Property Management Referral Program

[Daniel Harnsberger]

I have a question which hopefully other property managers who work independently or for property management firms can answer.  Later this week I am meeting with a realtor who works with investors.  One of the things we plan to discuss is a referral program (her to me) for property management.  

In the past, I have done cash referrals to acquire properties, but haven't offered such a program for my property management business.  Right now I'm drawing a blank as far as an incentive, especially in the case of a 1 or 2 property situation.  I am charging my clients 10%.  Rents in the area range from $800-$1200.  Any feedback would be greatly appreciated.

[Bob Collett]

@Daniel Harnsberger . As in Ohio, providing property management services in Virginia requires a real estate license. I pay real estate agents $250 for a property management referral, plus some other incentives such as giving them right of first refusal if an when it comes time to sell the property.

You did not state whether or not you are a licensed real estate agent in Virginia. If you are not, the realtor would be ill advised to refer clients to you; and you would of course violating license law by conducting real estate type services like renting properties, without a license.

If you are a licensed real estate agent, give me a call, and I would be happy to discuss my success in getting referrals from other real estate agents.

Good luck.