Every rental property runs on a network of people who are not you: plumbers, electricians, HVAC technicians, roofers, painters, landscapers, cleaners. For a self-managing owner, that network is the business. Get it right and maintenance is a solved problem. Get it wrong and you are absorbing liability you never priced.
The risk here is not the obvious one. Most owners worry about being overcharged. The bigger exposure is hiring an uninsured contractor who is injured on your property, or paying someone in a way that creates a tax reporting problem you did not know you had.
Quick Answer
Verify three things on every vendor before the first job: a valid Virginia contractor license where the work requires one, current general liability insurance with a certificate naming you, and workers’ compensation coverage or a documented exemption. Collect a Form W-9 before you pay anyone, and issue Form 1099-NEC where required. Verification takes ten minutes and it is the cheapest risk management available to a landlord.
Licensing: What Virginia Requires
Virginia regulates contractors through the Department of Professional and Occupational Regulation, which issues contractor licenses in classes based on the value of work performed, along with specialty designations for trades such as plumbing, electrical, and HVAC.
Two practical points:
- License class matters. Virginia’s classes correspond to project value thresholds. A contractor licensed for smaller projects is not licensed for a large one, and the distinction is not cosmetic.
- Trade specialties matter. Electrical, plumbing, gas fitting, and HVAC work generally require the appropriate specialty designation and, for certain work, an individual tradesman license.
Verify the license yourself. DPOR maintains a public license lookup. Do not accept a license number on an invoice as proof — look it up, confirm it is active, confirm the class and specialty match the work, and confirm the name matches who you are actually hiring.
Permits are a related question. Work requiring a permit should be permitted, and the permit should be pulled by the contractor. A contractor who suggests skipping the permit is telling you something important about how they operate — and unpermitted work becomes your problem at sale, at insurance claim time, and at inspection.
Insurance: The Certificate Is Not Optional
This is where owners take on serious, avoidable risk.
General liability. Ask for a certificate of insurance sent directly from the vendor’s agent or broker rather than a PDF forwarded by the contractor. Check the policy dates, the coverage limits, and that the named insured matches the business you are hiring.
Workers’ compensation. The item most often skipped and the one with the largest downside. If an uninsured worker is injured on your property, you may find yourself the deepest pocket in the room. Virginia has workers’ compensation requirements administered by the Virginia Workers’ Compensation Commission, with coverage obligations depending on the number of employees. Ask for proof or a documented explanation of why it does not apply.
Additional insured status. For larger or ongoing work, ask to be named as an additional insured on the vendor’s general liability policy. Many contractors will do this without argument.
Auto liability matters for vendors driving to and from your properties regularly.
Set a rule and hold it: no certificate, no work. The one time you make an exception is the time it matters.
Tax Reporting: W-9s and 1099s
Get the paperwork before you pay, not at year end when the vendor stops returning calls.
Collect a Form W-9 from every vendor before the first payment. It gives you the legal name, business structure, and taxpayer identification number you will need. Asking after the fact is much harder.
Form 1099-NEC reports payments for services to non-employees. Whether you are required to issue one depends on the amount paid during the year, the vendor’s business structure, and whether your rental activity rises to the level of a trade or business for this purpose — which is a genuinely fact-dependent question. Payments made by credit card or through certain third-party networks are reported differently.
The IRS publishes the current instructions and thresholds, and they change. Talk to a CPA about your specific situation rather than relying on a rule of thumb — the reporting obligations for rental owners are one of the more commonly misunderstood areas.
Either way, collecting W-9s costs nothing and eliminates the year-end scramble entirely.
Employee or Independent Contractor?
Worth understanding because the consequences of getting it wrong are significant.
If you engage someone regularly, direct how and when they work, provide their tools, and they work substantially for you alone, that relationship may look more like employment than contracting — regardless of what you call it or what the invoice says. Misclassification can create liability for payroll taxes, workers’ compensation, and penalties.
This most often arises with a handyman who ends up working for one owner nearly full time. If that describes your arrangement, get advice rather than assuming the label on the invoice controls.
Building a Vendor Bench
The operational goal is simple: when something breaks at 9:00 PM, you know who to call.
| Trade | How many you want | Why |
|---|---|---|
| Plumbing | 2 | Highest emergency frequency; you need a backup |
| HVAC | 2 | Summer demand means one vendor will be booked |
| Electrical | 1–2 | Less frequent but licensing matters |
| General handyman | 1–2 | Volume of small work |
| Roofing | 1–2 | Storm events create regional demand spikes |
| Appliance repair | 1 | Often cheaper than replacement |
| Cleaning / turnover | 2 | Turnover timing is unforgiving |
| Landscaping | 1 | Recurring and schedulable |
| Tree service | 1 | Insurance verification especially important |
Two vendors per critical trade is the important part. Richmond’s summer HVAC season and post-storm roofing demand both produce weeks where your first call cannot come.
Practices That Keep Vendors Responsive
- Pay promptly. This is the single biggest determinant of whether a good vendor picks up your call in August. Same-week payment buys real priority.
- Be clear about scope and get estimates in writing above a set threshold.
- Batch work where you can — one trip for three items beats three trips.
- Give realistic access. Coordinate with residents properly rather than sending someone to a locked door.
- Do not haggle over every invoice. Vendors triage by client, and the cheapest client is not first on the list.
Coordinating With Residents
Vendor work means access, and access is regulated. Virginia requires at least 72 hours’ notice for routine maintenance a tenant did not request, the work must be performed within 14 days of the notice, and the notice must state the last possible date the work may occur. If the tenant requested the repair, no advance notice is required — another reason to route every request through a documented system.
Practical points:
- Tell residents who is coming and when, including the company name.
- Ask vendors to carry identification and to knock and announce.
- Never give a vendor a key without a process for its return and a record of who held it.
- Follow up with the resident after the work. This is where you learn a job was done badly.
Our guide to right of entry in Virginia covers the access rules in full, and our maintenance request guide covers the intake side.
The After-Hours Question
Vendor management is mostly routine until 9:00 PM on a Sunday, when a resident calls about water coming through a ceiling. What you have arranged in advance determines whether that is a manageable hour or a very bad night.
Decide in advance what counts as an emergency. Put it in the lease and repeat it at move-in. A workable definition covers active water intrusion, no heat in freezing conditions, no cooling in extreme heat, gas odor, sewage backup, electrical burning smells, and anything affecting security of the property. A running toilet at midnight is not an emergency, and saying so in advance prevents a difficult conversation later.
Establish who answers. At least one plumber and one HVAC contractor who will actually take an after-hours call, with the rate agreed beforehand. Emergency rates are higher and that is fine — what you do not want is discovering the rate during the emergency.
Give residents a documented path. A phone number that reaches a person, plus a portal or email for non-urgent items. Residents who do not know how to report an emergency will either do nothing or call you six times.
Authorize a spending limit. Tell your vendors what they may do without calling you first — a dollar threshold for stopping active damage. Waiting for authorization while water runs costs more than the repair.
Keep shut-off locations documented for every property: main water, gas, and electrical panel. Share them with residents at move-in. A tenant who can close a valve saves you thousands.
Frequently Asked Questions
Do I need to verify a contractor’s license in Virginia?
Yes. Verify it directly through DPOR’s public lookup rather than trusting a number on an invoice, and confirm the license class and any trade specialty match the work being performed.
What insurance should a contractor carry?
General liability at minimum, plus workers’ compensation coverage or a documented explanation of why it does not apply. Request the certificate from the vendor’s agent rather than the contractor.
Why does workers’ compensation matter to me as the owner?
If an uninsured worker is injured on your property, you may become the party with the deepest pockets. It is the largest avoidable exposure in vendor management.
Do landlords have to issue 1099s to contractors?
It depends on amounts paid, the vendor’s business structure, payment method, and whether your rental activity constitutes a trade or business for this purpose. Collect W-9s from everyone and consult a CPA on the reporting obligation.
When should I collect a W-9?
Before the first payment. Collecting after the fact is considerably harder and creates year-end problems.
Can my handyman be treated as an independent contractor?
Only if the relationship genuinely fits. Regular engagement, control over how and when work is done, and near-exclusive service can indicate employment. Misclassification carries real penalties — get advice.
How many vendors do I need per trade?
Two for plumbing, HVAC, and cleaning at minimum. Seasonal demand in Richmond means your first call will sometimes be unavailable for a week.
How much notice must I give a tenant for vendor work?
At least 72 hours for routine maintenance the tenant did not request, with the work performed within 14 days and the notice stating the last possible date. No advance notice is required for repairs the tenant requested.
Should I let a vendor hold a key?
Only with a documented process for issue and return. Uncontrolled keys are a security and liability problem.
A Vetted Vendor Network, Already Built
Building and maintaining a licensed, insured, responsive vendor bench is one of the more time-consuming parts of self-management. Mission Realty Property Management maintains one across Richmond, Henrico, Chesterfield, and Hanover, with verification, coordination, and documentation handled for you.
- Learn about our property management services
- Explore year-round maintenance planning
- See our owner resources and pricing
- Get a free rental analysis
- Or contact our team
This article is general information and is not legal or tax advice. Licensing, insurance, and tax reporting requirements change — verify current rules with DPOR, the IRS, and your own advisors.
