We are looking to oursource some of the tasks in our business, mostly around property management and would like to hear experiences of others who have done this.
What we are looking to outsource includes the following:
- Taking tenant calls
- Showing the properties
- Signing lease paperwork
We invest in rural areas, so property management companies do not exist.
We are looking to hire someone directly for this. This position will be ~5 hours/week.
A major hurdle that we have run into is workers comp. Since we are in the real estate industry, insurance companies want $2,000+/year for workers comp.
We are researching what options and alternatives we have.
From all of our research, it seems like we will need a W2 employee instead of a 1099, which means needing workers comp.
Has anyone else done something similar to this?
With only working 5 hours a week why would you hire an employee? I also think you would have a very hard time finding someone to work 5 hours a week.
You could get a virtual assistant for the phone calls and then pay someone per transaction instead of paying them as an employee.
@Tom Sylvester - I would hire someone for contract work (eliminate the fringe costs when you need them for only a few hours a week), but check your state's license requirements. If the employee / contractor is making any decisions, then they most likely need a property management license or real estate license.
I would use a 1099 sub contractor. We use "in-house" managers all the time and just make them sign and agreement that they are a independent contractor.
I can email the document to you if you like.
We are using someone for tenant calls and troubleshooting. This is a big help. They don't show but they take calls day/evening/weekends. It is just a set fee each month. So far so good but they outlined they would be available certain hours before I hired them. I can take some vacation time! I gave them a list of service providers to call if they needed to and a small slush fund. I figure we can show ourselves or pay a placement fee and still do better then we did before. the biggest thing is they are taking the calls which are not so many but always at the worst time. In our state you have to be the owner or licensed relator to hand the lease up.
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