Should Property Managers Use Uninsured Or Unlicensed Contractors?
If you are a seasoned property manager or real estate property investor , you have probably gone through a rehab in your lifetime. If you decide to hire uninsured/unlicensed contractors, you need to be aware of the risks that come along with that decision. When a licensed general contractor is hired for a job, they typically hire sub-contractors for some or most of the work. However, the general contractor bears the burden and overall responsibility for licensing, permits, quality of work as well as safety on the job site. With that responsibility comes potential liability. That’s the reason a valid GC will carry the appropriate amount of liability and workers compensation insurance. These different types of insurance policies protect the property manager or property owner should something goes wrong. Many states will not issue a contractor’s license if they don’t maintain the minimum level of insurance. Insurance protects the professional property manager from hav...