past due small.jpgWith the real estate market crash, condominium, cooperative, and homeowner associations have been facing increasing delinquencies. In some cases, owners who quit paying their mortgage usually stop paying their association dues. Some owners even rent out their homes or condominiums and collect rent, but still fail to pay their dues.

In 2010, the Florida legislature gave condominium, cooperative, and homeowner associations a new tool to use to collect delinquent dues directly from tenants. Effective July 1, 2010, the association can demand payment directly from the tenant, up to the full amount owed to an association for delinquent assessments, interest, costs, and attorneys’ fees. The association can also evict the tenant if they continue to pay the landlord instead of the association, once the tenant receives the demand from the association. Click here to download sample demand letter.

The law protects the tenant by preventing the landlord from evicting a tenant who complies with a demand by the association to make rent payments to them. So there is nothing for the tenant to lose by paying rent to the association, and the threat of being evicted by the association if they don’t. If you serve on the Board of an association and have not been using this tool, ask your property manager or attorney who handles your collections for more information. It may help in decreasing the delinquencies owed.