By Eric Glazer, Esq.

Published November 6, 2023


It’s November ---and November means it’s time to get out the budget for next year.  One of the line items that should definitely be included in your budget is “bad debt.”  Bad debt is the amount of money you are not going to collect from your non paying owners.  For example:  let’s say that your assessments are $5,000 per year and that there are 6 owners who you know are not going to be paying their assessments.  Maybe two are in foreclosure, 2 are in bankruptcy and two already stopped paying the association.  6 x $5,000 = $30,000.00 in “bad debt.”


That $30,000.00 number should be listed as an expense in your budget;  Just the same as the landscaper or manager.  If you don’t put in a line item for “bad debt,” at the end of the year, your association is going to run $30,000.00 short and will have to pass a special assessment.


If the Board is having a problem determining how much the bad debt number should be, the association manager, attorney or accountant should certainly be able to help.


Just remember, as expenses go up and assessments go up, as they definitely will, you can rest assured your “bad debt” number will go up as well.

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About HOA & Condo Blog

Eric Glazer

Eric Glazer graduated from the University of Miami School of Law in 1992 after receiving a B.A. from NYU. He has practiced community association law for three decades and is the owner of Glazer and Sachs, P.A. a five attorney law firm with offices in Fort Lauderdale and Orlando.

Eric is Board Certified by The Florida Bar in Condominium and Planned Development Law.


Since 2009, Eric has been the host of Condo Craze and HOAs, a weekly one hour radio show that airs at 11:00 a.m. each Sunday on 850 WFTL.




Eric is the first attorney in the State of Florida that designed a course that certifies condominium and HOA residents as eligible to serve on a Board of Directors and has now certified more than 20,000 Floridians all across the state. He is certified as a Circuit Court Mediator by The Florida Supreme Court and has mediated dozens of disputes between associations and unit owners. Eric also devotes significant time to advancing legislation in the best interest of Florida community association members.

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