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Onsite Property Manager Compensation

You should not tolerate your Landlord’s (employer) violations related to your compensation and rent. Landlords often mishandle compensation for their onsite property managers because of the complexity involved in both payment of wages and how their rent is paid. The law requires that you, as an onsite manager, be paid for all of your hours worked, regardless of whether you are receiving free rent or rent at a reduced rate. The law also limits the rent that the landlord can charge if rent is credited against the manager’s wages. The firm has extensive experience in representing onsite property managers and will fight aggressively to get you the monetary compensation you are entitled to.

rental agreement

About Local Rent Control Laws

The information provided above pertains to statewide California law requirements. Local rent control laws and regulations may provide additional requirements for onsite property managers. For example, the Los Angeles Rent Control Ordinance provides additional rules and regulations regarding whether a landlord may evict the onsite property manager after their employment is terminated.

Can Landlords Use Free or Reduced Rent as Compensation?

Onsite property managers are frequently compensated with reduced rent or rent-free apartments. However, some requirements must be met for the landlord to lawfully compensate onsite property managers with free or reduced rent.

Rent-Free Apartment – Lodging Credit: If the onsite resident property manager is compensated with a rent-free apartment, then the following requirements must be met for a landlord to credit (offset) the rent against the minimum wages owed to the onsite property manager:

  1. There must be a voluntary written agreement between the employer (landlord) and the employee (onsite property manager).
  2. If the employee is owed more wages than the maximum lodging credit provided in the table below, then the landlord must compensate the employee for those wages in a separate paycheck (in addition to the rent-free apartment).
  3. A maximum amount of rent may be credited against the minimum wages owed to the onsite property manager. Effective January 1, 2022, the maximum lodging credits are as follows:
26 or More Employees25 or Fewer EmployeesStarting January 1st, 2023 All employers regardless of # of employees
Room Occupied Alone:$70.53/week$65.83/week$70.53
Room Shared:$58.22/week$54.34/week$58.22/week
Apartment – 2/3 of the ordinary rental value, and in no event more than:$847.12/month$790.67/month$847.12/month
Where a couple are both employed by the employer, 2/3 of the ordinary rental value, and in no event more than:$1253.10/month$1169.59/month$1253.10/month

Reduced Rent: If the landlord wishes to compensate the onsite property manager with reduced rent (as opposed to free rent), then the following requirements must be met:

  1. There must be a voluntary written agreement between the employer (landlord) and the employee (onsite property manager);
  2. The maximum amount of rent that the landlord can charge is 2/3 of the fair market rental value of the apartment supplied to the onsite property manager; and
  3. The reduced rent may not be credited against the minimum wage. This means that the employee pays the landlord reduced rent (up to 2/3 of the fair market value), and the landlord compensates the employee for all of their time working in a separate paycheck.

An employer may only use a rent credit against the minimum wage if the employee is compensated with a rent-free apartment. If the employer charges the resident manager rent, then the employer cannot use a lodging credit to meet the minimum wage obligation.

We Are Committed to Getting You Justice

If you are a property manager who was not paid correctly, and/or paid excessive rent, or your employment/tenancy was wrongfully terminated, we can help. The firm has successfully represented numerous property managers in their disputes with their landlords/employers. Therefore, the firm has the unique experience and knowledge to assist you in your wage disputes and get you the compensation you deserve.

Call us today because we can help. No recovery, no fee.

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