5 Mistakes HOA & Co-op Boards Make When Hiring Vendors

Hiring vendors may seem straightforward: get a few quotes, pick the best price, and move forward. But in reality, it is one of the most common areas where co-op and HOA boards lose money, encounter complaints, and open themselves up to liability. Here are five mistakes boards often make and how to avoid them.

Not Verifying Insurance or Licenses

Before signing any agreement, your board should confirm that the vendor holds up-to-date liability insurance, workers comp (if applicable), and proper trade licenses. Failing to do so puts the board and the entire property at risk.

Choosing the Cheapest Bid Automatically

Lowest price does not always mean best value. Make sure your vendor has experience, references, and a track record for doing quality work on similar properties. The short-term savings can cost you in rework and resident complaints.

Skipping Written Contracts

A handshake agreement might feel simple, but if something goes wrong, there is no accountability. Always require a signed agreement with scope of work, deliverables, and timelines.

No Oversight or Performance Tracking

Boards often hire vendors, then disappear until something breaks. Without quarterly reviews or reporting, quality can slip quickly. A good property manager should track performance and handle re-training or replacement as needed.

Forgetting Emergency Readiness

Does your snow removal company answer the phone at 5am? Does your porter have backup if they are sick? Emergency preparedness should be part of the hiring discussion, not an afterthought.

Let Us Help

Vendor management does not have to be stressful, but it does have to be structured. Jonasvar helps boards avoid common mistakes through vendor vetting, tracking, and hands-on supervision.