Dealing with Bad Debt in Community Associations
Occasionally, homeowners can’t or simply don’t pay. When that happens, you do have options, but even with a lien, there is likely to be some amount owed that you aren’t able to recover. Leaving bad debt on your books for too long skews your financial statements and can lead to unreasonable expectations of a community’s financial position. Bad debt is any amount that is uncollectible. If you’re sure you won’t be able to collect from a delinquent homeowner, you should write off the bad debt. Read the article…………..