Hire an employee for maintenance and rehabs?

[Rick H.]

Hi everyone,

I have found a very good handyman with experience in apartment rehabs. He does fantastic work for $15 per hr, but, alas, has neither health nor liability insurance. Thus, I am considering hiring him as an employee. My plan is to start focusing on fix and holds. I have a bank that has agreed to work with my on the rehab costs. I have a 3 unit under contract now that needs quite a bit of work. I also have 3 other buildings with a total of 8 units (all older and in need of regular maintenance). So my question is, does it make sense for me to bring on an employee at this point? Or should I wait until I grow my business further? My understanding is that after all the taxes and insurance I would basically be paying him $20 per hr, which I still think he is well worth. It would be nice not to have to constantly deal with contractors. This guy gets it done without constant direction. Your input is appreciated.

[Pam R.]

I don't know the legal ins and outs of putting an employee on payroll, but I will say good dependable help is hard to find. If that's how you can keep him, and keep him happy and hardworking, and you can make it work financially, do it.