General contract vs subcontractors

[Yeilee Woo]

Hi, I'm about to purchase my first short term rental out of state but the property needs a little work done. Is is it better to work with a general contractor or work with subcontractors separately? For example, if I want to some work done with upgrading a pool, the kitchen, floors, install accent lighting and landscaping. What are the pros and cons of hiring a general contractor vs subcontractor? 

[Patricia Steiner]

It depends on a couple of factors:  your knowledge of the market and trades and the scope of work for completing the projects. My clients and I use subcontractors who have been vetted by the firm and who we have a long-term/on-going relationship. They know us, we know them, and more importantly - they know that when the job is started, it remains their priority until it is done. I stay engaged with the project and manage it from the scope of work - making sure we stay on schedule and that the trades know I appreciate their skill/expertise. And, we pay immediately upon completion; we almost always purchase the materials for the job beforehand and have those waiting for the trade upon arrival.

If you're not in this position, you may find using a GC a better fit. But one caution:  you need to vet the GC.  There are several current BP posts that share how GCs were hired by out-of-state investors and then never showed up or just never finished the job.  You need a scope of work, a contract, and hiring a GC is not an excuse for not being engaged and managing the schedule.  

If you haven't already purchased the property, I recommend that you have your realtor provide you with a list of referrals for each of the projects you have on your list as well as a few GCs to consider. Before you close (BEFORE), you should have a scope of work outlined and have an estimate on cost/time to complete each. Again, BEFORE you close. Starting this process after-the-fact only further delays the ROI.

Hope this helps.