{"id":3700,"date":"2021-08-25T10:00:13","date_gmt":"2021-08-25T17:00:13","guid":{"rendered":"https:\/\/www.rentecdirect.com\/blog\/?p=3700"},"modified":"2021-08-25T13:20:01","modified_gmt":"2021-08-25T20:20:01","slug":"vendor-screening-for-landlords","status":"publish","type":"post","link":"https:\/\/www.rentecdirect.com\/blog\/vendor-screening-for-landlords\/","title":{"rendered":"The Importance of Vendor Screening for Landlords"},"content":{"rendered":"

\"\"<\/a><\/span><\/p>\n

 <\/p>\n

Choosing a vendor for your rental property business involves more than finding a service provider skilled in their trade. \u00a0Every vendor you hire becomes a representative of your business and their service will affect the experience of your tenants and owners. In order to protect your business\u2019s reputation and ensure the safety of your property and tenants, maintenance vendors should be carefully selected before you decide to work with them. <\/span><\/p>\n

Every landlord and property manager should have a list of approved vendors ready before they are needed. Researching and finding reliable workers is a lot easier when you are not faced with an emergency. \u00a0Brainstorm all the possible types of services you could potentially need as a rental property manager whether for routine maintenance or a natural disaster.<\/p>\n

Property managers and landlords will have vendors for a variety of services from repairs during tenancy and turnover to routine maintenance and business tasks. \u00a0While every vendor should be assessed and vetted prior to service, maintenance vendors are especially important to screen because of their interactions with tenants and the potential liability to your business.<\/p>\n

Vendor screening for property management tasks takes time and research but the effort used to find the right personnel will save you real money by avoiding\u00a0potential damages or when faced with liability or fair housing claims.<\/p>\n

Before selecting a service provider to work with, it is important to understand what your rental properties will need from each vendor. \u00a0Identifying specific needs will help you make an educated selection when comparing vendor services and realizing they are not the same. \u00a0You need to be able to judge what a potential vendor can do for you against what you really need them to do in order to find a great match.<\/p>\n

Once your needs are established do some research on local vendors for each type of maintenance issue you might encounter as a property manager. \u00a0If you self-manage, decide which jobs you will handle yourself and which ones you will contract out to a vendor.<\/p>\n

Begin Your Vendor Screening:<\/h2>\n

Begin your vendor screening by examining their accessibility, compliance, experience, licensure, insurance, and other basic requirements.<\/p>\n

Accessibility: \u00a0<\/span><\/h3>\n

How close is the vendor located to your rental properties? \u00a0Are they easy to contact and return correspondence in a timely manner? \u00a0Do they offer 24\/7 services or emergency solutions? \u00a0<\/span><\/p>\n

Licensure: <\/span><\/h3>\n

Make sure both the business license and the individual\u2019s professional license are up-to-date. \u00a0Unlicensed vendors should be avoided. \u00a0<\/span>You want to know the status of the state, county, or city license if required by local statutes.<\/span><\/p>\n

Insurance: <\/span><\/h3>\n

It is important to know if the vendor has insurance to cover any damages, injuries, or liability claims if necessary. \u00a0<\/span><\/p>\n

Experience: <\/span><\/h3>\n

How long has the vendor been in business? \u00a0Do they have testimonials or referrals that allow you can assess their quality of work and interpersonal skills?<\/span><\/p>\n

Employees: <\/span><\/h3>\n

Does the vendor screen their employees or the contractors they might send to your property? \u00a0A property manager or landlord could ultimately be found responsible if they contracted a vendor who employed a dangerous or irresponsible person that caused harm to a tenant, the property, or themselves. \u00a0It’s always good practice to do your part of due diligence to protect yourself. \u00a0<\/span><\/p>\n

Vendors should be happy to provide this information to you in order to secure your business. \u00a0If a vendor is hesitant or refuses, that should be a red flag not to work with them. \u00a0You can also conduct your own research to make sure everything is updated and valid. \u00a0\u00a0Beyond your own research, property managers and landlords can take advantage of vendor screening services that check criminal and financial backgrounds of vendors and their businesses.<\/p>\n

Vendor Compliance with Your Rental Business Policies<\/h2>\n

As part of your screening process, you should create a set of company policies and rules you expect all vendors to follow when working on your property and\/or interacting with tenants. Once you have established a relationship with a vendor, they should have no problem complying with your expectations, policies, and procedures. You should get it in writing in order to demonstrate due diligence on your end for attempting to provide quality service for tenants and owners, should an issue ever arise.<\/p>\n

You should have a mutual understanding of the following:<\/p>\n