Here are some things to think about when weighing those options:
One thing you should keep in mind when hiring live-in help is that you should clearly define pay and hours right off the bat. You shouldn’t think of your nanny or housekeeper as being “on call” at all hours of the day, and you should discuss overtime pay in the event they exceed their hours. Just like you, they should have their off time and daily breaks. Remember—giving a housekeeper a bedroom does not mean you can pay them less in exchange for living arrangements. Will you provide them with a car for work purposes—or at the very least, reimbursement for gas money? You want to keep in mind that while your help is there to support you, they are not there to serve you.
Live-out help is another legitimate option that might work better for your family. Once your help is off the clock, they leave your house. The lines are more clearly defined and there is less room for confusion between employer and employee. You want to foster a good relationship with the person who will be working in your home. If they are happy, they are more likely to do a better job!