I started as a landlord soon after I relocated to a new city so I did not have the benefit of an established professional network. Therefore, I started using what I call the "Rule of Three" in earnest. When in doubt, call and meet with three contractors. And when meeting them, trust your instincts. If after talking with three contractors, no one stands out as the obvious choice, keep calling. Do not settle for what is in front of you. If you are not satisfied with a contractor in an initial meeting, just imagine how things will be when power tools, deadlines, and money come into play. It is always worth the time to keep looking if you have any hesitation about working with a particular individual.
To find three contractors to call first ask everyone you know who they have used, then check the classified ads in small, local newspapers, and finally open the Yellow Pages. I find the hard copy of the Yellow Pages better to use for this purpose than online searches because it allows me to compare the size of ads and check addresses. I usually shoot for the middle sized ads and prefer to use contractors as close to the project as possible. The full page ad companies are often too impersonal and the small print people may not have enough experience. Proximity to the job means they can easily get to the property and they most likely are familiar with the material suppliers and hardware stores nearby.
When I am interviewing contractors and through the first time I work with them, I have the following expectations from them:
• High quality work
• Reliability
• Reasonable prices
• Good communication
• Respectful behavior towards my tenants
• Feedback/recommendations for ongoing maintenance or preventing problems in the future
It is important to remember that the contract also has a choice about whether they want to work with you or not. Believe me, once you find a good one, you should treat them well! Once a contractor has met the above expectations, I am prepared to offer them the following things:
• They get paid when the work is completed. Not a week later (unless that is our arrangement). If I have to go out of my way to hand them a check, I will.
• I will pay them more than they are asking if their amount seems unreasonably low (my plumber refuses to charge me for the hour drive he has to do from his home to my property).
• The job site will be ready for them and any materials I am supplying are on hand.
• I do not keep them waiting.
• I am available while they are working to answer questions and get supplies.
• Clear communication and expectations.
• I let them do their work without interruptions and try to avoid having multiple people working on the same unit at the same time when possible. Most contractors like to work by themselves (that's why they became independent contractors).
Using these simple guidelines, I have been able to develop a team of excellent contractors who have had a dramatic positive impact on my business. At this point, the only reason I ever look beyond my core list is when there are significant scheduling conflicts that would have a negative impact on my tenants.
The Landlord School was founded by Jessica Glenn. It is intended to be a resource for anyone interested in learning about managing their own residential real estate. Specifically it is designed for:
• People exploring the idea of becoming landlords
• Current landlords who want to improve their business
• Perspective/Current landlords who want to create their own property management systems which will allow them to rapidly expand their real estate portfolio
• Current landlords who are experiencing problems at their property and need help resolving them quickly and efficiently
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