Maintaining a large property is not an easy task. Whether it is a condo building, gated residential community, or vacation rental property; a home owners association (HOA) is in charge of maintaining the property and keeping it looking beautiful to sustain property value. Home owners pay HOA fees while living or owning the property and one of the major fee components is for building and landscape maintenance. Of course, the cost of maintenance can vary dramatically from one service provider to another and the need to keep prices low is important. The home owners association, along with the help of property management companies, create a budget for needed services and a contingency fund while keeping in mind reasonable monthly dues. In order to keep monthly dues down and to help the association save money through well priced maintenance services, associations often hire property management companies. The best property management companies utilize vendor analysis and multiple client discounts to provide maintenance services at the best quality and price to their clients.
How Property Management Companies Perform Vendor Analysis and Save Money for Home Owners Associations
What is Vendor Analysis
Vendor analysis is the process used to choose the best suppliers and vendors for a needed service. Unreliable or overpriced suppliers can have a serious negative impact on a community or business.
Specifically, property management companies are looking to identify what services a company provides well, at what price said services are provided, and why it is best fit for the Home Owners Association.
Selecting the first company to appear on an Internet search is not best practice; comparing multiple local businesses is smart. This small investment in time can lead to better quality service and at the best price.
What else do property management companies research?
At times, property management companies will look beyond the price at such things as the company’s BBB rating and customer reviews. It may also seek out information regarding how the business hires new employees and employee turnover rates. Often times property management companies investigate by contacting current and former clients to see if they would recommend their services or not.
Depending on the vendor, property management companies might ask where the employees are based out of and if it is a national chain or locally owned. All of this information comes in handy when selecting not only the best vendor but also the best priced vendor.
Multiple Client Discounts
One major advantage to hiring a property management company is that, presumably, they have multiple HOA clients who all need certain basic services such as lawn care and landscaping, gutter and window cleaning, etc. Property management companies are therefore in a position to request a multiple client discount from these service providers which can save money for the HOA. If they provide enough clients, the property management company may also be able to schedule maintenance work to each of its managed properties on the most desirable day.
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.