The Primary Reason To Hire A Tenant Is Cost

Category: Finance, Real Estate.

In a recent article I discussed your need to find and keep great contractors.

The reason, is price, of course. But most landlords only rely on professional contractors for some maintenance and repair tasks. Why pay a contractor big money to do a job you could do yourself, or find an inexpensive handyman to take care of, or even leave to the tenants? Those factors are cost, and quality, reliability. You must weigh at least three factors in deciding who will do a job. If you re thinking about taking on the job yourself, consider time and something I ll call" the fun factor" as well.

In my next article, I ll help you figure out where you should take these projects on. The fun factor is the enjoyment you may get out of doing handyman jobs. Here s how the different candidates to do work, typically grade on, other than yourself the performance factors: Contractor Handyman Tenant. Reliability Best Medium Worst. Cost Worst Medium Best. Quality Best Medium Worst.

For contractors in particular, quality and reliability, however should be absolutes. Of course the actual results depend on your actual contractors, and tenants, handymen. If your contractor isn t the best in those areas, replace him. It is an absolute must on any jobs that directly affect the safety of the building, as well as any jobs that, if not done perfectly, may result in a more serious expense later. Now it s time to think about where you want the best quality. Keeping that in mind, you certainly want a real licensed plumber, electrician and HVAC contractor for all significant projects in those areas.

A significant job is one where there is potential for major damage if the job is not done right. Be very hesitant to employ a handyman here, and never use a tenant for such jobs( unless, the tenant is, of course a licensed professional contractor) . For electrical jobs, you probably don t need a pro to replace outlets or switches, or replace circuit, install overhead lights breakers. For HVAC, you don t need a pro to replace filters, thermostats or zone valves, or purge forced water heating circuits. For plumbing jobs, you don t need a pro to unclog most drains or replace washers in faucets, or showerheads, toilet parts. You can probably think of other similar projects. Your property insurance will not cover damage caused by bad repair work, unless the repair is done by a licensed contractor.

You should also think about insurability when considering a contractor. A licensed contractor is often your best bet in emergency situations. If your buildings are in a snowy part of the country, you also need a very good snowplow operator. This is because such a contractor is usually on call 24/ 7, has replacement parts in inventory, and has more than one pro on staff. Use one who has been in business for several years, and will get, lives locally the job done by the time you set. A handyman can often also take on bigger jobs such as siding, building stairs or decks, or replacing windows. Use your handyman for light carpentry jobs, and the small, painting electrical, plumbing and HVAC jobs where you don t need a professional.

Many people who hire themselves out as handymen are actually licensed general contractors. This person will consider himself a professional and will probably be much more reliable as a result. You re much better off with a handyman who does have a contractor s license, along with workers comp and liability insurance. However, you might have a hard time finding a handyman of this caliber. However, he is much more likely to want payment in cash, to not be available when you really need him, or even to skip town with your money. A handyman who doesn t have those credentials may still do very good work, and will probably charge less.

You can avoid these problems by paying only a small part up front, by scheduling him in advance( I ll see you at 9 a. m. How will you find a good handyman? Wednesday" ), and by checking frequently to make sure the job is done. Start by checking with the other members of your local landlords association, making sure that their criteria for a good handyman matches yours. Then the classifieds in you local paper. If that doesn t work out, check the Yellow Pages.

Then signs posted on community bulletin boards. The primary reason to hire a tenant is cost. A contractor hired off a bulletin board is much less likely to be reliable than one recommended by another landlord. However, you should not hire tenants to do anything but the most basic jobs. Of course you can make an exception if you have a tenant who is a skilled handyman or professional contractor. Use tenants only for routine tasks like lawnmowing.

In that case, the tenant will, however want to be paid his standard rates. Don t ever allow a tenant to" work off" unpaid rent- the job probably won t be done well and the tenant will still expect credit. If you do hire a tenant, make sure it is someone who has lived in your building for many months, and who has, if not years proven to be reliable as a tenant. The other danger in hiring a tenant to do work is that problems with one relationship may affect the other. Now you ve got a problem with your tenant and a problem with your snowplower. For example, suppose you hire a tenant to plow and he does a bad job. You may have to replace both.

Write up a separate agreement that spells out what the tenant has to do and how much he ll be paid. For that reason, if you do hire a tenant, try to keep the two relationships as separate as possible. Rather than accept a lower rent, insist on full rent payments and pay separately for the work the tenant does. This will help protect you from liability. If you do use a tenant or handyman to do projects, set an ironclad rule that he or she can never enter another tenant s unit to do work- even if the tenant is there- without you also being there.

Read more...

I Would Highly Recommend Investing In Property In Mexico - Finance and Real Estate Articles:

I recently visited Mexico, and being so impressed with the people, culture and lifestyle of the country, ended up purchasing property, in Mexico, as a foreigner.

When You Get A Real Estate Agent Involved, He Or She Will Often End Up Taking A Hefty Cut - Finance and Real Estate Articles:

If you are looking to sell your home, you will find that there are many options open to you.

French Place Is A Great Austin Neighborhood Without - Finance and Real Estate:

Nestled in central Austin between Airport Boulevard and Manor Road lies the quiet yet vibrant neighborhood of French Place. While French Place s houses are generally no more than two to three bedrooms, many houses have interesting add- ons to enhance functionality without resorting to cookie- cutter remodels.