3 Tips for Managing Contractors As a Real Estate Investor

Like it or not, contractors are hard to deal with. And, as a real estate investor, trying to manage all your contractors can be stressful and overwhelming, especially if you don’t have the right strategies and approaches in place.

Unfortunately, renovations and repairs are an unavoidable part of real estate investment. Therefore, learning how to manage your contractors is essential to ensure the timely completion of projects. This includes handymen, independent contractors, and general contractors.

So, how do you start? How do you ensure your contractors aren’t ripping you off? Here are three tips for managing contractors as a real estate investor.

1. Always Sign a Contract

Once you select the contractors for your job, it’s wise to have everything in writing in the form of a contract. Whether you’re hiring your contractors by the job or the hour, having conditions spelled out prevents misunderstandings and conflicts in the future.

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In your contract, ensure you outline the following:

  • Deadlines for getting jobs completed – also, include penalties for extending beyond the contract deadline
  • Project location, start date, and end date
  • Scope of work – ensure this is detailed. Don’t leave things open for interpretation
  • The responsibilities and roles of the contractor
  • Payment terms
  • Compensation for work being performed
  • When compensations will be rendered

Having a contract not only ensures your contractors can honor and remember their duties, but it also holds them accountable in the event they fail to comply. Be sure that both you and the contractor sign the contract to make it legally binding.

2. Monitor the Progress Frequently

Regularly check on your project to make sure the work is going as planned. You’ll be surprised how many contractors claim a project is done when, in the real sense, they left many loose ends. You can either do scheduled or random drop-ins to keep your contractors on their toes. The latter lets them know you’re watching and can drop by at any time.

If your project is too far away for you to monitor often, consider hiring a project manager to oversee the operations. But, make an effort to stop by once in a while so that you can see the progress. Also, after a job is completed, verify before paying. This way, you can confirm whether the work meets your expectations.

3. Be Clear With Your Instructions

When you want a job done right the first time, you need to be 100% clear about what and how you want it completed. For instance, don’t simply say “change this flooring,” but let your contractors the type of floors you want.

The last thing you want is having to redo your entire floors because you weren’t clear with your instructions. Additionally, ask your contractors whether they have any questions regarding your project to eliminate any confusion. The more your contractors understand, the less risk you have of something going wrong.

Although dealing with contractors isn’t the best part of your real estate business, it’s vital to reduce your overall costs and maintain a seamless workflow. Contact Tru Builders toay!