Maintaining your rental property safely and legally means hiring the right people for the job. Using unlicensed tradespeople or engaging in DIY work at your property may seem like a cheaper option; however, it can create serious risks for your property, tenants, and finances.
Which Trades Usually Require a License
- Electricians
- All electrical work, wiring, and switchboard repairs.
- Plumbers & Gasfitters
- Plumbing repairs, hot water systems, and gas appliance installation.
- Builders & Construction Contractors
- Renovations, extensions, or structural changes.
- Pest Control Professionals
- Termite treatment and chemical pest eradication.
- Air Conditioning & Refrigeration Specialists
- Gas appliances and refrigeration installation or servicing.
- Painters
If a painting job exceeds the financial threshold for your state or involves complex work. Tip: Always check local regulations, as licensing requirements can vary from state to state.
Risks of Using Unlicensed Tradespeople
- Legal Liability
You could be held responsible if unlicensed work causes injury, fire, or property damage, in cases where insurance may not cover these incidents.
- Poor Work Quality
Licensed tradespeople meet industry standards; unlicensed work may fail inspections or need costly repairs.
- Fines & Penalties
Many states impose fines or stop-work orders if unlicensed professionals are hired.
- Reduced Property Value
Incorrect or non-compliant work can lower resale/rental values.
Steps to Protect Your Investment
- Verify Licenses
Always ask for proof and check online if possible.
- Get Written Quotes & Contracts
Specify that the tradesperson holds the required licenses.
- Keep Records
Save all documents for future reference.
Hiring licensed professionals protects your tenants, complies with the law, and safeguards your property investment. Although it may cost a bit more upfront, it’s worth it for the peace of mind and long-term savings. It is equally important to ensure that all tradespeople entering your property hold adequate insurance, in case something goes wrong.