Handyman business in retirement, any experience?

[JoeWras]

I'm a computer guy, but in my spare time over the years, I did home improvement. I like it a lot. I volunteer doing "handyman" work. I've also been a Habit for Humanity volunteer.

I am retired now six months and like life this way.

Recently, a few friends have asked me to do "handyman" kind of things, because they know I can. Most impressively, a handyman friend has asked me to offload some of his jobs.

I am feeling a bit of a calling. But...

I like this stuff, and I'm sure I could make my own schedule (maybe one or two days a week). I want to help people. But people are mean. They sue. They complain.

I'm hesitant to do this kind of thing for money. I think I need to set up an LLC, get insurance and all that kind of thing. Maybe even get a contractor's license. Is it worth it? I don't know.

Question out there. Has anyone done this? What did you do to setup a business? Insurance, LLC, regulations, etc.? Was it worth it? What would I need to do?

Postscript: my handyman friend does this off the cuff. I don't want to do it that way. Frankly, I'm a bit afraid of lawyers and lawsuits. He is not, so basically works a cash business. Not my thing, and maybe I shouldn't even bother if this kind of thing worries me...

 

[Hermit]

I too was a software guy and did a lot of remodeling and renovation on my own place in my spare time. I have been retired for 5 years and am building my own house. I like this a lot better than making it a job. I work when I want and don't when I have something else to do or just don't feel like doing anything on the house. No issues with insurance, business, taxes, or customers. Works great for me.

 

[MarieIG]

How about working for someone else, who is insured, for a while (part time) so that you can get a first hand experience of the pros and cons, with less risk?

And yes, people can be mean (including not paying cash contractors by pretending the work is bad.)

 

[Amethyst]

We have a handyman who is probably close to retirement age. He's pretty expensive, but he works his butt off too. I wouldn't want to work as hard as he does.

 

[JoeWras]

How about working for someone else, who is insured, for a while (part time) so that you can get a first hand experience of the pros and cons, with less risk?

I like that idea.

We have a handyman who is probably close to retirement age. He's pretty expensive, but he works his butt off too. I wouldn't want to work as hard as he does.

Yeah, the work is demanding. I was volunteering this week and found myself on the floor of a bathroom working on toilets. Squirming around on my back in tight spaces. Good cause, but I was completely spent. Hard work. I'm not sure I'd want to do this for pay.


The only reason I am even considering it is if I can just do it a day or two. No way could I do this 40 hours a week.

 

[zinger1457]

I'm hesitant to do this kind of thing for money. I think I need to set up an LLC, get insurance and all that kind of thing. Maybe even get a contractor's license. Is it worth it? I don't know.

I have a golfing friend who is doing something similar, he has so much work lined up it's turned into more of a full time job, doesn't golf much during weekdays anymore. All his work comes from word of mouth, he doesn't advertise. He doesn't have a contractors license, out here it isn't needed as long as the job is under $1200. Not sure if he has any special insurance, he's never mentioned it. He seems to be happy so far but I think he got into it more for the money rather than a hobby that he enjoyed.

 

[JoeWras]

I have a golfing friend who is doing something similar, he has so much work lined up it's turned into more of a full time job, doesn't golf much during weekdays anymore. All his work comes from word of mouth, he doesn't advertise.

This is what I'm seeing. I have two friends who do this, and both have more than enough work. No advertising required.

A lot of people out there need ceiling fans put up, light fixtures replaced, drywall holes fixed, etc. I love doing that stuff. Most people don't know how. This is perfect handy-person stuff. There's a huge market out there for this.

 

[Katiek]

I live in a large condo complex that has predominantly retired residents. There is a newsletter we get once a month that includes some ads in the back. There are always 2-3 handymen advertised and it must be worth it to them, since I've seen there ads for over 10 years. I've used a couple of them, and they were all small, one-man operations that did little projects like closet repair, shelves, hanging pictures etc.

 

[Elbata]

Still a licensed contractor for heating/AC and electrical. Also do plumbing, appliance repair, and garage doors/openers. I'd love to do it, but for reasons OP mentioned, plus in CA over 50% would go for taxes, and all the associated paperwork, it's just not worth it.

Really too bad, for it's something I truly enjoy, but the headaches outweigh the positives.

 

[Stormy Kromer]

It's all fun til something goes wrong. eg: hit a plumbing fixture while drilling a hole, or put a ceiling fan in and wire it wrong and it starts a fire. You'll lose everything you've got.


I don't want to be a spoiler here, but....if you act like you're in business you're in business. This means insurance, taxes and everything else.


As for working for someone else who has insurance...they're going to treat you like an employee, which you would be. If you want to be someone's employee a day or two a week that's great. You can't be both an independent contractor and an employee. Even if you are an independent contractor, sooner or later you're going to be asked to provide a certificate of insurance.


Would you hire an uninsured contractor to work at your home ? What if you have a helper once in a while, would you be providing workers compensation insurance and withholding ?


I wouldn't do it. Unless you want to start an actual business with insurance and tax records.


Keep life fun.

 

[COcheesehead]

How will you get customers?

 

[Jerry1]

I would love to help people out and do small jobs that they can’t do. I’ve thought about doing it for free. Of course I’d be very selective on what I did and stay on the very low end, but as was mentioned, a light switch or a wall repair could make a person very happy. Unfortunately, the same problems would exist even if done for free. Any time you do work on a strangers house, you take a risk. Heck, even a “friend” might sue you. Sad, but just not worth it.

 

[Bamaman]

What'd be nice is to get in with a few real estate firms and do basic reconditioning of the problems on punch lists. They demand prompt service. They also often need house cleaners to come in after clients move out--and quickly get the house ready for the new owners.

For someone that's an experienced handyman, they could also take a course and sign on as a home inspector. At $350 or so per inspection, it appears to be easy money. Our local home inspector hits virtually every homeowner for installing a radon exhaust system--$1500. There again, real estate agencies need fast, fast service from inspectors.

 

[Scrapr]

What'd be nice is to get in with a few real estate firms and do basic reconditioning of the problems on punch lists. They demand prompt service. They also often need house cleaners to come in after clients move out--and quickly get the house ready for the new owners.

For someone that's an experienced handyman, they could also take a course and sign on as a home inspector. At $350 or so per inspection, it appears to be easy money. Our local home inspector hits virtually every homeowner for installing a radon exhaust system--$1500. There again, real estate agencies need fast, fast service from inspectors.

Realtors are infamous for not paying. After the close the finger pointing starts. Oh...you need to call the seller, etc. Either get on the closing docs (Notice of right to Lien) or $$$ up front

 

[COcheesehead]

Realtors are infamous for not paying. After the close the finger pointing starts. Oh...you need to call the seller, etc. Either get on the closing docs (Notice of right to Lien) or $$$ up front

My wife is a vendor to the RE industry, a photographer. You just get payment upfront. No pay, no work.

 

[Scrapr]

My wife is a vendor to the RE industry, a photographer. You just get payment upfront. No pay, no work.

someone not around the RE industry might not understand the risk here. Small money. But it might be your beer money!!!

 

[COcheesehead]

someone not around the RE industry might not understand the risk here. Small money. But it might be your beer money!!!

Business principles apply no matter the amount of the invoice or industry. Never extend credit on the first order. Cash up front. That makes everyone happy.

 

[mountainsoft]

It's all fun til something goes wrong. eg: hit a plumbing fixture while drilling a hole

I do a lot of DIY work. My wife and I built our own house, significantly remodeled her parents house, and recently made many improvements to my mom's house so we could sell it. I've made a few mistakes here and there, but overall things have gone very well, or at least were easy to fix.

Last year we repainted my mom's house inside and out, removed the popcorn ceilings, laid new carpet and flooring, updated all the cabinets and plumbing fixtures, replaced the water heater, etc. We were down to our last few little items before selling the house when I decided to mount a shelf in the laundry room. It was the very last thing to do. I knocked on the wall to find the studs, then verified with my electronic stud finder. Held the shelf bracket up against the wall and drove in my screw. That's when I noticed the screw was wet. Huh? I must have stood there 3-5 minutes looking at that screw asking myself "why is the screw wet?". Once I got past dumb confusion I realized I had driven a screw into a copper water pipe. Dang.

I had to pull out the washer and dryer, cut a hole in the wall, replace a section of the plumbing, repair the wall, repaint, and reconnect the washer and dryer. All because I decided to mount a shelf at the last minute. How difficult could that be anyway...

I too have thought about starting a handyman business, but little mistakes like that changed my mind.

 

[nwsteve]

Another option using many of the dame skills is to home inspection associated with home sale. In many markets, decent inspectors are usually waitlisted for weeks. If of interest,
consider being an understudy for a too busy inspector, and assist him/her with their book.

 

[HadEnuff]

This is what I'm seeing. I have two friends who do this, and both have more than enough work. No advertising required.

A lot of people out there need ceiling fans put up, light fixtures replaced, drywall holes fixed, etc. I love doing that stuff. Most people don't know how. This is perfect handy-person stuff. There's a huge market out there for this.

As a dentist, when I retired, the person who bought my practice wanted me to continue to work on a limited basis. While I would not have minded the work, in order to do it legally and safely (for me) required licensing, malpractice insurance, and continuing ed classes. The investment comprised more effort than I was willing to commit to, and would have required more work than I wanted to do in order to pay for that investment. So I see a parallel there to what you are describing setting up an LLC and getting insurance etc.

On the other hand, if you can work for someone else, without feeling the need for the protective net, that might work great. Also, you might consider telling them certain things you are not willing to do, that might beat you up too much, like what you describe crawling around under the sink. Let the boss do that while you do something less demanding on your old body, but frees up some time for the boss so he can crawl around under the sink.

I suspect that very likely, should you choose to go this route, your problem will be saying "no" once your 2 days a week is up and there is more work to do.

 

[ponyboy]

How will you get customers?

As someone who knows a handyman, thats the easiest part. Usually it just starts with family/friends...then they others about you.

Everyone will at some point have something at their house they need fixed. If you're not willing to do it yourself, you have to find someone. Those people start asking around, once your name gets thrown in in the mix, its constant work...because it just keeps snowballing. This is assuming the person is a good handyman, and doesnt charge a ton of money.

 

[CardsFan]

Business principles apply no matter the amount of the invoice or industry. Never extend credit on the first order. Cash up front. That makes everyone happy.

Sounds good, until you are the customer and the contractor delays or disappears (just happened to a friend). Cash at completion of service, sure. Cash up front, no way.

 

[Aerides]

If you're going to take a fun hobby and make it a business, the business part has to be the main focus (reducing the fun).

YES you need to be fully licensed and insured. Not only for when you cause some issue in someone's home, but for when you have an accident in one and their homeowner's coverage is inadequate. You trip or slip and fall off a ladder, etc. Both will happen eventually if you do it long enough.

Easy enough to get customers with word of mouth, next door, CL, etc. Get one of those signs to slap on the side of your truck when you drive around, put business cards up in coffee shops, etc.

 

[MichaelB]

I am retired now six months and like life this way.

Recently, a few friends have asked me to do "handyman" kind of things, because they know I can. Most impressively, a handyman friend has asked me to offload some of his jobs.

I am feeling a bit of a calling. But...

I like this stuff, and I'm sure I could make my own schedule (maybe one or two days a week). I want to help people. But people are mean. They sue. They complain.

I'm hesitant to do this kind of thing for money. I think I need to set up an LLC, get insurance and all that kind of thing. Maybe even get a contractor's license. Is it worth it? I don't know.

Question out there. Has anyone done this? What did you do to setup a business? Insurance, LLC, regulations, etc.? Was it worth it? What would I need to do?

My mother had a handyman like that, and he was very useful. He was a retired high school teacher. He had no company or business, he didn’t work with contractors, and he didn’t do major repairs . He did common household fixes and maintenance, and some smaller projects (like a small deck) for homes in the neighborhood. He built his customer base by word of mouth, stick to what he knew and could do, stuck to the neighborhood, and limited his hours.

DM always commented that she didn’t know if he did it for the money or just to stay busy and help out. To say he was appreciated would be an understatement.

There are lots of households that need minor repairs, fixes and projects which the residents do not have the knowledge or skill to carry out.

 

[street]

I'm actually going to do some of this starting this spring. I have been asked and did some of this handyman projects since I have been retired. I do just enough to buy my gas for each year. I have a few jobs that I will start this year. I have all the knowledge for home building etc. but I'm very selective in what I will do.