Resident Manager as a Independent Contractor in ND?

Question

I am taking part in the ownership and remote management of a 38 unit complex in North Dakota. The current partners have a W-2 employee managing the complex. This individual is going to retire at the end of the summer. I have someone in mind that is a great candidate to be the resident manager of the complex. I am wondering I can just hire that individual as an independent contractor considering its a part-time job that they will set their own hours. I would like to avoid dealing with another W-2 employee until there is more to manage. please let me know your thoughts on what I can and should do to transition as smoothly as possible.

Account Closed · Answer

@Derek Here in California AB5 passed on January 1st and is a very hot topic and has caused yet more market disruption.

In Washington the PRO Act may bring this to the nation. Look it up and educate yourself as this affects businesses greatly.  Evan's post above is of great value. I'm just sharing info as a licensed contractor and business owner for 28 yrs.

Evan Polaski · Answer

@Derek Holt, this is really an employment attorney question, but in general a contractor versus employee has very defined responsibilities and little oversight on the how.  I found this which I think hits most of the main differences, but of course a ND employment attorney is your ultimate guide to keep yourself out of trouble.

Anthony Angotti · Answer

@Derek Holt we 1099 our manager. You just have to be careful how you assign and manage tasks. Additionally it's cleaner and easier to work with them if they are licensed depending on your state's rules. In my state if they aren't licensed they can't negotiate lease terms or anything, so they are limited in what they can actually do.

If you're just looking for someone to open doors and manage maintenance calls this arrange might work for someone unlicensed and 1099, but if you want someone to take over all the management activities it might be difficult to have them be 1099 and unlicensed.

Derek Holt · Answer

Thanks for the insight here guys! I plan to be very hands-on and do all of the leasing work via Tenant Cloud. The "Manager" would really just do showings and take calls to get things expedited as needed. I will definitely reach out to my local employment attorney for a set of rules I would need to follow. The PRO act seems like it will be dead in the water when it hits the Senate. I will definitely keep my eyes peeled on that as well. Thank you for your help!

Resident Manager as a Independent Contractor in ND?

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