Landlords - How to Reduce Your Rehab Cost by 20% Or More

 Every landlord will face a time when they will need to rehab a rental unit to get it ready to be rented or to be sold. The cost of a rehab can be very expensive. If the total cost of materials in your rehab exceeds $2,500, here is a way to reduce that cost by 20% or more.

The Home Depot, which can be found in most major metropolitan areas throughout the US, offers a program called the "Pro Bid Desk." This program is only offered to people who plan on purchasing material in excess of $2,500 in a single purchase. If you are doing rehab on multiple properties, it would benefit you to combine the costs into a single purchase so you can exceed this $2,500 requirement.

Take your list of items that you intend to purchase including the quantity of each item to the contractor desk at Home Depot. The contractor desk is normally located at the end of the store near the lumber section. They will take your list and enter it into a computer program that is submitted to Home Depot corporate. They will return a discounted price on the materials in 24 hours or less.

The Pro Bid Desk is not restricted just to contractors which mean anyone can place a bid. The only restriction is that the initial cost of all the materials has to exceed $2,500. Home Depot looks at the retail price of the material that you are purchasing and then discounts it to a point that they still make a profit and that it encourages you to purchase from them instead of their competitors.

The percentage of the discount varies by department. Hardware, paint and lumber generally have the lowest discount at around 10%. Plumbing, flooring and kitchens have the greatest discount at around 28%. Plumbing and electrical are usually discounted around 18%.

Once you leave your list of items with the contractor desk, you will receive a call from them in 24 hours with the discounted price you will receive. You can request the store actually pull the items that you want to purchase and have them available for your contractor to pick up. For very large orders, Home Depot offers a service where they will actually deliver the items directly to your property.

In order to be a successful landlord, you need to reduce the cost of your expenses. Using the Pro Bid Desk at Home Depot is one way to reduce the cost of your repairs by up to 20%.

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