Ready to start your remodel? Here’s everything you need to know about hiring a general contractor

Major remodeling projects are extremely complex, and require a high degree of planning, coordination, and oversight. That’s where general contractors come in. 

At Sweeten, we’re experts at all things general contractors — we pre-screen them for our network, carefully select the best ones for your remodeling project, and work closely with hundreds of contractors every day. So, we’ve tapped our expertise to give you everything you need to know when it comes to hiring a general contractor. 

Skip to: How do you hire a general contractor?

What is a general contractor? 

General contractors, known more simply as contractors or “GCs”, are the lead professionals on major construction projects. They oversee teams of subcontractors such as carpenters, plumbers, electricians, and painters, who carry out the various specialized aspects of each construction job. They’re responsible for procuring materials, obtaining permits, and ensuring that a project is completed according to plan. Depending on the specific requirements of a given project, they may also be responsible for coordinating with architects or designers, coop or condo boards, engineers, expediters, or inspectors. 

The term “general contractor” can be used interchangeably to refer to an individual person or a general contracting company. These companies come in all shapes and sizes, from one- and two-person operations, to mid-sized companies of 10-20 employees, and even large firms of 50 employees or more. 

Depending on your area or region, general contractors may also be known as home improvement contractors, builders, renovation contractors, or remodeling contractors. 

What makes a great general contractor? 

At Sweeten, we’ve been vetting and working closely with general contractors for over a decade. In addition to our 7-step contractor vetting process, here’s what we think gives some contractors that extra edge and a reputation of satisfied clients:

• Communication: There are a lot of variables in the construction process. A great general contractor understands the dynamic environment in which they work, anticipates potential issues, and is proactive in communicating all of this with their clients. They can provide clear instructions to subcontractors and are open to feedback. 
• Realism: The best general contractors are honest with clients about what their budget can realistically achieve, and will work with them to create a feasible scope of work, so that they can adhere to budgets and timelines. 
• Agility: When the unforeseen inevitably happens on a major project, great contractors can think critically on their feet and approach their clients with proposed solutions. They can handle a variety of tasks and adapt to changes.
• Eye for detail: A great contractor does not make excuses for shoddy work. They scan their jobs with a fine tooth comb, regularly looking for imperfections in craftsmanship and addressing them head on — not avoiding them and hoping their client doesn’t notice!
• Tidiness: A great GC will clearly spell out the ways in which they intend to protect your home and personal belongings in their estimates & contracts. If your GC doesn’t have a game plan for protecting your beloved possessions, look the other way! 

Typical remodeling projects

You’ll probably need to hire a general contractor if you’re planning a project like renovating a kitchen, remodeling a bathroom, finishing a basement or attic, adding a deck or patio, remodeling an entire home, or converting a garage into an accessory dwelling unit. They focus on transformative projects that involve multiple trades, which is why you’ll typically only hire a general contractor for projects that cost $15,000 and up. 

Traditional general contractors vs design-build contractors

A traditional general contractor oversees all of the build-related aspects of a given job. They are responsible for procuring materials, hiring subcontractors, and managing the construction process. While general contractors are not responsible for design work, some are happy to offer creative solutions to smaller-scale design challenges, or even produce basic renderings where advanced design services are not necessary. The level of creative input you can expect from a traditional contractor varies greatly from firm to firm. 

A design-build company, on the other hand, is a company that takes responsibility for both the design and construction of a project. They typically have in-house architects and designers, as well as construction experts, that work together to create the plans and then carry out the construction. Where architectural design service is required, design-build companies are often the most efficient option, as they can take responsibility for the entire project from start to finish.

At Sweeten, we work with both traditional and design-build contractors, and with so many firms that we cover a broad range of service offerings to meet your needs. Post your project to start connecting with our vetted, trusted contractors today!  

Why hire a qualified general contractor for your remodeling project?

Because remodeling projects are so expensive, you may be tempted to save money by making yours a DIY project or hiring unqualified labor at a discount, but cutting these types of corners carries major risks, including:

• Inferior workmanship: A DIYer or unqualified contractor may not have the necessary skills or experience to complete the project to a high standard. This can result in poor quality work that may need to be redone or repaired, which can be costly and time-consuming.
• Code violations: Building codes and regulations exist to ensure the safety and stability of structures. A DIYer or unqualified contractor may not be familiar with these codes and could potentially make mistakes that violate them, leading to problems and costly repairs down the line.
• Increased liability: If an accident or injury occurs on the job site and the contractor is found to be at fault, the homeowner may be held liable for any damages. This can be particularly risky if the person doing the work does not have the necessary insurance.
• Delays and cost overruns: A DIYer or unqualified contractor may not have the knowledge or resources to accurately estimate the time and cost of a project. This can result in delays and unexpected expenses.

General contractors are there to ensure that your project is completed in a safe, efficient, and code-compliant manner. Additionally, contractors can tap their vast experience to provide valuable advice and guidance on how to best complete your project, including, importantly, helping to identify potential issues before they become major problems. 

What kind of training do contractors have? 

General contractors typically have a variety of training experiences, including classes, certifications, and on-the-job experience. Many general contractors have a degree in construction management or a related field, and may also have industry certifications from organizations such as the National Association of Home Builders or the American Institute of Constructors. Additionally, many general contractors gain experience through apprenticeships or hands-on experience working on construction sites. With such a wide range of training, they are able to bring a variety of skills and knowledge to the table, ensuring that any project they undertake is completed professionally and to the highest standards.

What are the license requirements for contractors?

The licensing requirements for general contractors in the United States vary from state to state, and often between local municipalities, so it’s important to look up your local requirements if you want to be sure what is required in your area. 

Most states have a state-wide license requirement for general contractors. The exact requirements vary by state, but usually include passing a written exam, providing proof of financial responsibility, and providing proof of experience in the construction field. In most cases, applicants must also provide proof of insurance, as well as a bond to guarantee their work. In some states, general contractors may also have to complete additional training or courses in order to obtain their license. 

For example, in California, general contractors must pass a written exam that covers state laws, construction codes, and business practices. They must also provide proof of financial responsibility and experience in the construction field. In addition, they must complete a 16-hour pre-licensing course and a 4-hour exam prep course in order to obtain their license. In contrast, in Texas, there is no statewide license required for general contractors. 

Generally, if you’re in a major metro area that metro may issue a license, which may also correspond with a county license. Or, you may live in a town or city that has specific licensing or permitting requirements that general contractors hold for a set amount of time or on a per-job basis.

How much does it cost to remodel with a general contractor? 

A combination of service level, experience, and factors like firm size and overhead might all contribute to how competitive a contractor’s pricing is. General contractors make money by charging a fee for their services, which may include a commission or markup on any materials purchased and labor costs. They may also charge additional fees for project management, risk management, or other services. The general contractor’s fee, whether a flat rate or a percentage of the total project cost, is usually negotiated with the client prior to the start of the project. 

We have an extensive library of remodeling cost guides to help you plan your project budget, plus hundreds of additional renovation process and planning guides. Below are a few of our most popular guides:

• Kitchen Remodeling Cost Guide
• Bathroom Remodeling Cost Guide
• Modern Flooring Options & How Much They Cost

When you post your remodeling project on Sweeten, you’ll get matched with a selection of contractors for competitive bids, so that you can feel good about the balance of cost and value that you’ll get from the contractor you ultimately select to work with. Learn more about how Sweeten works.  

How do you hire a general contractor? 

You’ve come to the right place — helping people hire the right contractor for their remodeling project is exactly what we do at Sweeten! Here’s a breakdown of the process. 

1. Source 3-5 contractors who are fit for the job 

This is so much easier said than done! You’ll want to research and narrow down a handful of qualified general contractors, with the right experience, who work in your area, who provide the services you need, at your budget level, and who are available and interested in the job. You could start by asking friends or researching online, and making some phone calls — however, if you’re in one of Sweeten’s service areas, we highly recommend that you save yourself the legwork and start meeting trusted contractors on Sweeten!

2. Hold site visits

Schedule and hold a separate meeting at your project site with each of the contractors you’d like to get a bid from. This is your chance to learn more about their firm and evaluate how well you think you’d work together with them. Come prepared with questions! (Hint: we made you a list below.) 

3. Collect estimates

After your site visits — unless otherwise discussed — each contractor should prepare an estimate, or bid, for your project. This process can usually take 1-2 weeks, since they’ll need to coordinate with their subcontractors to prepare the document. 

4. Compare the bids

There’s no standard form for contractor estimates, so it’s rare that you can truly compare them apples to apples. Instead, you’ll need to comb through to get an idea of what is and is not included in each bid, ask some questions, and do your best to evaluate those differences. This is the critical decision-making stage, which is why we offer a free bid-leveling call to help you make the best hiring choice for your project.

5. Conduct negotiations

At this point, you should have a good idea of who you’d like to work with, but is there one or two items you’d love tweaked on their proposal before you’re ready to commit? This is your chance for that final conversation. 

6. Sign a contract and pay your deposit

You’ll seal the deal with a formal contract and deposit, which allows the contractor to begin acquiring the necessary materials ahead of your agreed-upon start date. We’ve made that process more convenient for you by offering secure, electronic deposits when you sign with a Sweeten contractor. 

If you’re ready to hire a contractor, check out Sweeten’s service locations to see if we can get you connected with our trusted contractors today. Our personalized contractor matching service is totally free!

Sample questions to ask at your site visits

• How long have you been a general contractor?
• How many projects have you managed simultaneously? How many do you plan to manage while working on my project? 
• Are you familiar with the local building codes and regulations?
• Who will be in charge of my project and who will be working on it?
• How will you handle any unexpected challenges, delays, or changes during the project?
• What is your policy for communication and updates during the project?
• What potential challenges could you foresee with my project? 
• How do you plan to protect my home during the course of my renovation? 
• How does your payment schedule work?
• What is your insurance coverage?
• Do you provide a warranty for your work?
• Do you have references from previous clients?

How does Sweeten connect me with the best general contractors for my remodeling project? 

Our purpose at Sweeten is to help homeowners transform their homes as seamlessly as possible — so you can stop living at home, and start thriving! And we’ve helped over 2,000 renovators do just that. Here are some of the ways we bring value to your renovation experience (for free!):

• We only work with thoroughly vetted, trusted general contractors 
• We carefully select the best contractors for your unique remodeling projects and connect you with them
• You’ll get a set of competitive bids to ensure fair, market pricing for your project
• You can take advantage of a bid-leveling call with someone from our team to help you through the toughest part of the decision-making process
• Our team has extensive knowledge and experience in renovations, and we’re available to you for support from start to finish!

If you’re planning to start your own home renovation within the next 6 months, it’s time to post your project on Sweeten and start making your vision a reality!

The post The Ultimate Guide to Hiring a General Contractor for Your Remodel appeared first on Sweeten.

Sweeten matches general contractors with high-quality home renovation projects, vetted for readiness and appropriate budget. Contractors win through a competitive bidding process, and pay only when they win. Budgets start at $15,000, with an average of $80,000.

Pay Only-When-You-Win business model

You only pay us when you win a job. Sweeten doesn’t charge you to sign up with us, and we don’t charge you for leads. Our fee is a small percentage of the total contract value. Most contracting firms consider it a business development expense.

Why is this important? We only get paid when you get paid. It doesn’t serve us to waste your time by sending you dozens of low-quality leads, or by sending the same leads to dozens of random contractors.

Sweeten cares about your success—we consider you a partner.

Highest Quality Projects

We only send you legitimate, transformative renovation projects that require multiple trades. We won’t waste your time with single-trade jobs or handyman tasks. Our minimum budget is $15,000. Our average contract value is $67,000.

All leads we send you are vetted for readiness and appropriate budget.

Vetted Leads, Matched to You

When we send you a lead, it will match your geographic service area, the types of services you offer, and your preferred budget range. 

Streamlined Competitive Bidding Process

• You’ll compete with just 2 to 4 other contracting firms for each job. 
• If you and the client express interest in each other, we give you tools to help with messaging, site visit scheduling, video site visits, and hiring. 
• On the client side, we help them understand and compare estimates, to help them make the best choice—even if it’s not the lowest bid. 
• We minimize the time you spend on unpaid work. 

Services to Help Contractors Grow

Sweeten also helps contractors by giving you a dedicated account manager to help with business development and marketing. They’ll also help make your Sweeten profile and portfolio as competitive as possible. We offer opportunities for free photography and social media promotion. 

We stand behind your work, by offering financial protection to your Sweeten clients. They’ll be able to hire you with confidence and peace of mind. 

Check out the rest of Sweeten’s Contractor content series: 

How to Talk to Clients About Renovation Timelines

Knowledge is Power: Your New Company Performance Page

The post How is Sweeten Different for General Contractors? appeared first on Sweeten.

The post Meet Sweeten NYC General Contractor Yoel appeared first on Sweeten.

Now is the time to be careful about which jobs you consider, estimate, and take on. Whether you’re looking to grow your business, provide consistency, or focus on niche projects, it’s important to have the right tools to help prioritize your funnel and be more efficient with your time. We encourage you to consider the unique needs of your general contracting business when evaluating the different kinds of business development sites/lead generation for contractors (of course we’re biased and think Sweeten is the best!)

Here are the top five factors to consider when choosing a lead generation site to partner with:

1. Does the site charge you upfront, or only if you sign the job?

There are three basic ways that lead generation platforms can make money: 

• Pay-to-play: The platform charges you for every potential client they send your way. Costs vary depending on the size of the potential project or quality of the lead. Sites like HomeAdvisor and Porch operate with this model.
  
• Pay-for-placement: the platform charges you for better or more frequent placement on their site. The platform typically also charges either an annual/monthly fee or a fee for every potential client they send your way. Sites like Houzz and Angi follow this model.
  
• Pay-per-win: The platform charges you only when you sign a contract with the potential client. The fee is typically a percentage of the project value. Sites that follow this model are considered true marketplaces, because money doesn’t change hands unless there’s a sale of services. Sweeten is one of the only sites that takes this improved approach.
  

Pay-per-win platforms tie their success to their contractors’ success. These platforms are incentivized to help their GCs win more jobs, as opposed to the other models, which make their money whether or not you succeed. With Sweeten, you only pay when you win a Sweeten project. 

Tip: Make sure you keep track of your return on investment (ROI) with any lead generation platform you may be considering. 

2. Does the site focus on serious renovation projects that require a general contractor, or on handyman tasks?

Before signing up with a platform, find out the average size of its projects. Look for a focus that aligns with the work you do, and the work you’re seeking. Many platforms specialize in projects that average just a few thousand dollars. At Sweeten, our average project size in 2019 was $126,000. About 50% of our contracts were over $50,000. Our minimum project size is $15,000. We can win you the kinds of leads that are most profitable, rather than stretching your resources thin with distracting singe-trade work. 

3. Does the site focus on the quality or the quantity of remodeling project leads?

Ask a representative how many leads you would typically see from the platform in a month as well as how they qualify those projects. Sweeten prescreens every project to make sure its scope and budget align with rates in your area. We also educate potential clients on cost, scope and process, in order to manage expectations from the start. In addition, we support your firm on the project from introduction until the punch list is complete—because your client is our client, and your success is our success. You’ll have a dedicated Sweeten account manager who can offer support during project milestones, and help with any communication problems with our shared clients. And you’ll have access to your Sweeten dashboard, with digital tools for scope support, estimate creation, e-contracts, and digital payments.

4. Does the site vet its contractors?

Look for a platform that cares about quality and is committed to improving the renovation process for all parties involved. If you carry a home improvement or general contractors license, insurance, and other certifications, look for a platform that sets you apart from less qualified tradespeople. 

At Sweeten, we vet every contractor who applies to our network. We accept fewer than 20%. All qualified contractors carry the proper licenses and insurance for their service area, and have a proven record of quality craftsmanship and successful projects. As a Sweeten partner, you’re part of a group of highly-qualified, talented, experienced professionals.

5. Does the platform encourage healthy competition?

How many contractors does the platform send to each lead? Are contractors segmented by skill set, company size or services offered? Look for a platform that helps differentiate your firm from the pack! Sweeten matches each project to 3-5 general contractors who are a strong fit, based on the project type and scope. Clients love this because it offers them a manageable number of relevant choices, rather than bombarding them with dozens of questionable ones. Contractors love this because when we match you to a project, you’ll probably find it attractive. And you’ll have a genuine chance of winning. 

What sets Sweeten apart from the rest?

Sweeten’s digital platform makes managing projects easier

Sweeten’s combination of smart technology and client service means real renovations with real budgets. Our advanced matchmaking service matches each prospective project only to the most compatible general contractors. 

Sweeten gets to know you and your firm’s strengths for the best fit

As a Sweeten general contractor, you won’t be thrown into a large pool of firms fighting for one project. You’ll get only qualified leads specifically suited to your firm. Sweeten is the best lead-generation source because it provides viable leads, a “pay only when you win model,” and dedicated support to help you succeed.

Interested in joining Sweeten’s network of general contractors? Click here to sign up.

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Here’s how a general contractor can use social media to grow their business.

Sweeten handpicks the best general contractors to match each project’s location, budget, scope, and style. Follow the blog, Sweeten Stories, for renovation ideas and inspiration and when you’re ready to renovate, start your renovation with Sweeten.

The post Survive to Thrive: Generating Business and Turning a Profit appeared first on Sweeten.

When you post your project on Sweeten, you get the guarantee of a contractor who’s licensed, vetted for their quality of work, and matched to your specific renovation. Sweeten general contractors are there to manage your project from start to completion and make sure you not only have the finished product of a home, sweet home, but a smooth experience getting there, too. While there may be bumps in the road, it’s the experience that a good contractor has to navigate the potholes.

We’re impressed every day by the work the contractors in our network do! Ahead, we highlight a few of many instances where Sweeten contractors came through for their renovators in a big way.

(Above) Homeowner Mimi’s renovation completed by a Sweeten general contractor

When the homeowner had a vacation booked. “I was especially glad I found a contractor I could trust because I had actually preplanned a three-week-long vacation overseas before I knew I was going to be in the middle of renovations (and ended up breaking my phone two days in!). I was a bit nervous leaving right in the middle of all of the construction, but my Sweeten contractor gave me a lot of confidence that the project could proceed without me. So I picked out all of the finishes I wanted, ordered the fixtures, packed my bags and left right in the middle of the project. Sure enough, by the time I got back, the job was nearly complete!”

(Above) Homeowner Gayle’s renovation completed by a Sweeten general contractor

When family comes first. “I never felt like I was out of the loop on what was going on with our contractor and his team. Even when our mom became ill one month into construction, we didn’t have a lot of time to talk to him or meet with him, but our back and forth communication had been so great before that he was able to just keep going, handling all of the small decisions and only calling if there was a major decision that needed our input. It was a relief that the work didn’t stop.”

(Above) Homeowner Gloria’s renovation completed by a Sweeten general contractor

When they acted as a “neighbor whisperer.” The general contractor went door to door with his client to alert neighbors of a plumbing situation, relieving the client of her anxiety and showing enormous support: “Our contractor went with us to each unit to explain what would happen even though they were not the ones replacing the plumbing. Magically, we easily got everyone’s agreement once they were told the entire situation.”

(Above) Homeowner Allyson’s renovation completed by a Sweeten general contractor

When the homeowner had a very clear vision. Allyson’s plan for her bathroom was anything but cookie-cutter and involved a lot of coordination to ensure the materials were the right size and came in on time. “My contractor was patient and never dismissed my ideas as ridiculous or impossible. If something wasn’t how I liked it, he made sure that it was corrected. Because a lot of the items I wanted to use came from outside of the country, he worked around my undependable delivery schedule.  He took a potentially stressful situation and provided steady guidance and expertise.”

(Above) Homeowners Roxana and Gabriel’s renovation completed by a Sweeten general contractor

When a renovation required a little “hacking.” Roxana and Gabriel wanted to make a lot of modifications to an Ikea kitchen system—including integrated appliances. The couple spent so much time searching for a refrigerator that could fit into what was formerly a coat closet, and their contractor cut custom panels to cover it. “Our contractor was very patient with all my crazy ideas and helped me make them actually work. He helped brainstorm a lot of the Ikea ‘hacking’ and was very patient with us.”

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Why you need a licensed general contractor for your renovation.

Sweeten handpicks the best general contractors to match each project’s location, budget, scope, and style. Follow the blog for renovation ideas and inspiration and when you’re ready to renovate, start your renovation on Sweeten.

The post 5 Times Sweeten Contractors Saved the Day appeared first on Sweeten.

Share the news with your renovating L.A. friends…Sweeten is officially bi-coastal. Bring us your fixer-uppers, from bungalows to lofts to mid-century modern homes. Our free service will help you find the right general contractor for the job—and monitor the project until it’s completed. 

Whether you’re a renter looking to buy your first home or a long-term homeowner with an outdated layout, you probably have a lot of questions. Our recent renovation stress survey showed that L.A. residents are most likely to call renovation “extremely stressful”! We understand that there are many moving parts to building your dream space, and that going over budget is always a concern. Sweeten is here to support you in this process with:

•  Expert advice in the form of cost and process guides, plus real-life reno stories on our blog, Sweeten Stories.
• Vetted general contractors matched to each unique project
• Assistance in evaluating contractor estimates for the project
• Regular check-ins and monitoring of the job from contract to completion
• The ability to post a review of the contractor on the Sweeten site

Our blog is a golden source of info, covering topics from new energy codes and ADUs to renovation costs and renovating sustainably. It also features our renovation projects with remarkable before + afters, for both residential and commercial projects, as well as profiles of our professional contractors in our network.  

Know someone in L.A. looking to renovate? Sign up with Sweeten for a referral code and you’ll both receive $250.

Click here to receive our newsletter, and we’ll keep you updated on what you need to know when renovating in the City of Angels, sharing the tools and knowledge to renovate fearlessly. 

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Fool’s Gold renovation by this Sweeten general contractor

For a business owner, once a business plan and financing are ready, and a space for your office, restaurant, or retail space has been identified, the next crucial step is understanding the commercial lease itself. Having the right team—a commercial real estate broker and an attorney—who specializes in negotiating leases for commercial spaces will help advise what should be included in the lease document to protect you and your business.

Here, Sweeten, a free service matching business owners with vetted general contractors, consulted the experts to define these elements.

Typically, a landlord provides the first version of the lease, which will (obviously) favor the landlord and is often derived from a template. Oftentimes, the landlord will use a template. Commercial real estate broker with Compass, Alex Cohen, explains, “The commercial real estate advisor negotiates all the key business terms on behalf of a tenant before a lease is prepared or an attorney is engaged by the tenant. Once a lease is drawn, the advisor can confirm all of the agreed business terms are accurately conveyed in the lease and can assist the attorney in the negotiation of legal terms.” While the lease should include everything previously discussed in the term sheet, your attorney should perform a close review, checking that you are clear on the terms and making any necessary adjustments so that the lease is more favorable to you.

Something to keep in mind: There are important differences between residential and commercial agreements. If you are familiar with residential leasing, you may make (incorrect) assumptions about commercial leases based on that experience. One major difference is that residential renters have rights under the law—to heating and repairs, for example. In a commercial tenancy situation, the landlord does not have to provide heat or make repairs unless it is stipulated in the lease. Read on for the specifics of what is typically included in a commercial lease.

Base rent, steps, and escalations

The rental amount on a commercial lease is calculated via several variables. You are responsible for a base rent, which is the minimum amount of rent you pay. This is often calculated on a yearly basis and based on the rent per rentable square foot, a term explained below.

For office tenants in New York, the square footage for which a business pays rent can be 30% to 40% greater than the square footage on which carpet can be laid and furniture installed. Rentable square feet for office space is usable area, plus a portion of the common areas adjusted by a market loss factor. A retail space, however, is generally marketed and leased on a usable square foot (the actual square footage of space that is available to the tenant for its business use) basis. Loss factors are higher for partial-floor office spaces than for full-floor occupancies, because common areas like corridors, elevators, and lobbies are apportioned on divided floors into each tenant’s square footages. This means full floors are usually more efficient and cost-effective than partial-floor occupancies.

In addition to fixed increases in the base rent—typically every five years and referred to as “rent steps”— various mechanisms (“escalations”) exist that adjust the rent to be paid by the tenant during the term of the lease. Landlords want to ensure that they will continue to generate profit and will want the tenant to bear at least part of the responsibility for increased operating costs and higher taxes.

Additional rent for utility charges and services

In New York City, base rent does not usually include electricity service. Utilities are usually charged by submetering, or through rent inclusion (though if you are fortunate, your space will have a separate meter and you pay the actual cost of electric usage directly to Con Edison). If your commercial space is not individually metered, you will have to buy electricity from the landlord, who usually marks it up. In submetering, you will pay a monthly electric charge (plus markup) to your landlord. With rent inclusion, the landlord includes a fixed charge for electricity lumped onto the rent, calculated per rentable square foot. This is a prime area for negotiation.

Other utilities such as water, gas, and heat, may be included in the rent or sub-metered. Typically this is decided based on building configuration and usage—if it is low, the landlord is usually happy to include it in the rent.

Also note that if the utilities are shared in the building, the landlord is only responsible for providing the utilities in the hours stated in the lease. For example, if you need to use the heat after hours, you may have to negotiate that separately and pay additional after-hours charges.

Another area of consideration is cleaning services for your rented space. There are typically three options: 1) landlord includes the service as part of the rent; 2) landlord has a preferred vendor who you pay out-of-pocket; or 3) you obtain cleaning services on your own (or clean the space yourself!).

Terms of the lease

In commercial real estate, a “short-term” lease is considered anything under five years, whereas a “long-term lease” is anything longer than five years and often for a 10-plus year period. You will decide what kind of lease works for your business based on how stable it is, and how long you think the location will work for your business.

In tandem with the length of the lease, also pay close attention to the assignment and subletting rights. If you need the flexibility to assign or sublet your space, in case you need to move your business or unexpectedly close it, then you want to make sure the process is not unnecessarily onerous. Every lease requires the landlord’s consent to sublease unless you are renting desk space to another firm and this is permitted in the lease.

Lease concessions

It is common for leases to include a rent-free period and a tenant improvement allowance (TIA) for use during the contractor build-out of the interior, particularly if the landlord is providing a raw space. Alternatively, the landlord might choose to renovate on behalf of a tenant, subject to their requirements; rent typically commences when the tenant assumes occupancy of the finished space. During times when the market favors tenants, landlords are often willing to provide funding for the build-out. The dollar amount is usually calculated based on the rentable square footage.

Most of the time, landlords are more willing to grant concessions when it is a long-term lease, because they are guaranteed income for a longer length of time.

As with base rents, the market generally dictates lease concessions. But depending on the condition of the space and a tenant’s requirements and credit, these concessions can differ significantly on properties that have similar base rents. It’s important that your real estate broker understands your preferences so that many of these issues can be discussed upfront at or prior to the term-sheet stage and finalized by your attorney in the lease.

Renewal options

There are no automatic lease renewals in commercial real estate. Once your lease expires, there are also no caps on what the landlord can ask for the new rent. Of course, market conditions will influence how strong a position you are in to negotiate. One way to pre-empt this issue is to negotiate for an “option to renew” in your initial lease. Discuss and decide whether this will be a fixed increase or a “fair-market” rent increase, which is calculated by looking at comparable properties and transactions in the neighborhood and may be subject to arbitration.

Permitted use

Make sure that your intended use of the property is permitted by the Certificate of Occupancy (issued by the Department of Buildings) as well as by zoning regulations. The lease needs to state clearly what the permitted uses are.

Security deposit and guarantees

Landlords want a reliable tenant. They attempt to ensure this in a number of ways, including via security deposits and guarantees.

If you are deemed somewhat risky, this will be reflected in the amount of security deposit the landlord will require upfront. Security deposits in many cases must be in the form of a letter of credit from your bank, and typically the first month’s rent is due at lease execution, even if there is a free rent period at the beginning of the lease. A corporate guarantee from a parent company that owns the corporate entity signing the lease and/or a “good guy” guaranty provided by a principal of the firm may also be required.

Look for Part 2 of Sweeten’s post on this subject, coming soon, in which commercial real estate broker Alex Cohen focuses on often overlooked points in the commercial lease to help business owners make the best decisions.

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Sweeten handpicks the best general contractors to match each project’s location, budget, and scope, helping until project completion. Follow the blog for renovation ideas and inspiration and when you’re ready to renovate, start your renovation on Sweeten.

The post Commercial Guide: A Breakdown of a Commercial Lease, Part 1 appeared first on Sweeten.

Ana and Leo survived the complex process of selling their old apartment and buying a new one simultaneously—no easy feat!—but were nearly taken by an unscrupulous contractor when it came time to renovate. They realized that they needed someone they could trust to facilitate the search for general contractors and Sweeten—a free service matching renovating homeowners with vetted general contractors—turned out to be exactly what they were looking for. (Their words, not ours!) Their Sweeten contractor helped them make layout changes and took on the challenge of creating an oversized sliding door system that allowed the conversion of an open office space into a private guest suite. Here’s how the couple transformed their Tribeca apartment from an awkward warren of rooms into an open, flexible space that is both comfortable and refined, including redoing the living room, office/guest room, dining space, bedroom, and of course the kitchen and two bathrooms.

Guest post by Tribeca homeowner and architect Ana

Every real estate agent told us it could not be done. That, in New York, it was nearly impossible to coordinate the sale of our current apartment with the purchase of a new one. But my husband, Leo, was determined, so that is what we set out to do.

After a long search and many disappointments, including lost bid wars and a contract that fell through, fate brought us an amazing real estate broker who made it all possible. Kristi Ambrosetti was not fazed by the sell-buy challenge and helped us find our new home and sell our old one.

The apartment met all of our requirements—a 1,000-square-foot, 2-bed, 2-bath in a doorman building in Tribeca, with great light and plenty of storage space. The interior, however, was still in its original condition from the ’80s; it needed a complete renovation to update finishes and fix layout issues that made the space feel choppy and awkward—the exact opposite of the contemporary open space we had hoped for.

(Above) Living room
(Above) Dining area with living room to the right and office/guest room on the left; bar and TV unit niche straight ahead with TV behind folding panels

Being an architect, I developed the initial plans for the renovation and met with several general contractors that claimed to be available for the job. After comparing multiple bids, we were close to signing with one of them but decided to do some background checking first. I was shocked to find that the address listed in their documents was actually an empty storefront in Queens. The thought that we were very close to making a substantial down payment with someone that might not show up for the job really scared us.

At that point, we took the search for general contractors online and came across Sweeten. We read about their screening process to find qualified professionals, and it sounded exactly like what we were looking for, so we decided to post our project. From the beginning, the experience was surprisingly straightforward. Posting on the website was easy and we were soon matched with a few professionals. When we started interviewing potential general contractors, we were contacted by Miranda from Sweeten and she helped us through the whole process.

In the weeks we had spent interviewing general contractors, we also focused on finalizing the layout and decisions on finishes and fixtures. By the time we signed with our chosen Sweeten contractor, we were ready to begin demolition.

Leo and I had been a little apprehensive about some of our design choices, especially when it came to the changes in the layout, which were intended to make the space more open and flexible. But when demolition began, it became clear that we were on the right track.

By opening up the kitchen, the contractor also eliminated a narrow wall that partially blocked the entryway and made for a very awkward hallway. Squaring off the angled wall between the living room and the master bedroom made both spaces a lot more pleasant.

The change that made the most impact, though, was opening the office (which would double as a guest suite) into the living room. Oversized sliding panels would allow the room to be closed off and provide privacy for overnight guests. However, most of the professionals we spoke to thought the panels would be too heavy and could not be done. The Sweeten contracting team accepted the challenge and executed them beautifully.

(Above) Dining table looking into office with sliding partition

(Above) Office/guest room
(Above) Office/guest room looking into the living room

The one setback we had during demolition was an unexpected electrical conduit found in one of the living room walls we had planned to demolish. The conduit ran down to the apartment below ours and, therefore, could not be moved. After conversations with the contractor, Leo and I decided to take down the rest of the wall as originally planned and leave only the section that had the conduit, creating a corner niche that was perfect for a bookshelf. Once the renovation was complete, this turned out to be one of our favorite features in the apartment.

One aspect that had drawn us to the apartment was a nook next to the living room that seemed perfect for a small bar. Early in the project, we pulled inspiration photos online and it seemed like designing the bar would be fairly easy. That was until we decided the bar should also house a concealed 40-inch TV, which then led to weeks of research and multiple drawing iterations until we landed on a design that met all of our functional requirements for both the bar and the TV.

The dining room pendants were another big challenge. The position of the existing light did not align with the center of the dining table, and we were not able to move the light because of the concrete ceiling. I had almost given up on having pendants over the table when Leo came across the Swell String fixture, which allowed for the pendants to be installed in any position, independent of the canopy.

The finishes for the bathrooms and kitchen were also much debated. We knew from the beginning we wanted marble tile in the bathrooms but looked at a wide range of patterns, sizes, and prices. Narrowing down the search to neutral tones and classic patterns, I eventually chose an Asian statuary from TileBar for the master bathroom and a Bardiglio herringbone mosaic for the guest bathroom floor, with the same Asian statuary in the shower. As a contrast to the traditional tile, I selected modern Duravit fixtures and Grohe faucets. The towel warmers had been at the top of our wishlist and after much research, we were able to find a small hardwired option that worked well in both bathrooms.

For our small galley kitchen, we chose the same low-maintenance quartz countertops we had in our previous apartment, paired with white custom cabinets and integrated Bosch appliances. The cabinets were finished with black linear pulls with accent walnut shelves added on the back wall for some extra storage. The backsplash was probably one of the toughest decisions—with so many interesting materials and patterns to choose from, we considered all sorts of options, from large back-painted glass panels to intricate mosaics. As a way to balance the modern cabinets and countertops, we decided on marble subway tile from TileBar.

Our main goals for the master bedroom were to maximize storage and improve circulation. So the swing bedroom door was replaced with a pocket door, improving access to a long wall of closets that ended in a small custom-made vanity at the corner of the room.

In the end, Leo and I found that all the time spent obsessing over the small details really paid off—it all came together as we had hoped and we were very happy, not only with our choices but with the quality of execution and expertise the Sweeten contractor and his team brought to the project. Most importantly, knowing Sweeten was following the project, and touching base with us periodically gave us peace of mind through the whole process.

Thanks to Ana and Leo for sharing their impeccable renovation—we’re so glad you found Sweeten!

KITCHEN RESOURCES: Hardwood cabinets: custom. Matte Black Classico pulls: Schaub and Company. White Zeus quartz countertops: Silestone. Marble subway tile backsplash: TileBar. Starlight Chrome faucet, #31312001: Grohe. Stainless Steel Vault 25” single basin sink, #K-3822-4: Appliances Connection. Integrated refrigerator 800 Series: Appliances Connection. Range 800 Series: Appliances Connection. Integrated dishwasher 800 Series: Appliances Connection. Boop! wall/ceiling light: Lumens.

MASTER BATH RESOURCES: Asian statuary floor and wall tile: TileBar. HSB Jeeves 20″w hardwired straight stainless steel towel warmer: Amba. White Architec 66” acrylic tub, #700408: Appliances Connection. Euphoria shower system 26177000 Starlight Chrome, #26177000: Grohe. DuraStyle one-piece toilet: Appliances Connection. Vanity: custom. Vanity top: Silestone. Stark 3 sink, #030549: Appliances Connection. Essence chrome faucet: Grohe. Modern Metro hardware, #TK277ALU: Top Knobs. Verdana Series medicine cabinet, #K-99003: Appliances Connection. Anodized brushed nickel Choreograph shower wall hook, #K-97624: Appliances Connection. Tubo Slim 33″ LED bath bar: Lumens.

SECOND BATH RESOURCES: Bardiglio herringbone mosaic floor tile: The Builder Depot. Asian statuary floor and wall tile: TileBar. HSB Jeeves 20″w hardwired straight stainless steel towel warmer: Amba. Euphoria shower system 26177000 Starlight Chrome: Grohe. DuraStyle one-piece toilet: Appliances Connection. DuraStyle wall-mounted vanity base single drawer oak vanity: Appliances Connection. DuraStyle furniture washbasin: Appliances Connection. Starlight Chrome Concetto bathroom faucet, #32138001: Grohe. Verdana Series medicine cabinet, #K-99003: Appliances Connection. Bright Polished Silver Choreograph 21″ floating shower shelf, #K-97623: Appliances Connection. Tubo Slim 19″ LED bath bar: Lumens.

LIVING ROOM/ENTRY/BEDROOM RESOURCES: Maple hardwood flooring, Select & Better: Lauzon. Extra Long black flush pull: Doorware. Swell String pendant: Lumens. Casita outlets and switches: Lutron. Serena shades: Lutron. ecobee3 Smart Thermostat with room sensors: ecobee. Dabria White Geometric wallpaper: Brewster Wall Covering.

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Sliding doors allow you to define spaces in your home while still keeping things flexible—truly, the best of both worlds. Lauren and Ross added a pocket door to separate the dining area from their bedroom.

Sweeten handpicks the best general contractors to match each project’s location, budget, and scope, helping until project completion. Follow the blog for renovation ideas and inspiration and when you’re ready to renovate, start your renovation on Sweeten.

The post After A Close Call, A Dream Apartment Comes True appeared first on Sweeten.