hey everyone! Hope you are having a great day so far. So I'm curious about what you all have for agreements with your contractors for rehabs and or maintenance ect. One of the main themes I keep seeing as I'm learning the RE business is, to "get a great team in place" so, if a person is doing a fair bit of business is it possible to strike some kind of bargains with your contractors so you get a discount but they are still happy? Or do you just pay them the same rate as anyone else would pay them? How do you have it set up with your team?
Thanks everyone!
Hi Matt! Great post for discussion. I don't have experience with hiring a contractor in a "retainer" situation but I'm sure there are many forum Members who do and have some great ideas.
What I can offer to the conversation from being an investor from afar (living in Calgary with properties in Edmonton and now living in BC) is once you find great contractors, treat them like the gold they are. Having someone you can depend on to take care of maintenance and repairs/renos is invaluable as a property owner.
Ensure you pay them fairly and promptly.
Build a relationship and let them know how much they are appreciated (thank you goes a long way - verbally, thank you cards, a small gift during the holidays...). This applies to all members of your team including tenants.
What I have often found is that I may be paying their full rates but they will go the extra mile for me, or check on something quickly with no charge, jump my repair to the front of the line and even get a preferred rate. I think the Golden Rule is always a good place to start!
