My wife and I just recently completed a single family home renovation that we are now AirBNBing. When looking back on the project, the one thing we felt we never fully controlled or could put our arms around were construction costs. Our contractor was a good guy and did great work but as we look to do our next renovation, we want ton know how you guys are managing construction costs and timeframe for that matter. Our contractor’s rate was $30/hour. When we weren’t there, we were being charged for days that not as much was getting done and thus increasing our time to completion. When we were at the property, a ton seemed to get done which justified the cost. How are you managing your contractors to maximize the work heir doing. How do you recommend negotiating their rates? Do you recommend paying on a per hour basis or do you recommend paying on a per job/duty basis? Trying to better understand this before tackling property #3.
If i do not know the contractor, I will not do an Hourly Rate
. Job Estimates are written
. Change orders are written
. If the work is done exceptionally fast then I will Tip the workers
. If the day is miserably hot, I supply Ice,GatorAde and fans.
. If the day is miserably cold I supply heat.
I am at the property EVERY day to review progress.
@brianvanpelt Thank you for this insight.