Hi. My husband and I are under contract for a flip, and the contractor we want to use to do most of the work and manage the job has asked if he can stay in the house while the job is underway. He lives two hours away, so he needs a place to stay for the estimated two months this project will take. The house is definitely habitable so that's not an issue. Does anyone have any experience with this kind of a situation? Is this a good idea? Would we do a lease with him? Should we collect rent or take a portion off his bill for rent? What would be a fair price to charge him? He says he'll be able to get the job done quicker if he's living there. I'm sure there are other considerations we haven't considered, so thank you all in advance for ideas, thoughts, and feedback.
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
8mo
When I do jobs that take time and they are over 2 hours away , we gat hotel rooms for the guys . But that is built into the price of the job . Sure we can get the job done faster because we have nothing else to do besides work and stay at the hotel . If you know the guy and trust the guy , it shouldnt be a problem . But if you just hired the contractor based on price , no I wouldnt do it . Unless you are local to the project and are there daily , how would you even know if they stayed in the house overnight ? And as far as charging him ? Thats a no , he will just find extras and charge you more .
1. Why use a contractor who isn't local? I would look at working in a new market where I don't have relationships as an OPPORTUNITY to develop those relationships for future work. If you find and develop a relationship with a new local contractor you are better positioned for the next flip in that market where living in it is not an option because its a major rehab.
2. Sleeping there versus living there. Why would anyone including a contractor wish to MOVE to a place 2 hours away for 2 months?!? If they are planning to MOVE and give up their current rental, that would be a somewhat red flag to me.
3. I MIGHT consider allowing them to SLEEP there a couple nights a week so that they don't have to commute that distance every day. I would check my state's laws about how many nights in a month they would need to stay to establish residency and stay under that and put it in writing. I would not charge them for it and not allow them to set up any kind of permanent residence.
Basically, if they wanted to set up an air mattress and bring a bag with clothes, toiletries, etc that is fine but not setting up as a permanent residence.
The advantage to this is that you never have to worry about having to evict them if they don't leave. They never establish legal occupancy rights simply by staying there.
4. If they stay there beyond what I describe in #3, living in a unit makes it harder to work on it. For example if you are remodeling the only bathroom, how do you live in a place during that?!? You might be able to stay overnight because you can shower the next day when you go home but actually living there is problematic and it also makes it harder to complete the work. I personally HATE working in my occupied rentals on anything or even my own home. I MUCH prefer working on a vacant house. Its so much more productive.
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
8mo
Pls don't allow them to stay. I have only heard of horror stories with these scenarios. So many things that can go wrong and you have very little incentive/protection if allow it. If the contractor is truly 2 hours away you need to find someone local. 2 hours is too far for every party involved. There is closer contractors that can actually do the work and not live in there.
Professional · Denver, CO · Member since 2015 · 15 posts · 6 votes
8mo
Do you know this contractor well? Have you worked with him before? This seems like a very bad idea if this is a new relationship. One of my investor clients who has rentals has a longstanding relationship with an out of state contractor who use to live locally. She deeply trusts him and before she sells a rental, he will come stay at the house for a few weeks to update the home and get it market ready.
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
8mo
When I do jobs that take time and they are over 2 hours away , we gat hotel rooms for the guys . But that is built into the price of the job . Sure we can get the job done faster because we have nothing else to do besides work and stay at the hotel . If you know the guy and trust the guy , it shouldnt be a problem . But if you just hired the contractor based on price , no I wouldnt do it . Unless you are local to the project and are there daily , how would you even know if they stayed in the house overnight ? And as far as charging him ? Thats a no , he will just find extras and charge you more .
Hinton, WV · Member since 2026 · 1k+ posts · 373 votes
7mo
I've done this twice and it can work really well if you set clear boundaries upfront. The key thing most people miss: separate the contractor agreement from the housing arrangement completely. Two different contracts, two different relationships. Also make sure your insurance knows - some policies get weird about contractors living on site. What's your gut feeling about this contractor's professionalism level?
Real Estate Consultant · Connecticut Ct · Member since 2026 · 130 posts · 30 votes
7mo
I’ve seen this work, but only when it’s structured very deliberately. The biggest risk isn’t habitability — it’s blurred lines between contractor, tenant, and leverage.
If you allow it, I’d strongly recommend:
• a short, written occupancy agreement separate from the construction contract,
• clear start/end dates tied to milestones (not open-ended),
• rent or a defined credit applied monthly (not netted at the end), and
• language that occupancy does not pause payment obligations or excuse delays.
Speed can improve, but only if expectations and exit terms are crystal clear up front.