Collecting money is just plain vital to any business. Most of the property management firms have developed a report which details the billings and collections from tenants. It is imperative you understand that this form of report offers a life-line to a most important aspect of your operations.
Let’s face it, people can choose to be chronic late payers. Business revolves around the notion that
“Cash is King”. Let’s remember, if it’s not in the bank, it can’t be used to pay your bills. It’s hard to believe that our neighbors don’t think they need to pay it all, or get it to us timely unless we follow up on collection.
So, it’s important that a monitoring function takes a look at this report to see that all who should have been billed have been billed and who hasn’t paid.
Managing arrearages can be fraught with difficulties, as the tools available to the Board, including assessing late fees and interest charges or placing a lien on the property, can seem harsh. However, every board member must remember that each owner deserves to be treated equitably, including not being charged for another owner’s unpaid maintenance charges.
Don’t be the one asked by your property manager, What, you didn’t look at the reports we provided?
If you as a Board is not watching, who will be? So take the time to really understand what’s going on with arrearages as they provide a vast amount of information when appropriately evaluated. This will ensure timely collect and maximization of cash flow. Remember, each dollar missed needs to be collected in the form of monthly carrying charges.