Normally operations with over 500+ doors UM will have these procedures in place. 

Quicker turnover time/reduced vacancy, better tenants, better marketing, knowing market rent and market conditions and typically better access to vendors who will go the extra mile for 500 customers vs. 1.  2) It keeps them out of court and unnecessary litigation with extensive knowledge, process and procedure that a private landlord cannot match. 

Nothing against plumbing or carpentry, but based on easily mitigated through proper procedure increased pay for bodily risk, plus the benefits of being able to upgrade your own properties, I see electrician as the most desirable of trades.

Could I take the lender to small claims, and what is the procedure for that?

However, you will need to have to make mistakes and over time write your own procedures and guidelines.

Along with the paperwork required to raise rents and the rental registration procedures it makes operating there quite challenging hence why I personally don’t recommend it to a newer investor.

What do your own policy and procedures for this situation say to do?

Just simply the volume of things we see, builds our experience and allows us to have continuously improved processes and procedures versus an investor.  

A large percentage of them lose tons of money because they don't have procedures in place, they get tired of maintaining the home, they let in bad tenants with sob stories, and they can't keep up on market rates.

. - Clearly define payment procedures - As some of the folks before me have said, some projects could be 1/3 at the start, 1/3 halfway through and 1/3 at the end or you could pay the entire project at the end.