SFI Loans - Blog , Contractors

A Landlord's Guide To Hiring a Plumber

Thu, 11 Oct 2018 10:13:29 -0600

If you own rental property you need a reliable Plumber.

How to Hire a Plumber : A Landlord’s Guide to Hiring Contractors

Hiring contractors is one of the many tasks assigned to landlords or property managers. These contractors can be electricians, roofers, carpet cleaners, or even plumbers. Each one of these contractor’s professions provides a vital service that contributes to the proper management and maintenance of property investments. As you know these contractors are needed, but more importantly, you need to know how to hire the best contractors for your properties. This time we will explore how to hire a plumber.
The simple act of just finding any old plumber is just that, simple and inefficient. Unfortunately your property cannot settle for just any plumber. You want to hire a plumber who is not only great at their job, but also licensed and certified to operate within their state.

Why Hire a Certified Plumber?

In some states a plumber has to be licensed to legally work in your properties or anyone else’s for that matte As with most state laws, the rules and regulations regarding licensing requirements for plumbers can vary widely from state to state. Regardless of the bureaucracy involved, as a landlord you need to ensure that the contractors you hire are legally eligible to work for you, because off something bad happens, you both could be in trouble.
Certifications are different from licenses in the way that, being certified is a metric used to determine if a candidate is qualified to preform a role based on intellect, and skill level.
A certified plumber makes sure to taken the extra steps to ensure that their customers know that they are knowledgeable about the profession of plumbing. Certified plumbers demonstrate that knowledge by having passed an exam proctored by a third party as an indicator of their skill level.

Reliable Contractors

Not only do your contractors have to be licensed and preferably certified, but they also need to be reliable. You are operating within the real estate sector and you need a contractor who is able to accommodate all of your specific property needs. Since we are talking about plumbing, the piping situation could be complex, especially if your properties are stacked apartments, condos, or dorm style buildings. This means that sometimes a plumbing issue may be isolated to one unit or could spread to others due to the inner connections of pipe systems.
The more complex a task is, generally the longer it takes to complete. A great question to ask your plumber before hiring them is, what is the rate they charge for their services. Negotiations could be had to come to a more agreeable price if there is a possibility of a future long term working relationship. You need to establish these terms beforehand, so you aren’t blindsided by a bill you weren’t anticipating and your plumber knows what kind of work schedule they can expect while working for you.

Who Will be Working in Your Properties?

The certified and licensed plumber you might have spoken to when inquiring about their services may not be the person they were planning to send to clear your pipes. Plumbers apprentices, or other non certified employees may be sent in their place, and it’s your job to make sure you know who they are sending and what their skills are. To ensure the most qualified people are working on your investment you need to speak up and insist that only certified plumbers take action or make consequential decisions during your services taking place.

Contractor Assurances

Legally your plumber has to have some form of insurance, but you need to know what is covered in those insurance policies, by asking for a copy of any insurance documentation they may have on file. Individual plumbing businesses may also have additional warranties or service guarantees that they may offer their clients.

Your Best Bet is to Shop Around

Shop around for the best plumbing contractor you can find. They will all offer slightly different services, at different price ranges, but your goal is to sort them out and find the best fit for you. Also you need to do all of this before you actually need plumbing work done. You are contracting out this company and they will be your go to resource for all of your plumbing needs. You need to be on a first name basis with all of your contractors, and they should know you as well. Apartment, condo, or dorm contracts are difficult to come by for contractors so they need to know you are valuable clients and should be treated as such, as a priority.

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8 Pro Tips To Hiring A Contractor

Mon, 01 Oct 2018 16:37:37 -0600

The best way to hire a professional contractor for your property.

1 - Get Recommendations

Start with your friends and family and then check in with the National Association of the Remodeling Industry for a list of members in your area. You can also talk with a building inspector, who'll know which home renovation contractors routinely meet code requirements, or pay a visit to your local lumberyard, which sees contractors regularly and knows which ones buy quality materials and pay their bills on time.

2 - Do Phone Interviews

Once you've assembled a list, make a quick call to each of your prospects and go through these questions to ask a contractor:

• Do they take on projects of your size? 

• Are they willing to provide financial references, from suppliers or banks?

 • Can they give you a list of previous clients?

 • How many other projects would they have going at the same time?

 • How long have they worked with their subcontractors?

The answers to these questions will reveal the company's availability, reliability, how much attention they'll be able to give your project and how smoothly the work will go.

3 - Meet Face to Face

Based on the phone interviews, pick three or four contractors to meet for estimates and further discussion. A contractor should be able to answer your questions satisfactorily and in a manner that puts you at ease. Tom says that it's crucial that you two communicate well because this person will be in your home for hours at a time. On the other hand, don't let personality fool you. Check in with your state's consumer protection agency and your local Better Business Bureau before you hire a contractor to make sure they don't have a history of disputes with clients or subcontractors.

4 - Investigate the Facts

Now that you've narrowed your list, put your research to use. Call up former clients to find how their project went and ask to see the finished product. But Tom says you shouldn't rely on results alone. Even more important, visit a current job site and see for yourself how the contractor works. Is the job site neat and safe? Are workers courteous and careful with the homeowner's property?

5 - Make Plans, Get Bids

You have your short list of contractors whose track records seem clean and whose work ethic looks responsible. Now it's time to stop looking back at past work and start looking forward to your project. A conscientious contractor will want not only a complete set of blueprints but also a sense of what homeowners want out of a project and what they plan to spend. To compare bids, ask everyone to break down the cost of materials, labor, profit margins and other expenses. Generally materials account for 40 percent of the total cost; the rest covers overhead and the typical profit margin, which is 15 to 20 percent.

6 - Set a Payment Schedule

Another important tip for hiring a contractor is to workout a payment schedule ahead of time. Payment schedules can speak to a contractor's financial status and work ethic. If they want half the bid up front, they may have financial problems or be worried that you won't pay the rest after you've seen the work. For large projects, a schedule usually starts with 10 percent at contract signing, three payments of 25 percent evenly spaced over the duration of the project and a check for the final 15 percent when you feel every item on the punch list has been completed.

7 - Don't Let Price Be Your Guide

Throw out the lowball bid. This contractor is probably cutting corners or, worse, desperate for work—hardly an encouraging sign in a healthy economy. Beyond technical competence, comfort should play an equal or greater role in your decision. The single most important factor in choosing a contractor is how well you and he communicate. All things being equal, it's better to spend more and get someone you're comfortable with when hiring a contractor.

8 - Put it In Writing

Draw up a contract that details every step of the project: payment schedule; proof of liability insurance and worker's compensation payments; a start date and projected completion date; specific materials and products to be used; and a requirement that the contractor obtain lien releases (which protect you if he doesn't pay his bills) from all subcontractors and suppliers. Insisting on a clear contract isn't about mistrust. It's about insuring a successful renovation.

Finally, remember that as soon as a change is made or a problem uncovered, the price just increased and the project just got longer. The four most expensive words in the English language? "While you're at it...."

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