What process do you follow to vet contractors?

Question

Hi, I just joined this group. I just bought my 4 th rental and need some work done.
What are your go to questions /processes to vet contractors? Is there a strategy you follow to find the good ones and grow a relationship with them?

Bruce Woodruff · Answer

@Travis Bohling said it well. Are you planning on a) using a GC to run the Subs, or b) are you planning on acting as an Owner/Builder and hiring Subs yourself?

If B, then make sure that you are heavily insured because you are acting as a GC.

Also most states (like Arizona) will not allow a homeowner to act as Owner/Builder on a property that they are planning on renting, only their own personal residence. You didn't say where you're located, but definitely check this out by calling the State Registrar of Contractors. The penalties are the same as working unlicensed, so pretty severe......

Travis Bohling · Answer

Great question @Rachel Chioreanu

A network of reliable vendors who provide quality work for a fair price is critical to our success as investors and managers.

We find our best contractors in a couple ways:

1. Referrals from other real estate investors and property managers

2. Affiliates with NARPM (National Association of Residential Property Managers) see if there is a local chapter in your area

3. Referrals from other contractors - great plumbers know great electricians

4. Cold outreach - as property managers, vendors routinely cold call us to earn our business

Questions/Due Diligence for potential contractors:

1. Are you licensed (verify independently - AZ has a Registrar of Contractors website)

2. Search their personal and company name for past or current lawsuits (public record in AZ and easily accessible through government website)

3. Do you currently work with other real estate investors or property managers?

4. Check references

5. If you are hiring a GC that will be handling complex scopes of work, ask to visit one of their current projects.

6. Give them a small test job to complete

Maintain relationships once you find a great contractor:

1. Don't waste their time

2. Pay promptly

3. Treat them as partners and grow your businesses together