ARCHIVE SEARCH RESULTS

Boards of co-ops and condos should take a proactive approach to managing and recovering unpaid maintenance and common charges, utilizing powerful tools such as recognition agreements, liens, and foreclosure actions, to protect the financial stability of the entire community.

Boards can implement effective prelitigation strategies such as redirecting rent, filing a lien, limiting amenities, and timing, to address monthly payment issues without going to court.

MD Squared Property Group uses a robust monitoring system, prompt communication, and legal action to ensure healthy cash flow in co-ops and condos, while showing flexibility in genuine hardship cases. (Print: Arrears: Control Them With a Strategy)

When a shareholder stops paying maintenance on time — or worse, not at all — boards have to move quickly and decisively to get the money that’s owed them.

Board members can come together on collecting common charge arrears by preventing them where possible, arguing for fiduciary duty, invoking fairness, creating a process and timeline, and creating communication templates. (Print: Cracking Down on Arrears)

Condo boards facing unpaid common charges can expedite eviction using a writ of assistance within the foreclosure action, with specific requirements.

For delinquent shareholder payments, boards can choose between communication and legal action, depending on proprietary lease terms and preferences for resolving the issue.

To combat arrears, regular reports track delinquent payments. Early communication through multiple channels and negotiations aim to prevent legal action while maintaining empathy and professionalism.

The bar for proving the need for foreclosure is high.

Two routes to consider when chasing down arrears.