Homeowners Associations (HOA) rely on a network of vendors to provide essential services to not only serve tenant requests but also help preserve the homeowners’ property value. However, picking the right vendor is not always easy. Vendors need vetting for qualifications, experience, pricing, workload, among other factors.
Homeowner Associations get overwhelmed when they realize how much of a task vendor management can be. It is the reason why relying on a property manager such as PMI Louisville is appealing. Here are pointers to easier vendor management.
Keeping a Database
Any homeowner’s association must keep a detailed database of all potential vendors. The association may not need their services now, but having contacts ensures you can quickly call a few of them and request a quote.
The information should be stored electronically for easier retrieval when required. Some of the information you would typically store would be the vendor’s specialization, size, and past work done for the HOA.
Having a database saves time, because in normal circumstances, the HOA would need to advertise, invite bids from vendors, review proposals, and settle on one vendor. A database of people pre-qualified to offer specific services saves time and money.
Streamline Communication/Long-term Relationship
It is crucial that the HOA has an established channel of communication. It should be a written medium of communication for record-keeping purposes. All communication should happen on this channel to avoid going back-and-forth on different mediums. In fact, it is good practice to have appointed parties from either side to act as leads on behalf of their respective parties.
Fortunately, many HOA vendor management systems come with built-in communication. File-sharing is possible within these systems, therefore greatly reducing reliance on third-party solutions.
When working with vendors, HOAs should aim to establish long-term relationships. If a particular vendor proves to be reliable and affordable, the HOA could look to secure a long-term contract to provide a given service. It is cheaper in the long-term because the vendor is inclined to charge less for a longer contract.
Keeping Track of Invoices and Payments
HOA’s today rely on software to manage their invoices and keep records of payment checks. The HOA will normally request a credit period from the vendors. As such, payments will be staggered throughout the year, and the HOA must keep track of due dates. It helps to avoid a cash crunch when numerous invoices are due at the same time while helping build trust with vendors by paying on time.
Proper records are important for regulatory compliance as well. There might be tax audits carried out on the HOA. Authorities might also want to confirm whether all contracted suppliers are qualified for the services they provide.
Simplify Work Orders/Record Feedback
HOA software must also help with the simplification of job orders. If the HOA has requested a vendor to carry out a given task, then a job order should be created within the platform. An update should be made in the system by the vendor. The HOA will approve that the work is done and an invoice raised and scheduled for payment.
The platform should also enable tenants to verify that requested services are delivered in a timely manner and that they meet their expectations.
PMI Louisville Property Management
Not every HOA can efficiently manage all its vendors. This is where vendor management companies step in. They specialize in managing HOA and vendor relationships. With years of experience, the right technological resources, and staff, they are best placed to manage vendors on behalf of HOAs.
PMI Louisville is a full-fledged property management firm that helps property owners maximize returns on the property while maintaining its value. Our property management software provides residential real estate owners with a dashboard to keep them aware about how their investments are doing. Tenants get a platform where they can request maintenance and billing. To get started on a journey towards easier property management, schedule a call with us here.