4 Ways to Strengthen Vendor Relationships
4 Ways to Strengthen Vendor Relationships
By Brittany Benz
Having solid relationships with your residents and owners is key to your success as a property manager, but did you know it is also critical when it comes to your vendors?
When you think of vendors, your relationship might not be the first thing that comes to mind, but it should be. Why? Because having vendors who respond promptly and resolve maintenance problems efficiently will ensure happy renters and owners.
However, in today’s tight labor market, finding quality vendors who have the staff on hand to respond to your maintenance needs can be challenging.Â
The labor shortage in skilled tradespeople is still ongoing, with approximately 77% of tradespeople agreeing there are insufficient hands to go around, according to a 2021 Angi Skilled Trades Report. This means building relationships with vendors is more critical now than ever before.
How do you build (and maintain) strong working relationships with your vendors that will save you time, money, and frustration? Read on to find out.Â
1.) Be an excellent communicator
Poor communication causes errors that make you and your vendor lose credibility. Missed deadlines, confusion, and a myriad of issues all stem from a gap in information caused by a lack of clear communication.
For example, a vendor arriving at the job site to find that they need a specialized tool that’s back at the shop will leave them frustrated, slow the work down, and create extra work for everyone.
Here are a few strategies that will help you be an excellent communicator:
2.) Recognize their efforts
Just as you realize there is a need for recognition for jobs well done by your team members, recognize that vendors are also part of your team and need your support just as much or more so.Â
When a vendor feels recognized and appreciated for their hard work, they are more likely to continue to do top-quality work for your business.
3.) Pay them on time
Nothing speaks louder to vendors than on-time payments. Late payments will quickly erode your vendor relationships. Pay them promptly as work is completed, and remember to include a hand-written note that compliments their work and communicates that they are a valued member of your team.
Utilize an online payment system to ensure nothing falls through the cracks. Monthly vendor statements from accounting should be on your to-do list. Keeping their financial well-being in mind shows them that you are working on their behalf and builds trust.
Additionally, file your 1099s on time. Using property management software with built-in accounting tools like AppFolio Property Manager makes it simple to automate accounting processes and reduces errors and late payments.
4.) Offer digital tools to streamline work
In today’s world, there is a good chance your vendors are already using technology. According to the 2021 Angi Skilled Trades Report:Â
Make life easier on your vendors by providing the on-demand digital tools they want and expect. When you use digital tools for work orders, invoices, and communication, you can streamline processes and save time and money all around.
Using a tool like AppFolio Smart Maintenance can instantly optimize your operations. Smart Maintenance uses automation to intake maintenance requests from residents and convert them into work orders, which are dispatched to pre-approved vendors so you’re not switching between systems to send out requests or going back and forth making phone calls. This feature also works around the clock, so you can better serve your residents — no matter the time of day or night.
Your vendor relationships matter
Making your vendors feel like a part of your team and providing them with the digital tools they need to succeed will strengthen your relationships. Stronger relationships often lead to improved work quality, and efficient work often leads to happier residents and owners.Â
Being in partnership with your vendors also means increased savings to your bottom line. Start by reaching out and providing digital tools for them. Additionally, using a single property management platform can help you maintain transparency with your vendors and optimize your workflows. For more tips on how to find and keep reliable vendors and maintenance techs, take a look at this article.