How to pay unemployed friend to help with small rehab

3 Replies

Looking for experience here.

I have a friend who's down on his luck and unemployed at the moment. I also have a unit to turn over (paint, flooring, countertops, fixtures). In his better days, my friend was doing self-employed HVAC, and I know he's decently handy, so he probably has some expectations regarding compensation. I don't know how to set the market for paying him.

Please don't bother with "never hire friends" responses; I know the drill. We're not even that close and it won't be that much time/work. I can afford a screwup, but I'd still like to do this right. So... what precedents are out there, and how have they worked for people?

I'm leaning towards hourly pay to work alongside me; that minimizes possible disagreement over what work was "completed." But what's a fair rate to offer?

Only hire licenced and insured contractors. If he is not licenced/insured, friend or not, you do not hire him.

Precedents dictate proper professional management of your business. You do not hire someone because they are down and out you hire to get a job done properly.

They are down and out because they are a failure. They are never reliable and will only contribute to your failure. Do not operate a business with a charity philisophy.

If you'll be surprising him closely, then hourly seems reasonable, at least to start with.  If he works outs well, perhaps move to paying per task/job.

I would make sure to have an independent contractors agreement (ICA) signed, ensure that he has insurance (at least liability) and get him to sign lien waivers upon payment.

If he doesn't have workers comp insurance (and you don't want to get it to cover him), I wouldn't let him do anything that is "high risk"...

Let me clarify: I'm doing all of this work myself, and I'd be asking him to come help me. Painting and flooring for 1300 sqft takes time, and while I don't want to pay contractor rates to save myself some of that time, paying much less makes sense for me.