Question 1

What is the hourly rate for contractors in Arizona?

Accepted Answer

In Phoenix, AZ, the general contractor salary varies, with top earners making an annual salary of $100,816 or an hourly wage of $48, those in the 75th percentile earning $87,000 annually or $42 per hour on average, while the average salary is $75,814 or $36 per hour, and those in the 25th percentile making $47,400 annually or $23 per hour.

Question 2

Is home improvement the same as construction?

Accepted Answer

General contractors oversee the entire construction process, working either with their own team or by outsourcing and subcontracting various functions, whereas home improvement contractors focus on specific construction details and aspects.

Question 3

How do I get a general contractors license in Arizona?

Accepted Answer

When applying for a license, follow this checklist: Form a legal entity if applying as an LLC or Corporation, choose your classification and meet its requirements, pass exams like SRE and GMetrix, submit background checks and copies of government-issued IDs for all individuals, complete the bond, pay the required fees, and finally, submit your application.

Question 4

How much does a handyman make an hour in Arizona?

Accepted Answer

As of September 30, 2023, the average hourly pay for a Handyman in Arizona is $25.12, with salaries ranging from as low as $13.41 to as high as $36.29, but the majority of Handyman salaries fall between $20.82 (25th percentile) and $28.17 (75th percentile) in the state.

Question 5

What do most general contractors charge per hour?

Accepted Answer

The average general contractor rates typically range from $50.00 to $150.00 per hour, although some contractors may charge a percentage, typically around 10 to 20 percent, of the total construction project cost instead of an hourly rate.

Question 6

What is DIY home renovation?

Accepted Answer

Essentially, DIY home renovation involves investing your own time and effort to enhance your living space without hiring a professional, which can save you money but also requires significant time as you experiment with various styles to transform your space.

Question 7

Is it better to build or remodel?

Accepted Answer

Overall, building a new structure provides greater control over tailoring it to your specific needs and goals, although it may be more expensive and time-consuming compared to renovating a moderately new building.

Question 8

What is classified as a building improvement?

Accepted Answer

Building improvements encompass additions, which expand existing structures to increase usable space, as well as improvements and betterments that enhance the existing asset without necessarily changing its physical size, thereby improving its condition beyond its previous state.

Question 9

What is the downside of home renovations?

Accepted Answer

Renovations can frequently reveal hidden problems like structural issues or outdated electrical wiring, potentially leading to unforeseen costs, and the process of renovating an existing home can also become time-consuming and stressful.

Question 10

What is a remodel vs renovation?

Accepted Answer

In technical terms, a remodel involves altering the form of a structure, such as adding a new shower to an existing bathroom, whereas a renovation primarily entails restoring something old to good repair, like fixing a creaky floor.

Question 11

What renovation adds the most value to a home?

Accepted Answer

In the U.S., home renovation projects with the best returns on investment include HVAC electrification (changing a traditional furnace to an electrified heat pump with an average resale value of $18,366), garage door replacement ($4,418), replacing house siding with stone veneer ($11,177), and entry door replacement with a steel door ($2,235), among others.

Question 12

Is it cheaper to tear down or renovate?

Accepted Answer

When finances are limited, opting for a major house remodel, although still costly, generally incurs lower expenses compared to a complete house rebuild, as the tear-down and rebuild approach necessitates a full commitment once the initial demolition is undertaken, resulting in a vacant lot and the obligation to construct a new home.

Question 13

Is it cheaper to add on or build up?

Accepted Answer

Generally, constructing upward is often more cost-effective than expanding outward, as building out typically involves additional expenses such as excavation and foundation work, though exceptions exist, and the cost differential depends on factors like room size and intended use.

Question 14

Is flooring considered a building improvement?

Accepted Answer

Leasehold improvements encompass activities like painting, partition installation, customized light fixture installation, and flooring changes, while enlargements to buildings, elevators, escalators, roofs, fire protection, alarm and security systems, and HVAC systems do not qualify as leasehold improvements.

Question 15

Is painting a repair or improvement?

Accepted Answer

Painting a rental property is typically classified as a repair expense, akin to replacing a damaged door, fixing a leaky faucet, or repairing a broken window.

Question 16

Can a handyman do electrical work in Arizona?

Accepted Answer

If you're wondering whether unlicensed handymen can perform electrical work in Arizona, the answer is yes; you and your Uncle Bud can undertake electrical home upgrades and installations.

Question 17

How much does a handyman charge per hour in Phoenix AZ?

Accepted Answer

Here is a handyman price chart showing average hourly rates in various cities and states: Phoenix, AZ ($35 - $90), Pittsburgh, PA ($50 - $100), Portland, OR ($55 - $80), and San Diego, CA ($60 - $95), among others.

Question 18

Do you need a license to paint houses in Arizona?

Accepted Answer

In Arizona, the Arizona Registrar of Contractors issues licenses for painters, necessitating separate licenses for residential and commercial contractors, with residential painters needing two years of experience under a state-recognized contractor.

Question 19

What is the rule of thumb for contractor rate?

Accepted Answer

Negotiating contractor pay rates is relatively straightforward, especially if you have experience placing direct hires for the same position, as a common rule of thumb involves dividing the typical annual salary for a direct hire by 2,080.

Question 20

How much is too much to spend on a home remodel?

Accepted Answer

When planning renovations, it's important to consider that the remodeling cost for any single room, except the kitchen, should generally not exceed approximately 10% of the house's current value, while kitchen renovations can be more expensive and, in certain instances, may surpass 15% of the home's value.

Question 21

What do you call a person who remodels houses?

Accepted Answer

A remodeler, a specialized type of contractor, is responsible for remodeling, renovating, or restoring private homes and commercial buildings, with distinctions that set them apart from construction contractors or handymen, despite some overlap in their roles.

Question 22

What is considered a structural renovation?

Accepted Answer

A structural remodel in residential remodeling pertains to the alteration, repair, removal, or addition of load-bearing elements, which may encompass posts, beams, columns, and the home's walls and foundation, with "load" referring to weight or pressure.

Question 23

What is the difference between renovation and remodeling?

Accepted Answer

Technically, a remodel involves altering the form of something, such as adding a new shower to an existing bathroom, whereas a renovation primarily entails restoring something old into good repair, like fixing up a creaky floor.

Question 24

What is the 30% rule in home renovations?

Accepted Answer

Home renovation is a substantial endeavor that often requires more time and finances than initially anticipated, and experts recommend setting aside 20 to 30 percent of the total project cost for unforeseen expenses, which amounts to an additional 30 percent beyond the project's original cost estimate.

Question 25

What adds value to a home 2023?

Accepted Answer

Projects like finishing a basement or attic, removing a wall in a closed-off home, adding a bathroom, or altering the layout can expand living space and enhance the perception of a larger home, but they are labor-intensive and typically not suitable for DIY endeavors.

Question 26

What are the cons of renovating?

Accepted Answer

Renovating a house presents significant drawbacks, including the substantial cost, time-consuming nature, and inherent risks like unexpected problems, subpar materials, or the selection of unqualified contractors.

Question 27

Why are renovation costs so high?

Accepted Answer

Due to labor and materials shortages, projects that were previously affordable began to cost 20% to 35% more, resulting in increased spending as both more people engaged in home improvement projects and the costs of these projects rose significantly.

Question 28

What is the least expensive way to add on to a house?

Accepted Answer

A bump-out, also referred to as a micro-addition, involves extending a wall within an existing room, commonly used to expand living space in a cost-effective manner without necessitating additional support structures or alterations to the home's foundation.

Question 29

What is the most cost effective addition?

Accepted Answer

A two-story addition is frequently the most cost-effective option per square foot, but it's essential not to mistake it for a second-story addition.

Question 30

What falls under building improvements?

Accepted Answer

Building improvements encompass additions, which expand existing structures to increase usable space, as well as improvements and betterments, which typically do not alter the physical size of the asset but enhance its overall condition beyond its previous state.

Question 31

What is an example of a repair vs improvement?

Accepted Answer

For instance, categorizing a $10,000 roof expense as a repair allows for a $10,000 deduction in the current year, while classifying it as an improvement necessitates depreciation over 27.5 years, resulting in only a $350 deduction for the current year, highlighting a significant distinction in tax treatment.

Question 32

Is replacing carpet a capital improvement?

Accepted Answer

Referred to as capital expenditures or improvements, these encompass significant projects such as carpet replacement, extensive lighting or landscape work, pool deck refurbishment, security system upgrades or replacements, exterior painting, and the painting of garages, stairways, hallways, and various other endeavors.

Question 33

Can I deduct painting my house on my taxes?

Accepted Answer

In general, home repairs are typically not eligible for tax deductions, except for landlords making repairs on rental properties, as per IRS guidelines, which classify repairs as maintenance to preserve a home's condition without significantly increasing its value, encompassing tasks like house painting or gutter repairs.

Question 34

What type of property is qualified improvement property?

Accepted Answer

Qualified Improvement Property (QIP), as implied by its name, pertains to property enhancements, specifically within nonresidential buildings including retail establishments, hospitals, banks, manufacturing facilities, hotels, and motels.

Question 35

How much does a handyman cost in Phoenix?

Accepted Answer

Here is an hourly handyman price chart for various locations, including Phoenix, AZ ($35 - $90), Pittsburgh, PA ($50 - $100), Portland, OR ($55 - $80), and San Diego, CA ($60 - $95), among others, with additional details available in the table below.

Question 36

Do you need a license to be an independent contractor in Arizona?

Accepted Answer

Contractors are not bound exclusively to employers, do not require licenses or registrations, are compensated with project fees rather than hourly wages, and businesses cannot dictate their work hours.

Question 37

How long does it take to get a Contractors license in AZ?

Accepted Answer

Some licenses may not necessitate any prior experience, while others could require completing 10-15 trade-related projects with a specified duration of experience, typically ranging from 1-4 years, as per the Registrar of Contractors' requirements.

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