Handyman fees too high?

[David I.]

Hi all Ive got 5 properties now, I usually buy them at 70% of value, renovate and then cash out for the next.  I’ve got a handyman I’ve worked with for about a year now, he at times can be a little expensive but normally he’s very prompt and fixes things if they go wrong. Here’s the issue:

I had a bathroom in a current rental I was refinancing for cash out. The tub was not in good shape nor the tub surround. Since it’s a rental - my first thought was to reglaze the tub ($200-$300) and put up a surround - the kind you buy at the box stores for $300 or so. 

My handyman talks me into doing a new tub says the cost of a generic tub isn’t much more than reglazing.  I ask him how much this will cost - he does this often - he tells me prices of the parts but is vague on labor. He also goes ahead and buys a $600 surround without asking and puts it up. 

Now he gets into the removal and says he has to unmount the toilet to get the tub out. Ok. He says there’s some small water damaged wood underneath the tub. Ok. He has to replace one row of bathroom floor tile that was up against the tub. Ok. 

He also buys the wrong size tub not once but twice but finally gets it right. 

Long story short - end of the madness he charges me a little over $1000 for parts and just under $2000 for labor.  I flat out told him a 200% markup for a bathtub and surround seems extremely out of the norm. Unless it was a major remodel - his past labor charges are like 30-40%.  I also told him this is why I asked 5x what the bill would be all along but he never would give me a number or estimate except for parts. 

So he wants $3200 for a tub and surround in a 5x10 bathroom in a little normal rental property.  

When I questioned the bill he got very defensive and said he doesn’t make a lot on the work he does for me.  I flat out told him he’s got to give people a legitimate estimate before he does work  I never would have agreed to $3,200 for this little bathroom tub.  

This has happened before but never at this price point.  

Am I out of line here or is he? 

[Chris Matthew]

These things happen from time to time even with the best contractors. I have been in both of your positions. If you have a long standing work relationship with the handyman and the quality of work and communication is typically adequate, pay the him what he asks.  Once in a while, you run into complications that require a ton more work without much cost in materials.  

For instance, that floor repair, it may have been a small area, but may have developed into a larger problem down the road.  You could have thrown a bandaid on it and reglazed the tub at your desired cost only to discover that leak that caused the rotted floor would have resulted in the tub coming out next year. possible structure repair and maybe ceiling repair of the floor below with a new tub install and repair cost similar to what you are looking at now. He may have just saved you some money.

That minor floor repair may have been entirely more complicated than you imagine it to be.  Often time it is difficult to cut the multiple layers of flooring out, Ive seen as much as seven layers of flooring under cement board and tile.  Often the new repair needs blocking put in place.  A handyman more than likely has scraps of materials for jobs like this. He may not itemize these extras and scraps in your materials costs along with various fasteners and adhesives.  Even that tub surround you wanted installed, often the stud placement isn’t adequate for a proper install and  requires $10 in materials that’s may result in several hours of work to get a quality install.

More to the point, if the guy does quality work for you and you have no complaints about the end result, pay the man.  Preserve the relationship.  The next guy may charge nearly the same and not take the time to go the extra mile and replace that damaged wood which was outside the project and was obviously going to add to the cost of an already unwanted repair.

If you are truly unhappy with the quality of the work pay him and move on.  There is no upside to not paying him. He will talk to other contractors in the area and it will become harder for you to find good contractors.

As a former contractor, when I walked into a home, I was interviewing the homeowner as much as they were interviewing me.  No one wants to work with unreasonable penny pinchers.  Everyone wants to spend less than a repair is worth,but make waves and your costs will naturally go up on future repairs.