Whether for an apartment high rise or a condo/housing community, property management companies strive to provide the very best services for residents. The services handled by the property manager vary from community to community but they are always paid for by the home owner’s association (HOA) dues and are executed by vendors. Property management companies seek out vendors using very specific requirements.
How property management companies choose vendors
Licensed and insured
If an accident occurs while a vendor is working on a community, it is important that the company is licensed and insured so they can be held liable for the accident. It is clearly in a property management company’s interest to hire vendors who are licensed and insured or they risk being held liable themselves. Vendors who may work for property management companies include landscapers, painters, roofers and repairmen and they should all be licensed and insured before working in a community.
Property management companies need vendors who are available on a regular schedule that works for the community. In some cases, property management companies will hire one company to handle a service such as landscaping for all of their communities and keep the provider busy on multiple days of the week.
Word of mouth (reputation)
Property management companies look for positive reviews and word of mouth before hiring a vendor to work on the properties that they manage. In some cases, a property management company will have worked with a vendor for years on other properties and will retain them for additional work when a new client is accepted.
At the expectation of owners in the community, property management companies have to make an effort to keep HOA fees down. The majority of property managers are therefore looking to balance vendor pricing with quality of work.
Typically however, pricing is the last piece of the puzzle in terms of making a decision. The biggest priority is finding a vendor who is licensed and insured then available in the desired schedule and one who has a reputation for quality work. If there are two vendors that meet the first two criteria but one offers a lower price, then the property management company will go with the vendor who offers the best price. If all three points are matching then a property management company may ask the companies to come back again with competing bids.
With so many services needed, property management companies work with an assortment of vendors. While no two properties are the same and each property requires different services, it is up to property management companies to identify quality vendors who provide excellent service at the best price.
Son-Rise Property Management is a full service property management company located in Bellingham, WA. Contact us today to see how we can help you find the perfect home to rent or manage your property.