Key ways to manage relationships with independent contractors

Independent contractors can be a valuable asset to your real estate business. Maintaining a positive and healthy relationship with your contractors is key to having a sustainable, long-term relationship.  The National Association of Realtors® Senior Vice President and General Counsel Katie Johnson offers ten tips to help manage your independent contract relationship with sales agents in the real estate world.

1. Have written independent contractor agreements with your real estate salespeople.
2. Don’t ever refer to real estate salespeople as employees of the broker in any broker written materials or otherwise.
3. Avoid paying for any job-related training or continuing education.
4. Pay your real estate salespeople on a commission-only basis; avoid paying them at regular fixed intervals.
5. Don’t require your real estate salespeople to report to the broker’s office on certain days or at certain times in order to perform general office administrative duties, such as answering phones.
6. Allow your real estate salespeople to work where, when and how they deem best.
7. Maintain control of broker-employed administrative support. Avoid allowing your real estate salespeople to exercise any authority over the hiring, firing or supervising of such staff.
8. Make attendance at monthly staff or training meetings voluntary.
9. Allow real estate salespeople to choose and purchase equipment, as necessary, to perform their jobs, such as computers or iPads.
10. Issue your real estate salespeople 1099s, rather than W-2s. Do not withhold any federal or state income taxes (including estimated taxes), social security, Medicare or any other applicable federal or state taxes.

How do you maintain your relationships with independent contractors?