Some boards believe that creating strong HOA vendor relationships should sit low on the priority scale. Yet vendors largely contribute to a community’s success. Ensuring a healthy working relationship can make a huge difference in pricing, response times, and quality of service.
The Importance of Building Positive HOA Vendor Relationships
Homeowners associations rely on vendors for a great many things. While board members run the ship, they can’t do everything alone. They must hire and work with vendors for landscaping, maintenance, snow removal, and more.
Since vendors play a key role in an HOA’s success, boards should strive to build positive relationships with them. This will help associations secure more competitive pricing and even faster response times. During an emergency or simply during the busy season, a strong vendor relationship can bump the HOA up the priority ladder.
Moreover, a good vendor relationship can result in better workmanship. Vendors are more motivated to produce high-quality results when they like working with their clients. Residents are also treated better, leading to improved satisfaction.
In short, by maintaining a positive relationship with vendors, HOAs can avoid jerk tax. This is an informal penalty that service providers charge to their clients for unreasonable demands, disrespectful behavior, or general unpleasantness. Despite its name, it is not a real government tax.
How to Strengthen HOA Vendor Relations
Board members don’t always know where to begin when dealing with service providers and contractors. Here are the best strategies for improving HOA vendor relationships.
1. Communicate Clearly
Many vendors dislike working with clients who don’t know how to communicate properly. When dealing with a vendor, HOA boards must provide complete details on every project and set realistic expectations.
Additionally, it is best to designate a single point of contact. For example, appointing the board VP as the liaison for a particular vendor means that all official communication will flow only through them. This helps avoid misunderstandings that can lead to people playing the blame game later on.
2. Treat Vendors as Partners
Board members who view vendors as “hired help” tend to treat them disrespectfully. This is a one-way ticket to losing that contract and alienating other potential contractors in the vicinity.
Associations must always show professionalism and regard for vendors. They are the experts in their fields, so it’s best not to question every little move or decision. Instead, if something doesn’t feel right, approach the vendor with politeness and a level head.
3. Pay Invoices Promptly
Payments are a common pain point for vendors. When clients don’t pay them on time or in full, they tend to lower the quality of service or materials. Not only that, but when vendors don’t have the funds they need, it can delay the entire project.
Board members must strive to pay vendor invoices by the scheduled date. Of course, invoices must still go through the proper authorization channels, but that shouldn’t be used as an excuse to miss payments.
4. Honor the Contract
Once the vendor has started work on a project, boards should avoid making unnecessary changes. This can disrupt the workflow, the completion timeline, and the budget. It can also frustrate vendors who have everything already planned out.
5. Respect Their Time
Association boards must understand that they are not the vendor’s only client. Vendors must often juggle multiple projects at once, so board members must respect their time.
This means meetings must go as scheduled and be productive. Boards must also avoid making excessive calls or sending emails, especially about unimportant matters.
6. Give Constructive Feedback
If the HOA board has any concerns, they must communicate them professionally. Don’t adopt a rude or derogatory tone. Vendors are people, too, and they deserve respect.
Instead of assigning blame, board members should approach each problem with a collaborative mindset. Focus on finding a solution rather than complaining about the problem.
7. Verbalize Appreciation
A simple compliment can go a long way. Board members must acknowledge the vendor for jobs well done. This shows that the association appreciates their contributions.
Common Mistakes to Avoid in HOA Vendor Management
Sometimes, board members have the best of intentions but poor execution. They might not even know when they are already damaging HOA vendor relationships.
Here’s what HOA boards should NOT do.
1. Offer Conflicting Instructions
When multiple board members are dealing with the same vendor, it can lead to conflicting instructions. One board member may give the go signal to start work, while another may ask the vendor to put the project on hold.
2. Micromanage Contractors
Vendors are the experts here, so board members should avoid poking their noses into something they know nothing about. Constantly breathing over the vendor’s shoulders and questioning their every move will only serve to push them away.
3. Delay Decisions
Vendors often need approval from the HOA board before beginning work or for any major roadblocks. Board members must address these matters promptly and communicate decisions clearly. This prevents vendors from waiting around and wasting time.
4. Change Project Scopes
Making modifications to the project scope or budget repeatedly will only frustrate contractors. Boards should stick to the agreed-upon terms.
5. Expect Instant Replies
Vendors, especially larger ones, typically manage multiple clients simultaneously. Board members should not expect immediate responses to non-urgent issues.
The Role of the HOA Management Company
An HOA management company can provide much-needed support when handling HOA vendor relationships. Most of the time, management companies already have existing partnerships with service providers, so they benefit from competitive pricing and priority status.
Additionally, an HOA manager can act as the primary point of contact for vendors. They can coordinate work, communicate with contractors, and monitor progress. They can also verify that work is completed and ensure vendors meet all deliverables.
In the event of a conflict, an HOA manager can step in to help find a resolution. They can act as a mediator to prevent arguments from escalating.
Some Efforts Don’t Produce Results
While it is imperative to build positive HOA vendor relationships, boards must know when it’s time to move on. Sometimes, no matter how hard board members work at the partnership, the vendor may ultimately be the problem. If vendors consistently produce low-quality results, miss deadlines, or present legal concerns, the board should consider switching.
Cedar Management Group provides effective management services to HOAs and condo associations. Call us today at (877) 252-3327 or email us at help@mycmg.com to get started!
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