GNO Property Management is a property management company based in Louisiana, USA. To collect late and delinquent accounts, GNO used to do a more traditional approach that includes sending demand letters, following-up with a lien, and getting a judgement in court to collect delinquent payments from clients. They also tried offering discounts to those who will pay their assessments in full to incentivize homeowners to consistently pay on-time. However, this process is time-consuming, expensive, and often yields minor victories, leaving GNO with uncertainty about the recovery of payments.
GNO faced several challenges with their conventional collection process:
- Ineffective – Their conventional collection process helped them get “minor victories” by recovering the small unpaid balances of $1,500 to $2,000 here and there. But it’s not full proof. They also realized that offering incentives like discounts to full payers led to budget shortfall and is also not effective.
- Time-consuming – The conventional process is time-consuming and requires time and effort, leaving GNO with fewer resources to focus on other areas of property management.
- Inefficient and Expensive – GNO had to chase all clients who owed them money, leading to higher legal fees and inefficiencies in their collection process.
“We are following the same kind of archaic ritual for collection that everybody was (doing). We would send demand letters, we would follow-up with a lien, get a judgement, and then it’s just a function of if they’re going to pay or are we going to continue to pursue them. It was a long and expensive process that just had a success rate of forty percent.” – Robert Philips, President, GNO Property Management
GNO partnered with Sperlonga to report HOA assessment payments to the credit bureaus. This partnership helped GNO make homeowners accountable, effectively incentivizing timely payments, and discouraging delinquencies.
Results
Through the partnership with Sperlonga, GNO was able to recover $288,000 in associations that are credit reporting. Their total number of delinquent accounts has been reduced by 68%, leading to a streamlined and more efficient collection process. Instead of chasing all those who owed them money through the more expensive and time-consuming strategies, Sperlonga’s Assessment Payment Reporting made their approach more proactive. It increased accountability among homeowners – knowing that their payments are reported and could impact their scores, they’re likely to pay their assessments on time and not wait for their account to become delinquent.
GNO was also able to collect large ageing accounts. Robert Philips, GNO’s President, mentioned that Sperlonga’s services have been a game-changer for GNO, as they were able to collect a $25,000 delinquency that they had been chasing for six years. The client, who had been eluding GNO for years, decided to open a business and had to pay off all his debts to get a loan. He sent a check and paid off his delinquent payment.
“Through Sperlonga’s Assessment Payment Reporting to the credit bureaus, we were able to collect a $25,000 delinquency that we have been chasing for six years. The guy that was eluding the association for years decided to open a business, and in order to get the business loan, he had to pay off all of his debt. He sent us a check and paid it off.”
Sperlonga’s Assessment Payment Reporting has been a game-changer for GNO, providing positive reinforcement for timely payments and discouraging delinquencies.
If you want to learn more, you may watch the full video interview on Sperlonga’s YouTube Channel.
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