They Might Be Unlicensed\u2014and Untraceable<\/h3>\n
While this isn’t as much of an issue for contractors you’ve worked with previously, it can be a problem when investors suggest a contractor strictly based on price.<\/p>\n
Sure, their bid might be lower, but the bargain may not be all that it seems.<\/p>\n
An unlicensed contractor can cost you far more time and money in the long-run if you don’t take the time to check their past work, monitor their communication habits, and ensure that they meet industry standards. Unfortunately, I’ve seen too many investors burned by contractors who weren’t who they claim to be.<\/p>\n
I once had a long-distance client pay an unlicensed contractor $2,000 to paint a house and put in new carpet. After he assumed the work had been done, he called me and told me to go over to the property and see the finished product. When I got there, the contractor hadn\u2019t done any work\u2014and the client was never able to get a hold of the contractor again.<\/p>\n
So, if you’ve worked with the contractor before and you’ve been able to gauge their quality of work, go for it! But if you’re strictly basing your choice off of price, I suggest taking a few extra measures, like calling references and checking in while the job is in progress, to avoid unnecessary frustrations.<\/p>\n
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Simple Solutions to the Contractor Dilemma<\/h2>\n
Don\u2019t worry, you don\u2019t have to deal with all that extra time, paperwork, or coordination\u2014if you have the proper solution. Here are a few.<\/p>\n
1. Manage Your contractors on Your Own<\/h3>\n
If you\u2019re set on working with a particular contractor, the best solution is to manage the relationship independently.<\/p>\n
As I mentioned earlier, I always encourage our investors to use their own contractors if that\u2019s what they prefer. But I also let our investors manage that relationship. So instead of the coordination and payment going through our office, the investor and the contractor work together directly.<\/p>\n
As an investor, managing your preferred contractor relationships independently is a win-win. You and your contractor get to continue doing business in whatever way that\u2019s worked for you in the past, and you don\u2019t have to try to onboard your contractor to your property manager\u2019s systems and processes.<\/p>\n
But, if you don\u2019t want to spend time and energy managing your contractors or projects, there\u00a0is<\/em>\u00a0another option.<\/p>\n If you want to take a more hands-off approach to working with contractors, there are definitely benefits to working with your property manager\u2019s recommended list of vendors.<\/p>\n Most property managers have a long-standing relationship with their contractors. For example, I\u2019ve been working with most of my contractors for over a decade, and each of them were put through a rigorous screening process before I agreed to work with them (of all the contractors I\u2019ve had the opportunity to work with, only 3 percent made the cut).<\/p>\n2. Let Your Property Manager Choose Your Contractors<\/h3>\n
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