1) Legal + admin (get this done first)
Business structure & tax
- Form LLC or sole prop, get an EIN, open a business bank account, and set up bookkeeping.
- Register with CDTFA if you’ll be collecting sales tax on parts (common in CA—confirm how your invoicing will handle parts vs labor).
Local registration
- Many CA cities require a business tax certificate / business license (rules vary by jurisdiction: Verify for where your business address is and where you operate.
Contractor licensing (important CA nuance)
- In California, if your job (labor + materials) is $500 or more, it can trigger CSLB contractor licensing rules depending on the type of work.
- “Appliance repair” often lives in a gray area when it’s strictly repair/replacement of appliance components vs. work considered “construction” (built-in modifications, dedicated circuits, gas piping changes, cabinetry alterations, etc.).
- Practical approach to stay compliant as a solo startup:
- Keep scope to diagnose/repair appliance components.
- Avoid anything that looks like remodel/installation/alteration (cutting cabinets/counters, running new circuits, modifying gas piping).
- Verify your specific scope with CSLB (this is worth a quick call/email so you’re not guessing).
2) Certifications & safety credentials (sealed system + gas)
Sealed system
- EPA Section 608 (Universal recommended) — required to handle refrigerants.
- Equipment you should plan to own (or you’ll lose time/margin):
- Recovery machine, vacuum pump, manifold gauges, micron gauge
- Leak detector, nitrogen regulator & bottle (for pressure testing), brazing setup, filter driers
- Recovery cylinders + scale, proper PPE, and a refrigerant storage/transport plan
Gas appliances
- There usually isn’t a single “gas appliance tech license” in CA like a contractor license, but property managers will care that you:
- Use a combustible gas detector and manometer (and document readings when relevant)
- Have a clear policy: you service appliance-side components (igniters, valves, regulators where applicable, burners, control boards) but do not modify building gas piping; anything beyond the connector/shutoff gets referred to a licensed plumber/contractor if required.
3) Insurance (what property managers will expect)
At minimum, for property management work you’ll typically want:
- General Liability: commonly $1M per occurrence / $2M aggregate
- Commercial Auto: if the vehicle is used for work (even if it’s your personal truck/van, many carriers require a commercial policy)
- Tools & equipment coverage
- Workers’ comp: you’re solo, but some PM firms still ask for either a policy or a formal exemption/attestation depending on their vendor rules
- Be ready to add property management companies as Additional Insured on your COI when requested.
What to have in place specifically to win property management accounts
Property managers care about: speed, documentation, tenant experience, and predictable approvals.
A) Your “vendor-ready” process (keep it simple)
Work order + NTE
- Require a work order number before scheduling.
- Standard rule: “Proceed up to $X Not-To-Exceed (NTE) without additional approval; anything above requires authorization.”
Documentation standards (this is a differentiator)
- Every ticket gets:
- Appliance make/model/serial
- Symptoms + findings
- Photos (data plate + before/after + failed part if relevant)
- Repair vs replace recommendation when appropriate (age, condition, parts ETA, cost)
Tenant scheduling
- Confirm access instructions, lockbox, parking, pet notes.
- Use tight arrival windows (e.g., 2–3 hours) and send “on the way” texts.
B) Billing expectations (don’t let this surprise you)
- Expect Net 30 terms (sometimes Net 15/45).
- Many pay via ACH and/or require invoices submitted through portals (AppFolio/Buildium/Yardi).
- Your invoice must consistently include:
- WO number, property/unit, date/time on site
- Line items: diagnostic, labor, parts (with markup), trip fees (if allowed)
- Photos/notes attached or referenced
A sample rate card (property-management friendly)
These are example ranges to help you position yourself; adjust based on your costs and local competition.
Standard (non-sealed system)
- Diagnostic / service call (business hours): $99–$149
- Labor rate (if time & materials): $125–$175/hr (often billed in ½-hour increments after the first hour)
- Flat-rate option: bundle common repairs (drain pump, inlet valve, thermostat, door switch) into menu pricing
Sealed system (higher tooling + risk)
- Sealed-system diagnostic: $149–$249
- Leak check / nitrogen pressure test (if separate): $150–$300
- Refrigerant recovery/evacuation/recharge (if applicable): commonly quoted as a package after diagnosis (often $400–$1,200+ depending on appliance/value and what’s actually failing)
- Compressor-related work: usually quote only after confirming parts availability, total cost vs replacement, and property approval
Gas appliances
- Gas diagnostic: same as standard or +$25–$50 if you include manometer/leak verification
- After-hours / weekend surcharge: $75–$200 add-on (if you offer it)
Policies that reduce disputes
- Trip charge policy for “no access / tenant no-show”
- Clear statement on estimates (diagnostic is due even if they decline repair)
- Warranty: e.g., 30–90 days labor (parts per manufacturer); exclude misuse/tenant damage
The fastest “solo MVP” path (2–3 weeks)
1) Week 1: business setup + insurance quotes + EPA 608 (if you don’t already have it)
2) Week 2: build your vendor packet + set your NTE and invoice template + stock common parts
3) Week 3: outreach to 20–40 PM companies/landlords + offer a “trial work order” with tight response times and great documentation
