Tips for Starting a Home Renovation Business
Starting a home renovation business may not seem too complicated, but there are a few things you should know before starting the business.
Home renovations is a huge business and it’s in popular demand. There are homeowners who want to update their homes, renovators who want to sell, and house flippers who buy homes in need of repair for low costs and “flip” them for profit. Home renovations can cost upwards of thousands of dollars and requires multiple areas of expertise.
Before going into the renovations business, you should learn more about city regulations, you should know which parts of the home can be repaired rather than replaced, and you should know which jobs to subcontract.
Know building codes
Building codes are important for contractors, especially for the homeowners who plan on selling their homes. Some homes goes through a thorough inspection before they’re sold on the market. If there are aspects of the house that do not meet the city codes, you will have to repair them before the house can be sold.
Unless the house is being sold as-is. As-is homes are usually sold to renovation companies or people who are willing to do the renovations on a home prior to their move-in date. The majority of homeowners want a move-in-ready home and will ask for an inspection prior to purchase.
Knowing the codes for the home is essential to being a contractor. If you’re not up to date on the codes, you may end up losing money by having to go back and redo your hard work to bring the building up to city standards.
Repair vs. replace
The key to making money in the contracting business is knowing when to repair an aspect of the home versus replacing it. Say you have a home that’s going to be flipped for profit, and it has thick carpeting with widespread but shallow staining. It would be cheaper to simply have it cleaned rather than replaced, according to the experts at Eagles Eye Carpet Cleaning.
Experts who specialize in carpet cleaning can make the carpet look as though it was installed the day before. Sometimes refacing and repairing can save your clients thousands of dollars. When you save your clients money, they will be more inclined to recommend you to other potential customers.
There are a lot of things that can’t be tackled by one single renovation company. The good news is, you can always sub-contract certain parts of your renovation to other companies. For instance, if you follow through on some roofing leads and find a leaky roof, but you don’t have the expertise or license to perform roofing tasks, you can simply subcontract that job out.
Don’t spread yourself thin, since there is money to be made. Knowing when to subcontract is key. Before trying to perform the work yourself, think of the client and their safety. If you believe that you’ll be compromising yourself, your workers or the client, then subcontract out the task.
You can definitely make a lot of money in the home renovation business by ensuring you know your stuff. It’s always a good idea to gain some general business knowledge before opening any business, and home renovations isn’t an exception. Learn everything you can before starting your business, including getting certifications and formal schooling for the trade, and you’ll be ready to open your business in no time at all.