Association Dues

In an attempt to expand the reach of my blog, I will occasionally post articles written by Angela Warner. Angela is the Controller at In Rhodes Management, Inc., a property management firm based in Rochester Hills, Michigan.

Some of these articles will be written solely by Angela, others will be written in tandem; Angela writing from the perspective of the management firm, myself writing from the perspective of property principles.

The following article was composed by Angela and concerns association dues; a topic near and dear to the heart of all homeowners or unit owners governed by an association.
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What are association dues?

Homeowner associations and condominium associations are corporations responsible for maintaining property within a community. Association dues are monthly, quarterly or annual fees paid to condominium associations or homeowner associations. These fees are used to pay the bills associated with running and maintaining an association. These expenses include, but are not limited to, lawn care, grounds maintenance, building maintenance, pool care, insurance and administrative costs.

As with any company, income is needed to operate the corporation. Since these fees are the main source of income for the corporation, the Association cannot run effectively without them. Most communities provide either coupon booklets or monthly statements to facilitate payment. However, it’s a convenience and not a requirement for payment. It is the owner’s responsibility to know when the payment is due and for what amount. If you are unsure of the specifics, you should contact your Association immediately.

If these fees are not paid by the date set by the Master Deed and the Board of Directors, typically a late fee and/or interest is added. Furthermore, the Association also has the right to turn the account over to a collection company, if the account remains unpaid. The collection company may file a lien on the Association’s behalf, as well as proceed with foreclosure on the lien with the Board’s approval. If any or all of these occur, all fees associated with the collection of the unpaid amount are billed back to the homeowner’s account.

As you can see, it’s in the best interest of both the homeowner and the Association to pay the fees in a timely manner. It can save time, energy, and money for both parties.

Angela Warner
Controller
In Rhodes Management, Inc.