The Advantages of Reminding Homeowners of the Opportunity to Sign-up for Direct Debit Payment of Common Charges
What are the advantages to having homeowners enrolled in direct debit payment of their common charges?
1. Your association will receive the common fees for participating homeowners earlier (on the 5th of the month). This provides your community with a better cash flow early in the month. Homeowners who make their payment with a check typically send their payment on or near the date that late fees are imposed.
2. Since your community will enjoy a better cash flow it will allow you to make prompt payment of vendor bills, which helps eliminate the possibility of late payment penalties, and improves vendor relationships.
3. Controlling accounts receivable is always a concern. When homeowners are on direct debit they are not delinquent. As the number of homeowners on direct debit increases, the association's collection costs decrease. If a homeowner is signed up for direct debit they will not forget to send in their check, and their payment will most likely not be insufficient.
4. The cost of Coupon Booklet printing will decrease with direct debit. Imagineers software recognizes when a homeowner is using direct debit, and therefore does not include them in the coupon printing process. Because you are charged based on the number of coupon books printed, this reduces your printing cost.
5. Direct Debit is a completely free service to the association and to the homeowners in your community.
What are the advantages to homeowners to be enrolled in direct debit of their common charges?
1. It is a safe way for homeowners to pay their common fees. According to the National Check Fraud Center, check fraud and counterfeiting is among the fastest growing problems affecting the nation's financial system.
2. When fees change or special assessments are imposed, the direct debit amount is automatically changed.
3. Homeowners save the cost of postage to mail their payments.
4. It is simple and easy to sign up for the service. The form to do so is on your association's website, as well as the most commonly asked questions about Direct Debit.
5. Direct Debit of common fees is a win win. Please consider including reminders about this safe, cost effective, time saving service in your mailings to your homeowners.
How can our board encourage homeowners to consider enrolling in direct debit of common fees?
During the course of normal communication with homeowners (newsletters, handouts at annual unit owner meetings, updates, etc.) you may want to include language to remind homeowners of the direct debit payment option. We have included draft language that you may want to consider using as follows:
"Imagineers in conjunction with your association offers you the option of direct debit of your common fees. This service is free to both you and your association. Once you sign up for the service you will not have to be concerned about timely payment of common fees again. You will save time in that you will not have to initiate payments, or make changes to payments as you do with other service providers, and you will also save money on postage. In order to sign up for this service you will need to fill out a direct debit agreement with your association. This authorizes your association to deduct the fees from your bank account. You can obtain this form via Imagineers website www.imagineersllc.com or by calling Imagineers accounting department."
Thank you for reading the Imagineers Board Newsletter. If you have any question or need any additional information on any articles provided in this newsletter, please contact us at 1-800-560-7268.
Imagineers LLCEmail: Gpassacantando@imagineersllc.com
Phone: 1-800-560-7268
Fax: 860-236-3951
Web: http://www.imagineersllc.com
