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Updated 1 day ago on . Most recent reply

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Becca F.#5 Starting Out Contributor
  • Rental Property Investor
  • San Francisco Bay Area
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Licensed vs. unlicensed contractors in California and new fence or just fence repairs

Becca F.#5 Starting Out Contributor
  • Rental Property Investor
  • San Francisco Bay Area
Posted

I'm deciding to replace a wood fence on a rental in the Bay Area. I have had 4 contractors look at the fence, two are licensed and two aren't licensed. They gave me estimates for demo of old fence, haul away old fence, install new fence, install new gate, new posts. Fence is about 100 feet but Contractor #1 measured it as 98 feet). I don't want any lattice work or any fancy stuff. 

Contractor #1 unlicensed:  $8850 (includes above listed and staining new fence) Wood Dog Ear Picket

Contractor #2 unlicensed: $6000 plus $1200 for staining new fence = $7200 total (verbal quote, he's supposed to send a written quote to me)

Contractor #3 licensed (a small sole proprietor): redwood fence, $9100 plus $1200 for staining = $10,300 total

Contractor #4 licensed (a fence company recommended by my GC who did the renovation on that home) = $10,508 (no staining) redwood fence and getting quotes for a company that does staining. 

In California, my understanding is that an unlicensed contractor cannot charge more than $1000 for work done (it used to be $500). So technically Contractors #1 and #2 aren't following the law. Obviously a new fence is going to cost much more than $1000. I asked for different opinions and one person said it's not electrical or plumbing work and it would probably be ok to have an unlicensed contractor put up a new fence. Another investor friend said if I use an unlicensed person if the fence falls over (one side of the fence is shared with a neighbor) I would be liable.  I'm leaning towards Contractor #3 or #4 (both licensed). Or is it not a big deal to use an unlicensed person for a fence? As far as penalties would I be liable for using an unlicensed person or does that fall on the contractor? 

I mentioned this to a few CA investor friends and no one has hear of Assembly Bill 2622. 

Penalties for using unlicensed:

https://www.cslb.ca.gov/contractors/journeymen/journeymen_un...

https://contractorexamschools.com/understanding-californias-...

Here is the wording from CA Assembly Bill 2622:

https://contractorexamschools.com/understanding-californias-...

To give the complete picture, the fence is over 50 years old but has stood up pretty well but one side has loose boards and a few loose posts. There is quite a bit of green stuff and dirt on the fence when I power washed a section of the boards.  The cheap way to do this is just me power wash the fence and have someone nail up the loose boards and install 2 new posts. That estimate came out to $495  and $450 for a new gate door (by Contractor #4) so $945 total. Then I either re-stain the old fence myself or hire someone to stain it. I thought wood fences last 30 years from my brief research. 

Thoughts on what to do considering the above? Licensed or unlicensed contractor? Get a new fence (which would add value to the property) with a licensed contractor or just do repairs and get a new gate door and try to get a few more years out of the fence? 

Most Popular Reply

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Nicholas L.
#3 Out of State Investing Contributor
  • Flipper/Rehabber
  • Pittsburgh
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Nicholas L.
#3 Out of State Investing Contributor
  • Flipper/Rehabber
  • Pittsburgh
Replied

@Becca F.

hi Becca!  i'd go with repairs and prolonging life unless you think a new fence would help you get substantially higher rents.

  • Nicholas L.
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