I need manual labor help

[Erik Garland]

Easy question folks. I have an LLC of SFH rentals. I have 0 employees. I do most all renovation my self, but with a 2 year old I want to be home more. I don't want to lose so much money to outsourcing the work completely. So I want to start projects and then hire 'neighborhood' help to complete. Thinking about using lockboxes or digital keypads for security. I imagine the 'helper' will need to be considered a contractor and as such they won't be on my 'payroll' and I don't have to withhold or pay payroll taxes. What issues do I have with liability? Will a waiver suffice. I won't let them use my power tools. My insurance company says house cannot be insured until I have a tenant.

This familiar ground to anyone.  Any help is much appreciated.  Right now I am only letting the 'helper's' work when I am onsite.  But this is much more limiting then giving them free reign to complete said projects.

I hope this is in the right section

[Missy H.]

Hi Erik

There are insurance companies that offer temporary insurance on vacant properties.  I can't remember if there is an exact name for it but speak with an insurance broker who would be able to give you more information.  It can just be for a couple of months until you get a tenant, then you cancel and buy homeowner's insurance.

Second, you may want to check with your city's policy on unlicensed workers.  Some cities, like mine, will only permit you to have unlicensed workers do work on your property if they are related to you.  Otherwise, they will have to be licensed.  

In regards to the "neighborhood help", are you looking to use day laborers or are they people that you have worked with before and trust to work steadily and consistently with little to no supervision?  If the are day labors and get paid by the day, you should not leave them alone.  There is no incentive for them to work at a pace that is consistent with your expectations, especially if they are getting paid by the day and not by the job.  Chances are, they won't sign a waiver and if they do, it may not hold up in the event that they do get injured.

When I had to re-build my house after Hurricane Sandy, I used day laborers for the demo, but even then, I was there to observe and maintain oversight.  For the actual re-build, I worked with a company that I trusted.

Good luck to you.