Paying property manager.
I live in California and if you own a 16+ unit residential building you are required to have a property manager. What am I required to pay them? Do I pay them for hours worked, an hourly wage, or a salary? Are their options available or is there a common standard? Thanks for any help!
[{"id": "f8n3xyq", "text": "I think you are misinformed. If you own the units you can manage them yourself if you want to.", "replies": [{"id": "f8n47q7", "text": "In California you are required to have a manager living on site for 16+ unit buildings. If I am unable to live on site I'm wondering how I'm supposed to compensate them.", "replies": [{"id": "f8n504x", "text": "Not true", "replies": [{"id": "f8n55hu", "text": "Strange. What are your qualifications and what are the laws about that?", "replies": [], "depth": 4}, {"id": "f8n5k4t", "text": "I'm siting this regulation: CA Code of Regulation Title 25, Section 42.", "replies": [], "depth": 4}, {"id": "f8ns2gm", "text": "It is absolutely required for any building over 15 units", "replies": [{"id": "f8nvjud", "text": "OP doesn\u2019t have to be the guy", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "f8n655e", "text": "\u2018Onsite property manager\u2019. Just give them the rent for free so no one pays taxes?", "replies": [], "depth": 3}, {"id": "f8n9eqz", "text": "You just need to have a resident manager, not someone who manages the whole thing. You can still manage yourself, but have a resident manager in place as well. They would be an employee of yours, generally paid minimum wage or compensated some off thier rent. They are generally very part time, they have some cleaning duties, are someone people can bring complaints to that are forwarded to you, clean the laundry, stock the pop machine etc. \n\nIf you want to manage it yourself you can, just have a resident manager, give them some money off their rent, and give them a few duties to do in exchange for that. Everything else can be through you.", "replies": [], "depth": 3}, {"id": "f8osnoz", "text": "What I\u2019ve frequently seen is a designated tenant who is a \u201cturn-key\u201d on-site property manager for 15+ unit buildings in exchange for a discount on rent. It\u2019s usually a responsible tenant either retired or working from home. You give them keys and access to the whole building and they let in repairmen or, let\u2019s say the elevator inspector, for example. Less $$ for less job duties.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "f8n61m3", "text": "Not only that but the state sets the  maximum rent you can charge and the minimum wage you can pay them. It's best to stay away from commercial multifamily if possible.", "replies": [{"id": "f8n691e", "text": "I see. Do you have a condensed version of this law or should I just read through it?", "replies": [{"id": "f8nidz1", "text": "I just googled it.  It's not a long read.", "replies": [], "depth": 3}], "depth": 2}, {"id": "f8n6ief", "text": "Why should I stay away from it?", "replies": [{"id": "f8nhntm", "text": "Because if the state is going to erode property rights further they will start with anything involving residential housing, because that is what gets votes.  They will not be as quick to do the same with office/industrial/retail.\n\nFor example, with income valuation you can increase your building value by increasing the rents you charge. But thanks to rent control, the ability to increase your multifamily asset value is significantly hampered. \n\nThe state charges landlords to be lifelong providers of social housing at huge discounts to market values - no cause evictions are eliminated, rents are tightly controlled, redevelopment is impossible (or over taxed). You are required to house the tenant for decades, while paying for capital expenditures, maintenance, increasing utility and property taxes.  \n\nRead up on Manhattan and Berlin. Thousands of tenants have the right to pass their tenancies on to family members in perpetuity, many times at rates such as $400/month for a 3-bd unit in Manhattan. These measures are being copied by cities worldwide to gain votes with renters.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "f8n8osd", "text": "You should probably invest 500 bucks in a lawyer instead of getting advice on reddit. Find one that specializes in commercial real estate in your market and add them to your network. It will be the best $500 you\u2019ve ever spent.", "replies": [{"id": "f8n95ev", "text": "I agree but honestly I think he should keep looking for advice on reddit and then fighting them. Way funnier for me.", "replies": [], "depth": 2}], "depth": 1}, {"id": "f8nse4x", "text": "Pay them whatever you can find someone to agree to but free rent is fairly typical, maybe a little on top of that. That said you'll still want a full lease and employment contract that you can terminate. With the new rent control regulations, they may have rights to remain even if you terminate employment as long as they pay the agreed lease rent amount. 16 units is a lot to manage so also remember that you get what you pay for.", "replies": [], "depth": 1}]