Choosing the Right Contractor

While owning and operating your rental portfolio, you will most definitely work with contractors. This is especially true for those dealing with fixer uppers or flips. Before you start calling on random contractors to work with, it is important to first figure out which kind of contractor you will need.

General Contractor

The General Contractor or GC for short is the one who will oversee your entire rehab. This individual can do some of the work but is most common to see a GC higher out subcontractors to do the work. Using a GC can be the most hands off example but it will come with a price. GC’s are not cheap but they will have expertise and supervision on the project.

Handyman

A Handyman is a super versatile contractor who can do a wide range of tasks. A good handyman can make your life as an investor a breeze. They can diagnose and fix a problem and do basic tasks such as fixing a leak or putting up a new fan. Good handymen can be a challenge to find as they will often upgrade to being a GC.

Specialists

These individuals hold specific licenses for HVAC, plumbing, or electrical. Specialists are trained in a specific field and will fix a specific problem quickly.

When looking for someone within these categories, it is crucial to find someone who is licensed. Licensed contractors are in it for the long hall and have credibility to their name. They have workman's compensation insurance for themselves and their employees in the event of an accident. These contractors might cost more money to hire out but it will be well worth it. They have skin in the game because they will have spent money to get a license. For this reason, licensed contractors will be less likely to rip you off.

Finding a great contractor is no easy task. Despite this, there are multiple ways to go about finding one. You can search for one from personal referrals, asking other contractors who they like to follow behind when working, asking store employees, and finally going to home stores. One tip would be to go to a home store early when it first opens. Find who is getting materials early in the workday to start their job. Seek out these hard working people.

Finally, you will want to screen your contractors to see if they will be a good fit. Call them, look them up online. You will want to get as much information as possible. If you think you have found a good one, start them out on a small job. What they will do in small matters will hopefully transfer over to large ones. If they do a good job, then in the future you can give them more work. If they do a poor job, you know their ability and are only out the money for the small job.

I want to close this post by saying to make sure you treat your contractor well. Pay them on time and in the amount agreed upon. Keep a good contractor on your good side and you will work with them for years to come. You will want to run your rental business with good principals. Be known as the guy people want to work for. Your good reputation will pay off big time in the long run!