Residents doing work in a park

Hello all,

We recently acquired a park in Texas that under prior ownership had several residents doing work in the park on a regular basis, and so were being given concession for most or all of their rent. Apparently these residents are doing everything from opening the clubhouse on weekends, to someone actually has the title of “Head Chef”. They have not had regular hours, and are not employees, nor are there any written agreements in place for this arrangement.

My thought is that we need W9s for these folks so that they can be sent 1099s for the free rent, especially those that are getting the entirety of their rent for free. I also worry about the worker’s comp ramifications if someone gets hurt (unlikely, but who knows?).

Any advice?

I am not a fan of residents working off their rent because there is a tendency to inflate the hours so their rent is never due. It’s a slippery slope. The only person who should receive free rent is the manager and that depends on how much he or she is paid.

I would evaluate what these residents are doing and if their services are worthwhile or legitimate. It may be the case where the manager can do most of these things and you don’t need to pay anyone else. I’ve never heard of a Head Chef at a MHP.

Before you address the W9s I would address what needs to be done and by whom and then decide on the most time and cost efficient division of labor.