Hiring a contractor to help with repairs and maintenance on your rental property should be done with care. Though an insured contractor will be more expensive, the peace of mind and protection is worth the extra expense.
Lake Worth Texas – Property Management: It’s inevitable. No matter how great your new rental is and how well it was maintained over the years, there will come a time when you must do some sort of repair or routine maintenance on it. It is important that you choose carefully when it comes to hiring contractors, landscapers, plumbers, electricians, and anyone else that will have access to the house.
Let’s say you have a large tree that is hanging over the house. One of the branches is clearly dying and represents a potential hazard. It could fall and damage the roof, fall into the neighbor’s driveway and crush their car, or catch fire when your tenant has the first cozy fire of the fall season in the fireplace. The limb must be removed.
While it is almost always cheaper to hire the handy guy down the street or with his name in the local paper, it could end up costing you a fortune in the long run if anything should happen to the house, the grounds, the utilities, or the tenants due to the actions of your hired repairman. While there are many very capable people who gladly provide the help you need, consider the ‘what if’s’ as you figure your potential costs.
Let’s say you have a large tree that is hanging over the house. One of the branches is clearly dying and represents a potential hazard. It could fall and damage the roof, fall into the neighbor’s driveway and crush their car, or catch fire when your tenant has the first cozy fire of the fall season in the fireplace. The limb must be removed. Your job as the property owner will be to find the appropriate tree trimmer to safely and carefully take the limb down before it falls on its own.
- The most expensive wants to charge $1400.
- The $600 contractor has a small crew of guys that work for him.
- The more expensive bid is from a company that carries worker’s comp, has a million dollar in liability insurance, and his workers are bonded as well.
- The better bet is to hire the contractor that is prepared to take responsibility for the job
Looking over all of the local companies that offer to provide this service, you choose 2 to come and give you a bid on the job. You receive 2 very different amounts. The most expensive wants to charge $1400. The lower range bid will charge just $600. That’s a huge difference, so the choice should be obvious, right? Not exactly. The $600 contractor has a small crew of guys that work for him. He does not carry insurance for his workers and doesn’t have liability insurance in case of accident on the job. The more expensive bid is from a company that carries worker’s comp, has a million dollar in liability insurance, and his workers are bonded as well. Taking your chances with the cheaper bid may turn out just fine, but should the contractor destroy the neighbor’s garage, knock out a city power line, or a worker steals your tenant’s bicycle from the garage, you are responsible. It will be very expensive and your insurance premiums will go up if you make a claim. The better bet is to hire the contractor that is prepared to take responsibility for the job. It is well worth the extra money to protect your investment.
