I’ve spoken a lot about how the right builder makes a huge difference to your projects and ultimately your profitability as a property investor.
And when you find a good one, cherish them! Because there are far too many bad ones out there.
However, as with all relationships, you have to be on the look out for signs that they are no longer right for you, and take the necessary steps, no matter all the good (money-making) times you’ve shared together…
So these are 3 signs that tell me when it’s time to remove a builder from my roster.
1. No Longer Offering Competitive Pricing.
Even though I have a couple of trusted builders, from time to time, I invite new ones to my projects. Firstly, to see how they would approach the build but also to learn what the current market rates are. Sometimes, your old and faithful builders do charge far more than is reasonable because they have your trust and don’t expect you to do due diligence.
2. A Sense Of Entitlement
Some builders, particularly if they’ve seen your come up as an investor, will start to calculate how much money you’re making “off them”. They might expect you to pay more than the market rate because they see how profitable you are in general and want more of the pie. They rarely take into account all the other expenses that make you less profitable as a landlord.
3. Complacency
This one is a shame because a few builders I’ve had to let go off stop bringing their A game after a while. In the beginning, they might be suggesting ideas of how to make a project better or cost cutting techniques, but when they get complacent, they cut corners or just do as they are told, and then suggest a better way it could’ve been done when things go wrong.
You might really cherish the relationship but once you spot these signs, it’s time to re-evaluate. Do so carefully and make sure to have a back up to make the transition easier.
