Managing property management service providers can make or break your operations. Fast fixes keep tenants happy. Fewer callbacks keep costs down. Clear systems prevent the 2 AM emergency where nobody knows who to call. Good vendor management isn't glamorous, but it pays off every single day.
Vendor success comes down to four things: clear scope of work, fast routing to the right person, good communication throughout the job, and clean records you can actually find later. Get these right and your vendors become an extension of your team. Get them wrong and you'll spend half your time chasing people down and the other half explaining delays to upset tenants.
How to Pick and Onboard Vendors
Start with the basics. Don't skip any of these steps:
- Licensing and insurance – Get current copies. Verify they're valid. COI (certificate of insurance) should name your properties as additional insured.
- Background checks – Especially for vendors accessing tenant units.
- References – Call at least three. Ask about response time, quality, and how they handle problems.
- Coverage area and hours – Can they reach all your properties? Do they work weekends? After hours?
- Rates – T&M (time and materials) vs flat rate vs contract pricing. Get it in writing.
- Response time commitments – How fast do they show up for routine vs urgent vs emergency calls?
- Escalation process – Who do you call when your primary contact doesn't respond? Have you considered a property management answering service?
- Parts and warranty policy – Do they stock common parts? What warranties do they provide on labor and materials?
- Photo proof requirements – Before and after shots for every job.
- Invoice rules – What level of detail do you need? How do they handle change orders?
Onboarding Checklist
Collect these documents from every vendor before their first job:
- W-9 form for tax reporting
- Certificate of insurance (COI) with your properties listed
- Service areas they cover with response times for each
- Primary and backup contact numbers
- Dispatch line or emergency number
- NTE (not-to-exceed) amounts by job type
- Payment terms (net 15, net 30, or COD)
- Tax forms and licensing documents
77% of property management companies say labor costs for vendors and contractors are their most painful cost pressure. Good vendor management helps control these costs.
Work Orders, SLAs, and Escalation
SLAs (Service Level Agreements) are simple promises about how fast you'll respond and fix things. Nothing fancy. Just clear expectations.
What Goes in an SLA
Define response times for each priority level:
- Response time – How long until someone acknowledges the request?
- ETA – When will a tech arrive on-site?
- Fix window – How long to complete the repair?
For property maintenance, a first-time fix rate above 80% is considered excellent. Anything lower means techs are making multiple trips for the same problem.
Basic Escalation Ladder
Not every problem needs the same urgency:
- Routine (24-48 hour response) – Squeaky door, slow drain, light bulb out
- Urgent (4-8 hour response) – No hot water, broken AC in summer, appliance failure
- Emergency (1-2 hour response) – Active leak, no heat in winter, gas smell, lock-out, security issue
What a Good Work Order Includes
Every work order should have:
- Property address and unit number
- Access notes – Is tenant home? Where's the key? Gate code?
- Photos of the problem if available
- Clear scope – "Replace leaking kitchen faucet" not just "plumbing issue"
- NTE amount – Maximum spend without approval
- Safety notes – Pets, mold, structural concerns
HVAC
HVAC is your biggest maintenance category. Most properties see HVAC issues year-round.
Common HVAC Jobs
- No cooling or no heating calls
- Filter changes (monthly or quarterly)
- Seasonal tune-ups (spring AC, fall furnace)
- Thermostat problems
- Strange noises or smells
HVAC SLAs
Response times should change with the season:
- Summer no-cool: 2-4 hour response (emergency)
- Winter no-heat: 1-2 hour response (life safety)
- Spring/fall: 24-hour response acceptable
- Parts sourcing: Stock common items or can get them same-day
- Warranty process: Labor and parts covered for 90 days minimum
HVAC KPIs to Track
- First-time-fix rate – 80%+ is excellent
- Callback rate – Under 10% is good
- Average ticket cost – Track over time to catch price creep
- Time to restore comfort – How long until the unit works again?
Landscaping
Landscaping affects curb appeal and tenant satisfaction. It's also weather-dependent, which makes scheduling tricky.
Common Landscaping Jobs
- Weekly or bi-weekly mowing
- Trimming and edging
- Irrigation system checks and repairs
- Seasonal cleanup (leaves, storm debris)
- Snow removal and de-icing where relevant
Landscaping SLAs
- Schedule windows – "Every Tuesday between 8 AM-2 PM"
- Weather delays – Clear policy for rescheduling
- Curb-appeal standards – What does "acceptable" look like?
- Photos – Before/after for major work, spot checks for routine
Landscaping KPIs
- On-time visit rate – Did they show up when scheduled?
- Complaint rate – How many tenant complaints per property?
- Season changeover readiness – Spring plantings done by target date?
Plumbing
Plumbing emergencies cause water damage fast. Speed matters here more than almost anywhere else.
Common Plumbing Jobs
- Leak repairs (faucets, pipes, toilets)
- Clogged drains and toilets
- Water heater problems
- Fixture replacements
- Main line issues
Plumbing SLAs
- Emergency triage – Active leak gets 1-2 hour response
- Water shut-off – Plumber must know where main valves are
- Access notes critical – Is tenant home to let them in?
- Parts approvals – Get approval before ordering expensive parts like water heaters
Plumbing KPIs
- Time to water-on – How fast did they restore service?
- Leak recurrence – Same spot leaking again within 30 days?
- Average cost per work order – Track to find outliers
Electrical
Electrical work involves safety codes and permits. Don't cut corners here.
Common Electrical Jobs
- Breaker trips and panel issues
- Dead outlets or switches
- Lighting problems
- GFI outlet resets
- Smoke detector and carbon monoxide detector issues
Electrical SLAs
- Emergency vs urgent – Sparking or smoke is immediate. Outage in one room is urgent but not emergency.
- Permits when needed – Major work requires permits and inspections
- Code compliance – Work must meet current electrical code
Electrical KPIs
- Safety pass rate – Percentage of inspections passed first time
- First-time-fix – Did they solve it in one visit?
- Inspection findings resolved – How fast do they fix inspection failures?
Roofing
Roof leaks cause expensive damage. Fast response saves money.
Common Roofing Jobs
- Leak location and repair
- Flashing repairs
- Gutter cleaning and repair
- Storm damage assessment
- Preventive inspections
Roofing SLAs
- Tarp time during storms – Active leak gets tarped within 4 hours
- Photo and diagram proof – Document leak location and repair method
- Warranty terms – Most roof repairs come with 1-5 year warranties
Roofing KPIs
- Leak-back rate – Does the same spot leak again?
- Time to dry-in – How fast did they stop water entry?
- Claim documentation quality – Photos and reports insurance companies accept
Doors and Windows
Broken doors and windows are security issues. Secure the property first, then make permanent repairs.
Common Door and Window Jobs
- Broken glass replacement
- Lock repairs and rekeying
- Weather-stripping replacement
- Sliding doors off track
- Screen repairs
Door and Window SLAs
- Secure-the-premises timing – Broken exterior door or window gets boarded within 2-4 hours
- Vendor safety steps – Board up first, glass replacement second
- Hardware approvals – Get tenant or owner approval on locks and hardware finishes
Door and Window KPIs
- Secure-time – How fast did they make it safe?
- Repeat visits – Did they complete the job in one or two trips?
- Tenant satisfaction – Happy with the work and the timeline?
After-Hours and Emergency Dispatch
Emergencies don't wait for business hours. You need a clear system.
Define Your Emergency Plan
- Who is on call each week?
- How do tenants reach them? (Answering service, direct cell, emergency line)
- What counts as an emergency? (Life safety, property damage, security breach)
- When to roll a tech immediately vs wait until morning?
5-Step Emergency Call Script
- Greet – "Emergency line, this is [name]."
- Verify – "Can I get your name, property address, and unit number?"
- Triage – "Tell me what's happening." Ask yes/no questions to assess severity.
- Dispatch or schedule – "I'm sending someone now" or "We'll handle this first thing tomorrow."
- Confirm next steps – "You'll get a call from the tech within 30 minutes. Call me back if you don't hear from them."
Log every after-hours call. Attach notes to the work order. This helps you spot patterns and improve your triage process.
39% of property managers spend more than 20 hours per month handling maintenance requests. Good systems and vendor management reduce this significantly.
Budgeting, Quotes, and Invoices
Money problems happen when expectations aren't clear upfront.
How to Set NTE Amounts
NTE (not-to-exceed) is the maximum amount a vendor can spend without calling you first. Set these by job type:
- Routine repairs: $150-250
- Urgent repairs: $500-750
- Emergency repairs: $1,000-1,500 (higher if needed to prevent damage)
Anything above the NTE requires a quote and approval before work starts.
When to Require a Quote
Always get quotes for:
- Jobs over your NTE amount
- Major appliance replacements
- Structural repairs
- Multi-day projects
- Anything involving permits
What Goes on an Invoice
Invoices should include:
- PO or work order number
- Property address and unit
- Labor hours and rate
- Materials list with costs
- Photos of completed work
- Warranty information
Prevent Scope Creep
- Before photos – Document the original problem
- After photos – Show completed work
- Change order approvals – Get written approval before adding scope
- Clear SOW (scope of work) – "Replace kitchen faucet" not "fix kitchen plumbing"
Reporting That Helps
Track these metrics monthly for each vendor:
Key Vendor KPIs
- Response time – How fast do they acknowledge and arrive?
- First-time-fix rate – Percentage of jobs completed in one visit
- Callback rate – How often do they need to return for the same problem?
- Average cost per work order – Is it increasing over time?
- SLA attainment – Did they meet promised response times?
- Tenant CSAT – Customer satisfaction scores from tenant surveys
- Quote-to-completion time – How long from quote to finished job?
- After-hours volume – How many emergency calls are they handling?
Simple Monthly Vendor Scorecard
Rate each vendor on a green/yellow/red scale:
- Green – Meeting or exceeding SLAs, good tenant feedback, costs in line
- Yellow – Missing some SLAs, occasional complaints, costs creeping up
- Red – Consistent SLA failures, multiple complaints, expensive outliers
Review yellow vendors monthly. Coach them to green or replace them. Replace red vendors immediately.
Your 90-Day Vendor Management Plan
Don't try to fix everything at once. Here's a realistic timeline:
Month 1: Audit and Foundation
- Week 1: List all current vendors and their contact info
- Week 2: Collect COIs and W-9s from everyone. Mark gaps.
- Week 3: Set SLAs for each trade. Write them down. Share with vendors.
- Week 4: Create work order templates for common jobs
Month 2: Standardize Operations
- Week 1: Standardize work order format. Train your team.
- Week 2: Launch after-hours call scripts. Test with your answering service.
- Week 3: Set NTE amounts by job type. Communicate to all vendors.
- Week 4: Create invoice requirements checklist. Send to all vendors.
Month 3: Measure and Improve
- Week 1: Build vendor scorecards. Pull data from the past 90 days.
- Week 2: Identify bottlenecks. What's causing delays?
- Week 3: Talk to yellow and red vendors. Create improvement plans.
- Week 4: Renegotiate rates with outliers or find replacements.
FAQ
What goes in a good SLA?
A good SLA includes specific response times for each priority level, clear definitions of what counts as routine vs urgent vs emergency, expected fix windows for common jobs, communication requirements, and consequences for missing targets. Keep it simple. One page is usually enough. Make sure both sides agree and sign it.
How do I set NTE amounts?
Look at your past year of invoices. What do typical jobs cost in each category? Set your NTE at the 75th percentile. That means 75% of jobs will come in under the limit. For example, if most faucet replacements cost $80-150, set your NTE at $200. This gives vendors room to work without calling you for every small variance.
What counts as an emergency after hours?
Real emergencies threaten life, safety, or immediate property damage. Active leaks, gas smells, no heat in freezing weather, broken exterior locks, fire, electrical sparking, sewer backup, and anything that makes the unit uninhabitable. A clogged toilet when there's a second bathroom is urgent, not emergency. No AC in summer is urgent unless temperatures are dangerous.
How do I reduce callbacks?
Callbacks happen when the tech doesn't fix the root problem. To reduce them: require before/after photos, set minimum first-time-fix targets (80%+), ask tenants to test the repair before the tech leaves, track callback rates by vendor, and replace vendors who consistently need multiple trips. Also make sure your work orders include enough detail for techs to bring the right parts.
What KPIs matter most?
Start with three: response time (are they showing up when promised?), first-time-fix rate (are they solving problems in one visit?), and tenant satisfaction (are tenants happy with the work?). These three predict almost everything else. Once you have these dialed in, add cost per work order and SLA attainment to spot price creep and quality issues.
How often should I review vendor performance?
Review your top vendors monthly. Check their scorecards for trends. Are response times slipping? Costs increasing? Complaints rising? Catch problems early. Review smaller vendors quarterly unless they're in the red zone. Annual reviews aren't enough—too much can go wrong in 12 months.
Keep Every Call with Ambs Call Center
Your vendors can only help if you catch the call. Tenants don't leave voicemails about emergencies. They call the next property manager on their list.
Businesses answer less than 40% of inbound calls. In property management, that means leaks get worse, tenants get angrier, and problems cost more to fix.
That's where Ambs Call Center helps.
We answer every call. We triage emergencies from routine requests. We dispatch your vendors according to your protocols. And we log everything so you have a complete record.
Want to see what missed calls cost you? Try our missed call calculator. When you're ready to keep every lead and keep tenants happy, we're here to help.