Finding A Contractor
Whether you are considering hiring an outside contractor for regular maintenance, emergency repairs, or both, especially if you’ve never hired a contractor before, landlords need to know a few things first. Keeping your rental properties in good working order and safe for your tenants is foremost in your mind, so in order to have peace of mind, consider hiring a repair person. Besides, it is a good investment in business when your properties are in good condition.
1. It is good to find out if the contractor is a member of your local building and remodeling association. The best thing to do is call and find out! These contractor associations can give referrals as sources of information for the contractors. And generally, if their members are experienced professionals they see value in associating with other professional contractors.
2. Check if the contractor is licensed and insured. All localities and states require professional contractors to hold the proper license. Landlords should closely scrutinize the contractors and require them to obtain liability insurance. Ask your repair professional or contractor to show you their license and insurance coverage documents before hiring them. Just because they say they do have a license will the landlord believe and all the while finding out after they walk off your job or damage your property that your contractor has neither a license nor insurance!
3. Be aware of how they collect deposits and progress billings. There are many nightmare stories heard of homeowners and landlords who are swindled by unscrupulous contractors. It is a risk to pay large deposits—or the entire estimate in full—before the work has even started. It always happens that some landlords never see their contractors again. Your contractor is reputable if he is licensed by the state and a member of good standing in the contractor’s or the builder’s association.
4. Check if the contractor has excellent references. Don’t let contractors sign a contract immediately just because they have a good estimate of a friendly personality. Too many people get away with illegal activities because landlords don’t make background checks. Ask for plenty of references and call them. Be aware when the referred person talks so much goodness about the contractor, because you might be talking his friend!
5. Ask around if the contractor have a criminal past. As a landlord, you are responsible for the safety of your tenants. You can just imagine the gross liability of allowing an ex-convict, a thief, or a sex offender hovering around your tenants and their neighbors. For complete security, before allowing your contractor to sign that contract, consider running a background check on the contractor chosen.
Spectrum Enterprises, LLC was created by investors for investors. We recognize the importance of maximizing cash flow and profitability in your real estate endeavors. Spectrum specializes in a myriad of services, which consists of investments, consulting, sales and property management. www.spectrum-ent.net
1. It is good to find out if the contractor is a member of your local building and remodeling association. The best thing to do is call and find out! These contractor associations can give referrals as sources of information for the contractors. And generally, if their members are experienced professionals they see value in associating with other professional contractors.
2. Check if the contractor is licensed and insured. All localities and states require professional contractors to hold the proper license. Landlords should closely scrutinize the contractors and require them to obtain liability insurance. Ask your repair professional or contractor to show you their license and insurance coverage documents before hiring them. Just because they say they do have a license will the landlord believe and all the while finding out after they walk off your job or damage your property that your contractor has neither a license nor insurance!
3. Be aware of how they collect deposits and progress billings. There are many nightmare stories heard of homeowners and landlords who are swindled by unscrupulous contractors. It is a risk to pay large deposits—or the entire estimate in full—before the work has even started. It always happens that some landlords never see their contractors again. Your contractor is reputable if he is licensed by the state and a member of good standing in the contractor’s or the builder’s association.
4. Check if the contractor has excellent references. Don’t let contractors sign a contract immediately just because they have a good estimate of a friendly personality. Too many people get away with illegal activities because landlords don’t make background checks. Ask for plenty of references and call them. Be aware when the referred person talks so much goodness about the contractor, because you might be talking his friend!
5. Ask around if the contractor have a criminal past. As a landlord, you are responsible for the safety of your tenants. You can just imagine the gross liability of allowing an ex-convict, a thief, or a sex offender hovering around your tenants and their neighbors. For complete security, before allowing your contractor to sign that contract, consider running a background check on the contractor chosen.
Spectrum Enterprises, LLC was created by investors for investors. We recognize the importance of maximizing cash flow and profitability in your real estate endeavors. Spectrum specializes in a myriad of services, which consists of investments, consulting, sales and property management. www.spectrum-ent.net
