Collecting Unpaid HOA Fees: 7 Respectful Steps

The best way to collect unpaid HOA fees or building charges is a step-by-step path announced in advance: a friendly reminder, an accurate statement, a conversation and payment plan, an approved late fee, a targeted text message, a formal written warning and, only at the very end, legal action. The clearer the steps and the more equally they apply to everyone, the less often collection turns into a fight.

Unpaid building charges may be the most common headache for building managers. One or two units in arrears are enough to leave the fund short for utility bills and the caretaker’s wages, and residents who pay on time start to feel they are covering for others. On the other hand, treating harshly a neighbor who may simply have forgotten, or who is in temporary financial trouble, damages relationships. This article is a practical plan for following up on residents who owe charges, from prevention to the final step, in a respectful and well-documented way.

Why Do Residents Fall Behind on Building Charges?

Before chasing a debt, understand its cause, because each cause has a different fix:

• Forgetting: the due date is unclear or nobody sends a reminder.
• Payment friction: the manager’s bank card number got lost in a messaging group, or a payment receipt never reached anyone.
• Disputing the amount: the resident does not know how their charge was calculated and will not pay until it is explained.
• Genuine financial difficulty: job loss, illness or a sudden expense.
• Deliberate neglect: a small group who know there is no serious follow-up.

Most residents in arrears fall into the first three groups. If you treat everyone like the last group, you alienate the well-meaning majority.

Prevention: Stop Arrears Before They Start

The cheapest collection is a debt that never arises. Three preventive steps have the greatest effect:

1. A fixed, announced due date: for example, “by the 5th of each month.” Have the owners’ meeting approve it so everyone knows.
2. A clear statement: each unit should see which items make up its amount. Disagreement over the amount hides behind many unpaid charges.
3. Easy payment: the shorter the gap between seeing the statement and paying, the less delay. For online payment options, see paying building charges online.

A Step-by-Step Plan for Collecting Unpaid HOA Fees

The table below is a suggested model. Your building’s owners’ meeting sets the gap between steps; what matters is that it is announced in advance.

Step 1: A friendly reminder

A short, impersonal message to all units a few days before the due date, and a second reminder to units that have not yet paid. Nobody is named at this stage and the tone is completely neutral. Many people pay right here.

Step 2: A statement and itemized balance

If the debt rolls into the next month, send a complete statement: each month’s charge, amounts paid, the balance and the dates. This document does two jobs: it clears up any confusion for the resident, and if things move to later steps, it is your first formal record.

Step 3: Conversation and a payment plan

Before any formal action, have a calm conversation. If the problem is genuine financial hardship, splitting the debt into a few fixed installments is usually more productive than a long dispute. Put the agreement in writing: the amount of each installment, the dates, and the fact that current monthly charges must still be paid separately.

Step 4: Late fees

A late fee is legitimate and defensible only if the owners’ meeting approved it in advance and announced its rate and start date. A fee that the manager suddenly applies to one unit only fuels conflict. Alongside the fee, some buildings offer an incentive for early payment, so the message of discipline comes with a reward.

Step 5: Targeted text messages to residents in arrears

At this stage the message goes directly to the unit in arrears: the outstanding amount, the number of months overdue and the payment deadline. This message is private; never publish a list of debtors in the building’s group chat or on the lobby noticeboard. Public shaming may work in the short term, but it destroys trust and calm in the building and may even create legal trouble for the manager.

Step 6: A formal written warning

The written warning marks the move from friendly follow-up to formal follow-up. A good warning includes the unit and owner details, the itemized balance, the history of earlier reminders, a final deadline, and the action that will follow. Prepare it in two copies and get a signed receipt, or otherwise document how it was delivered.

Step 7: Legal action

Building law in many places gives associations a way to enforce unpaid charges. In Iran, for example, the Apartment Ownership Law and its regulations provide for this, and a building manager can, following the legal formalities, turn to the official authorities for collection. The details and conditions of that route can change and depend on each case and on local law, so consult a lawyer before taking any step. For an overview of the manager’s and board’s duties under Iranian law, read the Apartment Ownership Law and board duties. The more completely steps one to six are documented, the simpler this step becomes.

Does the Owner or the Tenant Owe the Charge?

In rented units, the lease usually makes the tenant responsible for paying the charge, but towards the building, final responsibility for the share of common costs is often treated as the owner’s. That is why it is best to send the statement to the owner as well from step two onward. If the tenant moves out with the debt unpaid, the owner knows about it early and may be able to recover it from the tenant’s deposit.

A Building Manager’s Checklist for Following Up on Arrears

• Have the due date, late-fee rate and follow-up steps approved at the meeting and sent to everyone.
• Apply one rule to every unit, including board members.
• Record every payment, even bank card transfers, with a receipt, so “but I already paid” never comes up.
• Keep the list of residents in arrears private and share it only with the board.
• Put payment plans in writing and track each installment’s due date.
• In the annual report to the meeting, present the collection status without naming individuals.

Software for Tracking Unpaid Building Charges: Hamkhoneh

Done by hand, most of the steps above are exhausting. In Hamkhoneh, P-Soft’s building management software for residential buildings in Iran (its interface is in Persian), the residents’ list has ready-made “in arrears” and “paid up” filters, each unit’s statement is print-ready and can be saved as a PDF, and a card-transfer receipt is recorded once the manager approves it; all of this is available from the Start plan. The Pro plan adds tools for the middle steps:

• Due-date reminders and late fees according to the building’s settings
• Targeted text messages to residents in arrears, owners or tenants
• Violation records and a printed formal warning for the written-warning step
• Online payment from the resident portal and app, with the money going directly to the building’s own account
• A management dashboard with collection trends

Violation records and written warnings are also useful for non-financial issues, which we cover in maintenance requests and rule violations.

Frequently Asked Questions

What should we do about a neighbor who will not pay building charges?

Start with a friendly reminder, send an accurate statement and talk. If that does not work, apply the approved late fee, a targeted text message and a written warning in that order, and keep legal action for last.

Can a building charge a late fee?

Generally yes, provided the owners’ meeting approved it in advance and its rate and start date were announced to everyone; check that local law and your bylaws allow it.

Is it right to name residents in arrears in the building group?

No. Debt follow-up should be private. Publishing names damages relationships and may have legal consequences.

Who owes the charge for a rented unit?

Usually the tenant pays under the lease, but the owner is treated as responsible towards the building, so keep them informed of the debt as well.

How does software help collect building charges?

With automatic reminders, clear statements, a live list of residents in arrears and targeted text messages, it takes the repetitive part of follow-up off the manager and documents every step.

If your building’s fund is struggling with overdue charges, explore Hamkhoneh building management software and request a demo to see the arrears follow-up path on your own building’s data.

Further reading

• What Is Building Management Software and What Can It Do?
• How to Choose the Best Building Management Software: A Buyer’s Guide (2026)
• Best Way to Manage Building Service Charges for Residential Complexes

Complete guide: building management software