Owning one or more rental properties can be a great way to make a living for you and your family. However, when you own a rental property, you must be prepared to make repairs and tend to maintenance requests to ensure a safe and habitable home for tenants. Working with licensed contractors is vital if you’re not very skilled in these areas. Today, we’re reviewing when to hire licensed contractors and why working with them is so important.
Contents of This Article:
- Why Do You Need Licensed Contractors?
- Repairs With Vs. Without a Licensed Professional
- How Can a Property Management Company Help?
Why Do You Need Licensed Contractors?
Having a rental property with tenants in place comes with the responsibility of making sure maintenance requests are completed properly and on time. Now, if you specialize in HVAC, plumbing, roof, or electrical repairs, you may be able to handle some of these maintenance items independently. However, if not, you will be relying on another individual to handle the job for you. Luckily, if you work with Washington DC property management, your team will handle repairs and maintenance for you. On the other hand, if you’re managing your own properties, here’s why working with licensed contractors is crucial.
- Safety and Compliance- They’re trained in safety protocols and knowledgeable about local building codes, reducing the risks of accidents or legal issues.
- Specialized Equipment- Licensed contractors have the right tools for the job, typically requiring specialized, high-quality equipment not commonly available to everybody.
- Financial Protection- Licensed professionals typically carry liability insurance, protecting you from financial loss due to accidents, damages, or incomplete work.
Repairs With Vs. Without a Licensed Professional
You don’t want to hire just anyone to handle your rental repairs. We’ve gone over why hiring and working with licensed contractors is important, and here’s a prime example what may happen if you decide not to.
Repairs Without a Licensed Professional
Suppose your tenant just reported that their A/C is not working. The system is not blowing cool air, and there seems to be a lot of condensation on the system itself. This is causing water to leak from the vents. Your friend, who is a handyman, has offered to go out and take a look at the system. Having him go out will be far less expensive than sending a licensed HVAC technician out to inspect. So it makes sense, right? Not necessarily.
Fast forward to a week later. Your friend thought he had fixed the issue, but the tenants report that it was unresolved. The water leaking from the vents has now caused interior damage to the ceilings and drywall, resulting in more repairs. In addition, you still have an HVAC system that is not functioning properly, on top of upset tenants who haven’t had a working A/C in over a week. That’s not all; the current lease with these tenants is up for renewal. However, they’re not so sure they want to commit to another year at this property. If your tenants vacate due to unresolved maintenance issues, you’re looking at the possibility of paying for turnover expenses.
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Repairs With a Licensed Professional
Let’s say instead of having a handyman do this repair, you chose to have a licensed HVAC contractor go out instead. Would the outcome be different? Most likely, yes. While the cost may be more expensive, you are paying for quality service from an expert in the trade. This individual will be able to diagnose the exact issue, as this is what they do daily.
They’ll provide a quote for repair or replacement and a timeline as to when you can expect the work to be completed. That work will probably come with a warranty for parts as well as labor. It’s also important to keep in mind that some jobs require permits to be pulled, and typically, a licensed contractor is going to know exactly what is needed for that permit and how to successfully obtain it. Licensed contractors know the codes, have a crew of professionals ready to complete work properly, and will generally have a supervisor on-site, overseeing each job.
Another thing to keep in mind is the paper trail. Nine times out of ten, a licensed contractor is working for a professional company, one who works off of work orders, and provides written estimates, as well as detailed invoices. Documentation for each job is extremely important to keep for your records, especially when owning a rental property. Rent escrow is a real thing, and if you ever find yourself in a situation where your tenant has taken you to court, you’re going to want comprehensive documentation.
How Can a Property Management Company Help?
Do you have a third-party management company managing your property? Chances are they’re already working with licensed contractors who they trust to get the job done. The best thing you can do is allow your management company to coordinate all repairs with their contractor(s). While your friend may offer to handle repairs for far less money, that doesn’t always mean it’s the best route to take.
If you are an owner of a rental property who takes on the task of hiring contractors to complete different jobs, you are going to want to do a ton of research first. Read the online reviews, check the company status with the Better Business Bureau, ask for photos from previous projects, ask to see their contractor license, and make sure they have contractors’ insurance.
Lastly, if you’d rather have someone else do this for you, contact Bay Property Management Group! If you’re a property owner with rental properties in our areas of management, we’d love to discuss what we offer and what sets our company and contractors apart from the rest.