Skip to main content
Start free
Start free

How can a landlord tell a real contractor from a scam before paying?

DoorKeeping team

3 min read

Before you pay a contractor you have not used, confirm the license where your state requires one, ask for proof of insurance from the insurer directly, get a written quote and contract, call two references, and never pay the full price upfront or in cash. Scam contractors often arrive unrequested after a storm, demand a large deposit and then disappear or do poor work. A few checks that take under an hour protect a repair budget that can reach tens of thousands of dollars.

Patterns that show up in repair scams

  • A crew knocks or calls after a storm or fire, offering a deal "today only."
  • A large deposit is demanded in cash, a payment app or a wire before any work starts.
  • The quote is verbal, or the contract is vague about the scope, materials and dates.
  • The business has no local address, a new phone number and no reviews you can verify.
  • The person suggests you skip a permit or asks you to pay materials to a third party.
  • After the job starts, the price grows through extras that were never discussed.

The FTC publishes consumer warnings about home repair and disaster-related scams, and the same patterns hit rental owners. A landlord who pays from an LLC's account may also be targeted with fake invoices for work that was never done, which is a separate trick covered under vendor invoice approval.

Checks to run before you hire

  1. License: ask which license the work needs in your state and look it up on the state licensing board's website. Rules vary by trade and state, and some trades need none.
  2. Insurance: ask for a certificate of insurance and call the insurer or agent listed to confirm that the policy is active. A certificate alone can be altered.
  3. Business identity: check that the business name, address and phone are real, and look for a track record you can verify, not only reviews on the company's own page.
  4. References: call two recent customers, preferably for similar work.
  5. Written contract: scope, materials, price, start and end dates, change-order process and payment schedule, all in writing.
  6. Permits: ask who pulls the permit. Be wary of anyone who says you do not need one for work that normally requires it.
  7. Tax form: collect a W-9 before the first payment, since you may owe a 1099-NEC later.

How to pay so that you can still stop

Tie payments to progress. A small deposit, then payments as milestones are finished, and the last payment after you have inspected the work, keeps leverage on your side. Avoid cash and wires, which are hard to reverse. A check or a payment method that leaves a record is better. Do not pay for materials to a different person than the contractor named in the contract.

Example a made-up $12,000 roof repair could be paid as $2,000 at signing, $5,000 when materials arrive and the tear-off is done, and $5,000 after your own inspection, which adds up to $12,000.

Ask for lien waivers as work is paid, where your state uses them, so a supplier cannot later claim against the property for materials the contractor did not pay for.

If you already paid and the work stopped

  1. Stop further payments and gather the contract, texts, receipts and photos.
  2. Ask your bank or card issuer about disputing the payment, which has time limits.
  3. Report the business to your state attorney general's consumer office and the licensing board, and to the FTC at ReportFraud.ftc.gov.
  4. If a lien appears from a supplier, speak to an attorney in your state.
  5. Record the loss correctly in your books and keep the paperwork for your accountant.

DoorKeeping keeps the vendor, quote, work order and invoice together, so a bill that does not match an approved quote is easy to see before you pay it. DoorKeeping gives no legal advice.

Sources

  1. FTC, ReportFraud, read Oct 30, 2026
  2. FBI, Common Frauds and Scams, read Oct 30, 2026
  3. IRS, About Form W-9, read Oct 30, 2026

Questions

How much should I pay a contractor upfront?
As little as possible. Many states cap deposits for home work, so check yours, and tie later payments to finished milestones.
Is a certificate of insurance enough?
Not alone, since it can be altered. Contact the insurer or agent listed to confirm the policy is active.
Where do I report a contractor scam?
To your state attorney general's consumer office, the licensing board, and the FTC at ReportFraud.ftc.gov.

Keep reading