Like Christmas, this annual right of passage is something we all love and are excited for each year…..Ok , maybe not as exciting as Christmas, but something we need to focus on each year.
Alongside your budget preparations, it’s also the perfect time to conduct a thorough review of all your provider contracts. Here’s what to consider:
Upcoming Renewals: Identify contracts set to expire in the next 12–18 months.
New Services/Agreements: Explore opportunities to introduce new services at your properties, such as pet walking, package delivery, vending, EV charging, etc.
Provider Consolidation: Look for ways to reduce the number of providers offering the same services to potentially secure better pricing or enhanced service level commitments.
Portfolio Changes: Review any communities added or removed from your portfolio in the past year. Ensure they have been included in or excluded from master agreements/programs, such as purchasing programs, utility purchasing, and rebate programs. Missing these could mean losing out on discounts or rebates for newly added properties—or worse, continuing to pay for services on properties you no longer own or manage.
Remember, negotiating a new agreement—especially when it involves finding and interviewing providers, analyzing multiple proposals, making decisions, and finalizing contract language—can take several months. To reap the benefits next year, it’s crucial to start the process now.
Footnote – for those that celebrate Christmas, please know I was not attempting to disparage or make fun of your religion or traditions…and for all of you that don’t celebrate Christmas, aren’t you happy I didn’t associate your December holiday with budgeting!