Struggling to find reliable vendors? Here’s what community association managers should know

If you’ve noticed that finding reliable and quality vendors is harder than ever lately, you’re not alone. It’s affecting property managers everywhere, and it’s not a problem anyone wants to have. You trust contractors to partner with you to protect your community and its members, and nothing’s more frustrating than a negative vendor experience. But with the labor shortage making quality vendors more expensive and harder to find—in fact, intensified competition for talent has been raising the sectors’ average wages by over 20% since early 2020—it’s time to reevaluate your vendor management strategy.

Although the vendor landscape is changing, it is possible to form positive relationships with quality contractors. With just a few small adjustments, you can find peace of mind with vendors you can trust. Here’s your playbook for finding and managing reliable vendors.

What Is Vendor Management?

Vendor management is the systematic process of finding, hiring, and overseeing outside contractors who work for your community association. It involves creating repeatable workflows to handle all vendor relationships effectively.

Key components include:

• Finding qualified vendors: Sourcing and vetting contractors for different services
• Managing contracts: Handling agreements, insurance, and payment terms
• Overseeing work quality: Making sure projects meet standards and deadlines
• Building relationships: Developing long-term partnerships with reliable contractors

Why Vendor Management Matters for Community Associations

A solid vendor management strategy directly impacts your community’s financial health and reputation. Here’s why it matters:

• Financial protection: Prevents cost overages and budget surprises
• Risk reduction: Checks proper licensing and insurance coverage
• Resident satisfaction: Makes sure repairs are done right the first time
• Time savings: Reduces stress and administrative work for managers

The Vendor Management Process

A successful vendor management strategy follows a clear path from start to finish. The main stages include:

• Discovery: Finding and vetting potential vendors
• Contracting: Handling agreements and insurance verification
• Project management: Overseeing the actual work
• Completion: Processing payments and evaluating performance

Interview Potential Vendors

Property managers are learning how to navigate the labor shortage on the fly, and it’s harder than ever to find qualified contractors when you need them. Build a Rolodex of trusted vendors in the services your association needs most often. Usually, that includes a reliable handyman, a plumber, an electrician, and an HVAC expert. This is especially important for certain trades, as an estimated 30 percent of union electricians are expected to reach retirement age in the next decade. But where do you find and vet all of these vendors? Here are a few tips to get started:

• Ask for referrals. Talk to other association and property managers and ask for vendors they’ve worked with and trust. You can also ask realtors you know for recommendations—their reputation depends on having a network of trusted contractors to refer to clients.
• Always meet in person. A referral is a great start, but always meet with potential vendors in person. Not only will you get to know the contractor better, it’s also a great test of their reliability and communication style.
• Get multiple bids. It’s a great idea to meet with several vendors before making a decision. You’ll get an idea of the price range of your project and the different approaches you can take. Pro tip: don’t just accept the lowest bid. Sometimes, that low number is a red flag for the quality of the contractor you’re hiring.

Do Your Homework

You’ve found the right vendor for the project — so it’s all systems go, right? Not so fast. Many people skip doing their due diligence on a vendor for the sake of time. Especially in today’s competitive market, where there’s an imbalance of 20 job openings for every one new skilled trades employee, it’s easy to feel pressured to sign a contract before someone else gets to them first. But many of the vendor horror stories you hear from other property managers can be traced back to skipping these simple steps.

Here’s a quick checklist:

• Check licenses. It’s crucial that your vendor is properly licensed in the city and state where the project will take place. Ask to see their licenses to make sure they’re up to date and everything is above board. You’ll also want to check for complaints filed against the vendor by conducting a background check or looking them up on Better Business Bureau.
• Ask for testimonials. After ensuring the contractor is properly licensed, ask for testimonials from clients with similar projects. Get in touch with current or former clients and ask how the project went, what communication was like, and any tips for working with that vendor.
• Read online reviews. When it comes to vetting vendors, social media is your friend. The unfiltered nature of online forums means you’ll get the big-picture view of your vendor. Search for reviews on neighborhood forums, Angie‘s List, Yelp, and on their Facebook page. A few negative reviews is understandable, but look for a vendor with a high satisfaction rate.

Protect Yourself

When it’s time to make things official, clear communication will protect both you and the vendor. This is a great time to get proof of insurance: you’ll want to see general liability, contractor liability, and workers’ compensation insurance. If you’re not familiar with liability coverage, it’s worth it to take a few minutes and learn how liability coverage could impact you.

Before signing the contract, take time to discuss the details of your budget, timeline, and materials—and get it all in writing. Documenting as much of the plan as possible helps eliminate potential disputes during the project. When it’s time to sign, make sure that everything you discussed is reflected in the contract. Once the project is underway, any significant changes should be added as an addendum and reflected in an updated estimated cost.

Build Relationships

When you find a great vendor, don’t let them go! The real secret to managing vendors is to build long-term relationships so that you’re not scrambling to find help next time you need it. Even if you don’t need an electrician now, starting your search beforehand eliminates the headache of vetting vendors under pressure. Build your roster of trusted contractors for different services and do the legwork in advance to make sure they’re a great fit. Next time crisis strikes, you’ll know exactly who to call.

But we know what you’re thinking—who’s to say the vendor you want will be available? There are no guarantees, but if you’re putting in the work to build strong relationships, contractors are often willing to go above and beyond to help out. You’re looking for the ideal vendor, so do your part to be the ideal client. That means partnering with vendors to help promote their business by providing referrals and sharing testimonials. You’ll be rewarded with fair pricing, quality service, and far fewer vendor headaches.

Common Vendor Management Challenges

Even with a good process, you may run into common challenges:

• Limited vendor availability: Finding qualified contractors in a competitive market is a significant challenge, with one survey showing 80 percent are having a hard time filling positions.
• Communication issues: Dealing with poor responses or missed deadlines
• Budget overruns: Managing unexpected costs that exceed estimates

Recognizing these problems ahead of time helps you handle them professionally.

Tools That Make Vendor Management Easier

Keeping track of vendor contacts, insurance documents, work orders, and payments can become overwhelming, especially as your portfolio grows. Using property management software helps you keep all this information organized and accessible in one place.

Buildium’s vendor management features let you store contractor details, track insurance expiration dates, and maintain a complete history of work orders and payments in a centralized database. You can create and assign work orders directly to vendors, communicate through the platform to keep a record of all conversations, and set up automated reminders for insurance renewals.

The system also allows you to track vendor performance over time, compare bids side-by-side, and generate reports on spending by vendor or service type. This comprehensive approach helps you track everything from the first call to the final payment, making your vendor management process much simpler.

Key Takeaways

• Build a trusted vendor roster before emergencies strike to avoid scrambling under pressure.
• Always verify licenses, insurance, and references—even in competitive markets with limited contractor availability.
• Document everything in writing, including budget, timeline, and materials, to prevent disputes later.
• Invest in long-term vendor relationships by being an ideal client who provides referrals.

If you’re looking to make your vendor management process easier, you can see how Buildium works with a 14-day free trial or by signing up for a guided demo.

Frequently Asked Questions About Vendor Management

What is the role of a vendor manager?

A vendor manager oversees the entire relationship with outside contractors, from finding and hiring them to managing work quality and processing payments.

How do I find reliable vendors for community association work?

Start by asking for referrals from other managers, then verify licenses and insurance before hiring. Always interview potential vendors in person to assess their reliability.

What should I measure to track vendor management success?

Track on-time completion, budget adherence, work quality, and resident satisfaction with repairs and improvements.

Is vendor management part of property management or a separate function?

Vendor management is a core part of property and community association management responsibilities, not a separate function.