How much do you pay your people?

Question

Hey all,

so as I build a team of contractors, handymen, electricians, etc. etc. I'm trying to get a feel of how to pay them and how much to pay them.

I understand that different regions require different pay scales but lets see if we can get ballpark numbers to help each other?

do you pay by hour? by job? part time salary? bids before the work or just let them do it and hope they don't charge a leg, etc.

I'll start.

properties are all in the Midwest

electrician- currently paid $45/hour + materials
plumber- $156 for the first hour and $30/15 minutes after that (through a company as I haven't found a licensed self employed plumber)
handyman- does some fixes or simple upgrades ($17.50/hour)
Lawn Guy - $30 per property lawn regardless of size (all the same size) will also weed while he mows

Larry Turowski · Answer

@David Zheng this is a good question and one that I'd imagine most newbies struggle with.  I pay by the job, never by the hour, so I can't say for sure.  I pay the same amount for a lawn guy and I'd imagine it is very similar for the electrician and handyman.  Plumbers are expensive, but that sounds excessive.

I always look for contractors who can handle light (small) electrical and plumbing jobs.  I'd put contractors in the $25-$30 range.  Overall it sounds like you are doing alright.

David Zheng · Answer

@Larry T.Thanks! yeah, I'm even just trying to find apprentices nowadays to do work for me. They are more along the $20-$25 line. Ever after every job with a contractor from a big company, I always ask if they will do side work for cheaper.