Contractors in Philadelphia

[Sheryl Sitman]

One of the biggest challenges investors have, particularly in big cities like Philadelphia (from my observations), is finding the right people to do the work - GCs, subs, handymen ...  they are always in search of electricians, plumbers, HVAC, drywall hangers - every  step of a rehab, for new and veteran investors alike, seems plagued with labor, trust, skills, price issues - especially recently.  I had my share of bad experiences. Anyone in Philly who claims it all goes smoothly for them just can not be speaking honestly. I have seen the most seasoned investors get taken by more seasoned con artists. When I do get someone that I can trust, knows how to work, shows up and does what he was hired to do ... I hang on. Sometimes that can be challenge. Do you give a bonus, overpay, treat them better than other investors ...?  One thing I do is bring them more work when I can not keep them busy. What do others do to keep their A-team of contractors close?

[Kevin M.]

@Sheryl Sitman I agree this is the most challenging issue I face in property management in Philadelphia. Even more difficult than the regulatory environment. It seems quality people move-on to bigger & better things very quickly. My best HVAC team, for example, is already booked out 4 weeks. My best plumber is always 'underwater' with work for days. 

The supply can not keep up with demand. We need more intelligent/professional people to enter the trades. There is significant $$$ to be made.

To answer your question about retention I try to;

1) Pay invoices same-day

2) Don't beat them up on price

3) Establish a face-to-face personal relationship