The Importance of Vendor Contracts
Homeowners Association Boards (HOA) should be well acquainted with dealing with contracts for goods or services used in their community and for their association. Before you find yourself in a dispute, make sure you are working with a vendor that adheres to the contract as written. Choose the right vendor and verify that the vendor is licensed, bonded, and insured. Reputable Tampa HOA management companies, such as Wise Property Management, can recommend proven vendors.
KNOW THE FEES
Know what you’re getting your HOA and its residents into. Too many fees may cause you to increase rates for tenants. Contracts are not only good business practice; they are necessary to avoid surprises or large disappointments down the road. Don’t be afraid to go over all details and know each fee included. This will be vital in order to budget for your community.
ASK AN EXPERT
If you don’t understand some of the terminologies, ask for clarification. Are you well equipped to analyze legal contracts? If not, share the contract with your attorney, insurance professional, and accountant before signing. This small extra step could save you big trouble later on. We also suggest reviewing the contract with committee members. Once in awhile, after a contract is complete, additional services can be discussed. It’s best to have those add-ons in writing.
KNOW WHEN CONTRACTS EXPIRE
Contracts define what kind of service your residents will receive. As a member of an HOA board, you are juggling multiple contracts by multiple vendors. If there are conditions or contracts expiring at a certain time, make note of it. Keeping a calendar of all vendor contracts will help when you need to remember renegotiations or if you need to consider replacing that vendor.