Originally Posted By: kluce This post was automatically imported from our archived forum.
Can anyone direct me to a website where Radon courses are offered. I’m looking into offering this service to my clients. The one one I found in a search was located in MN which is a long drive from where I live.
Originally Posted By: mbailey This post was automatically imported from our archived forum.
James,
I think it has to be weighed out from a profit based perspective, as well as the needs of your customers. Is there enough demand to support the cost of radon training, licensing, equipment, etc?
After all the expenses to get licensed how many radon tests need performed to break even? How many tests need performed for it to be a profitable addition to your business? Does your current E&O cover you or will you have to pay $100-$300extra to get Radon coverage?
Will you use charcoal canisters?
Will your clients want to wait several days for lab results? (This might determine if you have to use continuous monitors)
Can you afford the expense of buying/leasing continuous monitors?
Does your current E&O cover you or will you have to pay $100-$300extra to get Radon coverage?
Offering radon testing is not a cheap thing to do in areas where licensing is required. If you do a search on the board there are several threads with good information on all that is involved in offering radon testing.
-- Mark Bailey
Stonegate Property Inspections LLC
Ponca, NE
Originally Posted By: dfrend This post was automatically imported from our archived forum.
jrooff wrote:
Gerry, as an educator what would be your advice or choice in this scenario?
1.)Get Radon licence for testing and all that go with it , Machine ect.?
2.)Hire a sub (small kick back) that is not only licensed in Radon testing but pest control too?
Do you feel a referral fee (kick back) is unethical?
I do not think charging your client a small fee for getting a licensed Radon company out is the same as a kickback. You are after all doing the logistical work of arranging. And it is highly likely that the company gives you a better rate than the average customer since you send them work. Now if you get charged $50 for a pest inspection and charge $100 than that would be questionable.
Originally Posted By: kluce This post was automatically imported from our archived forum.
Just responding to cost of operation compared to charging.
I have noticed in this area that people are more aware of Radon and that the demand for this service has increased. When doing radon testing by itself, I feel it does not justify the cost and time. When radon testing is included with a home inspection and possibly a termite inspection, then I have the opportunity not only to make more money from radon testing, I also prevented a loss job which could have possibly brought in $450. This month alone I have lost 3 jobs due to the fact I do not offer radon testing. This could have brought in around $1,300.
Thanks for the information and different directions I can go.
Originally Posted By: jrooff This post was automatically imported from our archived forum.
To answer some questions about this scenario to get the answer to the question or opinion on what would be the best road to take.
1. Take the test and be certified, pay the $100. extra ins. all totaled out lay $2,200.-$2,600.00. (Continuous monitor)
2. When I receive a call to do radon I say, Yes I can, I have a contract with a professional certified radon company that does all my radon testing for me and they can also provide certified termite inspections too.
This company is already an Associate member of our Board of Realtor and have supra keys.
What way would be the most beneficial to me?
If I work out a deal that my client can receive this services through me
at a smaller price than if they called on there own, I feel it would be worth it so I keep the inspection and not make a dime on the phone call just so get the inspection.
Originally Posted By: dfrend This post was automatically imported from our archived forum.
I really don’t know. Ethics is a fine line. But if you use a sub, who likely charges a lower fee than normal, you are entitled to charge more for the work you do. Doesn’t matter if you do the radon test or not. I make charge very little above what my sub charges me. But I am entitled to what I charge.
They are doing the work at my request and therefore it is not a "finder's fee". It is work they are doing for me that I am having done for my client. I am not just saying call so and so then getting a check from the redon guy. I am saying, yes I have a licensed radon company I use, explain the cost effectiveness for them, and I set the appointment up. They are a sub contractor. I pay for their services, I in turn get paid for my administrative costs, time, and frankly for selling their service.
It would be quite different if you simply refered them to the company and did nothing, and got a "kickback" from the radon company for sending them. Look at RESPA. It prohibits anyone involved in the settlement from taking fees for simply referring clients to another. For instance, a agent cannot take a payment from a settlement company for refering a client.
Quote:
HUD interprets Section 8(b) of RESPA to prohibit all unearned fees, including cases where:
One settlement service provider charges the consumer a fee where no, nominal or duplicative work is done, or the fee is in excess of the reasonable value of goods or facilities provided or the services actually performed.
If that were applyed to this scenarion, it would be wrong to take a fee from the radon comapny for sending a client, but not wrong to charge for actually setting it up, discussing the service, and being a middleman.