Vendor Management 101 for Commercial Properties
Introduction
Vendors are the backbone of commercial property operations. From landscaping to snow removal, every service impacts tenant satisfaction, curb appeal, safety, and the financial bottom line. Yet many properties struggle with inconsistent results because of weak vendor management. At Jonasvar, we believe successful vendor partnerships begin with proper vetting and continue with strong oversight, clear expectations, and accountability.
The Biggest Mistakes Owners Make
The most common mistake is failing to properly vet vendors. Too often, managers select the cheapest bidder without verifying insurance, licenses, or safety compliance, or without reviewing performance at similar properties. This shortcut may save money upfront but frequently results in poor service, higher costs later, and reputational damage to the property.
How Jonasvar Selects Vendors
At Jonasvar, vendor selection is deliberate and thorough. We review references, evaluate the scope of services offered, confirm insurance and regulatory compliance, and visit comparable properties to assess performance firsthand. Once a vendor is chosen, we establish a clear contract and service level agreements so there is no misunderstanding about expectations.
Oversight and Accountability
Strong contracts set the foundation, but ongoing oversight ensures performance. Jonasvar conducts routine site visits to confirm vendors are meeting standards and proactively identify concerns. We use service level agreements that spell out how often a vendor must be on-site and what outcomes they must deliver. We document performance with photo logs and digital tracking tools, giving owners objective proof of compliance. If concerns arise, vendors are notified and given the opportunity to correct issues. When necessary, we escalate and replace underperforming vendors to protect our clients’ interests.
Transparency with Owners
Owners deserve visibility into vendor performance. Jonasvar provides regular updates and detailed monthly reports that highlight vendor activity, compliance with service agreements, and the impact on financials. We connect vendor outcomes directly to property value and NOI, ensuring that owners see both the service delivered and the return on investment.
Industry Gaps
Many managers fail at vendor management because they provide no clear guidance on evolving property needs, lump multiple services into vague contracts, or hire the lowest bidder without oversight. They rarely visit properties to confirm vendors are performing, leaving owners blind to service gaps. Jonasvar takes a different approach by combining thorough vetting, frequent site inspections, performance documentation, and annual contract reviews to ensure services evolve alongside property needs.
Real-World Examples
Our vendor management approach has prevented costly mistakes and improved tenant satisfaction. For example, in a recent snow removal contract, we required specific triggers for when crews had to respond. This ensured safe conditions for tenants and customers and reduced slip-and-fall risks. In another case, a prior manager failed to oversee landscaping services, leading to declining curb appeal and tenant dissatisfaction. Jonasvar stepped in, enforced clear service requirements, and monitored results, restoring the property’s appearance and protecting its reputation.
The Bottom Line
Vendor management is about more than signing contracts. It is about selecting the right partners, verifying compliance, setting clear expectations, monitoring performance, and keeping owners fully informed.
Let Us Help
At Jonasvar Inc., we manage your property like it’s our own by building strong vendor partnerships, enforcing accountability, and ensuring services enhance both tenant experience and property value.
Wondering if your vendor contracts are delivering real value?