ArcaMax

Q: We live in a small, self-managed townhome association in Illinois. The association hired an outside accounting firm to coordinate the financial matters of the property, including the issuing and collection of fines for rule violations. These violation and fine notices are sent out by email on association letterheads, with the accountant’s phone number, and signed by the owner of the accounting firm but not any of the association’s board members. Can they do that?

A: We’re confused about what’s really troubling you. Is it that you don’t like that the board has hired an outside company to handle the books and certain types of billing for the association? If that’s the case, the board has it within its power to hire managers, bookkeepers and others to assist the board in their interactions with the owners of the units in the association.

Or, do you dislike that a third party is issuing and collecting fines on behalf of the association board? Are you wondering if the board has the power to hire outsiders to help them?

We can’t address the issue as to whether the accounting firm the board hired is doing a good job or whether their billing practices are sound. In general, the board can hire professionals to send out bills and collect assessments for the association, just as it does for other types of services it requires, like landscaping, pool maintenance, or the cleaning of public spaces inside the community.

The real question is whether the accountant has the discretion to issue fines for items other than the late payment of assessments. Let’s say an owner fails to pay their assessments on time. In this instance, the accountant can issue a late fee to the owner due to their failure to pay their assessments on time.

You didn’t mention whether the accountant is handling only the financial billing for the association. The accountant may not be qualified to act as the manager for the building but is qualified to handle the billing on behalf of the association. We would need to know more about your issue to know why you’re asking about this arrangement.

The handling of the books and billing of assessments can be a tedious process. Owners that do volunteer for associations don’t enjoy this task. That’s why many associations will hire outsiders to handle the financial affairs of the association. They’re trying to remove the drudgery so more owners will step up and help out with association duties.

The accountant should take care of collecting the monthly assessments and paying the monthly bills for the association. The accountant should also take care of managing the books for the association and showing the monthly balance on the accounts. If — in the course of doing the books, receiving payments and sending out checks to vendors — the accountant also lets homeowners know they are late in making their monthly payments to the association, it would also be easy to let them know they must pay a late fee.

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(Ilyce Glink is the author of “100 Questions Every First-Time Home Buyer Should Ask” (4th Edition). She is also the CEO of Best Money Moves, a financial wellness technology company. Samuel J. Tamkin is a Chicago-based real estate attorney. Contact Ilyce and Sam through her website, ThinkGlink.com.)

©2025 Ilyce R. Glink and Samuel J. Tamkin. Distributed by Tribune Content Agency, LLC.