Property Management Referral Fees?

[Chris Gantz]

Hi all,

I'm focusing on scaling my property management company's client base and portfolio of assets under management. I've been contemplating the idea of offering a referral fee to any agents or brokers that bring us new clients/properties, but want to make sure I'm not breaking any laws. 

I've found a number of companies in other states typically offer 2 months of management fees for a new management contract, and an agreement that they will refer the client back to the agent/broker that referred them in the event the client is looking to buy or sell investments. 

My company is based/licensed in Wisconsin. The biggest question is whether I'm legally allowed to pay the referral in Wisconsin to other licensed agents/brokers?

[Tracy Streich]

We do this in our market and offer a flat fee to any agent referring an owner.  One of our guarantees is that owner is their owner and any sales transactions will be sent back to that agent.   You can pay them a fee just like any other commission.  It must be paid to the Broker and not directly to the agent.