When calculating the return on your investment for improvements to an investment property, do you consider the performance timeline of the contractor/handyman? If you haven’t though about this, you should.
The old concept of “double the expected time your think it will take” doesn’t always have to be true. If you choose a contractor/handyman in Grass Valley CA that is experience in not only the trade, but in completing the project on-time, this will effect your return on investment immensely.
Let’s do some simple math. Say you hire a contractor at $25/hour to do a basic cosmetic remodel on a 2bed/1bath 1,200sf home, which is anticipated to rent for $1200/month. Let’s say this includes new interior paint, new floors throughout, new window coverings, new vanity and toilet in bathroom, and basic yard work. You anticipate the work to take 10 – 8hour days. This would cost you $2,000. Now, let’s pretend this contractor isn’t good at organizing his time, prioritizing the tasks, and ultimately, completing the work in 10 days. Instead, it takes 25 days. Your cost is now more than double at $5,000. Of course, if the job were bid at a flat fee, then your cost would stay at $2,000. However, the rental income lost from the days of the home being vacant would be about $590.
If you’re searching for a contractor/handyman that can complete the work with high quality end results in the anticipated time schedule, call Barrett Property Management. We work with experienced professionals that ALWAYS get our jobs done on time, every time.