What is Auto-Submit, and how can it benefit your Community Association?

Community associations are “zero-dollar businesses.” This means that every dollar budgeted to come in is budgeted as an expenditure. Unless your board of directors has properly set aside an amount in the budget for “doubtful debt,” the association could be in peril.

With Axela’s advanced AI technology and software integrations that can monitor delinquencies in community associations, properties can automatically be put into collections if the balance surpasses a threshold established by the association. 

Auto Submit by Axela Technologies streamlines the collections process by automating the task, reducing the manual effort management requires. The association sets a threshold amount for delinquencies, and if a property hits this amount, the association is notified that said property is being staged to be sent into collections. The association has two opportunities to remove these properties from the collection’s submission queue. Still, if they do not, they will be processed on the first of the month, and collection efforts will commence afterward.  

With Auto Submit, collections occur regularly each month, ensuring that delinquent accounts are promptly addressed. Often, board directors only meet for a few months, allowing owners who have defaulted to ride for another month for free. With Auto-Submit, the board can establish rules for when a unit should begin its collection journey. Not promptly putting a property owner into collections is doing a disservice to the community and the debtor. Once people realize that they can default with impunity, they will continue not to pay. If your community has a complex and set policy, the members will know and act accordingly. Remember, collections do not mean foreclosure but rather a robust engagement to work out issues with delinquent owners. Foreclosure should be the last desperate attempt to collect delinquencies from delinquent owners in community associations. 

By automating the collections process, management staff can focus on other important tasks, improving the association’s overall productivity and efficiency.

Regular collections help to ensure a steady flow of income for the association, minimizing the impact of delinquent accounts on cash flow. Communities must seek a “perfect cash flow situation” every month. Cash shortfalls are expensive as preventative maintenance is improperly attended to, and capital improvement projects never happen.

Consistently enforcing collection procedures can deter late payments, potentially reducing the number of delinquent accounts over time. This is the “Holy Grail” of community association governance. 

Auto Submit can help associations ensure compliance with their governing documents by enforcing collection policies consistently and impartially.

Auto Submit provides a transparent and auditable record of collection activities, which can be beneficial for accountability and reporting purposes. Let’s make collections a “history, not a mystery.”

Consistent and fair enforcement of collection policies can help maintain trust and confidence among community members, fostering positive relationships. With Axela’s Auto-Submit, nobody can say that they were unfairly submitted to collections when their neighbor (who owed the same amount for the same length of time) was not.

Associations can set thresholds that align with their specific needs and financial goals, ensuring that Auto Submit operates in accordance with their requirements.

Auto Submit offers a convenient, efficient, and effective solution for managing property collections, benefiting community associations and residents. Visit our website today, axela.com, and let us give you a demo of “The Future of Collections for Community Associations.”

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