IREM Certified Property Manager (CPM) Practice Test 2026 - Free CPM Practice Questions and Study Guide

A collection agency can indeed charge service fees, which represents a significant disadvantage for property managers or associations dealing with delinquent assessments. These fees can diminish the amount actually collected and create additional financial burdens for the entity seeking to recover debts. When property managers decide to use a collection agency, they must consider not only the potential for recovery of debts but also the cost associated with these agencies. The service fees might cut into the total recoveries, meaning that even if a collection agency is successful, the final amount received by the property manager can still be considerably less than anticipated.

The other options do not capture the same type of disadvantage. For example, while collection agencies may not always be successful in collecting debts (as suggested by one of the options), that does not directly relate to the financial implications for the property manager as significantly as the service fees do. The notion that they only work with large accounts is another limitation but does not necessarily translate to a disadvantage when it pertains to the overall financial impact. Lastly, stating that they enhance customer service levels completely contradicts the premise of a disadvantage and really highlights a positive outcome rather than a drawback.