Collection Costs Paid to Management Company

GailP,
Well I am sure there will be some qualified guesses about what is fair. But any stab at putting a neat number on this is going to have to be tempered with the location of the HOA.

I would personally suggest this amount is something that has to be resolved either in the contract or an agreement that a floating amount be negotiated as time and circumstances dictate. What may seem excessive in one part of the country could be considered as a bargain in another.

Of course the option for the association to take their business elsewhere could always be included in the original contract, if possible. Maybe turning over all past dues after, say, ninety days, to a collection agency would be an option. Adjustments of this nature just about has to be individually resolved, either as you go along or as a contract item. If you suspect or the Board feels they are being charged too much, let the MC know this.

What I consider fair is what the contract calls for. Quite simply the management company is a business that has contracted to perform services for the HOA. If the fees seem excessive then one should research other management companies in their area.

Having said that, I would say that the Board should always hold the reigns as to when expenses are incurred. For instance if dues are late on Feb 1 then the Board should decide what date to send the late notice out on (Feb 1 or say Feb 15th or maybe Mar 1.)