Updated almost 4 years ago on . Most recent reply
Contractors in Philadelphia
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?
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@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
- Kevin M.
