HOA Dues - Coupon vs. Bills

OK .. here's the deal:

Any reduction in coupon book printing, would be reflected in the overall 'common area' fee, which all homeowners pay in Broadlands. This could result in a whopping reduction of anywhere from 1 to 100 cents per household per year !!

Our management fee is fairly low, and we get good value for our money. Armstrong does alot more than just track HOA fee payments.



Neil Z.
Resident since 1999

 

Yeah, I'm sure they only pay the payment processing place $0.01/year for opening the payments

 

Please note .. I only mentioned the coupon book PRINTING, which is a separate line item in the budget.



Neil Z.
Resident since 1999

 

Steve-
What is the "convenience" you mention people are looking for that they cannot do now? They can mail payments in once a year or up to twelve times a year. They can use EFT if they don't want to mail in anything.
Also, what we choose to do in Broadlands has no bearing on what other HOA's pay Armstrong to do, so I don't necessarily buy into the "economies of scale" argument.

 

Right now, we have residents who forget to pay their monthly fees with the coupons (often for several months or more), having a way to pay online won't help those people.

FWIW ... we have no idea here at the HOA what Armstong Management is thinking of for the future of their company. They may be preparing such an online payment option, we don't know. Until they feel it is reliable and safe, they won't offer it.

I also talked to someone the other day who was afraid of using an online payment because she had her card number stolen. Because of that, she was afraid of using EFT. When I mentioned that EFT was a type of ACH transaction, where it is automatically deducted through Armstong's LockBox/Bank, she then decided that it would be worth considering.


Neil Z.
Resident since 1999

 

WRONG - I just this month found one coupon book and not the other. GRrrrr.... where can I pay what I owe so I do not get penalized seeing as I am now late? If we are able to do it online I could have done it right now. I do not like ETF because of the way I am paid I want control over what gets paid when.

 

Not sure about everyone else, but I do most of my paying of bills online through my bank. I just set up an account for the HOA fees, which included my account #, and I pay it online every month. My bank just sends them a check. I never have had a problem being late (that I know of), & I never forget to pay it. Once a year I look at the coupon book they send, make sure my account # is the same, and look at the new amount, then I file it, never to be seen again.

Just an idea, you don't have to wait for someone else to accept electronic payments before you initialize on your side. Most banks will send a check.

 

The thing is you are assuming we have not asked Armstrong about online bill pay. We have. It is something that they are looking into and hope to be able to offer in the future. However it is not like ordering a pizza you can't just call up and get the service deliverd same day or even next day for that matter. Now that they are going to the new Armstrong connect (which residents should have access too beginning of the year) it should be a matter of time. However that said I do not know if that means months or years in Armstrong's time table. You are right flynnibus we can ask a vendor to impliment a service but we can not make that vendor provide it. If this is something that is improtant enough to the community and is still not being offered by Armstrong then maybe we need to look for another management company when this contract is up. But is the community willing to pay higher fees for this service as other companies charge us more then Armstrong has for the other services it provides. The board has a very fine balencing act we do every year at budget time in making sure we are providing what it is the community wants while still keeping fees in check. If online bill pay is important enough to the majority that they would be willing to pay more for it then it is something the board will have to address before signing a new conrtact. But from everything I am reading people want to not only have this convience but also save money by having it so I am not sure going to a more expensive managment company so residents can pay bills on line is the way to go.

Staci

 

We did and they are still looking at a good way to do it, and one that will be safe on both sides. The main hangup is that they're still looking for a firm that will not cost the HOA money. The reason is, any credit card payment must be setup in the name of the HOA.

Now the next question is, what do you mean by that. Well, let me tell you how I take credit cards:

I pay my credit card handler a $17.95 a month to handle credit cards, then each credit card company (Visa, MasterCard, Discover) has a fee that is a percentage of the amount being paid. Of course, this comes out of the fees to the HOA.

So .. if someone comes in to pay monthly HOA dues of $60 using a Visa, the cost to the HOA would be 60.00 x .0200 = 1.20 . I can write that off as the cost of doing business, but the HOA can't, nor can they add on a 'handling fee' because then you're charging the credit card user more than the normal HOA member.

Armstrong has looked at this, and another HOA site they manage with 6,000 houses figured if 10% of the homes used the online site it would cost them over $8,000 a year in fees that could not be made up without raising the overall common area fee.

On such transfers, you're the one who sets up the transfer when you fill in the EFT paperwork, and you're the one who limits the amount taken every month. The accounts where the money is transferred are verified, and you know exactly when the money will be taken.

I have a mortgage payment on a townhouse in Newport News done this way. I fully expect to see the same amount pulled each month on the 1st of the month.



Neil Z.
Resident since 1999

 

Steve,

I give up ... you don't seem to understand that offering a credit cards will not save the HOA money. Any credit card service would have to setup with the HOA as the owner, not Armstrong, as the money would be deposited directly into the HOA bank accounts. Any CC fees would then be deducted from the HOA bank accounts.

So, money deducted directly from the HOA accounts means money that must be made up somewhere else ... and we cannot add a handling fee to make up the $1.20 each $60 transaction would cost. So, that means we'll have to raise the common area fee to all residents to support a few.

Don't believe me, ask Staci to check with Wes, that's where I got the info, and he got it direct from Armstrong.





Neil Z.
Resident since 1999

 

OH .. and on the EFT transaction ... they are less likely to be abused, as it is less likely that someone could initiate an ACH transaction that has to go from one bank to another. Too much additional data is needed. I verified this with my banker at Bank of America.



Neil Z.
Resident since 1999

 

Steve-
To address several of your points in your last few posts:
1) We have inquired about web payments. With the set-up of Armstrong Connect, we are one step closer.
2) I use and like EFT.
3) If Armstrong paid for a better cleaning service, s****ier office furniture, etc. We WOULD pay for it. Armstrong would raise their management fees to cover their operating expenses. If they charge too much, we can look for a new management company.
4) I'd be willing to bet that if Armstrong manages 50 HOA's, they probably have 45 different plans. They customize their management services based on what the customer wants. Some use them to completely manage HOA's, including all the personnel required to run it. That's how we used to be with Armstrong before we started hiring our own employees.

We need to settle this once and for all.......midnight tonight, Broadlands Blvd, pistols at twenty paces........

 

Settle it in the unopened section of Broadlands Blvd...