By Michael Farmer
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If you're new to the property management game and haven't dealt with tradespeople, it's easy for the bad ones to talk you into services you don't need, to overcharge for labor, and to pass off shoddy workmanship as quality without you ever knowing - especially if you're not at the property on a regular basis overseeing their work.
It's only months later that you find out, after your tenant has moved out, that the bathroom pipe is leaking again, only now you have water damage to the sub-floor because it wasn't fixed properly in the first place.
Since I'm a general contractor with close to 20 years of experience, I do have an "in" when it comes to finding good tradespeople and overseeing their work. However, I've also run into some real duds. What follows are my tips for finding and working with good tradespeople.
Educate yourself
Just because you don't have the inclination to replace the seal on a toilet doesn't mean you shouldn't know how it's done. By educating yourself, you'll know how the various systems - i.e. water, electrical, heating, etc. - work together, the common problems associated with each one, and how to install or repair them.
Armed with even basic knowledge, you can then ask tradespeople hard-hitting questions about their estimates and the work they're recommending. You'll also know what to look for in terms of questionable workmanship or errors.
You can take basic carpentry classes at the local community college or how-to classes at the big box retailers. You can also read books and subscribe to magazines such as Fine Home Building or Journal of Light Construction.
Use your network to find the good people
To find these people, you'll have to do some extra legwork, which is where your network comes in. If someone you know is successfully rehabbing properties, ask him or her whom they use for various services such as electrical or heating.
You'll also want to scout around for friends or neighbors who are good friends with a general contractor and then ask them to introduce you. Contractors usually have a whole network of plumbers, electricians, roofers, etc. that they call repeatedly for jobs.
Plus, general contractors have the inside skinny on tradespeople who take advantage of clients: one plumber I know of, for example, often replaces parts that don't need replacing. Another plumber I know and respect said, "He replaces more of those parts in six months than I do in six years."
Another tip: Look in your own neighborhood for properties that have been recently renovated. Find out who did the work, if the tradespeople showed up when promised, and if they took care of any problems without a hassle.
When interviewing prospective tradespeople, don't rely on their verbal assurance that they hold a current license - ask to see it. And last but not least, be sure to get everything in writing.
Get second opinions if necessary
Don't automatically go for the lowest bid
A real estate agent I know recently asked me if I knew of a good HVAC person who could install a central air system in a property she was renovating. I gave her the name of the person I work with regularly; however, his bid was higher than the other bids she received. She ended up going with the lowest bid.
The result? The contractor never finished the job nor did he return any of her calls. Now she has to deal with the mess - and will probably pay more than my colleague's original bid.
Be clear about the type of materials you want
Most people don't know that they can specify the grades of materials they want used. For example, if you're having an electrician install new cable and phone lines, you can specify that you want a higher grade of wire used (the higher the grade, the better the reception).
Again, educate yourself. An unscrupulous tradesperson will state on the bid that he'll be installing higher grade materials but will install lower grades and pocket the difference. Know exactly what you're getting and check the material labels against the written contract.
Don't pay for the job upfront
One of the biggest mistakes people make is paying for a job either 50% or in full - before the contractor even starts working. Dishonest contractors will take the money and not show up, leaving the client stranded.
Instead, get payment terms in writing. A contract should stipulate when you'll pay a part of the job cost - e.g. half the cost is due once 50% of the job has been completed or full payment immediately on completion of a job. Never pay the final amount owing until you've done a complete walk-through of the job with the contractor.
Finding good tradespeople takes a great deal of effort and due diligence. To mitigate your risk, educate yourself, ask lots of questions, and get everything in writing. You'll find that maintaining your rental properties entails considerably less stress.
Michael Farmer is a licensed general contractor located in Amesbury, Massachusetts. You can reach him by phone at 978-337-0782 or by email at mgss12@verizon.net.
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