In my many years dealing with resident manager issues, I have noticed certain characteristics that resident managers often exhibit – although I am sure there are many exceptions – when he or she has worked for a long time at the same building. Such onsite managers:
- tend to take pride in the work they perform,
- often feel possessive over “their” building,
- feel they are performing work above and beyond the job they signed up for, and
- believe their protracted efforts are not adequately appreciated.
We can probably all agree that item (1) is a positive. But item (2), while a bit more nuanced, is a potential problem, and items (3) and (4) are absolutely lawsuits waiting to happen.
These attitudes can manifest themselves in several different ways. A few examples are on-site managers who flat-out refuse to take – or simply ignore – direction from their employer, or who refuse to perform certain tasks; on-site managers who feel free to express themselves towards their employer in a manner no employe should (and expect to keep their job); and on-site managers who take every opportunity to point how they are being taken advantage of. And if you were not the onsite manager’s original employer, but rather took over responsibility for the property more recently, you may be viewed by the on-site manager as a complete interloper.
Employer-Employee Relationship
I believe the genesis of this problem – besides plain old human nature – is inadequate messaging about the nature of the on-site manager relationship, both at its inception and during the ensuing years. Let me explain.
I have worked at my current law firm for approximately 30 years. I am comfortable there. I am, literally, a partner (technically a shareholder). I have my own practice area. Yet I would never presume to say that I call all the shots at the firm or need not follow any rules handed down by the firm’s management. Why? Because despite my autonomy, it has always been clear to me that the relationship between me and my law firm is that of employer/employee. Like many workers, I ultimately am an “at-will” employee. That remains as true today as when I started 30 years ago
By way of contrast, many property owners – even those who employ resident managers – do not truly view themselves as “employers” in a classic sense. They therefore do not adequately establish ground rules at the beginning. Equally importantly, they do not over the years meaningfully reinforce their standing as the employer.
Have a Written Contract
Let’s start at the beginning. An employer/employee relationship is contractual. So you should have a contract – even if the law technically does not require one (a subject for a different article). Your job expectations should be clearly expressed. The expected work hours should be clear to everyone – even if unpredictability will be the norm. The nature of the position should be articulated and understood: is this a “key-holder” type position, a full-time position, or something in-between? What are your expectations regarding the on-site manager’s availability at the property?
You also should make clear and emphasize at the relationship’s onset the time at the property for which the on-site manager is – and is not – entitled to be paid. The goal is to avoid the seemingly inevitable resentment that will arise from a manager’s belief that you are underpaying him because you are not paying him for his on-call time (even though the law says you need not do so). In addition, the need for the manager to religiously track his time and provide time records – and how frequently – should also be spelled out, along with the rate of pay – typically an hourly wage. You get the idea.
All this sets up the professional footing of the relationship. There are objective expectations that will need to be met. Being an on-site manager is a job – albeit one that can often be performed at home (no longer such a novelty) – and must be initiated in that manner.
But that is only half the battle. The follow-through is equally, if not more, important. Because terms in a written agreement that gets placed in a file cabinet somewhere are just that. They are not self-executing and the passage of time will inevitably blur them – at least until problems arise.
Review Performances
Accordingly, just like my firm makes a practice of periodically reviewing the performance of its younger lawyers, you should be reviewing and checking in with your onsite manager. You should be particularly careful about documenting any failure to meet your stated expectations. I don’t necessarily mean in a big formal process, but I do mean in writing. It can be a nicely worded email or text.
Documenting these issues serves several purposes. First, it keeps the relationship on a professional footing – particularly in the on-site manager’s eyes. It also enables the on-site manager to work on and improve any performance deficiencies. And, lastly, it creates a written record, so if you ever need to terminate the relationship and your decision gets challenged (i.e., you are sued), you possess a trail of documentation supporting the reasons you fired the manager (note – the lawyer defending the claims against you will greatly appreciate this).
I fully recognize that some owners want to be only minimally involved in managing their properties and certainly do not want to feel like they need to micro-manage their on-site manager. But, as an employer, you must have some level of involvement. And there is a difference between minimal involvement and abdicating your role as employer, which includes appropriate communication with and supervision of your employee. You cannot afford to abdicate, because – at least based on my experience – the price you may ultimately pay can be steep.
Gary Ganchrow who chairs the Litigation Department at the 113-year-old downtown Los Angeles law firm of Parker Milliken Clark O’Hara and Samuelian, has served as an Adjunct Professor at the USC School of Law, and is a frequent contributor to AOA Magazine. He regularly advises on, litigates and writes about, a variety of employment, property management and business matters, and can be reached at 323-509-1135 and [email protected]. This article is for informational purposes only and should not be considered legal advice or establishing an attorney-client relationship.