Buying a property for a rental business is a good investment. Maybe that’s why more people are becoming property owners. But buying real estate does not mean that’s it. Sure, they can rent it out to people if they think the unit is ready, but what if it needs more work?

Before the tenants move in, the property should be habitable. It means the unit is safe for dwelling. However, some properties need slight fixing before they can be declared livable. Some of them have not been vacant for years and need renovations for any wear and tear. Either way, the landlord would need professional help for it. The landlord would have to hire a contractor to get the job done.

You might know a few contractors that you can recommend to them. If not, they would have to look for one. Hiring a contractor should not be taken lightly. Landlords should choose someone who is good at their job and will not disappoint. But what should we take into account when deciding on a contractor?

• Referrals from others

We can find contractors through ads, but I think referrals are better. Personal experiences can tell you more than ads can. After all, the landlords will not only look at someone’s skills. They would also like to hire someone professional and reliable. For example, the landlord hires a contractor with good skills but does not meet deadlines. There should be a balance of skills and attitude.

Referrals can tell a lot about a person’s competency. Other landlords or agents will likely give their honest feedback, especially if they did not like the service. They would not want someone else to experience the same. With your network, you would be able to look for a good contractor for the landlords.

• Look online

I know I said referrals are better, but it doesn’t mean you should ignore online ads completely. If referrals are unavailable, searching online can also help. Some websites provide you with ratings and feedback. In a way, those testimonials are similar to referrals because they talk about personal encounters too.

The downside to looking at websites is they do not put up all the reviews. They may try to weed out some of the negative ones. The contractors who market their services online are likely paying a lot for it, and they would not want a negative review posted for everyone to see.

• Warning signs or red flags

Landlords should know what to watch out for in hiring people. Of course, competency is a given. But they should also look out for red flags. For example, if they hire some well-known contractor, they would anticipate a higher fee. Where else would a contractor get the money for the marketing, a sales team, and branches everywhere? If the landlord is on a tight budget, he should avoid these contractors.

• Instinct

As I’ve mentioned, we would want to recommend someone reliable and competent. If the landlord feels like the contractor is not capable, then he probably isn’t. He should observe how the contractor responds to questions and concerns. Some might not have enough knowledge and skills but try to compensate by charging a low price. It’s good to stick to the budget, but it might bring more problems than help. If you or the landlord spot red flags, then do not go through with it.

• Locality

What does location have to do with anything? Remember the need to fit the budget. If the contractor’s office is located in a big city and looks elegant, they might ask for a higher price or an additional transportation cost. I’m not saying it’s not worth it because some contractors know their value. People are willing to spend big money to get them because they know what they can do. If the landlord cannot afford it, he can look for someone who can do the renovations at a lower cost.

Hiring people is the same as screening tenants. You have to check everything about them thoroughly to avoid regrets. The landlord would want someone to make sure his investment will not go to waste.

And once the contractor finishes the work, it’s your turn to do yours. You can sign up for websites like Padleads to market the property. You can post photos of the newly renovated home and syndicate the listing to other websites. Since the landlord already spent money, it’s time for them to earn some.