Vendor management for landlords: finding, vetting and paying contractors

Good vendors are the difference between a maintenance request that closes in a day and one that drags for two weeks. They show up when they say they will, fix things right the first time, and send clear invoices. Finding them takes some effort, and keeping the relationship organized takes a system. Both pay off quickly.

This guide covers how to build your vendor list, what to collect before the first job, how to set approval rules, and how to handle invoices and reviews.

Build a bench, not a contact list

For each trade you use regularly, aim for a primary vendor and at least one backup. Trades most rentals need:

• Plumbing
• HVAC
• Electrical
• General handyman
• Appliance repair
• Locksmith
• Cleaning
• Painting
• Flooring
• Pest control
• Landscaping and snow removal
• Roofing
• Water damage mitigation

The backup matters because your primary vendor will be busy exactly when you need them, often during the first cold snap or heat wave.

Where to find vendors

• Referrals from other landlords and property managers in your area
• Local landlord associations
• Vendors who already serve nearby buildings
• Supply houses, which often know which contractors pay their bills and do good work
• Your existing vendors, who can recommend trades they work alongside

Online reviews are a starting point, but a conversation and a small first job tell you more.

Vet before the first job

Collect paperwork before work starts. Asking afterward rarely goes well.

Document	Why you need it
W-9	Taxpayer information for year end 1099 reporting
Certificate of general liability insurance	Covers damage the vendor causes to your property or others
Workers’ compensation certificate (if they have employees)	Protects you if a worker is hurt on your property
Trade license, where required	Many states and cities license plumbers, electricians, HVAC and general contractors
Business registration	Confirms the business exists
Rate sheet	Hourly rates, trip charges, after hours rates and markup on parts

Ask that certificates come directly from the vendor’s insurer or agent, and consider asking to be named as an additional insured on the liability policy. Record each expiration date and set a reminder before it lapses.

Verify licenses through your state or city licensing board’s lookup tool rather than relying on a number printed on a card.

Put the terms in writing

For vendors you use regularly, a short written agreement prevents most disputes. It does not need to be long. Cover:

• Scope: the trades and properties they serve
• Rates: hourly, trip charge, after hours and emergency rates, parts markup
• Approval limits: what they can do without asking
• Response expectations: how fast they acknowledge and arrive, by priority level
• Entry and tenant contact: how they schedule with tenants and what they must do on arrival
• Insurance and license requirements, and that they must tell you if coverage lapses
• Invoicing: what an invoice must include and when it is due
• Warranty on labor and parts
• Cleanup: leave the work area clean and remove debris
• Lien waivers for larger jobs, where your state uses them

Our post on emergency versus routine maintenance covers how to define priority levels that your vendor agreements can reference.

Approval limits

Approval limits let trusted vendors fix small problems quickly while keeping you in control of larger spending.

Worked example

You set these rules for your plumbing vendor:

• Under $300: proceed with the repair, send photos and the invoice afterward.
• $300 to $1,500: send a written quote with photos and wait for approval.
• Over $1,500: send a quote; you will get a second quote before approving.
• Emergencies: stop the damage and make it safe at any cost up to $750 without approval, then quote the rest.

A tenant reports a running toilet. The plumber replaces the fill valve and flapper for $185 and sends the invoice. No call needed. A month later, the same plumber finds a corroded water heater. Replacement is quoted at $1,850. You get a second quote at $1,700, compare the scope, and approve one. Both decisions are recorded on the work order.

If you manage for owners, your management agreement may set its own approval limits for repairs. Your vendor limits should fit inside them. Our property management agreement template includes a repair authorization clause.

Dispatch and scheduling

Clear dispatch saves calls for everyone. Each job should give the vendor:

• Property and unit address
• Description of the problem, with the tenant’s photos
• Priority level
• Whether the tenant has given permission to enter and their preferred time windows
• Tenant contact information, if the vendor schedules directly
• Any access instructions, such as lockbox codes or pets in the unit

In TenantLoop, you pick one or more vendors and send the job offer. Each vendor gets an email with a private link where they accept or decline, add a quote and their availability, confirm the visit time and upload the invoice, with no login or app to install. Each work order records whether the tenant gave permission to enter and the time windows that work. See work orders.

On Premium, the Maintenance Ops agent sends the job to the vendors you chose for that trade, up to five at once, and can skip vendors whose insurance on file has expired if you ask it to. You see the replies side by side and approve the match. Vendor selection, opening a work order and the vendor bill all hold for your approval by default.

Invoices and payment

Before paying, match three things:

1. The work order: what was requested
2. The quote or rate sheet: what was agreed
3. The invoice: what was done and charged

Check that the invoice names the property and unit, describes the work, separates labor and parts, and includes photos for anything significant. Question charges that do not match.

Pay on the schedule you agreed. Vendors who are paid promptly tend to answer your calls first.

In TenantLoop, the vendor’s invoice is attached to the work order and you create the bill from it, and the list shows which jobs are billed and which are not. Paying the vendor is still your click. If you use QuickBooks Online, bills can sync there. Our post on repairs versus capital improvements covers how to categorize what you pay for taxes.

Year end 1099 reporting

Vendors you pay for services may need a 1099 form at year end, depending on how much you paid them, how you paid, and whether they are a corporation. Payments made by card or through some payment networks are often reported by the payment processor instead. Our guide to 1099 forms for landlords explains thresholds and exceptions. This is why collecting the W-9 before the first payment matters.

Review vendors once a year

Once a year, look at each vendor on four points:

• Response time: do they acknowledge and show up within your targets?
• Quality: how often do jobs need a callback?
• Price: are invoices in line with quotes and with other vendors?
• Paperwork: is insurance current, are invoices clear, did they send a W-9?

Keep the vendors who score well, talk to the ones who are slipping, and replace the ones who do not improve. Ask your tenants too; they see how vendors behave in their homes.

Common mistakes

• No backup vendor for critical trades
• Letting a vendor start without a certificate of insurance
• Expired insurance nobody noticed
• No written approval limit, leading to surprise invoices
• Paying invoices without matching them to the work order
• Missing W-9s at year end
• Using unlicensed contractors for work that requires a license

Licensing, insurance, lien and tax reporting rules vary by state and change over time. This post is general information, not legal or tax advice. Check your state and local requirements, and confirm 1099 rules with your CPA.