NannyRach wrote:OP I'm not sure about the legalities, but why not just set it up as a nanny share with a live-in option, and pay her a normal share rate, split between the families, and charge her rent as your tenant? You'd still be "paying less" overall, but the lines are much less blurred. If you did things the way you are considering, it sounds like it'd be a nightmare for both of you come tax time.

Because when you PAY rent you have certain expectations and obligations. If she is paying for it, it certainly isn't worth the same $800 the family charged other tenants because I bet you the kids didn't come down and bother those tenants, and their bosses never came downstairs and knocked on their door to ask them a question, etc.

Anonymous wrote:I normally rent out my basement for $800 per month. Is it possible to do a nanny share with us offering room and board as an exchange (plus a smaller stipend) and then have the other family pay the majority of the nanny's wages? We wouldn't be offering minimum wage since the majority of the earnings would be given in room and board. Obviously this is not attractive for every nanny, but housing is expensive and sometimes someone wants to live in.

Legally and tax wise, could this work?

Nothing says you both have to pay above minimum wage, as long as her total compensations is above minimum wage. So since the other family is likely paying something like $10/hr you are fine. Just like at daycare you don't have to pay a certain minimum amount legally, because all the families pool together to pay the staffs salaries. Also ignore the people saying you need some attorney to make this work. It's a simple contract.

"Together we are paying you $X amount which comes to $Y.YY hourly and offering room and board valued at $800 a month. Family A will be paying $ZZZ per month and Family B will offer the housing (and also be paying $AAA [if you wish to contribute a bit of the money also, especially if the other family is paying more than $800 a month.])

OP I'm not sure about the legalities, but why not just set it up as a nanny share with a live-in option, and pay her a normal share rate, split between the families, and charge her rent as your tenant? You'd still be "paying less" overall, but the lines are much less blurred. If you did things the way you are considering, it sounds like it'd be a nightmare for both of you come tax time.

OP is right about the liability problem. Probably best to keep renting out your basement as you've been doing.

Anonymous wrote:In same localities, nanny shares are actually illegal. I happen to know that in Arlington, local law wants the nanny to get a home daycare license under these circumstances. As we know, however, most families doing a share ignore their local laws.

some, not same

In same localities, nanny shares are actually illegal. I happen to know that in Arlington, local law wants the nanny to get a home daycare license under these circumstances. As we know, however, most families doing a share ignore their local laws.

OP here. When a family is a host of the nanny share, what are the potential liabilities? Are you running a "business" in your home? What happens if something happens to the other baby or nanny in my home? What are the downsides to hosting??

On the other hand, we could just rent our basement like we normally do and pay for the nanny share elsewhere. It really doesn't matter as it will come out to the same amount of money either way. I'm just worried about any legal issues that might arise by having other people in our home. Obviously we have homeowners insurance.

Anonymous wrote:Professional help like a lawyer (what kind?) or accountant? Trying to do things the right way….

A real estate lawyer. But I'd first find a nanny who's interested in your proposal, so your agreement can accommodate her interests, as well. Do you know of any interested family? You might want to start looking around for that too.

Basement, opens out to the patio (full size door, lots of light) and bathroom. Shared kitchen.

Anonymous wrote:Professional help like a lawyer (what kind?) or accountant? Trying to do things the right way….

A good labor attorney. It would be well worth the cost to make sure that what are are doing is legal.

Is the basement a full apartment?

Professional help like a lawyer (what kind?) or accountant? Trying to do things the right way….

South Arlington.

I'd think it all depends on how you word the written agreement. You'd have to get professional help with that. Where do you live?

I normally rent out my basement for $800 per month. Is it possible to do a nanny share with us offering room and board as an exchange (plus a smaller stipend) and then have the other family pay the majority of the nanny's wages? We wouldn't be offering minimum wage since the majority of the earnings would be given in room and board. Obviously this is not attractive for every nanny, but housing is expensive and sometimes someone wants to live in.

Legally and tax wise, could this work?