Getting Started With Rehab Vendors

  1. When they come into the office to meet with the manager to go over the information packet. Show them examples of how the invoicing should be done; prices need to be broken down. Explain to them how they receive work orders via email and what the guidelines are. Give them the packet to review because it explains the advertising program and what is required of them. *Note there are two different packets, one for Rehab Vendors and one for General Vendors.**
  2. Once it is established that they want to be in partnership with your company, have them sign and return the packet of information.
  3. Enter the vendor in the M1 system so that work orders can be issued. (See how to enter a vendor)
  4. Vendors that are for rehabs must first walk a property with the property inspector. This will allow them see firsthand what the company is looking for. They will also walk a READY property with your property inspector so they can see what the company expects of a completed house. We are not making the house brand new!
  5. Once they have walked the property with the Property inspector then issue them one or two properties to get started. This will allow you to see how well they complete the tasks and if they can follow the deadlines. Start them on a house that has some time and is not a rented this way if something does go wrong you have time to fix the problem.  
  6. Give them the “Rehab Walk Through” and the “Final Is Ready” paperwork or send them the excel version. They should use this with the first job instead of waiting for a house or two this way it is easier for all to follow. **Send them the excel file so they have it ahead of time*
  7. If all is working out and it is decided by both parties to continue the partnership then a pricelist should be given to the vendor as well as the agreement to sign pertaining to the pricelist. It is important they understand that the prices are set prices and the list is property of the MOLOS.
  8. With new vendors they need to be brought in once a month for the first 3 months. Use the attached meeting form during each meeting. You can utilize a laptop and fill out the form while doing the meeting. Send a copy of the notes to the vendor, have them sign it and send it back. This will be a time to review invoices, etc. with the vendor to ensure both parties are moving forward on the same page. Once fully on the company’s system vendors will be brought in twice a year, unless you find it necessary bring them in sooner, to ensure that communication remains key.
  9. Companies often use the phrase “licensed andbonded” to show their legitimacy and trustworthiness. When hiring someone to provide a service, it is important that the company ensures the service provider(vendor) is licensed and bonded to safeguard against poor workmanship, theft, and illegal practices. You should also check for documented proof of bonds and licensure.
  10. Being licensed ensures that the service provider has been trained in the proper practices and regulations concerning his service. This means the licensee is competent and capable of doing the work at hand. It also means the worker is familiar with the laws and standards of his field in that particular area of governance and can be held accountable if the regulations are not followed. The vendor or general may lose its license to operate in that municipality, state, or the country if rules are not followed. You can also use the company’s vendor license number to research through the Better Business Bureau.
  11. In many cases, a company may just be licensed, but it is important they are bonded as well. If a company is bonded, it means that a bonding company has set aside money that is controlled by the state and not the company to pay in the event that the company, an owner or a resident files a claim against the vendor. For example, if the company hires a plumbing company and a household good was broken or stolen in the course of the plumber’s work, we might file a claim against the company depending on the circumstances. If the ensuing investigation found the plumbing company responsible, the client would be paid out of the bond. A vendor can also get bonds for specific employees who are working with very valuable property, which usually involves a thorough background check.
  12. Surety bonds are three party contracts between the principal (vendor), who performs the service, the oblige, (the Company), and the surety, who financially ensures that the principal will fulfill its contractual obligation. The principle pays a premium fee to the surety, who in turn pays the oblige if the principle defaults on its contract. An example of this might be if a client hired a licensed and bonded lawnmower and the lawnmower only mowed half the lawn. The surety will then reimburse the client for the original fee charged as well as any legal fees from the investigation. Bond companies sell bonds to general and other vendors at competitive prices based on the risk of the service provided.