Renovation Trust

No DepositorPrepayment

Homeowners or buyers of renovation and home improvement services should never give a contractor a deposit or prepayment.

The deposit, in most cases, is how a homeowner loses their money.

Contractors and service providers like to get as much out of a deposit as possible. Contractors are likely to ask for deposits ranging from 10% to 50%. In some cases, a contractor may ask you to pay the full cost of a job upfront to cover the cost of materials, schedule you in, or for you to show good faith.

Though most contractors are reliable, there are many unforeseen circumstances that even they can't control. All of which may result in homeowners losing their money. Intentional or not, contractors may fail to complete a project - or even show up. That’s why Renovation Trust holds your funds in a secure account and pays your contractor in increments based on tasks they have completed. Using Renovation Trust ensures that both your money and project are secure.

Here are a few reasons why your deposit can disappear:

Conmen, Thieves and Fraudsters

They were never a contractor to begin with but rather a conman, thief or fraudster. They never intending to do the job, but to steal your money. While charming and slick, it's not until they don't show up or answer your calls, emails or texts that you realize that you've been taken.

Injury or Sickness

Accidents happen, whether workplace-related or not. Despite their best intentions, they may not be able to complete your project or have the money to give you a refund.

Death

Your contractor passes away due to illness or an unexpected accident. The phones go dead and there is no one to get a hold of. Your money is gone.

Pandemics

As we witnessed with the COVID-19 Pandemic, governments forced many businesses to close and ordered them not to work. Businesses relied on the money on-hand to pay their bills and living expenses. Your deposit or prepaid monies may have been spent.

Unpaid Taxes

The government will seize a contractor's bank account for non-payment of taxes. The government comes first and everyone else is out of luck - including you!

Divorces or Breakups

Divorces or breakups can be nasty and life-altering especially when children, money and businesses are involved. Many businesses close or go insolvent during a divorce or breakup - sometimes the people involved just take off.

Workers' Compensation

Failure to make Workers' Compensation contributions can result in a contractor's bank account being seized by the government. When this happens, the government now controls all of the funds - not the contractor.

Lawsuits and Court Judgements

Lawsuits from vendors or past clients can destroy a business. With the money on-hand going to settle lawsuits or court judgements, there may be little left for you.

Death of a Family Member

The death of a close family member like a spouse, significant other or a child is devastating and life-altering. Few people recover quickly - many never do. The business, and your project, will not be their priority.

Mental Breakdowns

Sometimes people just can't take it anymore and they pick up and leave. You are never finding them or your money.

Bankruptcy

Business is competitive and many don't make it. Contractors go bankrupt all the time. If your contractor goes bankrupt while in possession of your money, it is gone. They may remain open but their assets go to secured creditors - not you.

Insolvency

Not charging enough money to pay both their business and personal bills renders a contractor insolvent; they have run out of money. When a contractor is nearing insolvency, the best way to survive is to take on new jobs and deposits quickly: "taking from Peter to pay Paul". The problem arises when they can't get ahead so they close, turn off their phone, and disappear with your deposit.

Lack of Experience and Know-How

TV shows have highlighted the reality of renovation disasters, many of them are where a contractor bit off more than they could chew. There's a chance the contractor will walkaway from the job especially when they've made things worse. Rectifying the mistakes will require you to hire another contractor, put up another deposit and pay extra to remove the previous contractor's work.

Misquoted

After agreeing to a price with you, the contractor may begin the work and realize they under-quoted the project. Perhaps the scale of the work was unforeseen, the level of damage unknown or other circumstances. There is a chance the contractor may "cut their loses" and abandon your project. In such a scenario you will be left without your deposit and an incomplete project.

None of these scenarios will happen to you while using Renovation Trust. Your money would be safe and you will have peace of mind from start to finish.

No Deposit or Prepayment