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32 STRENGTHENING YOUR PORTFOLIO Five Considerations When Choosing A Third- Party Administrator of Contractor Services By Molly Dowdy Any homeowner who has spent a significant amount of time trying to hire a con- tractor knows the frustration involved in finding the right fit. Collecting estimates, reviewing references, confirming licenses, scheduling the work, and handling all other aspects of the job is never a smooth process. Now picture what that looks like on a substantially larger scale—managing a portfolio of hundreds of properties across several states. Asset managers nationwide are charged with ensuring proper maintenance of an entire portfolio of properties. To do this well, consider partnering with a third-party vendor you can rely on for quality workmanship and on-time project completion. Alacrity Services, a Lowe's Company (Alac- rityServices.com), has been a leading supplier of home restoration and repair services since 1999, managing a national network of over 1,700 contractors. Its experience spans across multiple industries, including insurance restoration, real estate, financial services, homeowner ser- vices, and more. We asked Alacrity's President Jonathan Miko and Chief Business Develop- ment Officer Keith Hemmer to share what they believe are the most important qualities asset managers should seek when selecting a third- party administrator to help manage property repair, restoration, and rehabilitation work. 1. Service First. Make sure your partner is focused on the service aspect of the business. One reason you need a third-party partner is to handle the sheer volume of work, so it's important to work with a company that's responsive and understands the requirements of your business. Your partner should be an extension of yourself, honoring the same values, and should be someone you can count on if problems arise. is is a key differentiator for Alacrity Services. Alacrity has both desk- and field-based teams dedicated to monitoring timeliness of jobs, provid- ing clients with progress updates, and ensuring that potential issues are navigated successfully. 2. A Right-Sized Contractor Network. Look for a partner with a strong network of contractors but don't fall for sheer num- bers. Some companies will claim a high volume of contractors, but volume alone doesn't guarantee quality of services. Dig deeper to find out the strength of those contractor networks. Are contractors sent projects on a consistent basis? Do the contractors view the vendor manager as an important client? If work volume per contractor is minimal or inconsistent, building substantive relationships will be difficult. Developing and maintaining an appropriately sized contractor network is an art. "Our model is designed to provide sufficient coverage to our partners without oversaturating a particular market with contractors," said Hemmer. "It's important to have a flexible, yet large enough contractor base that you can satisfy a client's needs without adding so many that we're not providing enough work to those contractors to be a valuable part of their business." 3. Market-Ready Experience. Each contractor comes to the table with differing work experience and business focus. Your vendor management firm should have relationships with contractors that specialize in making properties "market-ready." ere is a vast difference between a contractor performing homeowner kitchen remodels versus a contractor who performs property rehabilita- tion and restoration. For portfolio managers, relying on contractors with extensive experience in property restoration in the financial services industry is essential, as they possess the full understanding of the unique requirements necessary to return a property back to market. With property rehabilitation and restoration, your goal is quick turnaround time, without com- promising quality. Contractors with this specific experience will be better suited for you since they have an understanding of the local market, and can bring your property back to market-ready condition. 4. Affiliations at Matter. An established, well-connected vendor management company will provide significant benefits over those less established in the market. Look for a partner with several years of experience in the business because they will have stronger contractor relationships and better access to materials. In Alacrity's case, being a wholly owned subsidiary of Lowe's provides credibility to both contractors and the public, in addition to access to consistent and affordable materials. 5. Ethics. At the end of the day, your vendor management partner is in the business of helping people. In this industry, we all share a common goal of turning distressed properties into places that families will be excited to call home. For Miko, serving the mission of homeowner- ship is an important part of the equation. "We are here to help return people to normalcy. Whether it's an insured loss, foreclosure, or investment property, our goal is to return it to livable condi- tion. We use our contractor relationships to make sure the repair process is completed as quickly and as efficiently as possible," said Miko. When dealing with property repairs or resto- rations, possessing a strong sense of empathy is critically important to project success. With a great partner, you can focus on overall portfolio management and growth, as opposed to managing and coordinating property rehabs on an individual basis. ere are several choices out there—remem- ber to consider these five factors when selecting a third-party administrator of contractor services to ensure a successful relationship. SPONSORED CONTENT