Renting to a Contractor in exchange for work
I am currently renovating one of my units by myself. I’m a first timer everything, so it’s taking a while. However, I am deploying for 3 months at the end of this month. That means all work would have to stop, and won’t be completed till I get back, which means the earliest I can get a tenant in that unit is May, when I come back and finish the work myself.
There was an issue in another unit, and I hired a plumber, who turned out to be a general contractor. This GC found out I was deploying, and asked about renting my house hacked unit to a guy he brings in for seasonal work (~3 months). Long story short, I don’t want to, but the GC finds out about the reno unit, and offers to finish the work in exchange for housing his guy.
I really like the idea of exchanging rent for labor, especially since I can’t do it myself while I am gone. I was going to rent the unit for ~$950, and I would essentially get $2850($950x3 months) worth of “credits” from this GC. I offered to pay the difference of what it actually cost him and 3months rent (so if billed labor was $3k, I’d just pay the GC $150).
Reasons why I like this:
-Building rapport with this GC and his businesses
-I get my reno done professionally at a heavily discounted price or potentially free
-unit was going to sit empty anyways during my deployment, but now has a handy guy living in it
-short term deal with the GC, at most I would sign a 6 months contract and charge the actual amount beyond the cost of reno
Things I am getting done:
-Laminate floors install and base boards
-Cosmetic touch ups in bathroom (to include dry wall)
-new front door/frame install
-putting up ceiling fans
-replacing cast iron pipes for sewer lines
Would it be a good deal, all things considered?
tl;dr Deploying because of the military, renovation has to stop. Renting short term to a general contractor, who will finish the renovation in exchange for his rent