I'm dealing with a decent number of properties. I have not rented Office Space because I would not like to go there personally. I have enjoyed several practices that were put into effect to save me time. Leases are not signed in person. Applications are taken automatically over the Internet once filled out. At this point I am genuinely sick of the day today or even rare instances

that pop up with rentals. I'm ready to hire an individual to help. I would prefer the individual be 1099 and not a W-2. I was willing to commit to pay rate equivalent to 15 an hour.

I'm in an area where people do not find work to be a priority. It's a smaller sized community. Any suggestions on how to set this up without an office and to keep someone happy 1099.

Jen, I constantly try to improve my business. I can improve what I do, but I have yet to find a way to hire out everything. I have a book keeper that takes care of my books quarterly. I still handle the day to day.

Hiring out work causes as many problems as it solves. They're just different problems that you didn't have before!

You can hire someone to do the work, but that opens up the issues of insurances and if you are hiding it under the cloak of 1099's, you better hide it darn good. If something goes wrong...

I'm not saying it's right or wrong. I'm just saying so what you have to do to survive.

Jen, this is how I operate: I buy a place, I fix it. I rent it or sell it. I buy another place, I fix it, I rent it or sell it. And over and over and over.

I don't care what it takes. I don't care who helps me or who doesn't. I have a mission, by myself or with a crew, it's getting done. One way or another. W-2's, 1099's, cash or barter. I don't care.

Find your mission and get it done. My desire to buy a place and fix it and rent it out or sell it over and over and over again outweighs my burden of paperwork and other nonsense that comes with real estate in general.

Jen,

I wrote a great answer but it's in cyberlimbo. Hope you see it soon.

EVERYTHING a LL does can be hired out. It's just a matter of sorting out a system that works for you and making thoro checklists of what you want done.

Then watch the checklists and observe the actions.

This is NOT rocket science!

BRAD

Jen, Learn your state's licensing laws in regard to who can talk to prospects and sign leases, renewals, do inspections, etc on your behalf. I suggest finding a local, licensed realtor.

MANY are part time and happy to earn some cash. Retired can be fantastic. They understand Fair Housing Law and know how to talk to people.

Paying by the hour gets you just that - hours. Hours without results. There MUST be incentive to turn phone calls into paying residents. They can work from their phone (home, ball game, anywhere) on flex hours.

If this helps: We pay a base hourly rate plus $10 fee to do a 30 minute open house $25 to do the 2 Minute In Home Visit within 24 hours, $20 fee (on top of the hourly) to convert the approved applicant into a resident - sign the lease, take 100 photos, get everything logged in such as photos, update the roster, payment page, scan the new lease...

A second person gets $20 to double check that everything is properly signed and filed. $10 to do a Preventive Maintenance walk thru (in months 3 and 9 per Jeffrey's teaching)

My lease is clear: the first page is a checklist for the lease-er. Screener works out of his home and is paid by the piece- $3 to add new app to the list $3 to check court records $3 per phone call to LL reference or applicant $3 to verify pay stubs $3 to pull credit +hourly for us to discuss applications with him.

Look for a bean counter (accountant/bookkeeper type) who loves to put numbers in boxes. He posts his progress on Google Docs and I can see in real time who and what he is working on. He scores the applicants at each step, writes comments as needed, and stops when they don't pass that step. Hopes that helps you figure out what's best for you!

Brad,

Thnk you. So if people are paid a flat rate, wouldn't that meet the 1099 criteria?

Brad

Jen,

A Property Manager who handles some of mine is paid a flat fee of $300 each time she rents a place plus $XX for each app she screens, plus $XX per month to manage. The fees rather than hourly makes her an obvious 1099.

Half or all the first month's rent as commission is not uncommon.

No one runs your business like you do. Fact of life. Yes, you can find people to do the things that you don't like. But it will cause other problems trying to get it to your standard or paying an affordable amount. Pay is a regional issue. What we pay in upstate NY would be laughed at in NYC.

Look at it this way, you are managing your buildings now, and yes there are things you don't like about it (we all have that) But if you hire it out, you are managing the people who manage your buildings. There will still be plenty you don't like about that. Which is worse?

This is my fault for not giving a better clarification of why it makes me sick at this point. The reason I'm so disgusted is time allocation has shifted from 100% focus on filling vacancies in doing office work to finding new deals.

The effort that I have put forth so far this year has created income that more than sustains wheat I would've paid someone had I kept my Focus as I have in the past in the rentals.

This is simply a financial decision that I have the ability to make more than what office staff as well as an office would cost.

Jen, I applaud on you on making the decision on creating far more income rather than continue doing the stuff you can hire someone else to do.

One of the main reasons most landlords don't grow their rental business beyond a certain point is because they keep trying to do all the administrative and maintenance work themselves and then years later they wonder why (or complain) that they could not grow their rentals beyond a certain point.

Jen, there's no question that you can find someone to do your "office" work without providing them (or you) an office. I know many, many very sharp women who could do just about anything but have chosen to stay home with their kids. That said, they truly enjoy doing something that offers immediate, tangible rewards (like a paycheck!). If you offered work that could be done at home or at flexible times, I think you could easily find someone to fill that role.

Now, ordering repairs and overseeing the work--that's a different skill set. Someone knowledgeable needs to make repair decisions. Take the tree down or trim it? Patch the doorknob hole with multiple layers of spackle or just put a plate over it? I'd suggest trying out a retired handyman who doesn't want to be pulling toilets but can tell you whether the young guy did it right. It may take a couple of tries to find the right fit.

I do think it's very doable. Plenty of skilled people out there who can't or don't want full-time jobs but still want work. Pay by the task like Brad suggests and you'll solve the W2 problem.

Jen,

Congrats on identifying your strengths! And the most profitable area.

My best advice: change NOW!!! You seem like a decision maker. Make a bold move. Most people lose time and fortunes "thinking and planning" this type of upgrade.

Just call some property managers and get this ball rolling. Pay for the new PM to go to Jeffrey's training so you know they know.

Call a local bookkeeping / accounting office. They will pick up your bookkeeping pile or come to your home and handle all this stuff for you. That's what they do and are pros at it. Done.

Go for it!

BRAD

I happen to have another small business,any employee gets in their job description that they also will handle my rentals.

They are trained in the basics and generally learn quickly. They also know that anything out of the ordinary to say they need to consult with the company and get back to them.

They also do the bookkeeping via quicken and pay bills.

It has worked VERY well. Once you do get office help you will never do without them.The freedom it gives you is amazing. I also do very little plumbing, electrical work, painting, landscaping etc. Nor do I show apts. I used to do it all years ago,and for many years..Handymen/women does almost all now and "life is good",

I wished I did it sooner. Now I am a manager. If I go to a property they know me as a worker for the company which,...really is true. But they don't come out of the woodwork complaining to me drama about their neighbor or try to tell me why they may be a little late with the rent,Ect,etc. I tell any who try to call the company, I can't decide anything.After the first time they leave me alone,

not sure the structure you describe meets the definition of indie contractor. it has gotten WAY harder to meet the requirements in the last decade. here is what the IRS says...your state may also want to weigh in. california does

>You are not an independent contractor if you perform services >that can be controlled by an employer (what will be done and >how it will be done). This applies even if you are given >freedom of action. What matters is that the employer has the >legal right to control the details of how the services are >performed.