Remote Rehabs - How do you do it efficiently?

Question

Hi Everyone,

I live out in Los Angeles and working on my 5th property out of the Orlando area and one thing I'm always challenged with are remote rehabs.  The rehabs I've done locally are a lot easier as I can walk the property and apply painter's tape to areas I want addressed during the rehab, or resolve any communication issues real time.  I don't have such a luxury being a remote rehabber.  So I'm always nickel and dimed at the end for little items that should have been taken care of during the rehab which is sometimes understandable but the most precious thing I'm losing is time as the contractors have to be scheduled again to come out and then another inspection has to happen.  What is typically a 30 day rehab runs to 60+ days.  I have a property manager that overseas it but I feel like no one loves my property like me to give it the attention it needs.

My question for you all in similar situations.  How do you guys handle this?

Thanks,

Jason

Jason Medina · Answer

Thanks for the words of wisdom.  I guess I shouldn't sweat the small stuff as I've been really lucky to just have minor issues.  I'm pretty thorough with my punch lists.  It's always those little things that you can't see if you're not physically there that "should" be taken care of otherwise it doesn't look right or make sense, but they're just doing it because they were told to do something without enough direction.  My nature is being really process oriented and when things fall behind because of little details that could have been easily addressed it drives me up the wall. :)

Scott Esmail · Answer

Yeah, rehabs when your not around are much harder, there hard enough when you are local. I been using facetime and google dual with the contractors and have the slowly walk each room. It helps more then pics and a phone call from a contractor, but not as good as being there. If these rehabs are for a flip since the market has been so hot most buyers are looking past minor things I have found.

Jason Medina · Answer

Will do thx Cameron!

Shawn McCormick · Answer

Hi @Jason Medina I have done a fair share of flips and renos here in Orlando and have great contractors that I work with and trust, but even when you are on the ground, it is easy to get taken advantage of or get a different crew than your used to and it is not unavoidable. I would not tell you to just deal with it, but rather plan for it. I always budget 15% for overages, unforeseen upgrades, and punch list items. Even the most experienced of us will miss items or not account for them when setting up the scope of work. And if your PM is getting a referral fee or charging you for the contractor work, lean on your Realtor more, they should be helping you too!!

I recently did my first OOS rehab and got a few HUGE bills that I didn't know were coming. I had to suck it up and the house is much better off with the items that had to be replaced and I'm getting more rent because of it. You make your money when you buy, so if you buy right, these things need to be accounted for. I believe it will be pretty bad for a while as the trades here are all slammed and can pick and choose the jobs they take. So if you have good ones, treat them right and don't sweat the small stuff, control what you can and perfect your systems to define expectations, reward them when they do well (bonus for finishing early, bonus for short punch list etc). Because trying out the next guy might cost you even more time and money.

I'm happy to share a few of my go to subs/GC if you need. Good luck

Cameron Moore · Answer

Hey Jason,

I'm in Orlando, if you ever need anything feel free to reach out and I would love to try and help any way I can.

-Cameron

Alice Horn · Answer

We realized this was a serious concern for many investors, especially around the pandemic when they couldn't travel. We took the plunge and built out our team so we can handle decor and light renovations internally. This has worked out great since we can also apply our knowledge of the vacation rental industry and what works best once we are booking the home (themed bedrooms, game room, best bedding configuration and much more). Like every one else, we have been impacted by labor and supply shortages, but we are getting these renovations done and the homes are booking well.