Board Tips: Why Every Association Needs a Strong Collection Policy

By Paralegal Meghan Cozens

Having a clear and enforceable collection policy is essential for any association. It promotes

consistency, fairness, and transparency when handling delinquent accounts, while also protecting

the association’s financial health.

From a board perspective, a formal collection policy provides critical guidance and structure. It

helps board members:

• Apply rules uniformly, avoiding claims of selective enforcement

• Reduce personal liability by following an established process

• Make decisions more efficiently

• Maintain stronger cash flow for the community’s ongoing operations

• Demonstrate professionalism and accountability to homeowners

Without a properly adopted and signed policy, collections can become inconsistent, harder to

enforce, and may expose the association to unnecessary legal and financial risk.

📌 Don’t forget: Once adopted, a copy of the collection policy must be provided to all owners of

record to ensure proper notice and enforceability.

If your association does not have a formal, signed collection policy in place, contact us today to

discuss how we can help.

Email us at mlc@eques.law or call our office at (330) 473-1168.