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Why Licensed Contractors are Better for your Atlanta Rental Property – Landlord Advice

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Marina Shlomov - Monday, December 5, 2016

Why Licensed Contractors are Better for your Atlanta Rental Property – Atlanta Property Management Advice

Atlanta rental property is an important part of your investment portfolio. It generally takes careful planning and a large financial outlay, which is just the beginning. A successful investment also takes expertise, which is why you take the time to choose an Atlanta property management company carefully. Proper maintenance will play a major role in the success of your investment. Obviously, maintenance costs will impact the return you get on your investment. Therefore, the question most often asked by property owners is: why use a licensed contractor when you can use a non-licensed party for a much lower cost?

Expertise and Knowledge

Think about how you handle medical problems. Maybe you can solve a medical problem by consulting a pharmacist or a nurse practitioner. But if it is not easily manageable, you want the advice and expertise of a licensed and experienced physician. Take the same approach when hiring a contractor. You want the best solution for your health and it’s just as important to the well-being of your investment.

Just like you might seek more than one opinion for a major medical problem, common sense dictates that you should get more than one bid for any extensive work required. While it’s normal to want to pay the lowest price possible, you have to compare qualifications, particularly if one bid is so much lower than the others. This can cause costly results and delay your mainenance.

State and Federal Laws

Non-licensed laborers can offer lower prices because they aren’t bonded or insured and they don’t pay into a contractors’ recovery fund or workers’ compensation. Many of these workers do not meet federal or state requirements when it comes to their employees. They often don’t have the capital or the experience required for the job. Since they don’t have a solid financial background, they do not have the resources to pay for damages or costs if the job goes awry.

Licensed individuals and companies know it’s important to have proper insurance, knowledge and responsibility when using other laborers. They also know that underbidding the work can lead to financial disaster and other problems. Don’t leave your asset in the hands of an unqualified party.

Think about what the state and federal governments dictate. Most states require a general contractor for major repairs. State and federal legislation mandates the use of specialized contractors in many cases, particularly work on lead based paint. It’s crucial to your investment to follow these laws. Many penalties have been issued to property owners for non compliance.

Reducing Liability

The best reason to use licensed and insured contractors is because it helps you avoid and reduce liability. Investors have had many lawsuits because of improper and poor workmanship. Make sure you hire people with qualifications, insurance and all the state requirements.

As an Atlanta property management company, we cannot contract for unlicensed or uninsured work. We want our vendors to be accountable and responsible for their work so that we can protect  you, our client, from unnecessary liability. If you have any questions about the difference in using professional contractors vs. a guy working off the back of his truck with no insurance and no license, please contact us at ALH|Podland Realty & Rental Homes Property Management.

Marina Shlomov, a managing partner at ALH|Podland Realty & Rental Homes Property Management is the author of many articles on Landlording, Atlanta Property Management, and Real Estate Investing. A residential builder in the state of Georgia since 1999, Marina is an investor herself. Her Atlanta property management company is intended “For Investors” and “By Investors” for a simple reason – she knows what investors’ goals are and she works hard to reach their goals. In her spare time, Marina likes to spend time with her family, friends, garden, read and travel. Check her out at www.alhpodland.com. You can find Marina’s articles and comments at @rentalhomesatl on Twitter, on FacebookGoogle+, Blogger. and YouTube, Bigger Pockets and REI CLub, ActiveRain and LinkedIn.

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