Expected costs for Interior Renovation - 2020

[Derek Lukas]

I have a small 9 unit apartment community that I am helping to manage. We are currently looking for a contractor or subs that can complete an interior remodel on one of the vacant 1 bedroom 1 bath units that measures 412 sq ft. I have received four bids for this work that range anywhere from $14k to 25k. All but the highest bid are from unlicensed contractors. Is this expected pricing for the Tucson, AZ area? 

The scope of work is inclusive of only a handful of materials (leveling compound, bonding agent, cement board, vapor barrier, tape, red guard, grout, thinset, sheetrock, firring strips, mud, fasteners, old work boxes, light switches, duplex receptacles, and cover plates) and all labor. Major items in the renovation include:

• Level floors, Lay new peel and stick vinyl throughout
• Remove wall heater from bedroom
• Re-sheetrock in living room to smooth out wall (tie control thermostat wires in wall to provide power on roof)
• Install new plumbing runs throughout
• Install new drain lines where applicable
• Install water line and in-wall box for refrigerator ice maker
• Install new tub
• Install new tile shower surround
• Move over all light switches away from door trim
• Run wire to two new living room lights, install three way switch outside of bedroom and exterior patio door
• Install new light and wall switch in bedroom closet
• Move bedroom door 6-7 inches to the south to allow construction of half wall
• Demo existing living room closet and construct half wall (replumb gas and electrical as required)
• Demo kitchen cabinets, pantry and counter
• Install sheet-rock over water damaged hardboard in bathroom and bedrooms
• Interior Paint throughout
• Install new bathroom vanity
• Install new bathroom light
• Install new kitchen light
• Install new cabinets
• Install new granite counter tops
• Install new AC registers (bedroom and bathroom)
• Install new toilet
• Install three (3) new six-panel doors (bedroom, closet, bathroom)
• Install new outlets and covers
• Install new switches and covers

Again, my four estimates for this work range from $14,000 to 25,000 and would complete in 2-3 weeks. The owner will be providing the majority of materials estimated at $4,800 (cabinets, vanities, mirror, light fixtures, faucets, toilet, flooring, baseboards, tub, tile for shower surround, vanities, pre-hung and slab doors, door trim, granite, under mount sink, etc). 

This means that labor pricing is anywhere from $44 to 61 per square foot for almost a full renovation, sans re-running electrical and tearing all walls down to the studs. Another way to look at this is on a per hour basis... 240 to 300 man hours of work, so $47 to $83 per hour. Isn't this crazy?? What is everyone else paying for their jobs?

[Chris B.]

I have worked with rentals in Tucson also. For being a lower income, labor oriented town, I've seen prices go up significantly over the past few years which I don't understand myself either. Last time I had the carpets cleaned in a SFR about maybe 4 years ago, it cost $225 and they did a great job. I had it done again last month and it cost $340. I called around and all of the reputable places I called all had prices in the $300 - $400 range. I guess I need to keep looking, but with a rental turnover, you don't always have the luxury of time.

I also looked into getting the flooring tiled as the carpet is old and I don't want to be paying this much every time to clean them and the referrals I got for flooring were all booked out a few months.

I see two things to consider on your list.

A) A contractor off the street doubles their costs. They subcontract and whatever it costs them, they'll double for you. Maye if you had an ongoing business relationship, you might be able to get a better offer. You are hiring them to be a manager and get the changes completed correctly and on time and they charge you manager rates. So, directly hiring the labor, and skipping the contractor will cost you about half of that.

B) Some of the items you listed can be labor intensive. Replacing all plumbing and (including some sewage) takes a lot of time. The walls need to be opened up, new pipes installed, and then dryall cleaned up after that. In some cases the foundation may need to be cracked open and repoured. Consider removing all the easy things from the list and get a handyman to come in and do them before / after the rest of the more substantial work. Then get new quotes. If you are looking for a better rate, don't have a contractor do things like lights, outlets, and other easy items. A good handyman will have no problem with a basic toilet replacement or removing a wall mounted heater also.

Also consider going directly to trade professionals. Get a plumber to do the plumbing and get a framer to move the door and sometimes framers do drywall also. You can find a lot of this labor directly for less than half or maybe a third of the hourly price you worked out. I've decided to skip contractors also for the same reasons. I got some quotes to finish up a remodel and the quotes were $15k to $20k and it ended up going directly to tradesmen, the cost was about $5k for labor in Tucson.

With unlicensed work, you assume the liability if problems arise.