Onsite manager - Employee of Property Management Company or Owner's LLC?

[Tom Tao]

I recently ran into this question with my remote multi-family property so want to see whether people have any thoughts or what should be normal practice.

I hired a local 3rd party property management company to help me monitor operations, manage payrolls, and handle issues for my remote multi-family property. We also have an onsite manager who is handling the day-to-day business. 

The 3rd party property management company wants this onsite manager to be the employee of my LLC, which I am not sure with. I have heard that onsite staff could also be the employee of the 3rd party property management company, but just wonder what is the normal practice?

Some related questions about who handles contract, insurance, benefits, etc so want to hear people's thoughts. Thanks