Landlords who do not live near their property, or own several units, usually need someone on the ground. That person might be a live-in caretaker, a part-time cleaner, a managing agent or a professional property manager. The right person keeps the building in order, collects rent, deals with tenants and reports problems early. The wrong arrangement, or no oversight, can lead to unpaid rent, neglected repairs and disputes. This guide covers how to set up and supervise the role.

Decide what you need

List the tasks: cleaning common areas, minor repairs, security, receiving rent, showing vacant units, handling tenant requests, paying utilities and reporting to you. Decide how much time they take and which require specific skills. A single block of apartments may need a caretaker on site; a scatter of rental houses may suit an agent. Define the role before you look for a person.

Employee, contractor or agent?

How you engage the person affects the legal and tax treatment. A caretaker who works set hours under your direction is generally an employee, with rights to a contract, minimum wage, leave and statutory contributions. A contractor offers a service and is paid for results. A managing agent or company handles management for a fee, usually a percentage of rent. Using a property agent: fees, contracts and tax covers the agent route, and casual workers and daily wage employees: rights and tax covers casual work.

Put it in writing

Whatever the arrangement, sign an agreement stating duties, hours, pay, the place of work, accommodation if provided, leave, notice and what happens if either side ends it. For employees, follow what to check in an employment contract before you sign and probation, contracts and notice periods in Kenya. If accommodation is part of the pay, state the terms, including what happens on termination.

Pay properly and legally

Check the minimum wage for the role with the minimum wage checker and read how to check the minimum wage for your job. Employees are subject to PAYE where earnings pass the threshold, and to NSSF, SHIF and the Housing Levy; use the PAYE calculator and see how to run payroll for a small business in Kenya. Keep a payslip and a record of every payment. Employer obligations checklist lists your duties.

Control the money

If the caretaker collects rent, require that tenants pay into your account instead, and give a receipt for any cash. Ask for a monthly report showing rent due, received and outstanding, and compare it with your own ledger. For small repairs, give a limited float with vouchers; see petty cash and imprest: how to control small spending. Require quotes for anything above a set amount.

Supervise without hovering

Visit regularly and unannounced sometimes, check the property, speak to tenants and review the records. Walk the building with a checklist: cleanliness, security, water and power, damage and rubbish. Ask tenants how things are going. Good oversight is friendly but firm, and shows that you value the work.

Set clear limits of authority

Say what the caretaker may and may not do: they can arrange routine repairs up to a limit but cannot agree rent changes or new tenancies without you, and they cannot give notice to a tenant on your behalf. Put the limits in writing and tell tenants who to contact for what.

Tenant relations

The caretaker is often the tenants' main contact. Give them clear instructions on how to treat tenants, how to log requests and when to call you. Landlord and tenant communication: habits that prevent problems offers tips. Keep a log of complaints and responses in the rental property and tenant register.

Tax and records for you

Pay for caretaking or management is a cost of earning rent, and is deductible if you file annually, with evidence. If you pay monthly rental tax on gross rent, you cannot deduct it, so compare the routes with the rental income tax calculator and MRI or annual rental tax. Record payments in the rental expense and deduction ledger.

Know when to change

If rent is regularly short, repairs are ignored or tenants complain, act. Document the problems, give warnings and follow a fair process before ending the arrangement. A caretaker or manager who is trusted, paid properly and supervised is one of the best investments a landlord can make.