BiggerPockets

I need some small work done at one of my rental properties, so I have been calling some handyman to get an estimate. To stay organized I made a list of questions to ask each person I call. I thought it would be helpful to other BP members to post the list. Not sure if there's already one out there. May be some experienced members can add more to the list. Below is the list:

1) Are you licensed and insured to work in the local city? Do you have sufficient workers compensation and general liability insurance?
2) Do you work in local city?
3) Where are you based out of?
4) Will you provide a written quote of the work?
5) Are you available 24/7 for emergency calls?
6) Do you have your own truck?
7) Do you do this full-time or something you do on the side?
8) How many years have you been doing this for?
9) How do you charge for your work? By the job or by the hour?
10) How do you accept payment and do you require a deposit?
11) Can you provide references?
12) Will you provide a written contract?
13) Do you work on the weekends?
14) Do you provide an invoice for your work after completion?
15) What kind of work you don't do?
16) Do you guarantee your work?

Hope other members find it helpful.

I must admit that I found my repair guy in the local small town paper. I asked for references, they all came back good so I hired him. He's been very good for me. Always very responsive and offers good suggestions on how to repair things either cheaper or more efficiently.

Do you have all the tools necessary to do this job?

A guy showed up to dotile work forme and only had a rotor saw, no straight edge. My tools were at the cabin. Went to Lowes and bought a tile saw!

I never pay anyone by the hour. It puts us at odds with what is best for each other.

Quote a price to do a job. If you end up making $100/hour, I don't care. If you end up making $2/hour, lesson learned.

Do you speak Spanish? I know not politically correct but heck...

[quote=Max I
Handyman: "I am the handyman you had hired to work on your property tomorrow. I am just calling to let you know that i wont be able to do that. You askd me to send you insurance information and you ae asking for too much information. Go #### yourself, you mother######"

And this is exactly why you want someone with insurance. Would you want someone like that working on one of your properties without knowing that he was covered in the case of liability?

Just move on to the next...unfortunately, this won't be the strangest encounter you ever have...

Good Ole Boy Translation:
Damn, I'm not gonna get one over on this one. On to the next sucker. Oh look there is a retirement community, cha ching!

Would you hire this handyman?

So I found this handyman, sounds very professional on the phone. He has everything going for him, except for the fact that he isn't insured. He's licensed, but not insured. He said he is willing to sign a liability waiver and he will get notarized in front of a witness. He said he has done this with couple of other investor with no issues.

He said he understands my concern for liability issue, but he will sign the waiver and it shouldn't be any problem. I also mentioned to him that I might be having a big job coming in for him in the future and he said he will get insured. But he said for now a liability waiver should suffice any issues.

He seems like a great person, professional, very well spoken. I would hire him in a hearbeat if it weren't for the insurance. He said that he's trying to develop relationships with new investors so that he is able to afford insurance.

I am fairly new investor and I really like the idea of helping someone grow their business as I grow mine. What do you guys think? Would you give someone like this a chance?

Nope, I wouldn't hire him.

But, let me tell you a story. About two years ago, I was working on House #5, and I needed a painter. I saw a sign in the neighborhood in front of a house that had a great looking paint job. I called the number on the sign.

The guy came over (he lived in the neighborhood) and gave me an interior and exterior paint quote. It was $1500 less than any bid I had gotten so far, so I asked him how he was able to do it so cheaply.

He said that he just quit his job at a big painting company, was going out on his own, and was looking for work and wanted to build some relationships. Unfortunately, he didn't have insurance, so I told him that once he got insurance, I would certainly give him a shot. I gave him my card and told him to give me a call.

After thinking about it for a couple hours, I called the guy back. I asked him how much it would be to get 6 months of insurance for him and his crew. He called his insurance company and found out it would be about $1000.

So, I told him I'd give him $1000 more than his bid (upfront), which was still $500 less than my other bids. He got his insurance, and we gave him the painting job.

Not only did he do a great job, but it turns out that he had a crew that could also do flooring, basic plumbing, basic electrical, basic carpentry, and a host of other stuff.

Here we are two years later and he and his crew have done about 18 houses for us -- probably about 80% of the work we've done over the past two years. He still gives us great prices, and we refer him to every investor we know to keep him busy.

Turns out that paying for his insurance was a win/win all around...

Not saying you should do that, but it's always good to be creative...