In this episode of Get Real Wealthy Season 2, Quentin talks about four steps on hiring a general contractor for your rental property renovation.
Quentin says that it’s really important to have a great general contractor and there are some tips and tricks that can save your time and money. The difference between hiring a general contractor and doing it yourself is time. Usually, you have to give up a lot of time in order to do a good job at a renovation. If you are giving up your time, then you are saving money. If you want to have more time however, you hire a general contractor, and they manage all the subcontractors like plumbers, electricians, carpenters, etc. He adds that there is a downside of undertaking the renovations yourself, and not going with the professionals. He says that one of the ways to find better general contractor is by talking to other investors and getting referrals. Quentin further adds “I would also ask a contractor to give me a referral from another investor. And then that way, I can talk to that investor and find out how they work with that person.”
Second step is to inquire them about the nature of their insurance. Do they have WSIB coverage? Do they have any type of insurance that you can verify? Step number three is to get everything in writing. This will help you keep things smooth throughout the process and save you from any misunderstandings. If they need to negotiate something with you that that’s up to you, but get it in writing. Step number four is to make sure you’re reviewing the work that is being done. Don’t completely pay for anything until you’ve actually gone on site and reviewed the work, or you’ve had a very trusted employee, advisor or property manager to go in and inspect the work, someone who has done inspections in the past.
In conclusion, Quentin says that these tips can help the renovation process smooth and stress free for you while building a relationship with the contractor for future projects.
Important Links and Resources
• QuentinDSouza.com – Free 15 Min Discovery Call
Quentin D’Souza is the Chief Education Officer of the Durham Real Estate Investor Club. Author of The Action Taker's Real Estate Investing Planner, The Property Management Toolbox: A How-To Guide for Ontario Real Estate Investors and Landlords, The Filling Vacancies Toolbox: A Step-By-Step Guide for Ontario Real Estate Investors and Landlords for Renting Out Residential Real Estate, and The Ultimate Wealth Strategy: Your Complete Guide to Buying, Fixing, Refinancing, and Renting Real Estate.