HELP! Contractor Woes on my first investment property!

HELP! Contractor Woes on my first investment property!

Member since 2023 · 24 posts · 34 votes

Hi All,

My significant other and I recently bought a duplex with the intention of house hacking back in August of this year. We knew that the unit we were going to occupy needed significant renovations. After interviewing several contractors in our area, we thought we chose the best fit. We were terribly wrong. In the beginning, the contractor was very responsive and attentive to our requests. He said he was going to have our renovations done by the end of October 2023 (he started in Sept). Instead, he has been dragging his feet, dodging our calls and honestly has stopped working on the unit all together. I have already incrementally paid him a total of 36k (w/ credit card)  and I don’t know what to do. At this point, I’m considering disputing some of the payments with my bank as he has not provided the agreed upon services. We want to settle this amicably but at the moment this contractor isn’t picking up our calls. As you can imagine, we are racking up expenses as we have to rent elsewhere because the unit is uninhabitable. I greatly appreciate your advice. Thanks in advance!

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Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
2y

@Katelynn Malivert

1. File a complaint with credit card company immediately. Typically they will refund you the money and tell them you paid for work and they didn’t complete it (assuming that is the case) and tell them every attempt to co tact and last time you contacted

2. Were they licensed? If so file a complaint with the local licensing board

That is where I would start.

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  • Jonathan KlemmBusiness Member
    Moderator
    Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
    2y

    Also @Bruce Woodruff I found that even when you do the right thing majority of clients will still find more to complain about.  Doing the right thing in the construction industry is very hard because as a quality GC you are naturally going to have some bad apples (here in Chicago more than I'd like to admit) and projects don't go right.  

    I believe it ties into all aspects of life though...we all struggle to empathize with the "opposition" (for lack of better words).

  • Member since 2022 · 75 posts · 73 votes
    2y
    Quote from @Bruce Woodruff:
    Quote from @Tracy Ross:
    It is. But it's really a small percentage. Let's remember that we only hear about the horror stories....the great guys that do the awesome work never even get a thank you :-)

     Oh I love my good contractors! And I give them as much business and referrals as I can! But it's taken me over 3 years to build up a good base of contractors/subs. I think it's just hard because out there you never know what you're going to get- but it's like that in everything!

  • Rental Property Investor · Canton, OH · Member since 2017 · 1k+ posts · 1k+ votes
    2y
    Quote from @Bruce Woodruff:
    Quote from @Account Closed:


    The problem with some contractors is they work many projects at once. If any of those fall behind or cost more, they take money from another project to cover it...thus causing another investor(s) issues.

    Understood, the problem is (and I'm not implying all contractors are this way) when money is paid by one person and then used to fund another persons project. I see this happen with inexperienced and/or shady contractors from time-to-time in my area. When it does, they just disappear and don't finish a job. Again, not all contractors are this way...one just has to be careful with who they use.

    Any decent General Contr will have a few jobs going at once. They need to keep their crews and their subs busy and there are always delays on jobs where you need to take your guys over to another jobsite to work.

    Examples - The lumber does not arrive when it was supposed to. Or the customer does not pay when they're supposed to.....You can't have your guys standing around all day, so you get them over to other jobs.


  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    2y
    Quote from @Account Closed:

    Yep, it happens....It's highly illegal in most states to do this and a good reason for a customer to keep their progress payments to the Contractor in line with the amount of work that has been completed......

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