As a real estate flipper, you put a lot of trust in the team of contractors you hire for each job. You expect them to deliver quality work, and to do so in a timely manner. But what do you do when you’re in the middle of a flip and a contractor isn’t owning up to their end of the bargain? Before yougo on a Donald Trump apprentice-style firing spree, follow the three steps outlined below to try and remedy the situation.
Start Documenting Your Exchanges:
As soon as it becomes clear that your contractor is slacking, it’s time to start documenting it. In the event that you have to go to court over the matter, you’ll need to prove that your contractor wasn’t following your contractual agreement. So, if he or she was supposed to have a project done by a certain date and it’s not done, be sure to get some pictures of the unfinished project with time stamps on them. Or, if something wasn’t done to the agreed-upon standards, be sure to get proper documentation of that as well.
At this point, you’ll also want to start saving any e-mails, voice mails, text messages, or other exchanges between you and your contractor if you haven’t been doing so already.
Have an Honest Conversation:
Sometimes, all a contractor needs is a little eye-opening conversation to realize that they need to get it together. Consider scheduling a face-to-face meeting or phone call to explain your dissapointment with their work so far. Follow that conversation up with an email or text message so you have written proof that the conversation happened.
Be sure to describe, in detail, what it is that you’ve been unhappy with and what you expect to be done to remedy the situation. It’s important that you remain stern and blunt. After all, the contractor is working for you, not the other way around.
Know When to Call it Quits
Finally, know when enough is enough. Even if your contractor promises to make things right, don’t assume that the problem is resolved. And if things still aren’t working out after you’ve confronted the issue, it may be time to fire your contractor and bring in somebody else.
Just be sure you’re familiar with the terms you originally agreed upon in your contract, as you may owe the contractor money for the work that was already done. Of course, you may be able to contest this in court if you can prove that the work wasn’t done to proper standards or your project lost money as a result of the contractor’s work.
Dealing with bad contractors on a flip is never an enjoyable experience, but as a real estate flipper, it’s a scenario you need to be prepared for. Hopefulyl this article gave you some great tips on what to do if your contractors aren’t pulling their weight.
Interested in buying or selling?
We’ve improved the traditional real estate model with modern technology to cut costs, not quality.