What Are the Operational Challenges in a Rents and Profits Receivership?
There are several operational challenges experienced in a rents and profits receivership, which will differ between individual cases due to the individual nature of each case. Here, we’ll discuss some of the common challenges faced by receivers in this situation. Management of the subject property may be conducted by the receiver, or the receiver may outsource this duty to a third party vendor. When a receiver or other party manages the property, a determination of the employer/employee relationship of any and all onsite personnel must be made. When new employees are hired, the defendant’s tax identification number, receivership estate tax identification number, or management company may be used to employ them. Payroll taxes must be paid by the receiver, or he/she may face personal liability for failing to do so. State and federal labor laws must be adhered to in regard to dealing with employees at the property; if the receiver suspects violations, it is the receiver’s responsibility t
