Unpaid Condo Fees Create Crusty Neighbors

Whoa! Who would have guessed it would come to this. Condo owners are neglecting their maintenance fees. Along with dissension between neighbors, it is creating more serious problems. The numbers who do not pay are definitely on the rise, and it is making a big impact on homeowners associations (HOAs).

Southern Floridian condo associations are attempting clever and creative methods to encourage condo owners to pay for required fees. A few of their methods include towing cars, closing swimming pools and posting a list of names on bulletin boards of individuals who do not pay their fees.

According to state officials, some situations have become all out dangerous.

What some people may not realize is that condo fees are typically designed to pay for utilities and other services shared by everyone in the complex. If condo owners do not pay their fees, the condo’s HOA cannot pay for the common utilities and services.

In some cases, water and electricity are turned off on the entire complex, trash is not being collected and the landscaping is neglected. Neighbors who do pay their fees suffer alongside those neighbors who do not. It has created animosity between residents.

Mirassou Condos, a 310-unit complex located in Hialeah, FL, had their water shut off to the whole building when their check bounced and they failed to pay their $109,000 past due balance. About 30% of the units are either in foreclosure or are now bank owned. That’s a whole lotta condos, around 103 to be exact!

After the water was shut off, someone illegally meddled with the meter to turn it back on. The condo’s water service was eventually legally restored when a payment plan was agreed upon between the association and the county. Regardless of the how many do not pay their monthly fees, the association still has to cover them.

Another good example of what condominium HOAs are doing in regards to non-paying residents is Island Shores in North Miami Beach. One board member called a towing service to haul away cars of residents who weren’t paying their fees when he found their cars parked in unauthorized spaces. His life was threatened by one resident whose car was towed.

Hialeah’s Lancaster condominiums have 44 of their 96 units in foreclosure. The president of the association closed the pool and told residents that it was because he wanted to save money. He later confessed the real reason – he did not want non-paying residents to enjoy the benefits.

It is an embarrassment for residents who do not pay. One stated that he had not paid his maintenance fees for over a year. He admitted that he tries to avoid neighbors and is given the cold shoulder when he does run into them. Guilt often compelled him to try to explain his situation, because he wanted them to know that he would pay if he could.

I would think that the problem with non-paying homeowners members would extend to single-family HOA members, as well. It would be curious to know if there are single-family residents are out there not paying HOA dues, and what effects this is having on the other members’ lives.

Please give a shout out to us here at Roost and let us know what you know about that!

  • If people are not able to pay their maintenance fees, then the condominium owners will suffer. It would be really unfair for HOAs to have tenants who cannot pay the fees, because of financial problems. There must be something they could do to address this problem, before it gets worse.
  • Unfortunately, there is a huge problem with this right now, especially in Florida. Due to the investor ratio, many are choosing to let their units go, and in complexes that is dominated by investor purchases, the actual people that chose to buy as their primaries are the one's suffering. It's a shame.
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