Arcadia Management Group Inc., based in Phoenix, Ariz., performs management and maintenance for commercial properties across the United States. Arcadia is designated an Accredited Management® Organization by the Institute of Real Estate Management®, an affiliate of the National Association of Realtors®.
Overworked Property Managers
The task of onboarding and monitoring vendors including obtaining Form W-9s and validating certificates of insurance, was the responsibility of Arcadia’s property managers. Keeping track of more than 600 active vendors across the U.S. posed a significant burden that detracted from core property management duties. Exception reports were easily overlooked; the subsequent delays in vendor payments affected Arcadia’s cash flow and financial reporting.
Arcadia implemented VendorShield, an automated vendor credentialing and compliance monitoring solution, in November 2017. After Arcadia defined its requirements for insurance coverage, professional licenses and background checks, the system follows custom rules for searching verification sources to ensure suppliers meet those requirements. Regular auditing ensures ongoing compliance. Automated credential screening and insurance data auditing lets Arcadia’s team members devote their time and resources to client service and other core responsibilities.
Orderly Cash Flow and Client Peace of Mind
VendorShield automatically tracks vendor insurance status, ensuring that workers on Arcadia’s clients’ properties maintain proper liability coverage and other certifications. The company’s vendors are notified of approaching insurance expiration dates. “Confidence is a huge part of what we try to instill in our clients, and VendorShield helps us with that. Having our vendors vetted, their insurance properly categorized and their general liability requirements met avoids exposure and risk for our clients,” said Aaron Byrd, director of operations for Arcadia.
“Our managers are much happier knowing they don’t have to manage vendor compliance. They can spend their time being property managers rather than vendor administrators. Being able to focus on their jobs, such as collecting rent, building relationships with tenants and maintaining their properties, is the most helpful thing that VendorShield has done for Arcadia, along with avoiding potentially uncomfortable situations such as expired insurance certifications,” said Byrd.
VendorShield also enhanced Arcadia’s financial reporting and created the high degree of client confidence enabled by sound business practices. “We’re free from the vicious cycle of a vendor’s insurance expiring, not paying them because of that, then having to explain to a client why there’s an outsized expense on their report six months later,” Byrd said. “And from our standpoint, paying a vendor in a week rather than six months later makes a huge difference in cash flow. VendorShield puts us at ease and lets us do the things we were hired to do.”