Property Management Tip - Test Your Vendors by Setting Up Ways For Them to Easily Cheat You

75% of Vendors overcharge on supplies andyou have already measured.
hours. As an owner of a large propertyAny of the above tests can be used for all new
management company, I typically have to govendors regardless of type of repair. You need to
through 3-5 new AC guys, electricians, carpenters,test a new vendor's integrity because you cannot
or plumbers to find somebody skilled, with greatsupervise all their jobs. Many people try to judge
rates who is honest. I test them by setting up aa person's integrity by just getting a feel for their
job so they can easily cheat me in materials andpersonality. This feels right but is a terrible
or hours. I just sit back and see if they takemanagement style. I am constantly amazed by
advantage of that opportunity. If they do, wewhich vendors cheat me on jobs. Some of these
never use them again.guys seem to reek of integrity yet are the first
Typical Teststo overcharge. You have to put them to the test.
1) Buy more supplies than we need and put themI do not say anything if they pass or fail these
on the job. For instance, if I have a carpentertests. It is very important not to confront a
putting in ceramic tile, I will buy 200 sq feet morevendor if they cheat or try to cheat you on the
than the job requires. If the materials are notjob. You should either pay them for their time or
there at the end of the job and he claims henot assign them the job and never use them
used them, I know this person cannot be trusted.again. I confronted a new AC repairman once for
2) Send a trusted electrician to a job and havecheating me on Freon use. He actually wanted to
him tell me exactly what is wrong and needs tofight me in the parking lot. So, you should be
be fixed. Than, I call the electrician I want to testdiscreet and keep the results to yourself.
and send him to the same job to give me aPeriodically test your vendors that have proven
quote of labor and materials. Compare the twothemselves. From time to time, trusted vendors
quotes and make a decision.will simply lose their minds or have to be gently
3) Measure a job for materials and than requestreminded that you are paying attention.
the new vendor to do the same thing andThere is an old management axiom: "Inspect what
compare. Obviously, you should not mention thatyou Expect.