At the board’s direction, vendors help keep a community running and looking beautiful. Communities must manage their vendors efficiently and effectively by obtaining proper proposals, having a good working relationship with the vendor, and ensuring all contracted work is done to the community’s standards.
A community can have many different vendors, but some that communities commonly have are landscapers, plumbers, pool maintenance companies, and pest control.
Work smarter, not harder, and utilize the latest software to help track your vendors and their work. HOA My Way offers comprehensive vendor management tools to track work orders, invoices, and vendor information like insurance and 1099s. It has all the tools your community needs to maintain vendor management best practices.
Establishing HOA Vendor Selection Criteria
Like shopping for services, the board must review the community’s needs first. Does the community have lush landscaping that requires turf professionals, or maybe a saltwater pool that requires specialized maintenance? You need to consider the services your community requires and what level of expertise or experience your vendor will need.
Conducting Thorough HOA Vendor Research
There are many different resources for finding reputable HOA vendors. One of these is accredited professional HOA management organizations like CAI (Community Association Institute), which lists vendors by state and profession.
It’s also helpful to ask neighboring communities what vendors they use to get firsthand references and testimonials.
Requesting Proposals and Quotes
Before getting quotes, a Request for Proposal (RFP) must clearly outline the work, vendor requirements, and a due date. A uniform RFP allows boards to compare better proposals and the services offered.
It’s considered best practice for HOAs to obtain at least three proposals for contracted services. This ensures that the community gets various proposals to make the best informed decision for the community.
With HOA My Way, communities can send RFPs and share proposal information in the Board Portal to share among board members.
Evaluating HOA Vendor Contracts
When reviewing HOA vendor contracts, there are a few key elements to look for:
- First, the vendor should have experience and demonstrate knowledge in their service area.
- Second, they should provide a clear pricing breakdown of the contract, including any ancillary costs, to avoid surprise charges to the community.
- Third, the vendor should provide all required licenses and insurance. This assures the community that the vendor has the necessary qualifications and security.
Communities can keep their contracts organized with HOA My Way. After a proposal and contract have been approved, the vendor will be added to the Board Portal’s Vendor Management with all their information, including the signed agreement, applicable insurance, 1099, and more.
HOA My Way’s hybrid solution makes it easy to manage your community’s vendors from the palm of your hand.
Building Strong Vendor Relationships
Fostering a positive working relationship doesn’t just keep conversations cordial—it builds strong communication and trust with your vendors.
Relationships are all built on communication, and vendor relationships are no different. Board members must set clear expectations and maintain regular communication to maintain a positive working relationship with your community’s vendors.
HOA My Way simplifies vendor communication with our Board and Vendor Portals and accompanying mobile app. Board members can send clear and comprehensive work orders with GPS-enabled locations, photos, and maps to their vendors to minimize questions and maximize results.
Monitoring and Evaluating Vendor Performance
To monitor vendor performance, boards can create transparent performance metrics and benchmarks that can be used to discuss concerns or assess performance for contract renewal. Boards can also address issues promptly and provide work order reports to track responsiveness.
The comprehensive HOA My Way Board Portal allows board members to track work orders and a vendor’s history. Our cloud-based software can provide detailed vendor reports that track metrics and can be customized if requested.
Managing HOA Vendor Payments
Prompt payment is part of maintaining a good working relationship. It’s best practice for accounts payable to process invoices in a timely manner and send payment as requested by the vendor. This can be a timely process for self-managed communities, as they sometimes mail checks or send complicated electronic payments.
With HOA My Way’s unique hybrid solution, we handle your community’s accounts payable, including receiving vendor invoices, coding invoices per the community’s budget, and sending vendor payments, whether they opt for a mailed check or electronic payment. HOA My Way streamlines HOA vendor payments and your community accounting.
Handling Disputes and Resolving Issues
Some common disputes between vendors and communities include unfinished work, surprise costs, and lack of payment. It’s essential to handle any disputes professionally and seek mediation or advice from the HOA’s attorney.
Renewing and Terminating Vendor Contracts
Sometimes, vendor contract renewal is automatic unless terminated, and others must be re-evaluated and re-approved each year. Regardless of the contract’s renewal terms, it’s essential to discuss it with the vendor to determine if any price increases or service changes are expected. This promotes clear communication and allows the board to be proactive and account for any contract increases in the budget.
Suppose the community wants to terminate a vendor. In that case, boards should review the contract for any termination requirements, such as a certain number of days needed for notice or an early cancellation fee. With HOA My Way, board members can easily review vendor contracts and manage their vendors on the Board Portal or mobile app.
Managing your HOA vendors efficiently keeps your HOA running beautifully. Communities should pick quality vendors, clearly outline their expectations, and build good working relationships with their vendors to ensure smooth communication and excellent service.
Get Help with Effective HOA Vendor Management
HOA My Way has all the tools communities and vendors need for effective vendor and work order management. From all-inclusive invoicing to contract organization, we offer everything you need in one convenient software.
Explore how HOA My Way can help you manage your HOA vendors, and contact us today for a demo and more information.