10 Vendor Contracts You Need to Review Right Now

During budget season, reviewingvendor contracts should be at the top of your board’s priorities list. Without regular review, a homeowners’ association (HOA) risks price hikes, service gaps, and even legal issues. Read on to learn the 10 vendor contracts that have the biggest impact on your budget and discover best practices for reviewing, renewing, and renegotiating them.

What Is a Vendor Contract?

A vendor contract is a written agreement between an organization and a service provider that defines exactly what services will be delivered, how they’ll be delivered, and how much they’ll cost.

What is the difference between a contract and an SLA?

A vendor contract provides the overarching rules, while the service-level agreement (SLA) digs into measurable performance standards for vendors. For example, an SLA might detail how quickly a vendor must respond to a broken gate or complete a landscaping task. In contrast, a vendor contract outlines the overall terms and conditions of the relationship between the vendor and an association, including:

Renewal terms
Termination clauses
Liability protections
Dispute resolution procedures
Penalties for non-performance

How to Review a Vendor Contract

A vendor contract audit takes time and a keen eye for detail. The fine print can unveil hidden costs, limit your options, or open the door to disputes. Paying close attention may save your association money, prevent misunderstandings, and give you leverage if issues arise.

Here are five things to check while reviewing vendor contracts:

Scope of service. Are all tasks clearly listed? Vagueness can lead to trouble.
Performance standards. Are deadlines or benchmarks spelled out? The contract should define the type of service and the quality you expect.
Contract term lengths. Are renewals automatic? Do they align with your HOA’s needs? Also, check the start and end dates and renewal terms.
Termination conditions. How can you exit the contract if unresolved issues continue? Ensure you’re not locked in with a bad vendor.
Price increase language. Is there a cap on annual increases? Additionally, you need to know if, when, and how prices might rise during the contract period.

The 10 Types of Vendor Contracts You Need to Review Now

There are 10 vendor contracts that have the biggest impact on your bottom line. Crucial to community operations, it’s important to understand what to look for in each agreement. The 10 contracts you need to review now include:

1. Landscaping, Grounds Maintenance, and Snow Removal

Homes with excellent curb appeal can sell for 7% more than similar homes with poor curb appeal. Because an HOA’s grounds affect property values, landscaping vendors need to be vetted regularly. Look for seasonal prep and snow removal clauses in your landscaping contract and confirm year-round coverage, so you’re adequately protected for the entire year.

2. General Maintenance and Repair Services

General maintenance and repair services may cover pools, HVAC systems, and other tasks. Make sure emergency repair response times and protocols are in writing. A maintenance contract should also clarify who pays for parts versus labor and list specific equipment and features that need ongoing attention.

3. Insurance Policies

Routinely reviewing your HOA insurance policy is a non-negotiable. A survey on HOA insurance finds that insurance premiums now account for more than a third of HOA operating budgets. Always check premium amounts, coverage levels, deductibles, and exclusions. Make sure the policy aligns with state requirements and protects both board members and the community. Verify annual renewal requirements, so everyone knows what’s protected and when.

4. Management Services

Your management company often oversees vendors on your behalf. Confirm their responsibilities and legal obligations, reporting timelines, and oversight. Look for key clauses in vendor contracts that detail dispute resolution. Also, pay attention to who’s keeping resident records and enforcing the rules. Ensure that reporting timelines, management fees, and scope are clearly marked.

5. Technology Tools

From accounting software to access control systems, technology is everywhere. Review your software vendor contracts to verify data security protocols and upgrade schedules. Don’t forget to check exit terms if you switch systems.

6. Trash Removal

Confirm recycling terms, extra fees for large pickups, and holiday schedules. Missed pickups create resident frustration—and added expense.

7. Cleaning and Janitorial Services

Cleaning and janitorial services are essential for clubhouses, fitness centers, and offices. Spell out responsibilities (vendor vs. HOA). List exact spaces to be cleaned and deep cleaning schedules. Request documentation of service frequency as part of the vendor contract form.

8. Legal and Accounting

Expert support for compliance, disputes, and financial reviews is critical. Assess billing structures and request a vendor agreement example to compare options. Agreements should mention confidentiality clauses and deadlines for audits and/or tax filings.

9. Major Capital Improvement Contracts

Big-ticket projects, such as roofing, paving, and painting, can carry significant risks. Confirm warranties, completion timelines, and payment schedules are tied to milestones. Your attorney should review these before signing.

Additionally, a lien release clause may protect you from double payment, mitigate legal risks, and ensure project financing (if you’re using a loan for the project).

10. Amenities Services Contracts

Amenity service contracts, including lifeguards, gym equipment, and security agreements, directly affect resident satisfaction. Examine staffing certifications and qualifications (such as lifeguards and security staff), equipment maintenance obligations, and liability coverage. Include SLAs for response times; safety is vital in these agreements.

Best Practices for Negotiating Vendor Contracts

A contract review can prevent disputes and help you meet deadlines. It’s after a thorough review of vendor contracts that you can decide to renew or terminate the contract. At this stage, it’s best practice to:

Start the renewal process early. Give yourself plenty of time to negotiate and avoid any fees that may be added for last-minute renewals.
Adhere to the procedures outlined in each contract. Straying away from the standard process might derail your efforts and lead to legal trouble.
Document every step. You’ll want to be covered if something unexpected occurs.
Talk with your HOA attorney. Get legal advice from a trusted HOA attorney if you have questions about the accuracy of the contract or legal compliance.

Financial Risks of Choosing an Unproven Management Firm

Consider the financial risks of hiring unproven association management firm

With the recent changes in the U.S. housing market and the rise of online real estate platforms, many less experienced real estate agents and brokers have shifted their business from real estate sales to condominium and homeowners association management. While some smaller, unproven management firms may have a great sales pitch, there are potential risks associated with smaller, less experienced, and less financially secure management firms that could have a major impact on your community association, such as:

Impartial Manager Fiduciary: A small management company will have fewer HOA managers, and they may be overly reliant on one or two managers, who may also be principal owner(s) of the management firm. It is important for the community manager and firm to have an independent relationship for the continuity, transparency, and efficiency of the HOA operations. It can also take time and resources for less experienced managers to learn the specifics of the HOA and establish a reputation and rapport with the board and the homeowners. Does the smaller firm have the experience, financial backing, employee recruiting opportunities, and insurance coverage to survive and guide your association through any financial or disaster situation? If the smaller firm had a financial setback, would your association be impacted? It is important to understand the financial risk you are taking as a board member of your association.

Lack of Communication: An unproven management company may not have enough staff or advanced systems to respond to the HOA’s queries or concerns in a timely manner. This can lead to frustration, misunderstanding, legal issues, and mistrust between the HOA and the management company.

Low-Quality Vendor Services: A less experienced management company will not have a rigorous vendor selection process or a wide network of reliable and reputable insured and licensed vendors. This can result in low-quality or overpriced services for the HOA and a lack of independent financial oversight of the relationship between the management company and the vendor. The ethical issues can also carry over to the Board of Directors and affect the long-term maintenance and financial strength of the community and insurance coverage. All three items can have a detrimental impact on the resale value of homes within the association.

Inadequate Accounting and Reporting: A small management company may not have the expertise or the technology to handle the HOA’s accounting, reporting, and Human Resource needs. This can result in errors, discrepancies, or delays in the HOA’s financial statements, which can affect the transparency and accuracy of the HOA’s financial health.

Risk of Income Loss: A smaller management company may not have the skills or the tools to manage the HOA’s cash flow, collections, and reserve funds. This can result in a decrease in revenues or an increase in expenses, which can affect the HOA’s ability to fund its operations and capital projects.

Risk of Fraud, Theft, or Embezzlement: Last but certainly not least, a smaller, less experienced management company will likely not have the proper safeguards or controls to prevent or detect fraud, theft, or embezzlement of the HOA’s funds, including from online cyber security threats. This can result in a significant loss of money or assets, which can damage the HOA’s reputation and financial stability. We have helped many associations over our history that have had funds stolen from smaller management companies leaving the community in financial shambles. CMA has the experience and resources to help any association recover, but it can take years to fill the hole which will impact the resale values and insurability of the association.

These are just a few of the possible financial risks of an HOA going with an unproven management company. However, not all management companies are the same, and some may provide excellent service and meet the needs of your community. It is important for the board to do its due diligence and research before hiring any management company, regardless of its size. The board should also monitor and evaluate the performance of the management company and its insurance coverage and licensing regularly, and communicate any issues or concerns as soon as possible to reduce the financial impact on the association.

CMA has the expertise and resources to help guide your association through any crisis or loss. As the largest community association property management company in Atlanta, Alpharetta, Augusta, Dunwoody, Peachtree City, Roswell, Birmingham, Fairhope, Nashville, Destin, Santa Rosa Beach, and Naples, we are here to help your community thrive.

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Fire Prevention Awareness

Fire Safety Tips for Your Home

As we head into cooler months and holidays, it is important to check the fire and CO2 alarms in your home to prevent emergencies, whether you live in a condominium or high-rise building. If you don’t have fire or CO2 alarms in your home, adding alarms can save lives and property. Check with your local fire department to conduct a free property evaluation survey.

Install the appropriate number of smoke alarms & CO2 alarms. Test alarms once a month and replace the batteries at least once a year.
Check the expiration dates on your alarms, most devices expire after ten years.
Teach children what smoke alarms sound like and what to do when they hear one.
Ensure that all household members know two ways to escape from every room of your home and know the family meeting spot outside of your home.
Establish a family emergency communications plan and ensure that all household members know who to contact if they cannot find one another.
Practice escaping from your home at least twice a year. Press the smoke alarm test button or yell “Fire“ to alert everyone that they must get out.
Make sure everyone knows how to call 9-1-1.
Teach household members to STOP, DROP, and ROLL if their clothes catch on fire.

(Source: From 7 Ways to Prepare for a Home Fire at RedCross.org)

For more helpful fire prevention tips for your home, condominium, or high-rise building, visit American Red Cross or National Fire Protection Association

See how a professional property management company can help your community better prepare for any emergency with Community Management Associates, Georgia’s leading condominium and HOA management company with offices in Atlanta, Augusta. We have solutions to meet the needs of every community. Community Association Board of Directors can also find CMA offices in Birmingham, Fairhope, Destin, Naples, Santa Rosa Beach, & Nashville.

Fall Landscaping Ideas for HOAs

With fall’s agreeable temperatures enticing people to get outside, now is the perfect opportunity to refresh your neighborhood’s landscaping for a more visually appealing and welcoming atmosphere. Read on for information on what to do before tackling a project and a few simple fall landscaping ideas to boost the appearance of your community.

Any homeowners’ association (HOA) or condominium association (COA) strives to create a warm and welcoming environment where residents can make the most of community living. An inviting community encourages homeowners to take advantage of shared amenities, engage with neighbors, and enjoy the comforts of their neighborhood after a busy day.

What to Do Before Tackling a Landscaping Project

Before diving into these fall HOA landscaping ideas, review the landscaping rules in your governing documents for prior approval before making any changes to your landscape. Your community’s regulations will help you maintain your community’s consistency and avoid designs that disrupt the neighborhood’s aesthetic. For example, your HOA may require all landscaping to follow an approved color palette. This ensures that outdoor areas around the community are cohesive and complementary.

Because every community is unique and has its own style, following your HOA’s landscaping maintenance guidelines is vital. Remember, what works for a neighboring association may not be best for yours. Use your HOA rules to guide you as you look for new fall landscaping plants, flowers, and other ideas for community grounds.

Once written approval is obtained from your community, put the project out to bid with reputable and vetted licensed and insured service providers. Once a contractor is selected, make sure the contractor is aware and follows all community guidelines. Whether you are hiring a professional contractor, or tackling the project yourself, prior to starting any work, find out if your project needs a local county permit and call 811 to locate and mark all underground utilities prior to any digging.

Fall Landscaping Ideas for HOAs

By making small changes around the neighborhood, you can quickly—and easily—transform how your community looks and feels. Here are four ways you can take advantage of the season and enhance the community’s overall aesthetic.

1. Outdoor lighting.

When it comes to fall landscaping, simple lighting updates will make a big impact. Better outdoor lighting can have a dramatic effect on outdoor landscaping, help you save on energy costs, and make the community safer. Here are some ways to upgrade your exterior lighting:

Set lights to a photocell sensor or solar timer. These devices automatically turn lights on when it gets dark and off when extra light is unnecessary. They not only save energy, but also enhance safety and security—nothing looks more inviting than well-lit streets.
Stay on top of replacing bulbs. Changing a single bulb at a time can be costly, so have all bulbs inspected and replaced as needed this fall. This will typically allow you to purchase bulbs in bulk, providing a savings opportunity.
Switch to energy-efficient lighting. The pricing and quality of light-emitting diode (LED) and solar lighting have significantly developed over the last decade. To save on energy, consider migrating to LED lamps in your existing fixtures or replacing them with solar lighting.
Add uplights and spotlights in outdoor areas. Beautiful outdoor lighting highlighting community trees, fountains, and other landscaping features can instantly boost curb appeal and security.

According to the National Association of Home Builders (NAHB), a nationwide survey showed that homebuyers’ most-wanted outdoor feature was exterior lighting. With such an important emphasis on lighting, upgrading your HOA landscaping lighting may be worth the effort.

2. Plant trees.

You can easily add to your community’s ambiance and increase property values with trees. With fall’s mild temperatures and ripe soil, now is the perfect time to plant them. However, the placement and size of trees are crucial. Although you should incorporate a balance of plants and trees, confirm the species and types don’t grow so big that they overcrowd and block homes or buildings. Plant trees that offer minimal fall landscaping maintenance and draw attention to community structures and shared areas.

Depending on your location, popular tree types that may be a great addition to your community include:

Crabapple trees
Magnolia trees
Oak trees
Palms

In addition to improved community appearance, research shows that neighborhoods with thriving trees may also experience less crime than communities with no trees. While you should check your governing documents for restrictions and defer to your landscaping vendor on what trees work best in your community, it’s something to think about as you move forward.

3. Tidy up and clear out foliage.

Preserve community grounds and ensure that common areas don’t have overgrown grass and unkempt landscaping. A property that looks like it’s not taken care of can leave a bad impression on potential homebuyers and limit resident satisfaction. Make an effort to keep neighborhood grounds tidy by:

Trimming trees and bushes
Cutting grass and tending to garden beds
Clearing out broken or dead branches and rotted wood

4. Refresh mulch.

Maintain plants in common areas throughout the season with a thick layer of mulch. A three-inch layer can drastically reduce weed growth, which will save on the cost of fall landscaping services. Also, healthy mulch offers a crisp, clean, and refreshed look to your community landscaping, which helps create the beautiful environment you want for your HOA.

However, avoid piling mulch up against tree trunks and shrub stems. This allows pests to burrow under the mulch and gnaw on the plants and roots. Leave at least an inch gap between the stem or trunk and the mulch for optimal plant health.

Improve Community Living with Regular Fall Maintenance

Updating your landscaping this season is a great goal, but keeping your community’s buildings, grounds, and systems in good working order this time of year is crucial as we head into winter. If you have any questions about your community’s guidelines, please contact your association manager.

Summer Landscaping & Maintenance Tips For Your Community Association

With summer starting soon, community association management services begin to spike. That’s because landscaping is already challenging. Maintaining the looks and feel of your outdoor efforts merely adds to the difficulty.

Everyone has excellent advice for landscaping. However, we’ll provide some of the best strategies we’ve found working with our clients. Make sure you create an approach with your community association based on these tips.

Focus on proper watering

Notice that we say “proper” instead of “more.” That’s because quantity isn’t the best solution for healthier gardens and lawns. Start by checking your irrigation and other watering systems.

While watering, you might benefit from a lower frequency. That’s because you must focus on slow drips for deep hydration—Additionally, water in the evening or early morning to avoid evaporation.

Aim for green and living colors

Healthy grass looks green and vibrant. The same is true for your flowers. You want your garden to look as colorful as possible, but you might cut corners with certain decisions.

To start, don’t cut the grass too short; keep it around 3.5 inches in height. Go for organic fertilizer as well, and don’t over-fertilize your spaces. Schedule lawn checks to find any weeds that could steal your plants’ nutrients.

Consider outdoor amenities

Outdoor living spaces, like event rooms and children’s parks, can reduce your lawn work. They make your community’s areas more entertaining while reducing garden work.

However, it’s still a hefty investment. The best community association management services can help you optimize your amenities without spending too much.

Perennial plants are better

When planning flower beds, it’s best to prioritize longevity. You can save lots of time and money in the long term by buying perennials, not annuals.

These flowers, like the purple coneflower, require less maintenance. Sure, annuals tend to be prettier, but you need to assess how much your community association can spend. Perennials require pruning now and then, and that’s it.

While speaking of low-maintenance plants, also remember to plant native species to make your life easier.

Potted plants are also good

For many, potted plants lack some of the charms of a “natural” garden. While we can understand that, potted plants offer unique advantages.

Firstly, they need less maintenance. You can also move them wherever you want with minimal effort. Even if you prefer to plant everything on the ground, keep a few pots for parties and events.

Check for any pests

Remind your staff to check for pests while performing regular maintenance. Removing dead matter and weeds makes an excellent opportunity to find unwanted visitors.

It’s much better to catch pests early, as it can make treatment much more straightforward. Additionally, opt for organic solutions if you need to treat said pests.

Enact rules and guidelines

Finally, community association management services usually place rules and guidelines around open areas. These recommendations can save a lot of time and effort in maintenance.

For instance, forbidding smoking and drinking alcohol in the open can keep cigarette butts and beer cans off your lawn. Think about regulations that could protect your landscape and make them visually available for everyone.

What To Know About Opening Your Pool

With communities finally looking beyond the pandemic, more people are impatient to go back to their hot summer’s day dip at the community pool.

Now, these pools are not only a great source of relaxation for residents, but also significantly increase the asset value of properties within your Homeowner’s Association (HOA).

If you’re planning to open a community pool post the pandemic, there are a few things you should know.

Getting a permit and adhering to statutes

Should you be planning to build an ingrown swimming pool, you need to get specific licenses and permits from your local municipality. Talk to your municipality for all the necessary documentation and receipts you will need.

Additionally, you will have to adhere to the regulations set by your federal, state or local authority for running a swimming pool post-pandemic. Click here to know about maintenance requirements recently implemented by the California Legislature that community pools within large HOAs need to abide by.

You can use CMA’s services to get your HOA an on-site manager who can take care of all the licensing related to opening a community pool. CMA currently has nearly 150 state-licensed association managers working in Florida, Georgia and South Carolina.

Setting guidelines

Your HOA needs to develop a comprehensive set of guidelines that residents can follow while using the swimming pool.

Some rules that you can incorporate into your guidelines are:

Restrictions for children to use the pool without adult supervision.
Restrictions to take play toys, food items or drinks inside the pool.
Using proper safety gear required for swimming.
Identification check before entering the pool.

In addition to this, you need guests to maintain social distancing protocols in and around the swimming pool. For this, you can have time and maximum occupancy restrictions while using the pool area.

If you are a large HOA, playing catch up with the rules and regulations can be tough. Taking the help of a community management consultancy like CMA will make this process a lot easier for you.

Staffing

Ensure the safety of your residents by having adequate staff in and around your pool. The team shall include lifeguards to prevent accidents and attendees from looking into inconveniences faced by residents while using the pool.

If you are a large HOA with many people using your community pool, you may want to hire a pool management company.

Management

Pools can enhance your property’s aesthetic value and marketability but may also lead to accidents and mishaps. Maintaining a community pool safely and efficiently requires a great deal of commitment from an HOA.

Building and maintaining a pool for your community requires a significant investment. CMA’s unique corporate structure offers boutique-style custom services that let you reap the best out of your pool experience. With CMA, you can enjoy the benefits of a community pool within your HOA without having to go through the trouble involved in setting up and maintaining it.