Offer discount on rent to be on-site super. how much?

Offer discount on rent to be on-site super. how much?

Investor · Ridgewood, NJ · Member since 2012 · 113 posts · 10 votes

Was thinking of offering an apartment to handyman type and offer him discount in exchange for being an on-site super for handling any "handyman" type of jobs (i.e. painting, install carpet). What sort of % discount makes sense? Any rule of thumb? Utilities are included in rent so at least it has to cover the cost of utilities.

0Reply
6 views

Most Popular Reply

Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
12y

You will have to put him on payroll . And the discount on rent may taxable income for him , I remember a guy that worked at an apartment complex who got a free apt , but they 1099 him the value of the rent

See this reply in the discussion

3 Replies

Jump to latestLatest
  • Rental Property Investor · NY · Member since 2013 · 844 posts · 350 votes
    12y
    How many units are in the building? How many hours a month is he going to have to work? Responsibilities?
  • Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    12y

    You will have to put him on payroll . And the discount on rent may taxable income for him , I remember a guy that worked at an apartment complex who got a free apt , but they 1099 him the value of the rent

  • Accountant, Enrolled Agent · Grayslake, IL · Member since 2011 · 5k+ posts · 2k+ votes
    12y
    Originally posted by @Matthew Paul:
    You will have to put him on payroll . And the discount on rent may taxable income for him , I remember a guy that worked at an apartment complex who got a free apt , but they 1099 him the value of the rent

    He may not have to put him on payroll, as he does not control his hours, nor does he control if he does work for others. Charge him full rate, but pay him.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.