Page 58 - aagla4-2021
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 Property Management
 58
APRIL 2021 • WWW.AAGLA.ORG
Continued from page 57
Here are six important “tips” you might consider:
TIP NO. 1: CONSULT WITH YOUR ATTORNEY TO REVIEW AND BETTER UNDERSTAND THE LAW
It is a very complicated law. Be sure to take the simple step to better understand how you are managing your rental property and learn how you can best follow the law.
TIP NO. 2: IN THE EYES OF THE STATE OF CALIFORNIA, REALIZE THAT YOUR ON-SITE MANAGER IS YOUR EMPLOYEE
According to the state of California, your onsite manager or other onsite personnel is your employee. Some owners find a trustworthy tenant and simply give them a rent credit to collect rents, call in maintenance, etc. If you are doing this, you are directing an employee to perform work and must pay them minimum wage, withhold and remit payroll taxes, obtain workers compensation insurance, etc. Anyone who is not a licensed contractor or does not carry liability insurance or Workers’ Compensation insurance on their own may be considered an employee. Over the years, independent contractor rules have gotten much stricter and more likely than not, your onsite manager or other personnel are YOUR EMPLOYEES.
By the way, one of the many benefits to hiring a professional property management firm like SKY Properties is that the onsite manager becomes our employee, or an employee of the management firm you have hired, and therefore, you have a layer of protection and the peace of mind that proper employment records are being maintained.
TIP NO. 3: KNOW YOUR ON-SITE MANAGER RENT CREDIT MAXIMUM
Yes, the State of California regulates the maximum rent credit you may offer your onsite personnel. Rent credits can only be given in accordance with the California Industrial Welfare Commission Order, which specifically prescribes amounts of rent that can be offset.
TIP NO. 4: THE SIGNED MANAGEMENT CONTRACT IS AN ABSOLUTE MUST!
All onsite managers must be given a manager contract, and the work hours and duties should be clearly outlined in the contract , and all work
completed must be supported by time sheets. The Apartment Association of Greater Los Angeles offers its members free access to sample onsite manager contracts. At SKY Properties, I believe that best practices dictate the collection of time sheets every two weeks to stay on top of what is happening at every property.
Please note, whether you take a rent credit or not, it is imperative that you still have a written contract in place. The Apartment Association of Greater Los Angeles offers form onsite manager (or other personnel) contracts for small employers (less than 26 employees), and larger employers (26 or more employees) that apply a rent credit to time worked in lieu of wages, and a form onsite manager contract where no rent credit is offset against wages owed.
(Partial of Apartment Association of Greater Los Angeles Onsite Manager Form Agreement: Form L.11.2)
TIP NO. 5: IT IS TIME FOR TIMESHEETS!
Be sure your onsite managers, maintenance personnel, and all other onsite personnel are filling out timesheets on a regular basis, preferable daily, but at least weekly, so you have a record of paying them properly according to State and Federal laws. If no timesheets exist, there is a risk of exposure if an employee claims there are wages owed for overtime. If this discrepancy spans over multiple years, you may be “on the hook” for quite a large sum of money.
There are many online time sheet applications available that can be accessed by smart phone or computer, so time sheets do not necessarily have to be kept manually. Go over your employee’s time sheets and make sure they match any notes you have kept to see if they make sense.
TIP NO. 6: STAY INFORMED
I cannot stress enough about consulting with your attorney here. Additionally, stay informed by visiting the following State of California website at: http:// www.dir.ca.gov/dlse/faq_paydays.htm.
Kari Negri is the Chief Executive Officer of Sky Property Management and is a member of the Board of Directors of the Apartment Association of Greater Los Angeles. For questions, you can reach Kari at Kari@SKYprop.LA.












































































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