Hiring Father to do Maintenence on Rental Properties

Hiring Father to do Maintenence on Rental Properties

Rental Property Investor · Marysville, OH · Member since 2015 · 22 posts · 18 votes
My father is retiring in the spring and wants to do handyman work for me on my rentals. This would be ideal for me because I would feel comfortable with giving him keys and let him contact tenants and enter the units as needed for repairs. He is not licensed/bonded/insured. He does not necessarily want to get licensed or start a company or business entity. Am I at risk in any way by hiring him to do the work? I am not concerned about quality of workmanship or him completing work, but I am wondering about liability and insurance if he were to get hurt on one of my properties and file an insurance claim.
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  • Wyoming, PA · Member since 2017 · 13 posts · 2 votes
    8y

    @AdamFout not sure how many properties you own but why not start a property management company? That's what I would do just for the peace of mind. If I'm not mistaken he can make $600/year before needing 1099 or a W-2

  • Investor · Jasper GA · Member since 2015 · 1k+ posts · 1k+ votes
    8y

    @Adam Fout  If you're concerned he can get insurance.  It's cheap.   

  • Rental Property Investor · Marysville, OH · Member since 2015 · 22 posts · 18 votes
    8y

    @Galvin Duesler I have 2 properties so not sure if that warrants forming a property management company.  Are you suggesting I form the property management company or my father?  

    @Bob B.  Do you know what kind of insurance my father would get?

  • Investor · Avilla, IN · Member since 2013 · 796 posts · 769 votes
    8y
    As a 1099 independent contractor he should be responsible for himself on the job. The questions regarding licensing and so on are going to be area dependent. I mainly use one guy for all the maintenance/improvements on my 60+ units but have occasionally used my dad in the past among others. None have been licensed contractors and in the markets I invest in you can nearly tear a house down and rebuild it without a permit.
  • Investor · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    8y
    As long as you have liability insurance on your properties, I’d imagine that would cover you for most if not all issues. You want to make sure your contractors are insured so if they hurt themselves or someone else, it doesn’t become your problem. With your father, I’d assume you’re going to help handle whatever it is.
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