesting the waiver had one or more spouse out of work at the time.

I would be interested in what others think, but my gut feeling is to waive the fees and make a policy to work with any who are working to pay them off. As a note, we are in a great financial position.

MicheleD (Kentucky)
Posts: 4,491

Posted:

We have waived some late fees, but we do it on a case-by-case basis.

Generally, we're more inclined to waive the fees if they contact us either ahead of time to say they may be a bit late, or immediately or as soon after the due date as possible to work something out.

We have not been as inclined to waive the late fees for individuals who only contact us AFTER the delinquency goes to the attorney.

In fact, even if we WERE inclined to waive the late fees in that case, we would not waive the attorney fees for collection.

We NEVER waive the assessment, however.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Kirk,

I see nothing wrong with waiving late fees. Frankly, this is "gravy" income and should not be a budget line item. When waiving the late fee be careful to make it known that the assessment fee cannot be waived. If a payment plan needs to be worked out then the BOD should consider that. These decisions should be made on a case-by-case method. In my former assn we had a situation where the family had a very sick child who needed medical treatment in CA which was very costly. We of course waived the late fees. So, there may be a variety of different reasons that are all valid and warrant some consideration.

SheliaH (Indiana)
Posts: 6,964

Posted:

Generally, if the homeowner can prove that the assessment was received by our property manager on or before the due date, we'll waive the fee. The fee's due on the first of the month and considered late if it's not received by the 15th, regardless of how it's paid (snail mail, walk in or electronic). We might also consider the circumstances surrounding the late payment (e.g. seriously ill in the hospital at the time) and thehomeowner's previous history. As you can imagine, we almost never waive the fees because in 99% of the cases, we're told something like "I sent in the payment on the 15th - doesn't the postmark count (no). And, yes, we've written newsletter articles explaining why - several times. They also get a copy of the payment policy with the upcoming year's annual budget.

We are currently looking at our payment policies and I have suggested that we waive a portion or all of the late fees if the homeowner can pay us within a certain period of time.

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

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