Guide · For owners
Hiring a Contractor
A friendly, practical guide to choosing a trustworthy contractor, from licenses, insurance and written estimates to payment, scams and checking the finished work.
Where to start
- Someone pushing you to decide today?
Slow down. See red flags to watch for.
- Starting a project?
Write down exactly what you want done, then use the hiring checklist.
- A contractor coming to your home?
The short version
Good contractors are worth their weight in gold, and a careful process protects your money, your home and its residents.
Check licenses and insurance, get written estimates for the same scope, and sign a written contract before work begins.
Pay in stages as work is done, and slow down when you feel pressured or are asked for cash or large payments up front.
Photograph before and after, confirm the repair with the resident, and keep every receipt, permit and warranty.
Contractor rules differ from place to place, so we’d gently encourage a quick look at the rules where your home is. If you ever have questions, we would love to help.
Four simple rules
- 1Check license and insurance
Confirm the contractor is properly licensed where required and carries liability and workers’ compensation insurance.
- 2Get it in writing
Written estimates and a written contract protect everyone. Describe the work, price, timeline and materials.
- 3Pay as work is done
Avoid paying large amounts up front. Tie payments to completed stages.
- 4Slow down when pressured
Pressure to decide today, cash-only deals and door-to-door offers are classic warning signs.
Hiring checklist
From the guide’s own checklist. Tick each one as you go. Your ticks stay on this device. These are examples; your home may need others.
All done. Here’s to good work and good feelings on this project.
Paying safely
- Pay in stages as the work is finished, and never far ahead of the work. Paying as you go protects you and keeps the project moving.
- On larger projects, ask for lien waivers as you pay. They help make sure subcontractors and suppliers can’t make a claim against the home later.
- Hold the final payment until the work is done as agreed and you’ve checked it.
Red flags to watch for
Some examples to be careful with. These are not a complete list.
- Someone who shows up door to door, pushes you to decide right away, wants cash only or asks for a large payment up front.
- A contractor who won’t give you a written contract, can’t show a license or insurance, or asks you to pull the permits yourself.
- After a big storm, scammers often follow the weather. The FTC warns people to watch for pressure, demands for payment up front and unusual payment methods.
For more, see the Federal Trade Commission’s How To Avoid a Scam.
If something goes wrong
- Take a breath. Most contractor problems can be worked out with clear, calm communication.
- If the work is unsafe, stop it and make the area safe for residents. Then talk with the contractor, using the written contract as your guide.
- Photograph the problem and keep every estimate, contract, receipt and message. If you can’t work it out, contact your state’s contractor licensing agency or consumer protection office.
For residents: when contractors come
- You should get proper notice before anyone enters. If someone shows up saying they were sent but nobody told you, check with the owner before letting them in.
- Please don’t pay a contractor directly unless the owner has agreed in writing, and don’t take on major repairs yourself without permission.
- If the work causes a problem, like a leak or damage, or if it seems unsafe or unfinished, speak up right away. Once it’s done, let the owner know whether the repair fixed the problem.
Write down exactly what you want done before calling anyone. Giving every contractor the same description makes estimates easy to compare fairly.
Guides that go well with this one
How much do you remember?
4 quick questions from this guide, with a one line why for each. Totally optional, no sign in, and your answers are never saved.
Go deeper with The Perfect Rental Owner Checklist Workbook
Simple, step by step checklists you can write in for owners who rent out a home: contractors, insurance, fair pricing, records, showings and more.
Keep the full guide handy
The PDF has everything: everyday habits, what to do when something goes wrong, common myths, helpful resources and plenty of real-world tips. Print it, save it or share it with anyone who could use it.
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This guide shares general information to help you, and is not legal or financial advice. Bunklow does not recommend, hire or supervise contractors.