Covenant enforcement, maintenance of recreational facilities and landscaping, long-term financial planning and community building social events are just a few quality-of-life issues that board members and property managers can focus on when the significant distraction of collections is eliminated.

Homeowner Compliance with Covenants Improves under a Metro District Model
 

Many homeowners believe the majority of covenant violations in their HOA-operated neighborhoods are attributable to renter-occupied properties. This may be true in some cases. However, for the majority of HOA-operated neighborhoods, homeowners that owe significant past-due balances to the HOA generally comprise the majority of homes with the most severe covenant violations. When you think about it, this makes a lot of sense. Homeowners who are in collections with an HOA's attorney are usually more worried about wage garnishment and home foreclosure than they are about painting the faded trim on their house, replacing a dead tree or repairing a damaged garage door. When homeowner accounts are turned over to the attorneys for collection, such homes become much more likely to incur (and fail to address) subsequent covenant violation fines from the HOA.

In many cases, we have noted homeowner attitudes towards covenant compliance diminishes significantly when their accounts are turned over to attorneys for collection. As the unpleasant collection process between delinquent homeowners and HOA attorneys drags on, the homeowners in many cases become less inclined to perform maintenance of their home exteriors and yards.