If you have worked in the multifamily industry for a lengthy time, you most probably have heard of Vendor Credentialing, formerly Compliance Depot. If not, this article is an introduction to Compliance Depot and why you would possibly want to sign up for it.
If you’re new to the multifamily business or desire to provide services to apartment buildings, then you can benefit from this post. It offers an overview of the steps you have to take to start working with this business.
As a new vendor, you might ask yourself, what is Compliance Depot or Vendor Credentialling? And why do I need it?
According to RealPage, it helps its clients to mitigate risk. The overall idea is to ensure that vendors meet specific criteria before providing services to a property management company.
It is common for companies that manage apartments — management companies — to require a number of documents before you start working at their properties. Some management companies will use Vendor Credentialing (Compliance Depot) to confirm that you meet their criteria.
These documents confirm that you have the necessary insurance to work at the property and have a clean background.
Vendor Credentialing (Compliance Depot) will vet all your information to ensure that you comply with its client’s requirements.
Vendor Credentialling (Compliance Depot) claims to provide benefits for both apartments and vendors.
For the apartments, they will ensure the vendor meets the requirements set by the property. For the vendors, they promise more visibility to companies that use their system and possibly more business for you.
Additionally, one benefit I have experienced is that Vendor Credentialling (Compliance Depot) ends up weeding out some of your competition as some potential vendors don’t want to do the paperwork.
Another support you might receive is when you have a question about the insurance. Customer service will assist by contacting your agent directly and explaining the needs.
Let’s say you are a painter. Once registered and approved, your name will be listed on their site as a painter for a particular area. Any property management company in the same area that uses Vendor Credentialing (Compliance Depot) will have access to the list of approved vendors in their area. If one of those property managers is seeking painters and decides to use that list, you could receive a phone call.
However, I have been a Compliance Depot member for many years, and to date, I have received one single lead from their website. And the call was from the same company I was already working with. The apartment community that called was from a nearby town.
With that said, don’t expect to be flooded with calls from people that found your name on the Vendor Credentialling’s (Compliance Depot) site.
Another benefit, not sure if it is a benefit, is that once approved, you can add the certified vendor logo on your site and invoices.
Property Management companies, most of the time, manage apartments. The management companies are the ones who set policies and procedures. With that in mind, It is not uncommon for the corporate office to have vendor approval authority.
In other words, the property staff doesn’t have a say on your status. Vendors can only work at a property if the property management company approves.
Why do they require vendors to have insurance? On many occasions, the insurance company that covers the apartments offers a discount if vendors meet certain standards depending on the type of work.
For instance, a roofer is on a higher-risk platform than someone sweeping the floor. Property managers make the vendor requirements a standard so the property can receive a discount.
Moreover, before hiring a vendor, the property management company must ensure the vendor is compliant with local and state regulations.
Now, let’s add all of these together. A large property (200+ units), during 12 months, may use over thirty different vendors — roofers, landscapers, cleaners, flooring, painters, carpenters, etc. And most companies will require at least four tears (additional insurance requirements) or more — low, moderate, high, professional services, etc.
But all of those mentioned above are just on the property level. Again, most property management companies are managing thousands of units. Maintaining such an extensive database is very challenging.
Compliance Depot is designed to alleviate the burden. They will notify the property management company if something is missing or new changes — insurance expiring, drop of coverage, etc.
These services offered are designed to help the property stay compliant, hence “compliance depot.”
First, if the property management company uses Vendor Credentialing (Compliance Depot), you will not be able to walk up and start working; you have to be approved. There is a process in place to ensure you comply with their requirements.
If the property management company has an OPEN vendor list, you can contact Vendor Credentialing (Compliance Depot) directly and apply to be a vendor for that specific organization. It does not mean they are hiring you; it simply means that you are approved to work for them.
On the other hand, if the property management company has a CLOSED vendor list, you have to be invited to apply. In some cases, if the property manager has access, he/she can do it immediately.
But if someone from the corporate office handles this process, you might have to follow up on the invitation.
Once you submit all the documents, it typically takes 3 to 5 business days to be approved. If you have a clean slate and your insurance is good, it should be within a couple of days. It might take longer if you are required to provide more documents or adjust insurance.
This excellent service does not come free. And guess who pays for it?
You got it. It is you, the vendor.
At the time of this post, the fee for a vendor that requires a certificate of insurance is $99/year per client.
So, for instance, you are becoming a vendor for Terrace Place Apartments, which XYZ Management manages. You become an approved vendor for XYZ when you submit your paperwork and pay the fee. Thus, if XYZ Management also manages Summer Breeze Apartments, you are authorized to work there without any extra fee.
Now, if Green Apples Apartments, managed by ABC Management, asks you to work for them, you must again pay the $99 fee to be approved for another property management company.
Furthermore, at the end of 12 months, you will have to pay the fee again if you are still providing service for the property management company.
The requirements will depend on the property management company. Some will require different levels of insurance and background checks. Some organizations will request a credit check.
Vendor Credentialing (Compliance Depot) is responsible for the background checks, gathering documents, checking for compliance, and ensuring everything is valid and in good standing.
Thus, you might see different requirements depending on the company you are applying to work for.
If your insurance complies and all the necessary information is uploaded correctly, it takes around 48 hours. Sometimes longer, sometimes less.
It will take much longer if your insurance is less than acceptable and you are willing to make the adjustments.
In some instances, if the property needs you, and they convey that to the corporate office, the management company will allow an exception through Compliance Depot. But don’t hold your breath on that; it is doubtful.
Compliance Depot offers a premium option called Credential Key — I have never used it before. If you are approved for ABC Property Management, you could be instantly approved to work for XYZ Management Company, provided that you can fulfill all the latter requirements. If that is the case, you will be able to work that same day.
Let’s be honest; $ 99 is not that much. But I don’t particularly care for losing money either.
Before taking on a job that requires Compliance Depot — or any system that demands payments — you have to analyze if it is worth it for your company.
I have personally taken jobs where I paid the $99 fee and only invoiced $250; I never got another call to do from that specific apartment community.
Before I accept a job from a property that requires Compliance Depot, I consider several things:
You should take into consideration your type of work. You are at a loss if you do carpet cleaning and get only one job. The profit will not cover all your expenses.
If you are a roofer and they are calling you to fix a shingle, that is likely to be it. Shingles don’t need fixing daily. But if the apartments call you to paint, it is expected they will contact you again, as that is a service they will need consistently.
If ABC Management only manages Livewell Terrace in your area, a sixplex, you probably should take a pass on that. Unless they are looking to remodel all the units, you know you will be able to come out on top.
Are they calling you because Joe, the painter, is on vacation this week, and they need a couple of apartments painted? Or are they desperate in need of someone to paint all the time for them?
They might not give you these answers directly, but the best thing is to probe the property manager and maintenance staff.
Some management companies will require additional umbrella insurance. Again, before you say yes, you should consider all the above factors.
You have to keep in mind that property managers are paid to fill apartments. Their primary job is most of their bonuses are linked to the occupancy rate. They will do all they can to meet their goals, including telling you what you want to hear.
No. You can submit a bid regardless. I would not even go through with Compliance Depot unless you are confident you are getting the job.
As I mentioned, you have to watch out for property managers looking for “second string” vendors. This means that they will only call you in case their preferred vendor cannot complete the work or cannot keep up with the demand.
Depending on your area, managers are not likely to sign contracts. But when they are desperate, you can get them to commit a certain amount of work to make it worth it to get approved.
You will have to call the customer service desk if you do not have a registry with Compliance Depot. The number is (888) 493-6938. You will select option 1 for enrollment. If you have used the service before and still have the same company, then you do not need re-enroll — even if it has been years.
You will only receive online access once you sign up and pay the fee. If you are an on-site vendor, the price is $99. If you are a vendor that works offsite, the fee is $80. Keep in mind that the fee schedule is subject to change.
Once you pay your fee, you will receive login information. Your dashboard will look something similar to this:
The dashboard will have all of the information all at one place. You can click on company information, which will take you to an overview of your business.
In this section, you can fill out and sign your W9 form. You can also update your phone number and email address. You can’t change your business name or the industry you service (painter, cleaner, etc.).
In this section, you can also see your active customers — those who have already paid the fee. You can see your insurance paperwork and other documents.
Furthermore, Realpage added a new function to this page. “Market My Company.” Which will open the form shown below:
It allows you to select what kind of services you offer and add a short description of your company. As I mentioned in this article, my experience with compliance depot referral is very limited.
This next section is the principal or owner’s information.
There is nothing more than the name and the title for the owners. In my case, since I have a partner, both of our names show on the list.
RealPage requires anyone with over 30 percent ownership interest to be listed as a principal. The enrollment fee is for up to two principals. For any additional owners, there will be a $10 per person.
The site allows you to add owners, even after establishing an account. The form is shown below:
The requirements will vary by the property management company’s demands. Similarly, it will provide you with a general checklist that you can download and check off the documents you have already submitted.
In this section, you will see a list of documents you will need to submit to become an approved vendor. You can upload the documents in this section or email them to vcdocuments@realpage.com. Add your vendor number in the subject line, and the docs will update automatically.
In the payment section, you will be able to see what is due, the services you are being charged for, and how much you will be paying. You can also cancel auto-renewals and view previously paid invoices.
I highly suggest turning off the auto-renewal — mainly because the clientele in this business is very high turnover. I have been charged on auto-renewal for clients I had stopped working for.
This section is a no-brainer. If more people administer your account, you can add or remove users from the user panel.
This is where you will track the status of your evaluation. It will give you a breakdown of all the required documents, the ones you submitted, and whether they were approved.
This section comes in handy if you want to see what is happening with your approval quickly.
When I started working with apartment communities, I was requested to increase my insurance. Without much thought, I did it. My premium was much higher. After submitting the paperwork to the property management company, I never got a callback. Yes, I was an approved vendor that never provided service.
So, if you ask me if you should increase your insurance, my immediate answer is no. Unless it is a large project, you can make lots of money. Or they are willing to sign a contract that will guarantee you work.
When a community contacts me whose requirement is more than what I can provide, I walk away in most cases. The demand for my work is more than what I can keep up with, and I don’t need to increase my overhead.
Compliance Depot is a sort of investment. And as I mentioned before, I have clients that require it, and I comply and purchase my annual pass. It is entirely up to you to make that investment. Most clients do not use this service, making it easier for me.
In conclusion, Compliance Depot is not a stand-alone decision. This means you can’t simply say that you will register with them for no reason. You must have a prospective client hiring you. The client is the key to your decision.
If it makes sense to invest that money into a project, then by all means, do it. Do not expect to get any business from Compliance Depot’s registry.
Sergio Fetter is, first and foremost, a father. In the last decade, he gained much experience by starting a few businesses. Aside from serving in the military, he loves to write, read, and spend time with his family. He holds a B.S. in Business Administration & Management/Accounting from Limestone College and currently acquiring an M.A in Strategic Communication from Liberty University.
