Supplier compliance, what does it mean, why is it important, and how do you accomplish it?

Posted By: Tonya Storovich Articles,

It’s not that sexy, but it is required. With all the different compliance companies out there may at times seem very overwhelming. Do you recognize these names Yardi, RMIS, RealPage (aka compliance depot), Vendor-café, Vendor Depot, and the lists will continue to go on! These platforms were created to help keep the suppliers and the multifamily community on the same page.

If you look at the list above and your head begins to swim, take heart, once you begin working with them it is a breeze. The first step is having a great insurance agent who can help you navigate through the legal jargon of what is required for your insurance to be “In Compliance.” Complying means a few things regarding insurance levels. It is based on what you do, what kind of company you are (onsite services, delivery services, or off-site supplier}, and sometimes
what areas you service. This will determine what dollar value you will need to carry on your insurance. Do you have employees, or do you subcontract, this is the conversation for workman’s compensation. The companies you work with will either have an overall certificate holder name or they may require you to list the Investment company for fee-managed communities.

Next, we must talk about signing vendor agreements. What is a vendor agreement? This is the contract you are making with the company regarding how business will be conducted, what the pay frequency looks like, liability, your conduct, warranty of work, etc. This is usually in electronic form and will require an officer or owner of the company to sign. When signing this it is necessary to make sure you understand each of the components outlined in it. If you have any questions, ASK!!!

“Okay, I got the insurance, and signed the agreement,now what?” Great question! On some platforms, you have to take a look at what areas or states you work in. You will see a great list of all the communities that you will have the opportunity to work with. Start clicking on them and adding them to your profile. Keep track of who you clicked on this will be valuable in reaching out to let them know you comply and are ready to help them.

What kind of supplier are you? This will determine whether or not you need to submit your licenses. General contractor, HVAC, Plumbing, Electrical, etc. When you supply your license you are ensuring that you are a credible supplier and can do the necessary work.

(Suspenseful music)

The last step, dah dah dah!!! PAY. Yes, it sounds like it is a fortune to have to pay to work with each management company. The fees can range from $99 to $199, depending on the platform they are working with. Making this once-a-year payment helps ensure that your company is seen and you will get paid. Completing one job and you will have your ROI instantly. Congratulations you are now in compliance!