A solid service agreement tells you exactly what happens when a dishwasher fails at 11 PM in unit 14, who pays for the part, and how long you wait. Without that in writing, you’re relying on goodwill, and goodwill doesn’t hold up when a tenant is filing a habitability complaint.
Here’s what to look for before you sign anything.
Response Time Commitments
This is the clause most agreements soft-pedal. “Prompt service” means nothing. What you want is a defined window: something like same-day or next-day dispatch for occupied units, with a clear escalation path if the first available tech can’t make it.
Get it in writing. If a vendor won’t commit to a number, that tells you something about how they’ll perform when you have five units down at once.
Scope of Equipment Covered
List every appliance category in the agreement. Don’t assume “all appliances” covers HVAC or vice versa. A lot of property managers get burned when a wall oven fails and the vendor says that’s a separate call because it wasn’t itemized.
For multi-unit buildings, the agreement should specify whether coverage includes in-unit appliances (tenant-supplied vs. owner-supplied), common area equipment, and any HVAC systems. The more specific, the fewer disputes later.
Warranty on Parts and Labor
A repair is only as good as what stands behind it. Ask for the warranty terms in writing before you sign. Some vendors offer 30 days on labor and 90 days on parts as a floor; others extend to 90/90 or longer on major components. There’s no universal standard, so ask specifically what the vendor commits to.
Know the difference between a manufacturer’s parts warranty (which the tech passes through to you) and the vendor’s own labor guarantee. If a compressor fails two months after replacement, who eats the labor cost for the second visit? That answer should be in the contract, not in a conversation.
Billing Structure
You need clarity on whether you’re paying per visit, per hour, or against a flat-rate schedule. Flat-rate billing is easier to budget for. Time-and-materials can be fine if the vendor is honest about it, but you want an estimate before work starts, not a surprise invoice after.
For high-volume property managers, some vendors offer priority account pricing or monthly retainer structures. That’s worth negotiating if you’re sending consistent volume. Either way, get the billing terms written out: diagnostic fee, trip charge, what happens if a second visit is needed, how parts markups work.
Vendor Qualifications and Insurance
Verify licensing before you finalize anything. In California, HVAC work requires a C-20 contractor license. Appliance repair falls under different rules, but any legitimate operation carries general liability insurance and workers’ comp. Ask for a certificate of insurance naming your management company as an additional insured. If they can’t produce that, move on.
This matters for your liability exposure. If a tech causes water damage or gets injured on your property, your insurance company will want to know whether the vendor was properly covered.
Communication and Documentation
Good vendors give you a paper trail. You want written work orders, diagnostic notes, parts used (with model and serial numbers noted on the invoice), and a record of what warranty applies to each repair. That documentation matters when a tenant disputes a charge or when you’re trying to figure out whether a unit’s appliances are worth continuing to repair.
Ask how the vendor communicates: do they send job summaries after each visit, or do you have to chase them for records? For multi-unit accounts, a vendor portal or even a consistent email format makes a real difference in your admin overhead.
What Separates a Real Agreement from a Handshake
The difference is specificity. A handshake deal relies on the relationship staying friendly. A written agreement works when it doesn’t.
Look for: defined SLAs with actual time windows, warranty terms for both parts and labor, a clear scope of covered equipment, billing structure spelled out before work starts, proof of licensing and insurance, and a process for escalation or disputes.
If a vendor sends you a two-paragraph “agreement” with none of that, you’re not getting a service agreement. You’re getting a letter of intent with no teeth.
When to Get a New Vendor
If your current vendor can’t meet basic response time commitments consistently, doesn’t provide written work orders, or can’t show you a current certificate of insurance, those aren’t things that get better over time. A reliable vendor relationship is worth a bit of effort to find at the start.
For Tri-Valley and East Bay properties, Adrium Service handles appliance and HVAC repair for residential and commercial accounts, with written documentation on every job. You can review services and reach out at adriumservice.com.