I know it’s hard to believe, but in 2017 there’s an 88 billion dollar industry that still processes millions of payments by check. Less than 50% of the corporations in this industry even offer online payments. It’s not some obscure industry that nobody has ever heard of, it’s your homeowner’s association. A recent survey by Billing Tree found that while all HOAs accept checks, only about half accept online dues payment via credit cards or automatic recurring payment. One friend recently told me, “The only reason I have a checkbook is to pay my HOA dues.”
Statistics like this beg the question, why in an industry that affects over 26 million homes, are so many HOAs neglecting to offer online payments to their members? There could be many reasons, it could be the cost, lack of suitable options, or maybe they just don’t know where to start. For this article, we are going to focus on the benefits of online dues payments.
It’s Not Just “Nice to Have”, It’s Expected
Consumers are going online to shop, bank, and pay their bills. The “check” is already a thing of the past and residents are demanding more options when it comes to paying their HOA assessments. Not only do they want to pay online, they want to be able to access their payment history without having to contact the manager.
While some homeowners won’t ever go to your website or make an online payment, many owners are judging the HOA board and management company based on their ability to provide modern conveniences like online payments. To them, it’s a sign of an outdated and neglected management system.
Decrease Delinquency
This may seem obvious, but as HOAs make paying easier, delinquency will decrease. This is particularly true with online recurring payments. When a homeowner is deciding what bill must be paid first you can bet that the one that requires them to write a check and drop it in the mail is the last one to go out.
You’re Time is Valuable, Don’t Spend it Processing Checks
The HOA treasurer or manager is often tasked with collecting the HOA assessments. This process includes accepting the payment, recording it in the books, and depositing the payment at the bank. Online payments allow much of this process to be automated. No more sorting through mail, transcribing payment information into the accounting software or running to the bank to make a deposit.
This need for quality online payments has even prompted us at Gladly to launch our own payment tool. Sure, online payments may not solve all of your account receivables problems, but it will save time, reduce delinquency, and make paying dues easier for homeowners.
- Liar, Liar, Pants on Fire! Handling Misinformation in Your HOA - March 13, 2019
- Setting the Ground Rules for Neighbor Disputes - June 27, 2018
- HOA Board Responsibilities – It’s Not as Difficult as You’re Making It. - April 23, 2018
Help
Great article to such a current issue. It is hard to believe these statistics and even more difficult to see why the reason associations wouldn’t provide electronic payment alternatives. Congrats on the new payment service!
Thanks Tina!
The only thing I would add is that any association looking to make payments online a reality should also check into requirements for cyber liability insurance. Requirements for notification of a breach vary state by state and contract by contract – so check with your attorney and your insurance agent.
Lauri, Great point! You are absolutely right making sure that the platform is secure is important. Many HOA of are not offering online recurring payments do it manually in office, this means they collect your account info and hold it in office. By using systems like GladlyPay the information is processed through Stripe so that information is protected by a large company with the resources to keep it safe.
It is indeed shocking how many Associations and even Management Companies do not offer this service! I worked in banking and the payments industry for many years while my wife was in the HOA Management field. I saw it through her eyes and now see it as the co-owner of a Management Company (IAMHOA.com). What is stranger however is how many homeowners don’t want to pay online, or even send a payment to a lockbox out of state. It is much dangerous to take card information and input it in an office. Too much liability for sure! I’m glad to say our clients can go to our website, click on a couple things and pay via a secure method established by our bank. Honestly though the best method is to set up recurring payments via their online banking our as in our case, through our website, bypassing card processing fees.