How can you manage difficult vendors in Property Management?

Vendor management is extremely critical for an effective property management and the only way to make this work is through a partnership & collaborative approach. Firstly, one needs to identify the core of the issue and evaluate if it is a "Process issue" or a "Person issue" Process issues are easy to manage through tweaking of the process in place. Person issues are the trickier ones which may require further analysis as to whether it is an intent issue which may warrant a review of contract/searching for alternatives or it is an issue that can be resolved through discussion.

Gérer des fournisseurs difficiles dans la gestion immobilière, c'est un peu comme naviguer en eaux agitées. Il faut être le capitaine de son propre navire, rester ferme face aux vagues de défis tout en ajustant constamment la voilure pour maintenir le cap vers la réussite. Parfois, c'est comme jongler avec des balles en feu, nécessitant habileté et agilité pour éteindre les conflits tout en préservant l'harmonie nécessaire au bon fonctionnement des opérations immobilières.

Prior to engaging with a vendor, I establish clear expectations for each task, initiating a dialogue to understand their expectations and foster effective collaboration. In the event of challenges with a vendor, I systematically review our business history, compile pertinent information, and address the situation with a composed and open-minded approach to identify solutions. This approach enables me to cultivate a more meaningful rapport with the vendor or, if persistent issues arise, make informed decisions regarding the continuation or termination of the business relationship.

I believe identifying the most ideal methods of communication .are vital as some vendors may not have fully established administrative functions and may prefer to be reached out to via call as compared to email . Knowing what works best for each vendor helps streamline processes and avoid miscommunication and delayed processes

Communication is essential for building and maintaining positive vendor client relationships. By communicating clearly and frequently, we can share our vision, expectations, and feedback, and solve problems together. We also need to listen and respond to our vendors’ needs and concerns, and make them feel valued and respected. Vendors are not just suppliers, but partners who help us achieve our goals and deliver value to our clients. We need to involve them in our planning and evaluation processes, and make them feel part of our team.

Being professional and still courteous even when there is frustration is key. I feel that client vendor relationships are a 2-way street and treating them with respect and humility is going to make them want to do work for you in the future. This will also help to create quick solutions when there may be conflict.

When disconnection is about scope of work,I have found on site meeting very helpful.A team memeber from vendor side ,property manager,site super and other parties can discuss in person and get a better understanding of situation .Synopsis of meeting goes to all parties as an email.

Communication is certainly key. As a Regional Manager overseeing renovations on several sites, I held weekly touchpoint meetings- either on site or virtual. This allowed all parties to collaborate, communicate and strategize. I also have found it helpful to identify one point of contact to ensure that everyone is on the same page.

Communication with the right person is the key for me. Sometimes the problem can be resolved through a different set of eyes and with perhaps another member of their team who may have different metrics to measure their success. Sometimes it is all about finding the right fit and values amongst those involved with the project.

Even if you disagree or are angry with the situation with your vendor, remember that you are in a business situation and representing your company. Don’t be afraid to ask for help resolving your issues especially if you are a Property Manager. Sometimes larger titles have more weight with vendors, and your company may have more influence than your property. Other team members may have relationships with the company that can help resolve issues.

Being cognizant of People Chemistry is a key. Assigning the right people to deal with their counterparts on the other side of the table goes a long way to solving conflicts.

In my role, negotiating effective solutions with property managers is crucial. One approach we've found helpful is to clearly define and agree upon the scope of services upfront. For instance, if there's a disagreement about service delivery or costs, we revisit our initial agreement to clarify any misunderstandings. This often involves compromise, but we ensure it doesn't compromise our service quality. By setting clear, measurable goals and regularly reviewing our performance against these objectives, we maintain a transparent and accountable relationship with the property managers.

Seek to Understand Their Perspective: Sometimes, understanding the vendor’s challenges or constraints can help in finding a middle ground. Listen to their concerns and try to work out mutually beneficial solutions.

Agree completely. Remove all reasons for the difficult behaviors and set expectations for both sides Then move forward but monitor how things are going. And be ready to take action(s) if the established expectations go south.

Absolutely, negotiating a mutually beneficial solution is crucial. It's essential to strike a balance between flexibility and maintaining your standards to ensure a successful collaboration. Clear communication and well-defined goals help establish a foundation for accountability throughout the process.

Review and Revise Vendor Selection Processes: If you are frequently encountering difficult vendors, review your vendor selection process. Look for ways to improve how you evaluate and select vendors.

In property management we taught that whatever decisions we make we have to be able to stand in front of a judge to plead our case and if that judge can rule in our favor then you’re making a sound decision. We write legal contracts and work with attorneys. If you’re not familiar with a contract, you won’t understand the vendors requirement and what is required of you to establish a cohesive relationship.

Even better than reviewing the contract after an issue arises is thoroughly reviewing the contract prior to signing. Sometimes in a haste to obtain a good rate or to secure service contracts are signed by managers without reading the fine print. The fine print is there to determine how disagreements will be handled and you should know this prior to entering any new contractual relationship.

I would likely move this up in the listing. Knowing the contract and what both parties have agreed to is essential to success in working with any vendor partner.

Reviewing the contract is important, especially during the bargaining stage where evidence and market conditions are crucial. Agents should make sure negotiations match what's in the contract, creating a strong base for solving problems. Going back to the contract regularly keeps things clear and makes sure everyone does what they agreed on throughout the property management process. It's also good to talk to vendors about contract stuff, building trust and keeping things open.

Be prepared to consider alternative vendors if the current one is unable to improve or meet the agreed-upon standards. Additionally, communicating the decision and the reasons behind it to the current vendor and following the proper procedures to end the contract are crucial steps. Being prepared to address any disputes or claims that might stem from this change is a wise strategy for ensuring a smooth transition to a new vendor, if necessary.

Alternative options: Maintain a list of alternative vendors to quickly address any service gaps or persistent issues. Relationship building: Build strong relationships with key vendors by fostering a mutually beneficial partnership based on trust, respect, and open communication.

Exploring alternative approaches to address vendor concerns and expectations should be considered. The negotiation and communication process may involve presenting creative solutions or compromises to meet the vendor's needs while aligning with market conditions. Seeking alternatives requires a proactive and solution-oriented mindset, considering various options that could lead to a positive outcome for both the vendor and the property management team. This could involve proposing alternative marketing strategies, adjusting timelines, or exploring unique selling points to cater to the vendor's objectives.

Having established process for procurement engagement should allow due process to be followed and utilising this as part of due diligence exercises is always advisable. If an agreement with a vendor is not working out, ensure that contract terms are reviewed before making any changes and then ensure that notice terms are followed and met before transitioning away from a vendor. We should always take opportunities for improvement when things do not work out. We should make sure that we consider why the previous vendor did not work out and take these consideration into new negotiations and contracts.

Nos fournisseurs sont indirectement les porteurs de notre image de marque : un fournisseur qui se montre récalcitrant ou peu professionnel donne une image dégradée de notre travail et il devient urgent de changer de prestataire pour éviter de perdre notre client.

Learning from the experience can also include immediately making changes to internal policies or recordkeeping. One of my clients encountered difficulty with vendors not wanting to provide W-9s for purposes of issuing 1099-NECs at year end. The vendors were hired with handshake agreements and expected to be paid under the table, while the client's staff was simply not properly trained to onboard new vendors. Navigating this situation certainly allowed for future vendors to be onboarded properly, but also prompted the client to notify all vendors that they would need to provide a W-9 or their service contract would be terminated.

Reflecting on the effectiveness of communication, negotiation strategies, and overall vendor management techniques is essential. Continuous improvement involves learning from difficult vendor experiences to refine approaches and enhance the overall property management process. This reflective practice enables property managers to adapt and grow, incorporating lessons learned from past challenges to continually elevate their skills in handling difficult vendor situations. Additionally, seeking feedback from vendors post-resolution can provide valuable insights for ongoing improvement and relationship building.

Those who some might call ‘difficult vendors’ have gone on to become long term clients and advocates. I believe these ‘difficult vendors’ know that they can be demanding but also appreciate those that take the time and effort to work with them. If you treat all vendors as you would like to be treated yourself and build a team around you with the same dedication to customer service repeat business and referrals will soon come your way.

Ist aus Erfahrung lernen und auch interne Prozesse ggf. anzupassen, wenn etwas öfter wieder schlecht läuft oder es zumindest absehbar ist, sollte doch eigentlich der Standard in einem Unternehmen sein! Wer nicht dazulernt und mit der Zeit geht, wird vom Markt verschwinden.

Quanto mais experiência você tem, mais você consegue evitar problemas de gestão e atendimento ao cliente. Amarrando com contratos bem feitos e fornecedores que entreguem aquilo que sua empresa promete.

Remain open minded as new and emerging vendors are also learning and require mentorship. Ensure your vendors are sincerely open to feedback no matter how many years of experience. Appreciation of each other’s businesses is important. If vendors are not open to feedback, display an egocentric stand and have a chip on the shoulder (defensive) that is a red flag; use the termination clause in the contract, pay what you owe and end it. Working and collaborating with vendors that have similar values, helps in solving almost anything. Sometimes landlords or third parties make mistakes ( also human); same principle applies. Owning it makes for a long lasting and trusting partnership.

I think it is also important to remember that this is a relationship and they’re may be growing pains. Be willing to remember the human component. Some of the best vendors I’ve worked with were new businesses and benefited from my industry knowledge, applied the concepts and were greater because of it.

A sure fire way to attract quality clients into your business is to have higher fees. If you pitch a higher fee and maintain a high level of service, you will create customers for life. You will also avoid the people that are searching for the lowest fee. From my experience, they typically cause the most issues!

It's important for vendors to join the property managers on building walks and discuss risks and expectations. To hear and understand tenant feedback on different matters.

I want a competent vendor at a reasonable price. They will earn the competent part by having done work in the past. The reasonable price is what the market charges for the job. If the vendor doesn’t guarantee their work or overcharges and won’t adjust then Vendor A is out and Vendor B is in. Remember it’s not 1 job but tens or hundreds of thousands of dollars a year in jobs.