Write the payment plan before the lien
A board that offers a plan first collects more and argues less. Here is what the plan should say.
When an account runs late, the quickest letter to write is a demand. The kinder letter, and often the more effective one, is the plan. It tells the owner what is owed, how it can be paid and what happens if it is not, in one page both sides sign.
What the plan says
- The balance owed, broken into assessments, late charges and any fees
- The payment schedule, with dates and amounts
- How each payment is applied, in the order your policy sets
- What a missed payment does: a short grace period, then the plan ends
- Signatures from the owner and an officer, with the board's approval noted in the minutes
Why a written policy comes first
Boards run into trouble when one owner gets a plan and the next gets a lien. A short collection policy, adopted at an open meeting, makes the first step the same for everyone and gives the board a reason to cite when it is asked why.
Apply the steps in the same order to every account, and the minutes will explain your decisions.
When a lien is the honest next step
A plan can fail. When it does, the policy should already say what comes next, and the board should vote before a lien notice goes out or a case is filed. Your documents and state law set the notice the owner must receive and the time they have; we confirm both before anything is recorded.
If your board does not have a policy yet, that is the place to start, and it is a short job.