Park Manager

Started by SherryG1 • 2 replies • 1319 views

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SherryG1 (Montana)
Posts: 7

Posted:

Our HOA consists of 57 RV lots, 15 mobile home lots and one residential lot located in NW Montana. We are considering hiring a new member (lives year round in the residential lot) as a third party contractor to perform some park manager duties. None of the Board members live in the park year round and only one lives in Montana. We need someone to monitor our common grounds (water well/pump house, septic system) garbage, snow plowing and CC&R compliance.

Can I get advise on what questions the Board should be researching before we approach the membership with this suggestion? i.e. legal issues, insurance issues, insurance coverage for park manager.

I will contact our attorney but wanted your input first.

Thanks,

Sherry

MelissaP1 (Alabama)
Posts: 13,836

Posted:

I would look into hiring them under a 1099 contract. You never want to pay them by not paying dues. One should always pay dues. A 1099 contract may be the best way to go for the individual as well. They have to handle their taxes, insurance, and business expenses. The HOA still have to buy their supplies. Make sure they are licensed and insured.

One of the benefits is that your HOA may not have to worry about doing the "3 bid" process. Having someone under a 1 year contract gives some flexibility to change. Make sure the person is licensed and insured if possible. This may make their pay go up but your getting a better quality and less liability.

Still hire out jobs that require license like Electricians or Plumbers. However, that could be the responsibility of this person's position. The board should be monitoring of course. You want to be careful of "carte blanche" situation with someone who may be pulling some bull. Once and awhile do some checking.

Former HOA President

TimB4 (Tennessee)
Posts: 21,062

Posted:

Sherry,

You need to make sure that the individual is seen as a contractor vs. an employee.
As an employee there are several taxes that must be paid by the Association and withholdings from the paycheck that must also be done.
As an independent contractor, they are responsible for the taxes.

See: Independent Contractor (Self-Employed) or Employee? from the IRS

Very, very basically, The Association would write a contract specifying what you want accomplished but not how the individual will physically accomplish it. Example: Track payments vs. Track payments using xyz software.

Additionally, they should have their own tools and insurance (otherwise the IRS may consider them an employee regardless of what a contract says).

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