Collecting homeowners association payments is a very time-consuming process. Each month, the HOA has to issue invoices, collect fees, process checks, and then deposit them to the bank. If you want more efficient operations, here’s how HOA online payments can help your association.
7 Great Benefits of HOA Online Payments
HOA fees are the financial lifeline of any association. It pays for maintenance and repairs, utilities, vendor services, management fees, salaries, insurance premiums, reserve contributions, and contingency funds. HOA fees ensure that your community runs smoothly and seamlessly.
Collecting HOA fees is harder than it looks, though — especially if your primary modes of payment are cash and checks. Homeowners don’t always pay on time and for those that do, you have to spend time processing their payments and depositing them to the bank. All that time you spend on collecting fees each month could be better spent on more important HOA matters.
It’s time for your community to embrace online HOA payments and here are seven reasons why.
1. More Convenient for Homeowners
Almost everyone is busy with their day-to-day lives. Most homeowners simply do not have the time to visit the management office or the bank to pay their HOA dues. Having an online payment system will make it easier for homeowners to settle their outstanding balances. They can pay HOA dues online from the comforts of their own home and at any time of the day or night.
2. Lower Delinquency Rates
As more homeowners pay HOA fees online, associations can see a significant decrease in their delinquency rates. You can save a lot of valuable time because there are fewer late HOA payments to follow up on. The HOA can also reduce attorney fees and other legal expenses that arise from having to deal with delinquency cases.
3. Reduce Operating Expenses
Are you under the impression that having online HOA payments leads to more expenses for the association? It can actually help you save more money!
The average cost of processing a single check is $1.22. By switching to online payments, HOAs can save on labor costs, office supplies, postage fees, fuel costs, and other expenses that come with manual payment processing.
4. Reduce HOA’s Carbon Footprint
HOA online payments can help associations become more eco-friendly. Since the payment process is done digitally, you use less paper and ink. There’s also no need to keep driving to the bank just to deposit checks. All checks are also destroyed after 90 days, which only contributes to landfill waste. As such, online payments can help the HOA reduce its carbon footprint and do its part in saving the environment.
5. More Efficient HOA Operations
HOA online payments help eliminate a lot of time-consuming administrative tasks such as manually collecting payments, sorting through the mail, recording each payment details in your books, and driving to the bank to deposit checks. Instead, board members and managers can devote their time to other tasks that are essential to HOA operations.
6. Easy and Accurate Payment Tracking
Having an online system will make it easier to see whenever homeowners pay HOA fees. You’ll be able to keep track of all financial transactions, as well as monitor the amount coming in and out of your bank accounts. If your website is integrated with HOA software, you may also be able to create financial reports for these monthly online payments.
7. Attract More Homebuyers
In this digital age, an online payment system is expected. If potential homebuyers see that you are still using cash and checks, it will create an impression that your community is outdated and unable to keep up with the times.
Today’s consumers place a lot of importance on modern conveniences when choosing a home to purchase. Thus, an online payment system helps convey that your HOA is up-to-date and properly managed.
How to Choose an Online Payment System for Your HOA
If you’re ready to give your homeowners a way to pay HOA online, it’s time to choose an online payment system for your HOA. There are plenty of available options out there so it’s important a provider that meets your specific needs and budget. For starters, here are some important things to consider.
- Transaction Fees: Make sure that your online payment system does not have any hidden charges. Some payment systems may have monthly charges while others will charge a nominal fee per transaction.
- HOA Software Integration: Choose an online payment system that is compatible with your HOA software. This ensures that you’re able to seamlessly transfer payment data or details from the system to your software. Thus, less work and potential headaches for you.
- Homeowner Accounts: For even more convenience, you can set up password-protected accounts that allow homeowners to pay online, view their payment history, and save payment details. You can even include other features such as easy access to governing documents for better compliance to homeowner association rules — which includes HOA fees and assessments.
- Multiple Accounts: HOA management companies should choose an online payments system that is able to handle multiple accounts. You can set up payment channels for each HOA that you are managing and have the payments go to the correct bank accounts.
Getting Started on HOA Online Payments
Most associations understand the importance and convenience of HOA online payments but have yet to make the transition due to concerns about costs or available options. By now, though, you’re more familiar with online payments and how they can help your HOA. Since there are many available options, take the time to analyze each payment system to find the most suited for your community.
Looking to get started with HOA online payments? Do not hesitate to reach out to the Condo Manager team today! Our HOA software comes with digital payment integration for easy and hassle-free online payments. Call us at (800) 626-1267 or email us at email@example.com for a free demo.
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