How does Rentor handle On-Site Resident Managers?
Rentor does not keep On-Site Resident Managers (OSRM) on our payroll.
There are two options for employing On-Site Resident Managers:
Option #1 - The Rental Property Owner has an employer entity that they control to employ the OSRM and we will coordinate management with the OSRM.
Option #2 - The OSRM becomes an Employee of Cardinal Services. The OSRM reports hours to Cardinal who manages the payroll, workers compensation insurance, and other payroll related tax and administrative duties. Cardinal then sends an invoice to Rentor to be paid out of the Rental Property Owner's Property Balance.
Transitioning existing OSRM to Cardinal 1-707-445-9641 :
Have On-Site Resident Managers (OSRM) complete this application -> https://spsemployee.cardinal-services.com/
OSRM then go to Cardinal for about 30-45min to complete enroll paperwork (I9, W4, NEO etc.).
Cardinal will then manage the payroll and send invoices to Rentor to be paid out of the property balance.
What is the hiring process with Cardinal for new OSRM?
Rentor can provide a job description for positions to be advertised by Cardinal Personnel Services.
Cardinal will manage all inquiries for the open position.
Cardinal will screen candidates for Rentor selection.
Rentor will perform an interview with the prospect to confirm they are a good fit for the property.
If approved, the new OSRM can be employed by Cardinal or the Property Owner's chosen entity.
Rentor still receives and distributes the Report of Hours to the accountant (Cardinal) and to you, audits the reports, creates updated manager agreements for rent increases and wage increases annually, and, of course, we still have communications with the OSRM regarding activities at the property.
What does it cost to have Cardinal be the employer of record?
Cardinal will provide a cost per hour for the hours the OSRM is authorized to work per month.
OSRM typically have a minimum number of hours they must work on the grounds.
Sequioa will perform payroll and all administrative activities related to taxes, workers compensation, etc. and these are all included in the hourly rate that Cardinal charges.
Cardinal Rate Includes:
Advertising for the position
Processing of employment applications
Onboarding
Payroll
Workers Compensation
Taxes
W-2s
Tax forms
Learn More
Example Calculation:
$700.00/month Rent x .666 = $466.20 adjusted valuation for monthly amount of unit for lodging credit purposes.
There are 24 pay periods since OSRM are paid on the 5th and 20th each month.
$466.20 lodging credit / 24 pay periods = $233.01 per pay period. If employee was making $11/hr, this would mean up to 21 hours of their work per pay period would go towards the lodging credit.
Law
WHITE PAPER: SDCAA White Paper: Requirements and Compensation for Onsite Resident Apartment Managers August 2016
The responsible person, or “resident manager,” residing at the complex must be considered as an employee and cannot be defined as an independent contractor or considered an “exempt” employee. Nonexempt employees should be paid at least twice a month and on a timely basis. Under Labor Code section 1194.2, the residential manager may make a claim for an amount equal to the wages unlawfully unpaid plus interest if the landlord does not pay the minimum wage.
GUIDE: IRS Pub 15b - Employer's Tax Guide to Fringe Benefits - For Use in 2019
See Page 16 of the above PDF to the right in relation to Lodging.
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ARTICLE: Resident Managers: California Wage, Hour and Rent Laws for 2019- Dale Alberstone
(a) Exception to Wage Payments: “Offset of Wages” In lieu of paying the full minimum wages, Manager’s wages may be reduced by the lesser of (A) 2/3 the unit’s rental value, and (B) $621.29* per month (1 Manager) or $919.04* per month (couple) if no rent is paid.
If only partial rent is charged, then for each dollar rent reduction, wages may be credited by one dollar up to $621.29* (1 manager) or $919.04* (couple) even though the apartment might be worth significantly more. This exception only applies if the Manager signs an agreement which provides for the offset.
Exception to Maximum Rent: “Check Exchange” If the Manager is required to live on site, then Manager may pay rent up to 2/3 the fair rental value of the unit (without regard to $621.29* and $919.04* limitations) provided that separate checks are exchanged for the Manager’s payment of rent and employer’s payment of wages. Thus, the employer must pay manager the full minimum wage ($11.00 for all hours worked) and the Manager must pay employer an amount not exceeding 2/3 the fair market rental value by separate checks.
*These amounts are projections. The actual amounts may vary by one or two cents once the new figures are published for 2019.
Resources
ARTICLE: Resident Managers: California Wage, Hour and Rent Laws for 2019- Dale Alberstone
WHITE PAPER: SDCAA White Paper: Requirements and Compensation for Onsite Resident Apartment Managers August 2016
GUIDE: IRS Pub 15b - Employer's Tax Guide to Fringe Benefits - For Use in 2019