Should I Become Independent

There  are many pros and cons to becoming independent, but the question has to be answered by the individual property manager after examining their own pros and cons of independence. Each decision must be based on those contributing factors that are in place at the time the decision is taken.
For example, if there is a non-competition clause with your current employer, you could have it reviewed to determine when it expires and how broadly it impacts your activities. Another consideration if you want to take over your current site is that you must be asked by the Board of the property you manage, in writing to take over as their manager.

The reasons to consider independence are as follows:

  • You retain the entire fee you collect with the exception of the monies you have to pay for subcontracted services
  • You need to ensure you maintain or improve the service level you provide
  • You can provide lower fee service to ensure client happiness
  • As an independent manager you can deduct expenses such as a home office or vehicle usage and your take home pay will be higher. But you must remember some of your contributions to the government also increase.
  • You are tied to the properties you manage and you usually cannot afford to fire a client.
  • If you properly subcontract your administrative burden, you can take on more than one property. I know an independent property manager who manages 14 smaller properties.

The cons to independence are as follows:

  • You have to pay both the employer’s and the employee’s share of the Canada Pension Plan. The current maximum individual contribution for 2015 is $2479.95 and for a self-employed individual is $4,959.90
  • You cannot take vacation without arranging for suitable back-up coverage
  • You are on call 24/7
  • You need to arrange for your own medical and dental insurance coverage
  • You need to file a more complex tax return. Most likely a corporate return.
  • You need to seek legal advice if you are currently employed and wish to become independent.

If you have decided to become independent, give us a call. We can help with the administrative side, but only after you have received independent legal advice. We can provide the following administrative services to our clients.

Client Billing

Accounting

Bank Reconciliations

Budgeting

Financial Monitoring

Account Analysis

Financial Reporting

Board Minutes

Tax Returns

Custom Newsletters

Annual Reports

Working With External Auditors

Call 1-855-561-4589 for a free no obligation consultation, once you have decided to go independent.