How should a small landlord check and approve a vendor invoice before paying it?
Match every invoice to three things before you pay: the work order that asked for the job, proof the work was done, and the price you agreed. If all three line up, approve and pay. If one does not, ask the vendor in writing before you pay and note the question on the work order. This three-way match takes a few minutes per bill and prevents double payments, invoices for work nobody ordered, and surprise charges. This is general information, not tax or legal advice.
The three-way match
Large property companies call this a three-way match. For a landlord with a few units it is simply a checklist you run through every time a bill arrives, in the same order.
| Check | What you look at | If it does not match |
|---|---|---|
| The request | A work order or message that shows you asked for this job, for this unit, on this date | Ask the vendor who requested it before you pay |
| The work | A photo, a tenant confirmation or a quick look that the job was finished | Hold payment and ask for proof or a return visit |
| The price | The quote, the hourly rate or the written estimate you agreed to | Ask for a corrected invoice or an explanation of each difference |
Add two quick looks. First, check that the invoice is addressed to the right owner or LLC and the right property, because the same vendor often works on several of your buildings. Second, check that you have not already paid it. Duplicate invoices happen when a vendor sends one by email and another by mail.
A routine you can run in five minutes
- Put every new invoice in one place the day it arrives, not in an inbox.
- Find the work order. If there is none, ask yourself whether you really requested the job. If so, create the record now so the file is complete.
- Look at the proof of completion. A dated photo is enough for most small jobs.
- Compare the amount with the quote. Differences of a few dollars for materials are normal. Anything larger than a threshold you choose, such as 10 percent or $50, deserves a question.
- Check the line items. Labor, parts and trip charges should each be listed, so you can see what you paid for.
- Approve and pick a payment date that fits the terms on the invoice. Pay on time but not early without a reason.
- Record the payment against the right property and expense account.
Example a made-up plumber quotes $240 to replace a faucet in unit 3B. The invoice arrives for $312. The line items show $240 labor, $52 for the faucet and $20 for a trip charge. The quote said "parts included," so the landlord asks in writing for the $72 to be removed or explained. The plumber confirms the faucet was included and sends a corrected invoice for $240.
What to keep for taxes and for the books
Keep the invoice, the proof of payment, and the work order together. At tax time you will need the amount, the date and what it was for. Repairs and improvements are treated differently, so ask the vendor to describe the job clearly on the invoice. IRS Publication 527 explains how repair costs and improvements to rental property are handled.
Payments to individual vendors and unincorporated businesses may have to be reported on a Form 1099-NEC when the total for the year reaches the IRS threshold. The IRS page on Form 1099-NEC gives the current rules and amounts. Collect a Form W-9 from each new vendor before you pay them, so you are not chasing tax details in January.
Signs an invoice is not what it seems
- A request to change the bank account or payment details, especially by email. Confirm by phone using a number you already had, not the one on the new message.
- An invoice for a vendor you have never used, with no work order.
- A total that is round and large for a small job, with no line items.
- Pressure to pay today.
The cost of a ten minute call is small compared with sending a payment to the wrong account.
How DoorKeeping handles it
In DoorKeeping the work order is the center: you send the job to a vendor by link, the vendor adds photos and notes, and the bill is read and coded by AI against the right property and expense account. You see the bill next to the work order and confirm it with one tap. Anything that involves paying money waits for your approval.
Sources
- IRS Publication 527: Residential Rental Property (repairs and improvements), read Oct 30, 2026
- IRS: About Form 1099-NEC, Nonemployee Compensation, read Oct 30, 2026
Questions
- What is a three-way match?
- It is checking an invoice against the request for the work, proof the work was done and the agreed price before paying.
- Should I pay an invoice with no work order?
- Not until you know you requested the job. If you did, create the record and pay. If not, ask the vendor.
- Do I need a W-9 from every vendor?
- It is good practice to get one before the first payment, because you may need it to report payments to the IRS.
- How long should I take to approve an invoice?
- Aim for a few days. Prompt, accurate payment keeps good vendors available.