Condo Media - October 2021 - 12

Asked & Answered
Paperless Process
Paying Condo Fees Online
[by Cynthia Whitty]
Can our board require that condo fees be paid
online instead of accepting checks? We want to
move away from handling physical forms of payment.
So many of our day-to-day functions are now online,
from banking and doctor visits to fi nding directions
and the ideal mate. Online payment options help
companies and clients save time and effort. So, with so
many plusses, why not mandate that unit owners pay
their condo fees online?
There is nothing that legally prohibits mandating
online payment of monthly fees, says Doug Thayer,
president and owner of Thayer & Associates, Inc. of
Cambridge, MA, a mid-size company that provides
property management services for nearly 70 properties,
or 7,000 units. Thayer believes, however,
it's important to offer as many options as possible.
OPTIONS ARE IMPORTANT
Thayer recommends offering all options. He even
has a handful of people who walk in with cash every
month. " Though associations can rule that all payments
go online, I recommend against it. Service is
utmost. This is a service industry; don't reduce the
level of service you provide to unit owners. "
Thayer adds that out of all his clients, he is not
aware of any who are mandating online payments.
" In my world, this is not a request I'm receiving.
My prospective clients, too, are interested in options. "
His top recommendations for paying condo fees,
where there are typically no costs to do so, are:
● by ACH (Automated Clearing House) Debit,
● online bill pay,
● or check.
He notes unit owners have a number of ways to
pay their recurring fees, including " old school " checks,
but that ACH Debit can be a great option. A unit owner
authorizes the condominium association to pull
12 CONDOMEDIA October 2021
funds directly from their bank account each month.
Once ACH is set up, the unit owner can forget about it.
Plus, there are usually no additional costs involved.
Another option that doesn't add additional cost is
online bill pay offered by your bank, where the bank
pays the condo fee each month from your designated
account. As with ACH, once you set it up, you don't
need to worry about missing a payment.
Thayer says property management services companies
may also offer software options for online paying
and account management. Though these services are
convenient for both the company managing the property
and the unit owner, they have a small fee for every
check and credit card used.
Thayer doesn't recommend using a credit card to pay
fees. " Why pay a fee to pay a fee? " he says. " I wouldn't
pick any option that requires a processing fee. "
TIMELY PAYMENT IS PARAMOUNT
A unit owner needs to pay particular attention to paying
their condo fees on time. Thayer points out that
Massachusetts provides a unique form of protection
for condominium associations against delinquent fees
known as the " super-lien process. " According to MA
condo law, outstanding condominium fees are a lien
against the delinquent unit from the date the fees become
due. The delinquent unit owner is personally liable for all
condominium fees, including late charges, fi nes, interest,
and collection costs. " In other words, " he says, " there is no
excuse, except bankruptcy, for not paying your condo fee. "
The bottom line: Association boards should offer
payment methods that work for the association as well
as for unit owners. However, Thayer advises, " boards
should not diminish service to condo owners in any
way. I strongly recommend associations allow all
options available for paying fees. "
Condo Media - October 2021

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