The HR Handoff

By Denny, Joseph P. | Journal of Property Management, September 2000 | Go to article overview

The HR Handoff

Denny, Joseph P., Journal of Property Management

Outsourcing Human Resources

Which of the following are real state concepts directly tied to income or expense activities: gross potential rent, leasing skills, nonrent revenues, utility management, usage monitoring, HIPAA, COBRA, PRWORA, FUTA, and SUTA?

If the last five choices didn't ring a bell, consider yourself lucky. Unlike hundreds of other companies, you probably are still able to focus on the business of real estate. But those who are all too familiar with these acronyms may be knee-deep in personnel administration. Both types of activity demand attention; regrettably, both do not generate revenue.

Tight labor markets, increased government regulation, exploding litigation, heightened competition, and sustained pressures on earnings make the human resources (HR) function more important than ever. Yet, these same factors make it extraordinarily difficult for real estate companies to devote the necessary attention to employment issues.

Even large companies with significant HR staffs find that their handbooks, training manuals, policies, procedures, and forms are not in full compliance. Many small companies are not even aware of what it takes to be compliant, let alone achieve it. The drain on small business is reflected in a Small Business Administration study that indicates as much as 25 percent of a small business' time can be absorbed in employment-related, non-revenue-producing activities.

Leveling the Playing Field

For smaller firms, outsourcing the HR function to a professional employer organization (PEO) might provide some relief. A full-service PEO provides personnel administration, workers' compensation/risk management, benefits administration, and payroll. Often, this alternative puts small companies on an equal footing with larger competitors in the quality of HR administration. PEOs also offer economies of scale in the purchase of health insurance and other desirable benefits.

Unlike employee leasing, in which a company hires the leasing firm's employees for short-term or project-oriented needs, the PEO relationship is long-term and involves a co-employment relationship with employees. In this relationship, the PEO and the client company contractually divide employment-related responsibilities and liabilities. Importantly, the client company maintains full control over the operation of the business and the delivery of its real estate services. The PEO assumes responsibility for the "business of employment.

Even though regulatory acronyms might make our eyes glassy, regulations governing federal and state unemployment taxes (FUTA, SUTA), medical benefits continuation (COBRA), and child support administration (PRWORA), among others, represent real expenses and potential liability. PEOs offer comprehensive, timely, and effective personnel administration over the entire employment life cycle -- from recruitment and selection to payroll and benefits administration through termination. The accompanying Exhibit lists many of the typical administrative offerings.

Moreover, the real estate industry is unique in that, in addition to the many employment-related challenges that all employers face, real estate companies face additional regulatory burdens. Residential and commercial management companies must comply with, among others:

* fair housing statutes;

* additional Americans with Disabilities Act compliance regulations;

* tax-credit conditions;

* HUD requirements;

* local zoning provisions;

* environmental reporting rules; and

* training requirements.

In addition, because there are more than 2,000 PEOs operating in the United States, companies that have employees in many locations scattered across several states can hire a national or regional PEO to administer the HR function. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Cite this article

Cited article

Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25,

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

The HR Handoff


Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25,

    New feature

    It is estimated that 1 in 10 people have dyslexia, and in an effort to make Questia easier to use for those people, we have added a new choice of font to the Reader. That font is called OpenDyslexic, and has been designed to help with some of the symptoms of dyslexia. For more information on this font, please visit

    To use OpenDyslexic, choose it from the Typeface list in Font settings.

    OK, got it!

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search


    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.