Why You Shouldn’t Paint with Pantone’s Color of the Year

Image Source: Canva

Trends come and go, just as tenants rent and vacate, but property investors are in it for the long haul which is why it’s important for property investors to keep their priorities straight for their unit. Each tenant is different, they have different communication styles, different standards of living, and each comes with their own aesthetic. When looking for a new home, tenants are looking for a place where their current furniture can live alongside them.

While some may love a great accent wall, most of them don’t expect to see that in their rental home – mainly because that’s not the typical practice. They’re likely coming from a white or beige rental, looking for the next white or beige rental home.

Should a property investor make the mistake of using yearly trends, like Pantone’s Color of the Year, in the home, they are missing out on tenants who are looking for a more basic palette so that their home decor can easily move from their current place to the new one. A homeowner might love Classic Blue and find that it’s a great color for the home, but it’s a mistake to force that upon future tenants who will avoid or turn down a potential home if that color doesn’t work with their furniture and décor.

By adding color to your rental, you significantly narrow your tenant base to the few who just so happen to be okay with a blue wall anywhere in their home. It’s more likely the tenants won’t consider your rental if they feel the space isn’t going to be able to easily mesh their personal style with a bright color like that – especially one they can’t change.

While white might be bland, it creates a blank canvas for tenants to make their own. There are not many tenants out there who will be mad about white walls – as white paint tends to brighten the space, making it feel bigger as light reflects off the paint, and allows them to easily bring in their own things.

Posted on February 6, 2020 at 8:00 am
JMW Group | Category: Featured, Manage Like Michael | Tagged , ,

Selecting the Right Property Manager

Carefully selecting the right property manager is one of the most important steps of owning investment properties.  Having the right property manager will impact profitability, risk, and enjoyment of the venture like few other decisions an owner will make.

This is true even for owners that decide to self-manage:  they’re still selecting a property manager (themselves) and should still evaluate that choice as though they are one of the agents competing for the job of property manager.

The job of property manager varies somewhat depending on the type of property being managed, but there are some considerations that apply to selecting a Property Manager for all rental types.  Here are some things to consider as you search for your property manager.

Experience

As in all professions, there is a learning curve.  A primary reason for hiring a professional is to not start at the beginning of that curve.  There are perhaps 100 issues that routinely arise in the course of managing property and choosing an agent that has been around to have seen, and learned how to respond to, the majority of them will pay dividends.  This doesn’t rule out a newer agent, especially if they show strengths in other areas, but it’s wise to then more carefully assess the team and support such an agent would have to rely on.

 

Stability

Another key reason people hire managers is the convenience of having someone else track all of the details involved in managing property.  If an agent doesn’t stick around, that loss of continuity usually results in details being dropped and an owner’s time being wasted.  Look for an agent, and a company, who you can depend on for the next 5 to 10 years.

 

Likability

As you’re looking for stability, look for someone that you will enjoy working with over the course of years.  Some personalities just don’t mesh, regardless of all the other factors.  Recognizing and respecting when that’s the case will make life easier.

 

Integrity

Finding an agent who will reliably give honest answers, even when it’s not in their immediate self-interest, is crucial. Sometimes the answer to an owner’s question isn’t one they want to hear, i.e.: “How much can I rent this property for?”  Too often, the Agent that answers this question with the highest number is simply not telling the truth. Use an agent who is candid and follows through with their word.

 

Capacity

One agent can only handle so many properties well.  That number varies depending on the type of properties, type of leases, and management structures they employ, and on the particular agent; but there’s always still a number at which an agent is maxed out, and at or over which the quality of the service they’re providing will diminish.  So, while experience matters, picking an agent that’s going to be too busy to adequately focus on your property isn’t good either.  Ask questions like: ‘How many accounts do you manage?’, ‘How many did you manage two years ago?’,  ‘How many more would you take on before considering your portfolio to be full?’.

 

Personality

The job of property manager isn’t that of a salesman, nor of an attorney, nor accountant, nor economist, nor psychologist… but it has elements of all those professions.  A good manager has skills in all these areas, all the better to prepare them to avoid disputes.  Then, when disputes inevitably arise anyway, they’re excellent at dispute resolution.  Look for someone who is not volatile but is good at thinking long-term and is results oriented; someone that sees the value of having all parties go away satisfied rather than one that will engage in and try to ‘win’ every argument.

 

Organization

Artists don’t necessarily need to be organized.  Property managers necessarily do.  Look for signs.  Do they have systems in place to ensure that all details are always covered?  Do they show up on time and well prepared?

 

Communication

A property manager is going to be speaking and writing for you.  Their communication is therefore a reflection of you, and the devil is in the details.  In most cases, you’ll be giving your property manager a limited power of attorney to execute written agreements for you.  Make sure they can communicate carefully and accurately.  Well-written agreements (and clearly enunciated conversations) will greatly minimize future disputes.

 

Compensation Structure

When comparing the prices of each property manager you interview, compare alongside the attributes each one brings. Property Management is a service, not a commodity, but like paying less for that product, you get what you pay for. The higher the price, the higher likelihood that your service will be of high quality, just as the low price would bring about low quality work. Find what is most important to you, then look for someone who is selling that things for a reasonable price.

What most investors care about is profitability.  Profitability is primarily impacted by minimizing vacancy and litigation while maximizing rental rates through proper maintenance and marketing.  So, while the fees paid to a property manager are on the balance sheet too, keep in mind the other balance sheet factors that a property manager influences.  They’re much more impactful on the overall profitability of an investment.

 

Comprehensiveness

A long property management agreement isn’t an enjoyable read for owners any more than a long lease is for tenants. But a stitch in time saves nine.  By taking the time to properly address all the pertinent issues covered in these long documents, a good property manager is diligently communicating so that future conflicts are avoided.  Beware a 1- or 2-page agreement that leaves unknowns out there.  If that’s the level of attention being paid to details with you, imagine what’s missing between you and the tenant.

 

Administrative Support

Consider the level of support their team will be providing and the type of software they’ve invested in. What kind of access will you have to conveniently track your portfolio and that your tenants will have to pay rent.

As technology rapidly expands, is your property manager or their team using great tools out there to make everyone’s lives easier? How do they schedule showings? How do they file their paperwork? Do owners have access to their accounts online? These are great questions to ask to find out how they’re using technology in their business.

 

Reputation

Choosing a firm with a good local presence associates your property with that reputation.  When potential renters see a reputable brand, they infer that their relationship with such a landlord will be transacted in accordance with the business standards associated with that brand.  Many will find value in that level of comfort, and such considerations will help your property achieve its highest market value.

 

Meet in person with your potential Property Manager to get a feel for the way they work and how you will work together. If you’re interested in talking with our agents, check out our team and give us a call!


            
Posted on January 23, 2020 at 8:35 am
JMW Group | Category: Featured, Manage Like Michael

Clean out your storage space and make more money!

Image Source: Pixabay

Do you have a New Year’s Resolution to de-clutter your life? What about make more money?

Complete both by cleaning out that storage unit you call your rental!

Many of our owners use the garage or shed at their rental as storage for those items that are rarely used. Some owner even use it to store furniture for when they move back into the property. While not every one is on the same page here, it’s something to think about as we head into 2019, when it feels like everyone is trying to live a more minimalist lifestyle. Clearing these storage units out could make you more money from your rental in the end.

If this is something that appeals to you, here are some things to remember:

 

Give Notice to the Tenants that you’re coming by to clear the storage space out.

Follow your local laws and guidelines to warn your tenants that you plan to spend the day at the property. As a Landlord you have the right to access the property only for inspections, repairs or marketing of the property during tenancy so, be respectful of the tenant’s space. Ask if it’s okay with them for you to spend the time to remove the items. If they say no, which is well within their rights, plan to do it during the next vacancy.

Set expectations with them to make sure that your intentions are clear. If this is a one-day project or will take multiple trips, they need to know. If you have no idea what it will take, be sure to communicate with them when you do know.

 

Clean as efficiently as possible.

Remember to take the things with you or to the dump, don’t just reorganize. Use this work as a way to clear out the junk. How long has it been since you last needed or used any of the things in there? Would the tenant or rental benefit from anything in there? Ask yourself, and answer honestly, about each item.

Use a junk removal vendor to take the stuff away if necessary.

Does a storage unit make sense for your stuff? While it might come with a cost between $40 and $200, you would have access to the stuff without having to warn the tenants. Not to mention, if the tenants have that space that extra rent could pay for the storage unit.

 

Raise the rent.

Adding this extra square footage to the property calls for a price increase! At the next renewal period, with enough notice, raise the rent by however much feels fair for the tenants and for you. You can also use these if the tenants don’t plan to renew with you. Here are some suggestions, though if you don’t know what seems fair, you can you’re your local property manager for advice. Note, these might differ for your particular property, but you can use these as guidelines:

Garage: Adding secure, covered parking to your rental is a great value add to your current and future tenants.

Shed (Fixture): Adding storage for the tenant is a great addition, but not every tenant needs it. Plus, they tend to be smaller than the garage so the value add is probably on the lower end.

Shed (Removable): If you can take the shed with you, you would add valuable lawn space to the rental property. This valuable land is perfect for kids or pets and would commend a raise to the rent if you hadn’t had it to begin with.

Basement (Unfinished): Adding this storage space for your tenants that’s attached to the house is a great value add. Having that storage space would widen the net for potential tenants from just new transplants to families remodeling their home and need a place for the extra furniture. The rental price increase depends on how big the basement is, or how much of the stuff you can remove.

Basement (Finished): Not only would your tenants get extra storage space, with a finished basement they could gain another family room, or even potentially an extra bedroom or office (depending on the windows down there). If you can add a bedroom you can increase the price quite a bit. Otherwise, consider the other family or bonus rooms in the house and make the price decision based on the current square footage.

 

Not sure what you could get for your extra space at your rental? Is it even worth it to free that room up for the tenants? Contact your local property manager for a valuation.

Posted on January 9, 2020 at 8:00 am
JMW Group | Category: Featured, Manage Like Michael

Hosting Guests in your Rental Over the Holidays

 

Maybe you have family coming into town or maybe you’re the family going to visit for the Holidays.

Keep your family safe and healthy with this guide. We’re thinking outside the box for you so you can think about what really matters, the food and the beverages. 

If the host lives in a rental property, here are some items to think about before setting up the pull-out couch.

 

Check the lease for what it says about guests.

Do you have to get permission from the landlord for the stay?

Are the minimums and maximums for how long someone can stay at the property?

This is important to make sure you are not in breach of your contract. It’s likely your landlord just wants to know who is in the house at what time. They’ll typically be understanding that it’s the holidays that guests are a normal part of that.

 

Get the property in shape for guests.

Don’t forget to handle anything that’s the tenant’s responsibility for keeping the property in good condition & most importantly, safe.

Things like cleaning up the moss and de-icing the walk ways will keep you and your guests safe, especially if they’re walking up with luggage or worse – their famous casserole.

If there is something you notice that is the landlord’s responsibility, give them time to fix it before your guests arrive. Check that the oven is working properly, that your dryer is drying, and that your heat is on. Don’t forget the fire alarms and carbon monoxide detectors.

 

Clean.

Not that your place isn’t in tip-top shape, obviously. But think deep clean to avoid allergy flare ups and colds spreading throughout the house.

Bleach your towels to stop the spread of diseases and infections, stock up on laundry detergent for the dirty clothes and sheets, clean the carpets with a pet enzyme to clear it out of any pests and dander.

Then tackle the fridge to make room for leftovers and wipe out that oven to avoid smoke and fire. Last but not least, disinfect the door handles and phones (does anyone have landlines anymore?).

 

Are you staying with your family in their rental? Share this article with them.

Posted on December 12, 2019 at 8:00 am
JMW Group | Category: Featured, Manage Like Michael

Agent Profile: Jay LaBrie

 

Get to know JMW Group agent, Jay LaBrie:

 

How long have you been in property management? How long have you been with JMW Group?

We just reached 11 years!

 

What’s the best part about working in Property Management?

Happy Hour with our coworkers! Haha, kidding! I like being able to get out of the office and meet new owners and tenants. I feel like I have a lot to offer owners, and can maximize their profits, while minimizing their costs. We work in a fast pace industry, and every day brings many new challenges.

 

What’s the best part about working with JMW Group?

We have great support from Windermere as well as our staff! It’s so great to know they have my back and can help me when I need it. Also, the name recognition which helps get your foot in the door to prospective owners.

 

What’s a question you get asked all the time about what you do?

The question I get asked all the time is: “How much is our cost for Property Management, and what do we offer versus the competition.”

 

How do you answer that question?

I normally start with why our services are greater than the competition, and the benefits of hiring us/me.

 

What’s the advice you give all your clients?

I think having a great property manager to work with is an important part of owning investment property. I try and let them know they can trust me and Windermere to take care of their large investment.

 

What do you wish property investors knew before they talk to you?

How difficult our job is in relations to what we charge. There’s a lot that goes into managing property other than collecting rent. I handle leasing as well as maintenance, which isn’t always cut and dry.

 

In what neighborhoods do you mostly work?

I work all over! But I like Kirkland, Redmond, Bellevue, Issaquah. I like in Kirkland, so it feels like my backyard. I know the in’s and out’s, which helps especially when tenants are new the area and looking for a little help to feel more connected to their neighbors, and find the best places to go out.

 

What’s your favorite thing(s) about those neighborhoods?

My favorite thing is that it’s so close to where I live. But besides that, the east side is generally nice and clean, great neighborhoods, and we have a lot of growing businesses.

 

When you have free time, how do you spend it?

Anything when my kids are in town! That’s something they run for sure! Other than that, I like to go hiking, to the gym, dinners out and travel as much as possible.

Posted on November 21, 2019 at 3:58 pm
JMW Group | Category: Agent Profile, Featured, Manage Like Michael

Your Fall Rental To-Do List

Image Source: Canva

Fall Proactive Cleaning for your Rental

Here are some proactive things you can do to your rental property to prepare it for the fall & winter seasons.

Your rental lease with the tenants probably lays out maintenance responsibilities along the lines of ‘tenants are responsible for the furnace filter and light bulbs, and the owner is to make sure the home is habitable.’ Part of making sure the home is habitable is preventative maintenance to avert major repair issues later. The plus side is that being proactive can save you headaches and money down the road.

 

 

Here’s your to-do list this fall:

Project Why Avg National

Cost

Clean Gutters Avoid flooding and leaking by clearing out your gutters of any leaves & moss. $151

Link

Cover hose bibbs Avoid frozen pipes that burst in the middle of winter. Cover the hose bibs on the outside of the house with reusable covers. $10/each

Link

Winterize Sprinkler System Again, frozen pipes tend to burst causing damage to the pipes and the home. DIY or hire a professional. $81

Link

Replace Faulty Thermostats This is part of keeping your home habitable, and basic care of a home that’s meant to stay warm. $25-60

Link

Chimney sweep/clean (link)  Avoid damage from build up & pests when your tenants light that fire. A chimney fire could damage not only the chimney, but could spread to the roof and home. $227

Link

Have HVAC system Serviced Clean the ducts and vents to prevent fire when the heat comes on and is blasting continuously.

Check the filters in the ducts and furnace too.

$357

Link

*Follow links to find pricing information.

But first…

Before doing any extra work, make sure to communicate with the tenants what types of maintenance you’re going to do that isn’t listed in the lease. They should understand, all of this is preventative and that you’re doing this so bigger problems don’t arise.

And also…

Additionally, if there’s anything that the tenants are responsible for, remind them of the deadlines and suggest your favorite vendors to them to make sure the job is done right. This is another proactive thing you can do to avoid major issues later.

Posted on November 7, 2019 at 8:00 am
JMW Group | Category: Featured, Manage Like Michael

Haunted Rental Stories

The following are stories from our agents and their experiences with the supernatural. Working in Property Management, we are in and out of homes all day. We work with agents in and out of our office to show units to new tenants, and handling move-in and move-out inspections. We like to say we’ve seen it all. 

But what about the things, we can’t see? 

 

 

Chased Out of a U-District Home

Rebecca did a move-in inspection for our agent Jay LaBrie in the U-District. She had this to say about her experience:

“[It was] just a super creepy house. It’s an old farmhouse style home built in like 1901 and almost all of it is original, hardwood floors, fireplace, banisters, etc. I did a move in there years back and it is the only house that gave me a feeling that I shouldn’t be there. The upstairs was the worst – I wouldn’t even go up with the new tenants after my initial inspection because I felt chased out. I’ve probably been in 1000 houses over the years and it is the only one I wouldn’t go back to.”

Rebecca Farmer

 

 

 

 

 

 

 

 

 

 


A Ghostly Figure

 

 

While taking marketing photos for a home, our agent Nicki Callahan had this experience:

“[The other day], I was taking photos of a house and [the day after] I looked at the images for the first time. [Some context], I was wearing a black and white dress with a sort of beige hat. I did not see this white “figure” as I was taking photos – you can clearly see it also has a reflection in the mirror. I am standing facing the wall when I am taking the photo, the mirror is to the left, and considering my outfit, there’s no way this is me. What do you think – I am kind of creeped out – do you think it is a ghost? Is there another explanation? AUGH…….”

 

Nicki Callahan

 

 

 

 

 

 

 

 


Childhood Trauma

 

Ann shared this story:

I managed a property in Innis Arden. It was held in trust and the attorney hired me to lease and manage the property. The house had been owned by his client’s parents. I met with the daughter to do the initial inspection.  Other than that, she wasn’t supposed to have much to do with the management of the property. The daughter was nice, a little odd. She started contacting me a lot and I was having communication problems with her. I called the attorney to explain the problems I was having, with her. He explained that she has mental health issues, due to a childhood trauma.

Turns out, when she was a young girl, she found her parents, dead in the downstairs of the home. Her father shot her mother before hanging himself.

I always felt creepy, in the downstairs and garage. I didn’t like going down there. The rest of the house was okay. I didn’t feel the need to disclose all of that to the new tenant. She ended up living there for a couple years.

One day the tenant came into the office to pay rent and asked about the history of the house. I asked her why she asked. She said she thought the house was haunted. She said candles would light themselves, at night. The entertainment system would turn on by itself, in the middle of the night and other odd things around the house.  She would feel like she and her baby were being watched. She felt a presence in the house but it wasn’t a scary/menacing presence. After I explained what had happened in the house, she thought it was the spirit of the owner’s mother. I completely believe her!

Ann Lopez

 

 

Posted on October 31, 2019 at 8:00 am
JMW Group | Category: Featured, Manage Like Michael

Tasks to Tackle Before Temperatures Plummet

 

The following article was contributed for our republication by WinterizeGuys.  The work involved in carrying out their tips for maintaining your home in the winter may fall on a landlord, or on a tenant, depending on the item and on your lease.  Either way, it’s important to manage the process and ensure that someone actually is taking care of these necessary tasks.

 

Winter is on its way to Washington. Even though temperatures should not drop below freezing for a while yet, late summer and early fall is the perfect time to winterize your home. Small steps now can have a big impact when Mother Nature gives you the cold shoulder. Here are a few ways to weather the wrath of winter weather where your home is concerned.

 

Check the electric.

 

During the cold winter months, your tenants likely use more electricity than normal when the sun keeps the house warm and bright. Because of this, you are more likely to experience electrical issues. Fortunately, a quick system tune-up by your preferred provider can identify and eliminate many issues that could leave you in a cold, dark house.

 

Put your outdoor furniture indoors.

 

Most patio furniture and outdoor decor needs to find a new home until spring. Snow, rain, and other unfortunate elements can damage wicker, fabric, and metal. If your tenants don’t have space in the garage, you can suggest they find a storage unit in the Seattle area to keep the outdoor items in great condition while they hibernate. The average cost of renting a self-storage unit in Seattle is $131 per month, but it’s not impossible to find cheaper options if they shop around for sign-up deals and promotions.

 

Clean the gutters.

 

Cleaning gutters is something you should be intimately familiar with by now. As the leaves start falling, your home’s drainage system can get full, and that can leave you in a bad position. Heavy, wet leaves can crack your gutters, and the extra weight can also put unnecessary strain on your roof. This can leave cracks that allow ice and water to get inside the home, which can trigger mold and structural damage. You’ll need to clean your gutters every three months if you have pine trees nearvby. Prepare to pay an average $75 – $125 to have your gutters professionally cleaned.

 

Seal doors and windows.

 

Drafty doors and windows make your HVAC system work overtime and can diminish the comfort of the home. Fortunately, one of the most common causes of air leaks is fairly simple to remedy on your own. Cracks in the caulk, which are caused by ever-changing temperatures, are an easy fix. Feldco explains that you can tell if you have a leaky window by running your hand along the seal. If it feels cool, it’s time to grab your caulking gun.

 

Close the pool.

 

If you’re lucky enough to have a pool in Seattle, it’s important to close it down properly to avoid future issues. Don’t wait too long, Swim University suggests closing down an above-ground pool when temperatures don’t climb beyond 65 degrees. You’ll need to have your supplies ready, including winter chemicals, and be prepared to get your hands dirty with a final cleaning before cover goes on.

 

Other Tips

 

In addition to the above, there are several other small chores that will pay off during the winter months.

 

  • Weatherproof exterior pipes to reduce the chances of them freezing
  • Ensure your generator is working in case of an extended power outage
  • Double check your attic/roof insulation
  • Bleed the radiator, if applicable
  • Schedule an HVAC checkup
  • Clean the dryer vents, which is the silver spring-looking pipe that leads from your dryer to the exterior
  • Inspect and test your sump pump

 

Getting your home ready for the cold of winter is not difficult. However, it does take time, and even doing one job each week will put you that much closer to being prepared for the worst so that your home can be its best when the mercury starts to fall. Work with your tenants and vendors to make sure your investment property is in good condition to take on the Winter.

 

Posted on October 17, 2019 at 8:00 am
JMW Group | Category: Featured, Manage Like Michael

Meet JMW Group Agent Rebecca Farmer

Rebecca Farmer JMW Group Windermere Property Management Headshot

 

Get to know JMW Group Agent Rebecca Farmer:

 

How long have you been in property management? How long have you been with JMW Group?

I’ve been at JMW Group for 12 years, I started as office admin. After 4 years here, I started working as a leasing agent and property manager.

 

What’s the best part about working in Property Management?

The best part of property management is by far that I get to make my own schedule. I work with my clients and the tenants to make sure everyone’s schedules are taken into account, but I get to say when I start and when I end, making it easy to include personal time with friends and families.

I also love move-in days. I love working with excited new tenants to get them into their new homes.

 

What’s the best part about working with JMW Group?

Michael, our owner/designated broker; he trusts us to do our job and is always there for support from the biggest to the smallest issues.

 

What’s a question you get asked all the time about what you do?

What is the craziest thing you have seen on the job?

 

How do you answer that question?

There is always a new answer to give on that one!

 

What’s the advice you give all your clients?  

Vet everyone -it’s all about the screening. Using applications to screen your tenants and make sure they are well qualified is an important step that reduces the risk when renting out your home.

 

What do you wish property investors knew before they talk to you?

You get what you pay for; real estate is most likely the largest investment you will ever make, so why bargain shop for its keeper? Working with a property manager is, I think, one of the most important parts of owning an investment property that helps reduce vacancy and risk.

 

In what neighborhoods do you mostly work?

I typically work from Federal Way to Everett. I’d say most of my properties are in North Capitol Hill to North Seattle right now.

 

What’s your favorite thing(s) about those neighborhoods?

It’s where I live, it’s where I go for entertainment and fun, and where I have the most personal connections. I find it’s easy for me to learn about the area in which I live, meaning I can better help my clients and potential tenants better understand the area and what to expect.

 

When you have free time, how do you spend it?

Away from my phone and hopefully in my garden!

 

If someone wants to work with you, what’s the best way to get a hold of you?

I prefer email: rebeccaf@windermere.com.

Or you can call me at the office, and they’ll be able to find me if I’m at the office or in the field: (206) 621-2037.

Posted on October 4, 2019 at 8:00 am
JMW Group | Category: Agent Profile, Featured, Manage Like Michael

How to Hire the Right Vendor

Need a good handyman or Sub-contractor?

Use these questions to start your interview with a potential vendor. They will help you protect your investment property, both structurally and financially.

Having a vendor list you can trust is crucial for maintaining your investment property while staying within your budget. If you know they’re going to get it done right, sometimes it’s worth the extra $50-$100 at the beginning, rather than the expensive 2nd fix that may be required if you use a disreputable vendor.

Sites like HomeAdvisor help connect property owners with contractors and subcontractors who can pretty much do any job! From painting to plumbing to electrical to hot water, it’s a great resource for people who don’t have a verified vendor list.

Another option is Keepe, an app that works like the Uber for handymen. It connects you to a handyman who can do the job.  Using photos you send, they can estimate the costs of labor and materials, and then they schedule with your tenant.

If you’re looking for someone directly though, how do you verify that they’re the real deal? Here are some tips on how to vet your vendor:

Are they licensed, insured, and (for larger jobs) bonded?

Always ask to see proof of their license and insurance. This is a critical step, and anyone who is a decent contractor for any type of job will understand and willingly provide you with these documents. They will also likely have them handy or have someone in their office send you a copy.

What are the payment terms?

Do they require an upfront deposit?

If they estimate that the job is going to be $100 or $200 but still need funds up front, that’s a red flag.  For larger jobs, asking for ½ of the bid or estimated price up front for materials is normal.  It’s not ever normal to pre-pay the entire projected cost.

Time & Materials vs Firm Bid

Is their estimate based on how long it will take them and what the materials will likely cost, or do they have a firm bid? Most likely a firm bid will come out to be more expensive because the contractor has to accept the risk of having estimated the job wrong, so… the risk is a factor in their bid price.  If you agree to pay for time & materials, the contractor has no risk, as they’ll be paid for whatever the job costs them so no risk buffer needs to be built into the price.  That said- they also lose some incentive to work as efficiently, and the owner then has the risk of the estimate having been too low.

Net 30

You’re waiting for the tenants to pay rent next month so you can pay this vendor – make sure ahead of time that they’re willing to extend 15 or 30 days time for payment.  Many small contractors operate on a thin margin and have to pay their labor weekly or bi-weekly.  Making them finance the job doesn’t usually make sense for anyone.

Who recommended them to you?

The internet

What do other people say about them? Do they have a good rating? What do 1-star ratings say about them and when were they posted? Remember that people only review when they’re either ecstatically happy or severely disappointed.

A friend

Ask what kind of job they did. Hopefully your friend has before and after pics. Or they might have a good story about them that will help you understand who they are and how they work. It’s important to be able to trust the person in your home, even if it’s not your stuff in that house.

It’s also a good idea to be able to trust that vendor with the tenants:  It’s never fun trying to calm the tenants down if the vendor prematurely tells them something like they might have asbestos or lead or mold in their home.

Posted on September 20, 2019 at 8:00 am
JMW Group | Category: Featured, Manage Like Michael