Managing Your Expectations with Contractors

Managing Your Expectations

It doesn’t matter if you’re rehabbing properties or work as an actual landlord. Eventually, you’ll have to interact with contractors. Finding quality contractors is one of the hardest things to do within the real estate realm. Not only are you looking for one who provides quality work, but you also want things handled on time and on budget.

Is it crazy to think you can find all three things in one contractor? No, it is not, but you’ll have to have an open mind. Yes, your goal is to complete a quality job on time and on budget. But understand it’ll cost more money overall. Thus, learn how to manage your expectations. Think about what you’re really trying to accomplish. Figure it out, set guidelines, put it in writing and monitor what happens.

Know Exactly What You Want to Accomplish

Determine exactly what you want in a contractor. As stated earlier, speed, price and quality are probably very important to you. Although you’re shooting to get all three of these things, most contractors can only provide two of them. This doesn’t mean you can’t find all three. However, be willing to compromise if you can’t.

Basically, if you’re looking for a quality professional that can get the job quickly, it will cost more money. This is especially if your project involves more complex jobs such as electrical rewiring. Pay more and get quality work. I recommend this based upon personal experience. I’ve tried to go the cheap route in the past, but I ended up paying more money in the end. Why? I had to hire someone else to fix the things that I chose to take shortcuts on. That cost me more money and time.

But then again, maybe you’re doing cosmetic repairs on a low rental property and don’t need to worry about quality. In this situation, it’s possible to pay a cheaper price. Now, this doesn’t mean the contractor can do a crappy job. Most likely the job doesn’t require perfect craftsmanship. Once again, this all depends on what you’re trying to accomplish. Personally, when I’m rehabbing lower income rentals, I don’t need high quality work done to get people to pay good money. Thus, hire the best contractor based upon your needs.

Set Expectations

It’s easy to start a project and move away from your goals. When it comes to deadlines, performance criteria and pulling permits, no one wants to tackle these things. However, if they’re ignored, all hell could break loose. In error, I’ve said and done things verbally. As a result, those things were done badly or overlooked entirely. I didn’t state exactly what I wanted done and when it should be done.

This mistake created a lot of chaos in the work environment. This is why you should always initiate a signed contract. Make sure your needs and wants are written down in this contract. At a minimum, state all expectations in some kind of written format, even if you don’t use a contract.

Monitor the Situation

Constantly communicate with your contractor. Repeat your expectations. Continue to state what needs to be done and when it should be completed. Always ask the contractor if everything is on target for completion. Yes, this may seem like you’re micromanaging; however, once the project gets going, it’s easy to forget these things. This is especially true if your project has a longer deadline and multiple inspections are required.

However, this should all be done while the project progresses. It is the best way to determine if problems as they occur. If you contractor is having problems, determine if things can be corrected to get back on track. If not, you may have to fire him and get a replacement. The bottom line is to know what you want and stand your ground to get it.

That’s it. Follow these three simple steps and start choosing the right contractor for the job.