Serving on a homeowners’ association (HOA) board of directors means that no day is the same. The regular meetings and consistent obligations can sometimes become overwhelming, and making time for anything else can feel like treading water. When the paperwork piles up and the task list gets long, hiring an expert may be the best option. Read on to discover how to hire the best contractor for your HOA’s needs.

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Why Choose a Contractor Instead of an Employee?

The primary reason hiring a contractor benefits an HOA is the reduced risk in liability. Typically, there will be a written waiver prohibiting the contractor from holding the HOA responsible for any claims or damages. Additionally, hiring a contractor tends to come with less paperwork and financial hassle. As a rule of thumb, be sure to reference your HOA governing documents, along with any necessary IRS forms.

8 Steps to Hiring the Right Contractor for Your HOA

1. Determine the type of contractor needed

Because HOAs have a wide range of amenities, infrastructure, and systems, the board may need to outsource work and leverage professional support. Evaluate the areas and projects with the greatest needs and make a list of desired prospects. Here are a few of the most common types of HOA contractors:

Landscaping
Bookkeeping
Pool services
Roofing and gutter cleaning
Heating and cooling installation

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2. Interview multiple candidates

You may be inclined to hire the first contractor you meet. Although they may come highly recommended, take the time to interview at least three other contacts. When interviewing contractors, treat the conversation like any business professional would—with courtesy, kindness, and an open mind. Here are some questions that can help you make the right choice for your HOA:

What kind of services do you offer?
What will the project process look like?
What are the contract terms?
How do you handle warranty issues?
How do you stay updated with industry best practices?

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3. Verify licenses and insurance

Due to the many liabilities HOAs can encounter, it’s vital to hire specialists that are licensed, bonded, or work as insured contractors. Guarantee prospects have adequate credentials and coverage to protect against property damage or injury.

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4. Check vendor references

Before moving forward, ask to see references from current or former clients. Reach out to their contacts and ask them these questions:

How did the project’s final cost compare to the estimate?
Was the job completed according to the given schedule?
Was the contractor professional and punctual?
Were there any major disputes? If so, how did the contractor handle the situation?

It’s also smart to research online reviews and reference their Better Business Bureau (BBB) page, which should contain a clear rating of the contractor's or vendor's current business status.

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5. Talk about pricing

Discussing costs is a key part of the hiring process. While it may come naturally to select the lowest rate, going this route may not be the best decision. The phrase, “You get what you pay for,” often proves true. Vendors who offer lower rates may also come with less experience, a history of shoddy work, and ultimately create more financial strain and frustration.

Always perform a background or reference check to prevent your HOA from being put at risk of any poor outcome. As an added suggestion, request the candidate provides you with visual examples of past work that may relate to their asking price.

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6. Ask about product preferences

It’s common for vendors to have product preferences, sometimes recommending specific brands simply due to their crew's familiarity with them and past success. Be aware that if a vendor uses only one brand or a particular type of product, an HOA may put itself at an increased financial risk. What’s suitable for the contractor may not be ideal for the association. As a solution, ask the contractor if they deliver multiple products or are open to alternatives. This allows the board to compare value and potential cost implications before making a decision.

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7. Share the project scope

Before breaking ground on a project, the association and contractor should map out the scope of work, so all proper steps are established to complete it. Start by treating the venture like a request for proposal. Clearly define your community’s needs, and ensure the contract reflects your quality standards.

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8. Obtain a written contract

After selecting a contractor and agreeing on the project scope, you must get it in writing. In most cases, written agreements usually contain a cost of labor breakdown, termination options, payment methods, warranties, and the scope of work. Remember to have your HOA attorney review drafted agreements or proposals before making a final decision. Once the ink dries, you’re ready to get started!

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