Delinquent HOA Dues: Collection Policy and First Reminder Letter

Late HOA dues are mostly a process problem. A written policy, applied the same way to every owner, resolves most delinquencies before anyone needs a lawyer. This guide gives the policy steps and a first reminder letter. State law varies a lot on late fees, notices, payment order and liens; use this as a structure and have the association's attorney review the final policy. This is not legal advice.

A collection policy in six steps

Adopt the policy by board resolution, publish it to owners, and apply it consistently. The usual sequence:

1. Before the due date. An invoice that shows the amount, what it covers and the due date, and a reminder a few days ahead.
2. Due date passes. The assessment is past due. The system or the manager notes it on the delinquency list.
3. First reminder (days 1-15). Friendly letter or message, below.
4. Second notice (days 30-45). Firmer, itemized, with the late fee or interest your documents allow, and an offer of a payment plan.
5. Final written notice (days 60+). Itemized account, what happens next, the cure period, and who to contact. In Florida condominiums and California, for example, this notice has a prescribed form and must go by mail (certified mail in California). Texas requires certified mail before collection-agent fees. Have counsel prepare it.
6. Referral. Hand the file to the association's attorney or collection agent, per the board's vote.

The day ranges above are a typical shape, not a rule: set your own in the policy and check them against your state.

First reminder letter template

[ASSOCIATION NAME]
[Date]

[Owner name]
[Unit / lot address]
Account no.: [____]

Subject: Reminder: assessment due [date]

Dear [Owner name],

Our records show that your [monthly / quarterly] assessment of $[____]
due on [date] has not been received. The current balance is $[____]
(assessment $[____]; other charges $[____]).

You can pay by [online portal link / ACH / check payable to ____ mailed
to ____]. If you have already paid, thank you; please disregard this
note and let us know the date and method so we can update the record.

If you are having difficulty paying, please contact [name] at [phone /
email] by [date]. The board can discuss a payment plan.

Sincerely,
[Name, title]
[Association / management company]

Keep the tone neutral. Do not threaten liens, foreclosure or credit reporting in the first reminder: those consequences are governed by state law, require specific notices, and belong in a counsel-reviewed final notice.

Payment plan outline

PAYMENT PLAN AGREEMENT
Owner: ______  Unit: ______  Date: ______

Total balance owed as of [date]: $______
Itemized: assessments $____  late fees $____  interest $____  other $____
Down payment due [date]: $______
Installments: $______ on the [day] of each month, [n] months,
              ending [date]
Current assessments continue to be due as they come due.
If an installment is missed: [grace period, notice, consequence per policy]
Owner signature: ______   Association signature: ______

Minimums exist in some places. For example, a Texas property owners' association of more than 14 lots must adopt guidelines for a payment plan with a minimum term of three months, and Arizona requires the board to try to reach the owner and offer a reasonable plan before filing a foreclosure action.

What differs by state: four examples

These are summaries of the statutes, as published, for four states. They show why one national template does not exist. Florida HOAs are governed by chapter 720, which has its own rules — check it.

• Florida condominiums (Fla. Stat. §§ 718.116(3), 718.121(5))

  • Late charge and interest: Interest at the declaration rate (18% a year if silent); late fee up to the greater of $25 or 5% of the installment, if documents allow.
  • Payment order: Interest, late fee, collection costs, then the assessment.
  • Before escalation: Written notice of late assessment with 30 days to pay before attorney fees can be required.

• California (Cal. Civ. Code §§ 5650, 5655, 5660)

  • Late charge and interest: Late charge up to the greater of 10% or $10; interest up to 12% a year from 30 days after the due date.
  • Payment order: Assessments first, in full.
  • Before escalation: 30 days' certified-mail notice before recording a lien, in a prescribed form.

• Texas property owners' associations (Tex. Prop. Code §§ 209.0062–209.0064)

  • Late charge and interest: This guide doesn't summarize it; check ch. 209.
  • Payment order: Delinquent assessment first, then current assessment, attorney fees, fines and other amounts.
  • Before escalation: Certified-mail notice with at least 45 days to cure before collection-agent fees.

• Arizona (condominiums and planned communities) (A.R.S. §§ 33-1256, 33-1807)

  • Late charge and interest: This guide doesn't summarize it; check the statute.
  • Payment order: This guide doesn't summarize it; check the statute.
  • Before escalation: Foreclosure only after 18 months or $10,000 delinquent, whichever comes first (for special assessments of $10,000 or more, only the 18-month test), with reasonable efforts to reach the owner and a payment plan offered first. Fines are not part of the assessment lien.

Do not copy any of these into a policy without checking the current text and your governing documents.

How to do it in Unitify

Unitify's billing module, Easybilly, covers the routine part of the process and keeps the record:

• Assessment rules per building. Set the charge once (flat per unit, percentage share, or one-off), and invoices are generated automatically each period.
• Pay in the app. Invoices go to the resident app. In the United States residents pay by card or ACH bank debit through Stripe. ACH can take up to four business days to settle and is not guaranteed, so a payment is followed through submission, settlement and return rather than marked paid on click.
• Reminders and a view of who is behind. Automatic reminders go out, and the manager sees every building's overdue balances in one place. At Ande Tower in Batumi, Georgia (the country), collection went from 40 percent to 80 percent in six months.
• Import. Units, owners and opening balances import from Excel or your old system.

What it is not: Easybilly is not an accounting ledger and does not replace your accountant; it bills assessments and tracks payments, and you export to your accountant. It does not apply a state-specific payment-allocation order automatically; confirm allocation with your accountant or attorney. It does not decide your state's late-fee, notice or lien rules, so the final notices and legal steps stay with the board and the association's attorney.

Book a demo or see the United States page.