Becoming a senior can sometimes be a challenge. Our kids move away, we may lose a spouse or partner and, late in life, we may find that we are making all the decisions and handling parts of life that were previously taken care of by our significant other. We may not have had to deal with home maintenance because that wonderful husband could build and fix anything and what he couldn’t fix, he knew who to call to get it done.
More seniors are choosing to stay in their homes and for good reasons. Setting aside the costs involved with senior living facilities, seniors living at home, among their life’s collection of memories, their beloved pets and garden, generally report higher levels of health and happiness. But there may come a time when you need a contractor to do some work so here are some general considerations when hiring a contractor.
First, consider the scope of the work and what kind of contractor you need. Is it plumbing? Construction? Landscape? Once you have a fairly clear idea of what you want done, interview three or more contractors and get bids for the proposed work. The discussions you have with the contractor will also help you get a clear understanding of what the job should entail.
Once you have selected the contractor you feel most comfortable working with, check their references and go online to check their reputation. Go to www.CSLB.ca.gov or call 1 (800) 321-2752 to confirm that the contractor is licensed and in good standing. Any job in excess of $500 must be performed by a licensed contractor. If all looks positive, get a written contract for the work. The contract should include the scope of the work that will be done, payment terms and timelines for completion. A written contract helps avoid misunderstandings later.
It is normal for the contractor to ask for a deposit. In California, the downpayment or deposit cannot exceed 10 percent of the projected job cost or $1,000, whichever is less. Have the contractor advise you if a permit is needed for the work. They can do the research at the county and obtain any permits needed. It is important to remember that when the job is completed, the county must sign off on the permit. This step is often overlooked and can cause problems down the road if you need more work done or when you decide to sell the property. Make sure the permit is signed off by the county as completed.
Also, some contactors will place a mechanics lien on your property while the work is being completed. This is to assure the contractor that they will be paid for their work. Once the job is done, make sure the lien is removed because it too can cause problems and delays down the road when you (or your executor) sells the property.
Finally, keep your receipts for the work done. Any capital improvements done to your property add to the cost basis and can decrease capital gains taxes if you sell your property later.
Armed with the right knowledge, you can hire a good contractor, get needed work done on your home and continue to comfortably live in your home.
Liza Horvath has over 30 years of experience in the estate planning and trust fields and is a licensed professional fiduciary. Liza currently serves as president of Monterey Trust Management. This is not intended to be legal or tax advice. If you have a questions call (831) 646-5262 or email liza@montereytrust.com.
