Solution or scam? The growing market of cash repairs

By LYDIA OCHIENG and YEORGOS PRONTZOS

High demand for repairs and maintenance with a shortage of workers is fostering an environment where anyone can market online — on their own terms. This model offers flexibility but brings higher risk for everyone involved.  

Robert Schular works for himself doing home renovations but does not have formal training. He has been crafting things since he was young and has over 50 years of experience,   

“I can walk into almost any job and I’m probably 80 per cent guaranteed of getting that job. Just because I showed up, regardless of what my price is,” Robert Schular said. 

Over the next ten years there will be 105,300 job openings in the skilled trades. Despite the growing need, a scarcity of licensed service providers has become the industry norm, leading to longer wait times and rising costs for consumers. In B.C., self-employment is higher in this industry compared to the industrial average. As a result, a growing share of people are offering repair and maintenance services in the online marketplace, but many are not professionally trained or are simply there to scam unsuspecting clients.    

More fraudsters

“My concern in the industry right now is anybody can hang a shingle out and call themselves a handyman,” Schular said. 

Schular said, he protects his customers by bringing in licensed tradespeople, when necessary, even when he knows how to do the work, he is not certified. He said he accepts only cash and writes up the receipts to put in his file at home.  

“I believe in paying taxes. I think we do get value for our taxes,” Schular said.  

Schular said when those who are not running legitimate businesses go in and cause problems, the homeowner’s insurance might be made “null and void.” To prevent fraud, he says that getting references first is critical.  

“It amazes me. I’ve only been asked for references like three or four times over the seven years or so I’ve been doing this,” Schular said.   

Risk versus reward

Jacob Buckler runs an unregistered mechanic shop through his farming business. He intends to promote himself through Facebook marketplace and by advertising locally, but getting his name out has been his biggest challenge so far.  

“You can reach people that need the work done right away when shops are booked for three weeks or more,” Buckler said.  

Buckler views himself as a quick and cheaper alternative to the services that many larger operations can provide. He only takes cash or e-transfer from customers on site and prefers this method as a way of avoiding scammers. 

“I charge what the mechanics get paid, not extra going to the boss, and I do just as good of a job if not better. And I won’t try to upsell anything that you don’t actually need,” Buckler said.  

Nelson Francisco has his red seal in carpentry and also finds work through family, friends and word-of-mouth. He has been in the field for over 20 years, and he runs a one-man operation. 

References are critical

“I tell clients I’m not the cheapest guy in town, but if they know my work, then they’re willing to pay a little bit more for what they get,” Francisco said. 

Francisco said trades are not something you can do from the outside and workers need to be involved in the industry. “If you’re not in the trades, it’s not like you can just go do it,” he said. 

Francisco recommends that people should always get referrals when they need work done.  

“Get three different quotes and keep the scope the same so that you’re not comparing apples to oranges,” said Francisco.   

Francisco said the unregulated business model enables people to keep more money in their pocket. He said the worker saves money by not paying taxes, and the person having the work done saves on their end too. 

“It makes it more difficult for the average worker trying to make ends meet,” Francisco said. “I would say that it’s going to start happening more because everything’s so difficult for the working class.” 

Francisco said unlicensed workers who don’t go by the book and don’t “pull permits” ruin it for the rest of the industry. He said it’s not fair, but they get away with it until they get caught or the job is a disaster and ends up on the news. Customers are then left to pick up the pieces.