Purchase orders for small landlords: when a PO is worth the trouble
A purchase order (PO) is your written yes to a vendor before the work starts: what they will do, for how much, and for which property. A landlord needs one when a job is large enough that a surprise would hurt, when several people can order work, or when the bill must be matched to something. For a $60 faucet washer it is paperwork nobody needs.
What a purchase order is
A PO is a short document you send before the vendor starts. It carries a PO number, the vendor, the property and unit, a description of the work, the agreed price or a not-to-exceed amount, and the date. When the bill arrives, it should reference the PO number. If the bill matches the PO, you approve it. If it does not, you ask why before paying.
It is not a contract and not a work order. A work order tells the vendor what to fix and where. A PO sets the money. The two often travel together, and a small job may use only one.
When you need one
| Situation | PO? | Why |
|---|---|---|
| Small repair under a limit you choose | No | A text or work order is enough |
| Unit turn with paint, flooring and cleaning | Yes | Several vendors, easy to double pay |
| Roof, HVAC or any job above your approval limit | Yes | The amount is large enough to need a record |
| A property manager, helper or partner can order work | Yes | It shows who approved the spend |
| An ongoing service such as lawn care | One PO a year | Set the monthly amount once |
Pick a dollar limit and write it down. For example, anything over $500 needs a PO. The limit is yours; there is no legal number.
Matching the PO, the bill and the work
The reason to have a PO is the match. Before you pay, check three things: the PO (what you agreed), the vendor bill (what they charge) and the work (whether it was done). If any two disagree, stop and sort it out.
Example a made-up PO for a unit turn says paint $900 and carpet cleaning $250, total $1,150, not to exceed $1,200. The painter bills $1,040 and the cleaner bills $250, total $1,290. The bills are $140 over the PO total ($1,290 less $1,150) and $90 over the cap ($1,290 less $1,200). Ask the painter what changed before you pay, and note any agreed extra on the PO.
This is the same check described in the vendor invoice approval process, with a document to check against.
How to set up a simple PO routine
- Number POs in a simple series, such as 2026-001, 2026-002.
- Write one PO per vendor per job, with the property and unit.
- Send it by email so there is a dated copy.
- Ask the vendor to quote the PO number on the bill.
- Approve the bill against the PO and file both together, as the IRS recordkeeping guidance recommends for supporting documents.
- Close the PO when the bill is paid, so open POs show money you have committed but not yet spent.
Open POs are money you have already promised
An open PO is not a liability yet, because the work may not be done. But it reduces the cash you can safely spend. Before approving another job, add up your open POs and compare the total to the property's bank balance and its operating reserve. It tells you whether the account can cover the roof and the water heater in the same month.
How DoorKeeping handles it
In DoorKeeping, a repair becomes a work order and goes to a vendor by link, and a vendor bill is read by the AI and held for your one-tap approval before it is recorded against the property. Setting a spending limit that routes larger jobs to you is how you get the PO habit without paperwork. You pay vendors from your own bank account.
Sources
- IRS, Recordkeeping, read Oct 30, 2026
Questions
- Is a purchase order a contract?
- Not by itself. It records what you agreed to buy and the price. Whether it binds both sides depends on the wording and your state's law, so a larger job should also have a written agreement.
- What is the difference between a PO and a work order?
- A work order says what to fix and where. A purchase order says what you will pay. Small jobs can use one document for both.
- How big should a job be before I issue a PO?
- Choose a limit you are comfortable with and write it down, for example $500. Jobs above it get a PO, jobs below it do not.