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Every HOA needs to be careful who they hire for general contractor work. While the expense of hiring licensed contractors may seem prohibitive, the risks of unlicensed handymen in Arizona are extensive and could incur costs that make the original savings not worth it. You need to keep your property in good condition and avoid liability. Here are four key reasons to invest in the services of licensed contractors for your community:

Liability: This is the big one. If repairs by a licensed contractor prove to be inadequate or anyone gets hurt on the job, their insurance covers it. The same is true if your tenants are injured by the contractor’s negligence—they can pursue their insurance and keep the HOA out of it. This is not true if you hire an unlicensed handyman. If there are any injuries, property damage or other impacts,the expenses land on the HOA. Tenants can sue you for getting hurt due to negligent conditions,and the handyman can also sue if they are injured on the job. You also need to consider third parties, such as tenants’ visitors or people passing through to make deliveries and run other errands. If they slip and fall or get hit by falling debris, the HOA can be liable for those injuries as well.

Work quality: Contractors pay heavily for insurance and bonds,which is why they charge more. But these efforts also protect youas the HOA who hires them. Besides liability, there is also protection from bad workmanship. Contractor bonds pay for damage or for work that must be finished or fixed by another contractor. If you hire an unlicensed contractor, this all falls onto you and becomes a significant out-of-pocket expense. Considering this, the original cost savings on an unlicensed handyman quickly become not worth it.

Reduced property value: You likely want to keep attracting new tenants to your neighborhoods and condominium communities. When potential buyers consider your property, they will belooking for quality repairs and ownership without significant maintenance concerns. This is compromised when you do not hire the right contractors. Unlicensed contractors likely cut corners,and if they skip an essential step, like securing a permit, it becomes nearly impossible to sell a property. This is not just about expenses, but also about maintaining the reputation of your community.

Goodman Holmgren Law Group recommends our HOA clients hire licensed contractors in Arizona for maintenance and repairs on their properties. If you are currently facing the risks of unlicensed handymen, contact us today to schedule a consultation.