Vendor Onboarding Checklist

Risk tier drives the rest of the onboarding. Critical / high-risk vendors (HVAC, electrical, plumbing, roofing, anyone with unit-entry keys) require background checks and higher insurance limits. Standard vendors (landscaping, pest control, pool service) follow the baseline path. Specialty / one-time vendors (a single roof replacement, a tree removal) get a lighter package but still need a current COI.

Capture the legal entity name as registered with the Secretary of State, any DBA, the business address, dispatch phone, after-hours phone, and an A/P email distinct from the dispatch address. The legal name on file must match the W-9 and the COI exactly — mismatches break 1099 filings and additional-insured endorsements.

Don't accept a verbal TIN. Use the current IRS Form W-9 and verify the legal name matches the EIN/SSN through the IRS TIN Matching service before the first payment. Mismatches at year-end trigger B-notices and 24% backup withholding — fixing it then is far harder than fixing it now.

Sole proprietors, single-member LLCs, and partnerships receive a 1099-NEC at year-end if paid $600+. C-corps and S-corps generally do not (attorneys are the exception — they always 1099). Set the classification now so accounting doesn't scramble in January.

Get the COI directly from the vendor's insurance agent — not a screenshot the vendor emails over. Confirm general liability ($1M/$2M minimum for most trades; higher for critical), workers' compensation per state law, and auto liability if they drive to properties. Verify the policy effective dates cover the engagement period.

The Description of Operations on the COI should name the management company AND the property owner entity as additional insured — both, not just the manager. Reject COIs that only list the management company; if the vendor injures someone on the property, the owner needs the coverage too.

COIs expire annually. Capture the policy expiration and set a reminder for 30 days before expiration so a lapse never sends a vendor onto a property uninsured. A lapsed COI is the most common reason a vendor accident becomes a manager's personal liability.

Look up the license number on the state contractor licensing board (e.g., CSLB in California, TDLR in Texas, DBPR in Florida). Confirm the license class covers the work scope — a residential general contractor's license doesn't cover commercial roofing or HVAC. Flag suspended or expired licenses for follow-up before any work order.

For vendors whose techs enter occupied units, require the vendor to provide background-check results for each tech who will be on-site, or run them yourself through TransUnion / Checkr. Cover criminal history (7-year), sex offender registry, and driving record if they drive owner vehicles. This is a Fair Housing-sensitive area — apply criteria uniformly across vendors.

For trades with elevated risk (roofing, electrical, anything involving lifts or confined spaces), request OSHA 10/30 cards and any trade-specific certifications (EPA 608 for HVAC refrigerant handling, lead RRP certification for pre-1978 properties). Pre-1978 lead RRP is non-negotiable — EPA fines run high per violation.

Walk the vendor through the firm's entry rules: 24-48 hour written notice to occupied units (per state landlord-tenant act), no entry without dispatch authorization, key sign-out and return at the end of every visit. Document who on the vendor's team is approved to hold keys.

Lock down response times by priority (emergency <2 hours, urgent same-day, routine 3-5 business days), the after-hours rate, the trip charge, and any flat-rate book pricing for common work orders. A rate sheet attached to the master agreement prevents the every-invoice negotiation that drains coordinator time.

The contract should require the vendor to indemnify and defend the manager and owner for vendor-caused damage or injury, and require the COI to name both as additional insured on a primary and non-contributory basis. Have legal review for any vendor that pushes back on these terms — they are non-negotiable for any vendor working on-site.

Send via DocuSign or AppFolio's built-in e-sign so the executed copy is timestamped and audit-ready. The MSA, the signed W-9, the COI, and the rate sheet all live in the same vendor folder — that bundle is what gets pulled if a claim is ever filed.

Set the vendor's legal name (matching the W-9), tax ID, default GL coding for typical work (R&M vs capex), the trade category, and the property assignments. Attach the W-9, COI, and signed MSA to the vendor record so anyone routing a work order sees the documentation status at a glance.

Verify ACH banking details by phone using a number from the vendor's website or licensed business filing — not a number from the email requesting the change. ACH redirect fraud against property managers is common; the verification call is the standard control. Avoid paper checks where possible.

Show the vendor exactly what a compliant invoice looks like: work order number on every line, before/after photos for material work, the property address, and the rate-sheet line item invoked. Invoices missing the WO number bounce — set that expectation now, not after the first 30 unassigned invoices pile up.

Set the 1099 flag on the vendor record so payments accumulate toward the $600 threshold automatically. Don't wait until December — vendors that weren't flagged in January are how 1099 corrections happen.

Document the daytime dispatcher, the after-hours / weekend contact, and the escalation path if the dispatcher is unreachable. The maintenance coordinator and the on-call manager both need this saved in the property management system, not just in someone's phone.

Define how invoice disputes, scope disagreements, and quality complaints are escalated and resolved — with whom, on what timeline, and which clause of the MSA governs. Most disputes resolve faster when both sides know the path before the first one comes up.

Pull response-time metrics, callback rate, invoice accuracy, and tenant feedback against the SLA. Confirm COI is still current and W-9 information unchanged. This is the gate for moving the vendor from probationary to standard status — or unwinding the relationship if performance hasn't met the SLA.