How do you calculate a live in hourly rate?

[Anonymous]

OP here. The nanny's child is in 8th grade and moving into our guest house puts the daughter in a fantastic school district which is what the nanny wants. Of course I will pay her for any time she spends with me and the baby after hours. I will cover utilities if you guys think it is a big deal.

Thanks for the input!

[Anonymous]

Ok so the nanny wants to live-in and it's a mutual benefit. I would just do live out rate and nanny pays a discounted monthly rent, utilities included. Main issue in this situation is if the nanny does not work out for some reason, they cannot just move anytime so have a separate lease agreement to keep things clear.

[Anonymous]

Anonymous wrote:Ok so the nanny wants to live-in and it's a mutual benefit. I would just do live out rate and nanny pays a discounted monthly rent, utilities included. Main issue in this situation is if the nanny does not work out for some reason, they cannot just move anytime so have a separate lease agreement to keep things clear.

Only a fool would agree to these conditions.

[Anonymous]

Anonymous wrote:A live-in is a perk for OP. If nanny were actually living in an in-law suite within house, she would not be paying utilities and she should not pay utilities for living in a detached in-law suite.

Nanny is getting a market rate. She pays utilities.

[Anonymous]

OP, you need to get something out of this arrangement, too, or it would make more sense to rent the apartment for market rate and hire the nanny separately.

What you are describing seems eminently fair to me: the nanny gets a market-rate pay rate, and you get someone who agrees to be on call when needed.

[Anonymous]

Anonymous wrote:

Anonymous wrote:A live-in is a perk for OP. If nanny were actually living in an in-law suite within house, she would not be paying utilities and she should not pay utilities for living in a detached in-law suite.

Nanny is getting a market rate. She pays utilities.

Nanny is getting a much reduced rate and OP is covering utilities.

[Anonymous]

Anonymous wrote:OP, you need to get something out of this arrangement, too, or it would make more sense to rent the apartment for market rate and hire the nanny separately.

What you are describing seems eminently fair to me: the nanny gets a market-rate pay rate, and you get someone who agrees to be on call when needed.

On call 24/5 - and then only in am emergency. OP made that clear.

I think it sounds like a great arrangement for everyone!

[Anonymous]

We live in Bethesda. We paid $18 for live out (both kids in school 3-6 hours a day), and then $11 for live-in. we essentially subtracted the $1000 in-law suit from her monthly salary. 40 hours a week, 12 noon to 6pm. This is higher pay than for an au pair program.

implicit in this arrangement is that nanny pays zero for water, electricity, heating, cooling, parking; she does not pay taxes on her income that goes to implied rent (i.e. to pay $1000 comparable rent, one must earn $1200 gross at least) and she has zero commute.

[Anonymous]

OP, my advice will be probably at odds at what others have told you.

You're being had.

First, it is very rarely the case that a live-in nanny gets to bring her relatives to live with her. You occasionally find live-in accommodations for a married couple but it is out of the ordinary. Most of the time live-in nannies have a bedroom/bathroom or a basement apartment where they live by themselves.

How will the nanny take care of her elementary school child? Who will handle aftercare? Are you completely sure the nanny wouldn't want to look after her child AND yours, while drawing a top-dollar rate for a substandard product? Have you thought about this? Is it in your contract that she must not provide care to her own child while she's on the clock?

Secondly, for $25-30/hr you can have the world's most amazing nannies lining up at your doorstep yelling "pick me!". For $20/hr you can have your choice of highly qualified, live-out nannies without the hassle of living with them and dealing with tenancy issues in case something goes wrong.

I get that you are a FTM so you think having a newborn is an insurmountable challenge. It really isn't. Unless you want to be extremely hands-off, you don't need a 24/7 nanny for 5 days a week assuming your child is healthy. You really don't.

So far, all I see in your arrangement is a bonanza for the nanny. An excellent school district, free family accommodations, and a top rate (even for a live-out).

What do YOU get?

[Anonymous]

Anonymous wrote:OP, my advice will be probably at odds at what others have told you.

You're being had.

First, it is very rarely the case that a live-in nanny gets to bring her relatives to live with her. You occasionally find live-in accommodations for a married couple but it is out of the ordinary. Most of the time live-in nannies have a bedroom/bathroom or a basement apartment where they live by themselves.

How will the nanny take care of her elementary school child? Who will handle aftercare? Are you completely sure the nanny wouldn't want to look after her child AND yours, while drawing a top-dollar rate for a substandard product? Have you thought about this? Is it in your contract that she must not provide care to her own child while she's on the clock?

Secondly, for $25-30/hr you can have the world's most amazing nannies lining up at your doorstep yelling "pick me!". For $20/hr you can have your choice of highly qualified, live-out nannies without the hassle of living with them and dealing with tenancy issues in case something goes wrong.

I get that you are a FTM so you think having a newborn is an insurmountable challenge. It really isn't. Unless you want to be extremely hands-off, you don't need a 24/7 nanny for 5 days a week assuming your child is healthy. You really don't.

So far, all I see in your arrangement is a bonanza for the nanny. An excellent school district, free family accommodations, and a top rate (even for a live-out).

What do YOU get?

The nanny's kid is in 8th grade - that makes her about 13. Nanny doesn't have to "watch" her.

And I live-out and my rate is $25 to $30 (masters in Early Childhood Development, years of preschool teaching and infant care as a nanny). It all depends on what OP wants in a nanny and how much she is willing to pay for what she wants. My current job started two years ago at $27 an hour with one newborn and is now $28 plus covering my healthcare insurance now that the child is 2.

[Anonymous]

Anonymous wrote:OP, my advice will be probably at odds at what others have told you.

You're being had.

First, it is very rarely the case that a live-in nanny gets to bring her relatives to live with her. You occasionally find live-in accommodations for a married couple but it is out of the ordinary. Most of the time live-in nannies have a bedroom/bathroom or a basement apartment where they live by themselves.

How will the nanny take care of her elementary school child? Who will handle aftercare? Are you completely sure the nanny wouldn't want to look after her child AND yours, while drawing a top-dollar rate for a substandard product? Have you thought about this? Is it in your contract that she must not provide care to her own child while she's on the clock?

Secondly, for $25-30/hr you can have the world's most amazing nannies lining up at your doorstep yelling "pick me!". For $20/hr you can have your choice of highly qualified, live-out nannies without the hassle of living with them and dealing with tenancy issues in case something goes wrong.

I get that you are a FTM so you think having a newborn is an insurmountable challenge. It really isn't. Unless you want to be extremely hands-off, you don't need a 24/7 nanny for 5 days a week assuming your child is healthy. You really don't.

So far, all I see in your arrangement is a bonanza for the nanny. An excellent school district, free family accommodations, and a top rate (even for a live-out).

What do YOU get?

OP gets a great and expensive nanny at a greatly reduced rate and the comfort of having an experienced child care giver four steps from her back door.

[Anonymous]

Anonymous wrote:

Anonymous wrote:MB here. I've never done a live-in arrangement so take my advice for what it's worth but I'd probably want to be in the $18-20/hr range. So I'd tell her what the rental value of the unit is (and be very realistic about that - keeping in mind that a $2,500 rent might be out of the question for her so perhaps not the most useful benchmark to her).

Then I'd do the math of 50 hours at $30/hr base, per month - which gets you in the neighborhood of $6,600 gross income per month. THen subtract the value of the rental and you're at $4,100 income for the month, divided by 4 weeks and by the number of hours per week that you're contracting for and you have an hourly rate.

If I'm your nanny, making the same calculations, I'm guessing I'd be willing to consider a $20/hr rate for a 50 hr position to be acceptable (giving her roughly $1,100wk gross pay), and a $22/hr rate to be quite good (if she really loves the unit, the location, working for/with you, etc...)

Keep in mind that you'll want room to give her raises and bonuses of course.

Good luck. Sounds like it could be a terrific fit for all of you - I hope it works out!

Thank you. This is exactly along the lines of what I was thinking.

I agree this makes sense - but the value of the unit in her eyes is likely what she would pay for housing plus a bonus for good school district, which may not be the same as the specific unit's value.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP, my advice will be probably at odds at what others have told you.

You're being had.

First, it is very rarely the case that a live-in nanny gets to bring her relatives to live with her. You occasionally find live-in accommodations for a married couple but it is out of the ordinary. Most of the time live-in nannies have a bedroom/bathroom or a basement apartment where they live by themselves.

How will the nanny take care of her elementary school child? Who will handle aftercare? Are you completely sure the nanny wouldn't want to look after her child AND yours, while drawing a top-dollar rate for a substandard product? Have you thought about this? Is it in your contract that she must not provide care to her own child while she's on the clock?

Secondly, for $25-30/hr you can have the world's most amazing nannies lining up at your doorstep yelling "pick me!". For $20/hr you can have your choice of highly qualified, live-out nannies without the hassle of living with them and dealing with tenancy issues in case something goes wrong.

I get that you are a FTM so you think having a newborn is an insurmountable challenge. It really isn't. Unless you want to be extremely hands-off, you don't need a 24/7 nanny for 5 days a week assuming your child is healthy. You really don't.

So far, all I see in your arrangement is a bonanza for the nanny. An excellent school district, free family accommodations, and a top rate (even for a live-out).

What do YOU get?

The nanny's kid is in 8th grade - that makes her about 13. Nanny doesn't have to "watch" her.

And I live-out and my rate is $25 to $30 (masters in Early Childhood Development, years of preschool teaching and infant care as a nanny). It all depends on what OP wants in a nanny and how much she is willing to pay for what she wants. My current job started two years ago at $27 an hour with one newborn and is now $28 plus covering my healthcare insurance now that the child is 2.

But it's not like the nanny can pretend her child doesn't exist, right? You must agree that live-in accommodation for nannies with families are quite uncommon, usually it's just the nanny.

What you offer can be had for less than $25. This is not a dis against you, just market reality. There are more nannies like you than $30/hr jobs.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP, my advice will be probably at odds at what others have told you.

You're being had.

First, it is very rarely the case that a live-in nanny gets to bring her relatives to live with her. You occasionally find live-in accommodations for a married couple but it is out of the ordinary. Most of the time live-in nannies have a bedroom/bathroom or a basement apartment where they live by themselves.

How will the nanny take care of her elementary school child? Who will handle aftercare? Are you completely sure the nanny wouldn't want to look after her child AND yours, while drawing a top-dollar rate for a substandard product? Have you thought about this? Is it in your contract that she must not provide care to her own child while she's on the clock?

Secondly, for $25-30/hr you can have the world's most amazing nannies lining up at your doorstep yelling "pick me!". For $20/hr you can have your choice of highly qualified, live-out nannies without the hassle of living with them and dealing with tenancy issues in case something goes wrong.

I get that you are a FTM so you think having a newborn is an insurmountable challenge. It really isn't. Unless you want to be extremely hands-off, you don't need a 24/7 nanny for 5 days a week assuming your child is healthy. You really don't.

So far, all I see in your arrangement is a bonanza for the nanny. An excellent school district, free family accommodations, and a top rate (even for a live-out).

What do YOU get?

OP gets a great and expensive nanny at a greatly reduced rate and the comfort of having an experienced child care giver four steps from her back door.

We don't know that the rate is "greatly reduced", and we don't know that the nanny is great, just that she's expensive.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP, my advice will be probably at odds at what others have told you.

You're being had.

First, it is very rarely the case that a live-in nanny gets to bring her relatives to live with her. You occasionally find live-in accommodations for a married couple but it is out of the ordinary. Most of the time live-in nannies have a bedroom/bathroom or a basement apartment where they live by themselves.

How will the nanny take care of her elementary school child? Who will handle aftercare? Are you completely sure the nanny wouldn't want to look after her child AND yours, while drawing a top-dollar rate for a substandard product? Have you thought about this? Is it in your contract that she must not provide care to her own child while she's on the clock?

Secondly, for $25-30/hr you can have the world's most amazing nannies lining up at your doorstep yelling "pick me!". For $20/hr you can have your choice of highly qualified, live-out nannies without the hassle of living with them and dealing with tenancy issues in case something goes wrong.

I get that you are a FTM so you think having a newborn is an insurmountable challenge. It really isn't. Unless you want to be extremely hands-off, you don't need a 24/7 nanny for 5 days a week assuming your child is healthy. You really don't.

So far, all I see in your arrangement is a bonanza for the nanny. An excellent school district, free family accommodations, and a top rate (even for a live-out).

What do YOU get?

OP gets a great and expensive nanny at a greatly reduced rate and the comfort of having an experienced child care giver four steps from her back door.

If that caregiver is working set hours, it doesn't really matter where they live. She is either available around the clock or she isn't, and her living there doesn't make her automatically available unless the contract specifies this.