Are you supposed to get free rent as apt manager?

Los Angeles – So you want to be a manager at an apartment building, so what is the pay? Yes, there are labor laws governing the pay, such laws that can be found at state Labor Commissioner site. It will make a difference whether you live on the site and whether the building is governed by rent control and whether there are under or over 16 units.

Non – Rent Controlled Building

The maximum rent that can be charged is $593.05 or if a couple, the maximum is $877.26 per month. However, apparently there is a check exchange exemption which means if the owner pays by check and the tenant pays by check, then the owner is allowed to charge the tenant a maximum of 2/3 of the current rent. I have heard from a few resident managers who claim they were only given a 10% rent reduction. This is not intended as legal advice or a substitute for your own legal research.

Google the following website which tends to have a more well rounded explanation than the Labor Commissioner site: “New resident manager laws for 2018 – by Dale Alberstone – AOA Magazine” .

Rent Controlled Building – rent free?

Interestingly, the city Los Angeles HCIDLA rent control website says something different about resident manager pay: its says the manager gets rent free!

I will quote from the site and you can judge the difference yourself:

“An employee-manager is a resident manager who is required to live on the premises as a condition of employment. The employee-manager receives compensation in the form of a free rental unit PLUS income. The income received by the employee-manager shall meet the minimum wage standards of the State of California. Unless already a tenant, or granted a right of tenancy in a written agreement, the employee-manager is not entitled to the eviction protections of the RSO. Continued occupancy of the rental unit is not assured should the owner terminate an employee-manager’s services. Prior written notice to vacate is subject to the employment agreement and applicable State or Federal laws. ”

Google “Resident managers as tenants HCIDLA” – this site was not working this week so see

Resident v Employee Managers – AAGLA

Section 920 is the RAC guidelines on manager pay which are authorized under the Los Angeles Municipal Code rent stabilization ordinance. Make sure to check for updates to the city site ordinance and RAC guidelines. Here is PDF’s of the latest pages that were on the net. See my yellow highlighted section the first page.

Say you were the manager of a 16 unit rent controlled building or you know someone. For two years their rent was $1500. But they never received free rent as required under this bulletin. You would be owed 24 months x $1500 or $36,000. What you say? Mayor Garcetti did not tell you? Shame!

 

 

 

So if you want to be a manager, or you are currently a resident manager, hope this has helped you to get the right pay! Obviously if you have been paying 2/3 of the rent for some time say a year, and the city ordinance says “FREE RENT”, then the owner may owe you a lot of money.