Real Estate "HACK" Of the Week - August 22 - How to Deal With Contractors & Avoid Costly Delays
I was inspired by @Brandon Turner 's landlord's "hack" list. SO I've decided that every week, I will share my real estate "hack" with BP Nation. Here's my first real estate "hack" of the week:
Issue with Some Contractors (not all of them, but some of them): DELAYS in finishing their work on time
My "Hack": I ask them what their deadline is for a particular job and I add 1 week to their deadline. Then I tell them that I will penalize them $100/day per every day they are late on their deadline (+ 1 week padding). I put this penalty clause in my contract with all my contractors. If they finish their job ahead of schedule, I give them $100/day BONUS.
The result of this "Hack": all of my rehab jobs are finished ON TIME. The only time I have delays are during "Acts of God" situations.
What about you rehabbers out there? How do you avoid delays in your rehab projects?