paying residents for work

Started by JohnA26 • 14 replies • 396 views

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JohnA26 (New Jersey)
Posts: 43

Posted:

Does anyone have experience paying residents to perform task such a pool monitors, testing chlorine content in pools. Or move furniture for events. Or some other task.
If so how are they paid and are they 1099

MelissaP1 (Alabama)
Posts: 13,836

Posted:

I have done this and not necessarily a good idea. It is best to hire licensed and insured. We did a volunteer day on occasion but nothing heavy lifting. Just cleaning or gardening etc...

A 1099 not bad idea. However would be better served on maybe a handy man type setup with agreement of board.

Former HOA President

MarkM19 (Texas)
Posts: 1,459

Posted:

John,
A 1099 only needs to be issued if the total paid is over $600.00 annually. Not sure how much your person is getting over the course of the year.

We have paid helpers over my time on boards with small gift cards. We are in a large HOA with over 1450 SFHs and we have had very little luck getting volunteers for some of our larger events. Just for the record I am not for these gift card payments, but our social coordinator needs help when pulling off these large events.

CathyA3 (Ohio)
Posts: 6,299

Posted:

If you're going to pay them, you'll have to worry about things like insuring them properly (workers comp, liability, etc.). In short, we found that using volunteers is often more trouble than it's worth and that you often don't save any money. If you pay them, you're eliminating the one rationale for doing this. More importantly, POOLS CAN BE REGULATED by state law. You don't want clueless volunteers in charge of keeping you on the sunny side of the law and avoiding lawsuits.

I'll sum up my usual shtick about using volunteers in HOAs:

* They're not free. And once volunteers accept payment, they lose the protections of the Volunteer Protection Act (volunteers can't be held liable for their actions in carrying out their duties).

* You don't get professional quality work. You won't get any warranties or guarantees, and they may void existing warranties if they don't know what they're doing. Volunteers can walk off the job any time with no notice.

* Homeowners may not obey their neighbors (as with a pool monitor) and may encourage conflict. (You'd be amazed at what people will fight about, and pools seem to encourage squabbles.)

* It's not sustainable. Just because you have willing volunteers today doesn't mean you'll have them in the future.

* It misleads homeowner about the true cost of ownership if these tasks are ordinarily performed by professionals. This can be a problem in states and communities where there are limits in how much assessments can be increased.

* The board must supervise the volunteers, adding to the board's existing workload. This is especially true if the "volunteers" accept payment.

MarkM19 (Texas)
Posts: 1,459

Posted:

Cathy,
I agree with your post completely for professional services. I would never allow volunteers to do anything with our Pool. Our volunteers do very minor things like clean up after events and point to where booths are located, monitor things like bounce houses.

TimB4 (Tennessee)
Posts: 21,059

Posted:

In my previous Association we hired a resident as a bookkeeper.

There was a contract identifying them as an independent contractor.
As such, the Association could not provide supplies.

We paid monthly by check.
Issued a 1099-misc at the end of the year.

DeanJ
Posts: 1,786

Posted:

Quote:

Posted By JohnA26 on 02/05/2024 7:15 AM
Does anyone have experience paying residents to perform task such a pool monitors, testing chlorine content in pools. Or move furniture for events. Or some other task.
If so how are they paid and are they 1099

I am not against what you are asking. Labor is both expensive and in short supply today and if you have dependable homeowners who desire to earn some extra money and they are dependable, I don’t see an issue. How much liability is there in setting up chairs?

Skills to test, adjust and record pool chemical levels is not a high tech job and takes less than an hour a day. This person could be an employees or a 1099 contractor. Just understand you have to compensate a contractor more than an employee.

A pool monitor may be a bit more complicated based on job duties? Are they just doing clean up around the pool or have duties to enforce rules or play life guard?

MelissaP1 (Alabama)
Posts: 13,836

Posted:

FYI: I organized a kids volunteer day once. Let the kids clean up the pool and clubhouse area. Had all the kids together while I did a few minor repairs. A simple fixing a 3 inch hole in a wall turned into a need for stitches and possible hospital visit.

I can testify first hand a simple thing like a wall repair can have consequences. I had cut my finger to the bone with a widget tool.

So I do not assume doing something simple will mean simple results. I just held my finger together with a paper towel till could wrap it up. Lesson learned.

Former HOA President

ValK2 (Tennessee)
Posts: 65

Posted:

We have used volunteers (kids mostly) to clean bathrooms and do other menial type of work. We pay them by check and that's the end of it.

I am NOT a fan of the idea of using resident kids for our work, but here in Tennessee things are a little more relaxed. It all sounds like a good idea...give a student some spending money.

We also attempt to contract with, for example, a landscape company owner who lives in the community. I think this is a really bad idea for two prominent reasons: It starts out as a friendly "let's give the neighborhood business owner some bushiness") which unto itself is tricky, and then when things go wrong (we've had water running across out street for two years when the sprinkler system, which said contactor installed and winterizes "leaks" )and now no-one will put pressure on the contractor to fix the problem. It's the "he's a nice guy, and well, he might have saved us a few bucks (he didn't) and now we don't want to challenge his poor-quality work".

My advice is to go outside your community and hire folks in an "arm's length" deal and make it strictly business. Doing business with (family and) friends is rarely a good idea.

KerryL1 (California)
Posts: 14,550

Posted:

With Mark-- I agree it's not a good idea to have a resident--paid or volunteer-- to do ANY tasks around the pool. There ate too many ways that hazards to that person or pool users can occur. In my municipality, persons must be certify to dose the pool with chemicals.

In addition, our insurer made it very clear our condo assoc. HOA insurance will not cover volunteers who've engaged in dangerous activities, e.g., climbing ladders, messing with electricity, doing anything near machinery. Hadn't thought of it, but I'd include moving heavy furniture.

Do read Cathy's remarks (coming from a lot of experience)!

Also note Val's experience with an owner/vendor. too many ways this can be a problem as s/he points out. Very hard to fire them, which can cause friction in the community.

As lax as TN might be, I can't imagine any city's Health Dept. saying that kids cleaning HOA restrooms is OK. Imo, there's danger of infection from previous users or health issues from harsh chemicals to the kids, or to residents because cleaning isn't deep or thorough enough. Who checks on these restrooms daily anyway?

Our HOA does have a Social Committee and it arranges furniture once brought into an area by paid staff. None of it is heavy. Thy do winter holiday decorating, ut NO ladders.

JosnF (Texas)
Posts: 1

Posted:

Sends the wrong message when CC&Rs disallow property owners to operate businesses on POA/HOA turf. As has and is occurring in our POA. The bus mgr hired an owner to weld a POA job. Afterwards the owner began doing welding for many owners. Conducting personal business in this community as an unlicensed business in our county. He got his grandson a job in landscape maintenance. When the grandson quit and his pay cut by business manager, the owner overcharged on his next POA job and sent the overage to his grandson. We have another owner openly operating a Golf cart repair shop out of his home. Our corrupt POA just looks the other way SELECTIVELY ENFORCING RULES as it suits BOD and it's corrupt business manager. Businesses are licensed by counties for our protection and as revenue to provide and Maintain the infrastructure, staff, salaries and benefits we too often taKe for granted. when we shirk the rules and laws that safeguard us and enhance our lifestyle we are common thieves
We are to render to Caesar the things that are Caesar's and to God the things that are God's. Money and power corrupt. Be wary of both! One thing leads to another...the old saws are based on life experience and we'd be wiser to run those tapes before acting.

SheliaH (Indiana)
Posts: 6,964

Posted:

Go with hiring a handyman - the paperwork and accounting is easier, and you won't have to worry about insurance liability, people not showing up, leaving early, or simply doing a piss poor job, even if the work seems "simple" as Melissa noted.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

JohnC46 (South Carolina)
Posts: 14,265

Posted:

My concern is liability. We live in a litigious. We are bombarded with ads for "slip and fall" lawyers.

JackS20 (North Carolina)
Posts: 271

Posted:

Quote:

Posted By CathyA3 on 02/05/2024 7:41 AM
If you're going to pay them, you'll have to worry about things like insuring them properly (workers comp, liability, etc.). In short, we found that using volunteers is often more trouble than it's worth and that you often don't save any money. If you pay them, you're eliminating the one rationale for doing this. More importantly, POOLS CAN BE REGULATED by state law. You don't want clueless volunteers in charge of keeping you on the sunny side of the law and avoiding lawsuits.

I'll sum up my usual shtick about using volunteers in HOAs:

* They're not free. And once volunteers accept payment, they lose the protections of the Volunteer Protection Act (volunteers can't be held liable for their actions in carrying out their duties).

* You don't get professional quality work. You won't get any warranties or guarantees, and they may void existing warranties if they don't know what they're doing. Volunteers can walk off the job any time with no notice.

* Homeowners may not obey their neighbors (as with a pool monitor) and may encourage conflict. (You'd be amazed at what people will fight about, and pools seem to encourage squabbles.)

* It's not sustainable. Just because you have willing volunteers today doesn't mean you'll have them in the future.

* It misleads homeowner about the true cost of ownership if these tasks are ordinarily performed by professionals. This can be a problem in states and communities where there are limits in how much assessments can be increased.

* The board must supervise the volunteers, adding to the board's existing workload. This is especially true if the "volunteers" accept payment.

volunteer protection act allows payments up to $500 per year.
our volunteers get more professional work than the ones we used to pay for planting flowers. Contracts can walk of the job and quit anytime too.
Board has to supervise contractors too.
half of your arguments make no sense to me.

JackS20 (North Carolina)
Posts: 271

Posted:

I looked into hiring people in the neighbor hood to do violation notices. People who were interested wanted about $60 per inspection which might take them an hour. x 10 m $600 per year.
A full service mgt company wants about $10,000 for this service.

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