Category Archives: Due Diligence

Why Property Preservation Contractors Should Research A Company

Why Property Preservation Contractors Should Research A Company


A Premonition Of Bad Things To Come

Don't Be Naive. Don't Be Fooled.

Don’t Be Naive. Don’t Be Fooled.

I know what’s going on.  You’re thinking about filling out that online contractor application. The application that asks for your license numbers, your insurance provider and agent, a couple of references and so on. Well, whether you are comfortable with it or not, it’s all pretty much standard procedure nowadays. What upsets me about these questions is that they look simple enough but if I had that information on you I could probably use it as the foundation for a little research and tell you who you was with at the high school dance. At one time I thought that I might be suffering from paranoia but that can’t be true because according to the New Oxford American Dictionary, paranoia is “suspicion and mistrust of people or their actions without evidence or justification.” I have the evidence and justification so I must not be paranoid. No, that’s not what upsets me. What upsets me is that the majority of contractors fill out these applications with only one thing in mind: getting work and income. They never question who they might be dealing with.


Bad Property Preservation Companies

I think the online application system is greatly one-sided. The companies wind up knowing everything about you they want to know and you probably only know their name and website address. If you’re crazy enough to respond to Craigslist ads, you won’t even know that. Look, here’s the problem I have with that – it’s short and simple” the bad guys know you’re not going to investigate them. The bad guys go through all the motions, have you fill out the forms and jump through all the hoops – just for a little realism – and then send you, say twelve jobs. Then they may pay you for four or none. They might pay you for all of them with adjustments to your invoices because your pictures did not justify the payment; or this or that or who knows what. Their original intent was to get you to do the work so they could get paid.


Bad Property Preservation Contractors

Now, here’s the other scenario: some really good companies have their reputation beaten down by an ex-contractor. Some really good companies can have a legitimate problem with a contractor and not pay the contractor for sloppy work. Some contractors submit invoices for work never done. Then, these ex-contractors spend night and day for weeks slandering that company. They go to every complaint site on the internet and join every real estate and contractor forum they can trying to get even for something that was really their fault to begin with.


The Property Preservation Company List

So, how do you identify the bad guys and the good guys? You do the research. I promise you, you will not find a list of bad guys and good guys on the internet. You will find companies saying lots of good things about themselves and publishing positive press releases all over the place and then you have the slander forums and complaint sites.

Oh, why do we want to research a company? Because it’s just good business sense and we want to find is the company’s character – their reputation. Do they have a lousy reputation or is the internet full of praises? Are they new or have they been around for a while? Are they trying to convince us they are something they are not? How about pay – is it fair, is it low? Any complaints about non-payment or “invoice adjustments?”


Due Diligence For Property Preservation Contractors

The company analysis shown in this book is very unscientific but it has worked well for centuries for those willing to go with it. It’s call gut instinct but it’s backed up by the Duck Test: If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck.