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BBB warns spring remodeling season brings increased risk of costly contractor scams and code violations

Home rehab
Home Prices
Home repairs
Contractor Scams
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GRAND RAPIDS, Michigan — Spring is almost here, and you may be planning some remodeling around your home. But before you hire help, Nakia Mills with the Better Business Bureau of Michigan wants you to make sure whoever you contract has proper licensing.

"If they don't have a license, they might not understand the rules, the regulations; they might not get the right permits for the work they're doing, and then you might have to get it torn down because it wasn't done properly or legally," Mills said.

Home repairs

Hiring an unlicensed professional can cost you in multiple ways. First, if the finished project is not up to code, you may have to scrap the project and redo it entirely. Second, you could lose home value when you sell if you don't have proper paperwork, permits, and disclosures for the work completed.

Contractor Scams

Perhaps worst of all, you could be liable for all medical bills if someone hurts themselves while on the job. Unlicensed contractors may not have workers' compensation insurance because they lack proper licensing.

Home rehab
Murphy Home Improvement rehabbers painting trim.

Mills emphasized the importance of verifying credentials before hiring anyone.

"For any registered business, you should be able to look up their information online. So if you can't find a registration or their license and confirmation, that's probably your first red flag," Mills said.

Home Sales
FILE - A "sold" is posted outside a single-family home in a residential neighborhood in Glenside, Pa., Wednesday, Aug. 4, 2021. Sales of previously occupied U.S. homes slowed for the fifth consecutive month in June 2022 as higher mortgage rates and rising prices kept many home hunters on the sidelines. The National Association of Realtors said Wednesday, July 20, that existing home sales fell 5.4% last month from May to a seasonally adjusted annual rate of 5.12 million. (AP Photo/Matt Rourke, File)

The state of Michigan provides a link to verify licensed professionals and businesses.

For those needing help to get licensed or learning more about the licensing process, the BBB is starting a mini workshop series this year to guide them in March.