Does hiring a cleaner for STR require a contract?

[Steve Bell]

We recently got an oral agreement with a cleaner who is experienced cleaning STRs. I am a first time STR owner and we plan to go live in next 4 weeks. but I have not heard anyone on these forums or in podcasts talk about whether or not you should have a contract with your cleaning personnel. We live too far away to clean ourselves or inspect often. Can anyone tell me advantages or disadvantages of having a contract with your cleaning personnel? If yes, beyond going to an attorney…where would we look for a well designed contract for a cleaner, and what might be important points of interest would we want to include? Thanks in advance for any advice!

[John Underwood]

Quote from @Brandon Gale:

@Steve Bell 

You should have a written contract with your cleaner and your should collect a W9 from them.

Go to an attorney and have them write one up for you or google "independent contractor agreement" and find a good template. Basically just need to dictate the terms of agreement (rate, who buys supplies, duties to be performed, etc.) establish that they are not an employee and you are not an employer, they are not entitled to benefits, that they hold no ownership of anything in the property, you are not liable for injuries, etc.

The W9 is important for tax purposes. Since you will be making many payments to them over the course of the year, you will be required to submit a 1099 to them at the end of each year. The W9 is your formal request for the information needed to fill out the 1099. This is a standard IRS form that can be found on the IRS website.

I'm not a lawyer or a CPA and cannot give legal or tax advice, just my experience, so if your are unsure of anything I would consult one of each.

 Payments made through PayPal and Venmo are now reported to the IRS. If you use these you don't have to report it again.