Working with contractors is often a significant part of a real estate investors business. Many of the properties we invest in need work, lots of work. Getting that work done on time and on budget can greatly increase our bottom line. But is it possible to find a contractor who can deliver a quality rehab quick and cheap?
Maybe. But it is really difficult to do so.
Working with contractors can be one of the most frustrating parts of this business. Many will over promise and under deliver and you never really know how well they will work out until you have had at least one go around with them. And in a tight real estate market like we have today, your choice of who you can get to do some work may be quite limited.
Many contractors will also tell you that they can deliver a quality job quickly and cheaply, but doing so requires skills that are often lacking. It is much more common to find contractors with two of those qualities, but not all three. It is the rare person who can actually deliver quality quick and cheap.
This situation can put us investors in sort of bind. Which two out of the three do we want? Do we want quick and cheap but low quality or higher quality with an increased price? And what about the time frame for completion? How important is that?
Over the years I have come to the conclusion that quality and price are the more important of the two. I would rather extend a job a few weeks and get it done right than get it done so quickly that I just end up doing it all over (and spending money) again in the near future. I have found that while I may save a bit of money on the holding costs on the front end by getting a job done more quickly, I often lose it on the back end because quality was sacrificed for speed.
Plus, a good contractor is going to need time to make sure that a job is done right. There are some things you just do not want rushed. If you try to rush tings, shortcuts will be taken. I am not a fan of most shortcuts as they always seem to come back later and bite me in the butt.
Contractors who can and will do quality work in a reasonable amount of time are usually not the cheapest you can find. That lower price quote often means that something is being skimped on somewhere. The old saying “You get what you pay for” may sound canned, but it is just as true in the contracting world as it is anywhere else.
Go For Quality
So while I do not think that quality quick and cheap is very attainable, quality at a fair price and done in a reasonable time frame is. How do you find that? Here are a couple of ideas:
- Shop Around – Get several estimates, even if you plan on using the same contractors again and again. Familiarity can often breed complacency along with a mistaken comfort to not double check your numbers. Getting multiple quotes all the time keeps both you and your contractor honest.
- Use Incentives – People respond to incentives. Give a bonus if a job is completed ahead of schedule. Use a penalty if things run too long.
- Be Available – Make yourself available to solve problems. I can tell you that every major rehab job will have unforeseen issues. Be around to help solve those issues.
- Let Them Work – Do not nitpick and do not hover. Sure, point something out that does not meet your standards or looks out of place. But otherwise let them work.
We can all strive for a quality product done quickly and cheaply but when it comes to contractors getting all three can be a tall order. Over the years I have found that quality is the most important of the three. Even if it is often a it more expensive and takes time. Cheaping things out will eventually hurt you, your good name and your bottom line. Remember that part of being in business is making people want to do it all again. A poor product will not get you there.
