At Good Life Property Management, we love a good DIY moment. There’s nothing wrong with fixing a cabinet hinge or touching up some paint yourself. But when it comes to plumbing, electrical, HVAC, or other major building systems, cutting corners can cost far more in the long run in repairs, legal liability, and compliance issues.
We want to help our landlords understand the difference between a handyman vs contractor so you can make the right call for your property and protect your investment. We’ll begin by looking at what it takes to be a handyman vs. a general contractor in California. Then we’ll compare when to use each, and what the consequences are if you use one over the other.
Key takeaways
- $1,000 Limit: In California, handymen can only take jobs up to $1,000 total without a license.
- Permits = Contractor: Any permitted work (plumbing, electrical, HVAC, structural) must be done by a licensed contractor.
- Handyman Work: Small, simple repairs like painting, patching drywall, or replacing fixtures (no system changes).
- Licensed Contractors: Require proven experience, exams, bonding, and insurance; can legally handle larger, more complex projects.
- Risk of Unlicensed Work: Fines up to $15,000, liability for injuries, failed inspections, and costly damage repairs.
Table of Contents
What It Takes to Be a Handyman in California
In California, there’s no such thing as a “handyman license.” Instead, state law sets strict limits on the type and size of jobs a handyman can perform without a contractor’s license.
As of January 1, 2025, the rules are:
- Job value cap: A handyman can work on projects up to $1,000 total (labor + materials). Previously, the compensation cap was $500.
- No permits: If the work requires a permit (for plumbing, electrical, HVAC, or structural changes), a licensed contractor is required, no matter the cost.
- Solo work only: Handymen cannot employ others or subcontract work without a license.
- No contractor claims: A handyman cannot advertise or represent themselves as a licensed contractor unless they hold a valid license.
Common tasks a handyman can legally perform under these limits include:
- Painting, caulking, and small drywall repairs
- Installing shelves or mounting TVs
- Replacing faucets or light fixtures without altering plumbing or wiring
- Minor landscaping or fence repairs
If the job exceeds these thresholds, or involves systems like plumbing, electrical, or HVAC, California law requires a licensed contractor. This is why, at Good Life Property Management, we always match the right professional to the job to protect our landlords from fines, legal issues, and costly mistakes. Now, let’s look at what it takes to be a licensed contractor.
What It Takes to Be a Licensed Contractor in California
In California, anyone performing work valued at $1,000 or more (labor + materials), or any work that requires a permit, must hold an active license with the Contractors State License Board (CSLB).
While the Class B General Building Contractor license is the most common for multi-trade home improvement projects, there are also specialty classifications for specific trades like plumbing, electrical, and HVAC. Each comes with its own scope of work and responsibilities.
General Requirements for All Contractors
To become licensed in California, contractors must:
- Be at least 18 years old
- Have a valid Social Security
- Number or ITIN
- Show four years of journey-level experience, foreman work, supervising, or owning a construction business in the trade they’re applying for
- Pass two state exams:
- Law & Business Exam
- Trade-specific Exam (for their license classification)
- Submit fingerprints for a criminal background check
- Carry a $25,000 contractor bond (as of 2023)
- Maintain general liability insurance (for some classifications) and workers’ comp insurance if they have employees
Common Home Improvement Classifications
| License Class | Trade / Department | What They’re Licensed to Do |
|---|---|---|
| B – General Building Contractor | General construction & multi-trade home improvements | Coordinate and build projects involving two or more unrelated trades (e.g., kitchen remodel with plumbing and electrical) |
| C-36 – Plumbing Contractor | Plumbing | Install, repair, and replace water, gas, and sewer lines, fixtures, and systems |
| C-10 – Electrical Contractor | Electrical | Install and maintain electrical systems, wiring, panels, lighting, and related components |
| C-20 – HVAC Contractor | Warm-air heating, ventilation, and air conditioning | Install and service heating and cooling systems, ductwork, and ventilation |
| C-33 – Painting and Decorating Contractor | Painting | Prepare and apply paints, coatings, wall coverings, and finishes |
| C-15 – Flooring and Floor Covering Contractor | Flooring | Install and repair carpet, hardwood, vinyl, and other floor coverings |
| C-27 – Landscaping Contractor | Landscaping | Construct and maintain landscaping projects, irrigation systems, and outdoor structures |
Why This Matters for Landlords
Hiring the correct licensed contractor ensures:
- The person doing the work is trained, tested, and experienced in that trade
- They can pull the necessary permits for the job
- They carry insurance to protect you from liability
- Their work meets state safety and building code standards
At Good Life Property Management, we only hire licensed professionals for work that requires it. This protects our landlords from compliance violations, fines, and costly do-overs. Plus, it keeps tenants safe in a well-maintained home.
Handyman vs Contractor: The Key Differences
A licensed contractor (like a C-36 licensed plumber) is:
- Trained – In California, contractors must prove years of experience, pass state exams, and maintain ongoing compliance with the Contractors State License Board (CSLB).
- Insured – They carry a contractor’s bond and, if applicable, workers’ compensation insurance.
- Accountable – Their work is regulated, permit-ready, and subject to inspections.
A handyman, on the other hand:
- May not be licensed for larger jobs
- Often does not carry insurance or bonding
- Has no CSLB oversight for quality or compliance
Why the $1000 Rule Matters
In California, the law is very clear:
- Any project worth $1000 or more (labor + materials) must be done by a licensed contractor. Before 2025, the financial cap for handyman services was $500.
- Hiring an unlicensed person for a $1000+ job is a misdemeanor, punishable by fines up to $5,000 and administrative penalties up to $15,000.
- Under B&P §7031, owners can sue to recover all money paid to an unlicensed worker, even if the work was done perfectly.
When we manage your property, we make sure we only use licensed contractors for jobs that meet this threshold so you’re never exposed to legal or financial risk.
The Risks of Using a Handyman for Major Repairs
1. Legal Liability
If an unlicensed worker gets injured on your property, you could be held responsible for their medical bills and lost wages if they don’t have workers’ comp coverage.
2. Permit Problems
Cities often only issue plumbing, electrical, or structural permits to licensed contractors. Without proper permits, you risk fines and failed inspections.
3. Habitability Compliance
As a landlord, you’re legally required to provide safe, functional plumbing, heating, and electrical systems. Poor or unpermitted work can lead to habitability claims from tenants.
4. Expensive Water Damage
Water damage is one of the most common and costly rental property issues. A single plumbing mistake can cost $11k–$14k in repairs and may displace your tenants.
When to Use a Handyman vs Contractor
We might use a handyman for:
- Minor repairs under $1000 total (labor + materials)
- Touch-up painting
- Patching small drywall holes
- Replacing fixtures without altering plumbing or wiring
We use a licensed contractor for:
- Plumbing over $1000 (water heater installs, sewer repairs, reroutes)
- Electrical work beyond fixture swaps
- HVAC repairs or full replacements
- Any work that needs a permit or inspection
- Structural or major remodeling work
How We Protect Our Landlords at Good Life
When you trust us to manage your property, we:
- Vet every vendor for proper licensing and classification with the CSLB.
- Require proof of insurance and workers’ comp coverage where applicable.
- Pull permits when required, so all work is legal and compliant.
- Document job costs to ensure we’re on the right side of the $1000 rule.
Bottom Line
The handyman vs contractor decision goes far beyond price. Truly, it’s about protecting your property, your finances, and your legal standing as a landlord. At Good Life Property Management, we know when a handyman is fine and when the law requires a licensed contractor.
By making the right choice from the start, you avoid costly repairs, lawsuits, and compliance headaches. Plus, your tenants enjoy a safe, well-maintained home.
Further Reading
Steve Welty
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