How do you collect homeowners association or condominium dues in Michigan?
Answer
When a homeowner misses paying their association dues, a ripple effect of financial damages often follows. For many associations, the neighboring owners must make up for the missing money so the association can meet their budget needs. Associations can work to avoid budget pitfalls in several ways. That, however, requires time and resources. The best solution for everyone is for the owing parties to pay, and there are ways for associations to collect.
A Payment Plan
The association’s governing documents may have a payment plan procedure they can implement. If not, they may have to develop one. This payment plan would ensure that money flows in regularly from the owing homeowner, making for a more stable association budget. It would also provide the owing homeowner with a way to get back on track without severely damaging their other financial responsibilities.
Association Benefits Restrictions
While it is likely not your first choice, an association may choose to restrict the owing homeowner’s benefits. Dues pay for several elements that make for a better quality of life. Association budgets account for bills that include such benefits as:
- Landscaping
- Community rooms and activities
- Pools
- Utilities for common areas
The bounds of benefit restriction will depend on your association’s bylaws and other legal factors. If it is within your association’s rights to restrict the owing party’s access to common areas or pools, the owing party might take their dues more seriously. That is, of course, if financial hardship was not the reason for their missing payments.
Hire An Attorney
To see that your association receives its dues, it may have to come down to hiring an attorney. A lawyer can assist with various collection orders and administer disputes between the owing party and the association. They can also ensure payment procedures and other implementations are made within the confines of the association’s bylaws and Michigan state law.
Avoiding Future Problems
If it has not already done so, your association should set forth policies regarding missing homeowner dues payments. They may set up stricter, short grace periods or harsher late fees so the tenants take their payment more seriously. Another way to ensure future payments is to regularly meet with homeowners or provide newsletters that invite them to communicate any financial hardships they may be experiencing so a plan may be set in place.
The answer is intended to be for informational purposes only. It should not be relied on as legal advice, nor construed as a form of attorney-client relationship.
Other answers about Real Estate
What Can I Do If A Seller Lies Or Conceals A Property Defect In Virginia?
Purchasing a home may be one of the biggest investments of your life, if not the biggest. It can be devastating when you purchase a home and discover …Sponsored answer by Faisal Moghul
If my real estate deal falls through in Ohio, should I sue?
Disputes over real estate transactions are quite common. As the current real estate market continues to have more demand than supply, and prices are …Sponsored answer by Bradley Jeckering
Can I Legally Get Out Of A Diamond Resorts Timeshare Contract In Las Vegas, Nevada?
There are multiple ways to get out of your Diamond Resorts Timeshare Contract (Now Hilton Grand Vacations), but the options you have to potentially …Sponsored answer by William J. O'Grady
Call me:
248-349-6203
Contact me
Required fields are marked with an asterisk (*).
To: Adam Randall Super Lawyers: Potential Client Inquiry