It’s a best business practice for co-op board members and their property management company to communicate regularly on items relating to the property at hand. This avoids conflict and disruption, and allows for the co-op board to override any unnecessary changes that the property management group wants to make.
One item that will aid in constant communication between co-op board members and the property management group, are the vendors the property regularly uses. When it comes to vendors, which party should oversee vendor relations?
Common Vendor Relation Practices
When both co-op board members and a property management company is involved, normally the management company oversees all vendor relations. It’s the property management company’s responsibility to ensure the vendors show up on time, meet project deadlines, handle the property with care, as well as being responsible for finding new vendors should one not work out.
Most co-op boards will need to approve the vendor chosen for the job and if there is analready established vendor, they’ll choose to work with that vendor over changing. Sometimes it is necessary to change vendors. This becomes common when,
- Current vendors are not performing up to par with past projects.
- Current vendors are not showing up on time for jobs.
- Current vendors are going over budget and over the deadline date.
- Current vendors are not holding up their end of the contract.
Steps to Take When Hiring a New Vendor
Should a new vendor need to be chosen for a property, the co-op board will often ask the building property management company to handle doing the research and due-diligence on getting a few referral vendors to explore.
What steps are important to note when selecting a new vendor? We’ve listed them here:
- Get recommendations from other properties they work with.
- Ask for a job bid and ensure it’s within budget.
- Interview the main company representative or the team they’ll be sending out to the job, so you can get to know the crew.
- Ask the company for past referrals and then contact the referrals to ensure they’re legitimate.
- Sign a contract between both parties.
- Set job expectations and boundaries and have both parties sign.
Hiring a new vendor can be a tough situation that many don’t want to be faced with. If you’re in need of help and guidance, contact All Area Realty Services, a professional property management company based in New York.
All Area Realty Services is New York City’s leading real estate management company specializing in full-service property management for cooperative and condominium boards in the Manhattan area.