DanielG2 (Nevada)
Posts: 2
Posts: 2
Posted:
Hey, does anybody know why many HOAs do not allow monthly payments, only qrtly? Espeicially timeshare related HOAs?
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Monthly Payments
Started by DanielG2 • 5 replies • 1245 views
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DonnaS (Tennessee)
Posts: 5,671
Posts: 5,671
Posted:
Daniel,
Every association does it different. I have 4 associations, 2 do it monthly and 2 do it quarterly. I don't think that you will find a "study" on this so is there something specific that you are looking to find out?
GeraldT4
Posts: 1,022
Posts: 1,022
Posted:
DanielG2 - My HOA & COA's maintenance is due monthly. An advantage to paying quarterly is that the earned interest is retained by the owner since debits are made less frequently.
DanielG2 (Nevada)
Posts: 2
Posts: 2
Posted:
Thanks for the prompt reply. I was just wondering what barriers there were for an association wanting to go to monthly installments from say each quarter or yearly. My main concern is with timeshare associations as most only allow once a year payments for their maintenance fees - I have several clients that fall in the later catagory. Is it a cost and manpower question when accepting monthly installments?
GeraldT4
Posts: 1,022
Posts: 1,022
Posted:
DanielG2 - Cost and manpower may be factors in the less frequent monthly payments. Personally, I'd rather pay less frequently and make interest on my savings.
PaulM (Pennsylvania)
Posts: 1,347
Posts: 1,347
Posted:
I agree that it would be more beneficial to the resident to pay fees less often and therefore gain whatever interest you can while the funds remain in your account.
However, we know that same as anyone else paying bills, the Assn. can better manage with a regular monthly cash flow rather than being late on payments due to lack of funds, and then having to pay a late charge. Not a good use of good money management if a community is caught short. There are others who might say, its better money management if a community can predict income and payments quarterly rather than monthly, but it takes some time for that to occur.
However, we know that same as anyone else paying bills, the Assn. can better manage with a regular monthly cash flow rather than being late on payments due to lack of funds, and then having to pay a late charge. Not a good use of good money management if a community is caught short. There are others who might say, its better money management if a community can predict income and payments quarterly rather than monthly, but it takes some time for that to occur.
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