Laqfiz

Residents association dues and how to keep them uncontested

An association collects money from people who did not individually agree to pay it. That makes the accounting more important than in almost any other kind of fund.

Short answer. Association dues need a published rate, a published list of who has paid, published accounts of what was spent, and a written escalation for non-payment. Where any of the four is missing, the annual meeting becomes about money instead of about the neighbourhood.

The four publications

  1. The rate. How much, per what, from when, decided by what vote.
  2. Who has paid. By unit or household, updated as payments arrive.
  3. The accounts. Income, expenses with bills, and the balance.
  4. The escalation. What happens after one, three and six months of non-payment.

A workable escalation

StageAction
Due date passesThe list shows it. Nothing else.
One monthA private reminder to the household.
Three monthsA written notice with the outstanding total and the record attached.
Six monthsRaised at the committee, recorded in the minutes, and whatever the association's written rules allow.

Written down and applied to everybody in the same order, this is a process. Applied ad hoc, it is a grievance.

The annual meeting

Associations whose accounts are published monthly have short annual meetings about the neighbourhood. Associations whose accounts appear once a year have long annual meetings about the accounts.

Common questions

What if a household refuses to pay?

Follow the written escalation, in order, and record each step. Improvised escalation is what turns a payment issue into a neighbourhood dispute.

Should the accounts be public to non-members?

To every household the association collects from, yes. To the wider public, no reason to.

Laqfiz is free, and runs in your browser Start a community, invite the people in it, and every payment leaves a receipt everyone can see. No card, no download unless you want one.

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