The short answer
A good handyman keeps small repairs cheap and renters happy, but only if you check licensing and insurance, agree the scope in writing and keep clean payment records. Here is a simple hiring process, plus the W-9 and 1099 basics from the IRS.
On this page
Decide what the handyman will handle
A handyman fits the steady stream of small jobs a rental produces: patching drywall, rehanging doors, replacing fixtures, caulking, minor carpentry and turnover punch lists. Larger or regulated work is different. Licensing rules for trades such as electrical, plumbing, gas and heating work, and for larger jobs, are set by states and local governments and vary by place.
Write a short list of the jobs you will give a handyman and the ones that go to a licensed trade. When a job sits near the line, ask your state or local licensing office before the work starts, not after an inspector asks.
Where to find candidates
- Other landlords and local landlord associations.
- Licensed trades you already use, who may know reliable generalists.
- Neighbors and building managers near your rentals.
- Your own past invoices: the person who did good work at a fair price last time.
Look for someone who answers messages, gives written prices and arrives when promised. For a rental, a missed visit means a frustrated renter and a new entry notice, so reliability is worth more than the lowest hourly rate.
Check license and insurance before the first job
The FTC's advice on hiring a contractor applies to rentals: consider only contractors who are licensed and insured, check with your state or county government to confirm a contractor's license, and ask for proof of insurance (FTC: How to avoid a home improvement scam).
- License: use your state's contractor license lookup on the state government's website, and check local registration if your city requires it. Confirm the name and license number match the person or business you are hiring.
- Insurance: ask for a current certificate of insurance and keep a copy. Ask whether the business has employees and how they are covered for injuries.
- References: ask for two or three recent residential jobs and call them.
Start with a small written job
Test a new handyman on one small, clear job before you hand over keys to several units. Put the scope in writing every time. The FTC says a written estimate should include a description of the work, the materials, the completion date and the price, and advises against automatically choosing the lowest bidder (FTC: How to avoid a home improvement scam).
For rentals, add the details only you know: the unit and the problem with photos, how to get in, the entry window you gave the renter, who buys materials, cleanup and whom to call if the job grows. See how to write a work order a contractor can use.
Pay in a way you can track
The FTC warns against paying the full amount up front, notes that some states limit how much a contractor can ask as a down payment and advises never making the final payment until the work is done and you are satisfied. It also lists asking for everything up front, or accepting only cash, as warning signs of a scam (FTC: How to avoid a home improvement scam).
- Ask for an invoice for each job with the property address and unit.
- Pay by a traceable method and keep the receipt with the job record.
- Reimburse materials against receipts.
W-9 and 1099 basics
Before the first payment, ask for a Form W-9. The IRS describes it as the form used to get a payee's correct name and taxpayer identification number, and backup withholding at 24% can apply to reportable payments when a payee fails to furnish a number (IRS: Instructions for the Requester of Form W-9).
For payments made in the course of a trade or business, Form 1099-NEC reports nonemployee compensation of $2,000 or more, including parts and materials. That threshold applies for tax years beginning after 2025 and may be adjusted for inflation starting in 2027. The form goes to the recipient and the IRS by January 31 (IRS: Instructions for Forms 1099-MISC and 1099-NEC).
- Personal payments are not reportable. The IRS says you are engaged in a trade or business if you operate for gain or profit; ask a tax professional whether your rental activity counts.
- Payments to a corporation, including an LLC taxed as a corporation, generally are not reported, with exceptions such as payments for legal services.
This is general information, not tax advice. Confirm your filing duties with a tax professional.
Contractor or employee?
Many handymen run their own businesses, but the label you use does not decide their status. The IRS looks at the degree of control and independence, grouped into behavioral control, financial control and the type of relationship, and says no single factor decides the question (IRS: Independent contractor or employee?). If the status is unclear, either the business or the worker may file Form SS-8 to ask the IRS for a determination.
How Rentari helps
Rentari keeps your vendor records, and you can turn a renter's maintenance request into a work order for your handyman, so the job details, photos and messages stay together with the request.
Sources and further reading
Common questions
Does my handyman need a license?
It depends on the work and where the rental is. Check with your state or county government, as the FTC advises, especially before electrical, plumbing, gas or heating work.
Do I need to send my handyman a 1099?
If you pay $2,000 or more in a year in the course of a trade or business, the IRS instructions call for Form 1099-NEC for tax years beginning after 2025, unless an exception such as payment to a corporation applies. Ask a tax professional whether your rental counts as a trade or business.
When should I ask for a W-9?
Before the first payment. It gives you the correct name and taxpayer identification number you would need for a 1099, and backup withholding can apply if a payee does not provide a number.
How much should I pay up front?
As little as practical. The FTC advises against paying the full amount up front, notes that some states limit down payments and says to make the final payment only when the work is done.
Archive years group longstanding rental topics. This Rentari guide was published on 2026-11-14.
The Rentari team writes and updates this guide. Examples illustrate decisions and do not describe customer results. Found an error or an unclear step? Send a correction with a link to this page and the wording you’d change.
