We are thinking at least we can sue Clayton Morris for the referral fee to compensate our renovation.Please let us know if you have any suggestion. 

Just PM me here on BP.For the record, I receive not one penny of compensation for making this referral!

Just about every city here have codes to protect tenants and once get cornered landlord need to compensate tenants with monthly rent waiver, or facing a housing code violation at court.

Next, you have to be compensated for the renovation cost, all holding and closing expenses. 

Simply bringing the deal is a huge portion of getting things done and should be fairly compensated for. 

You may not perform work and be compensated, nor may you provide services for free. 

I didn’t mention all the specifics, but I won’t pay funding fees due to service connected compensation.

Your rent seems low and a good property manager should be able to raise the rent value to compensate the cost of having a property manager and also lower your risk of having bad tenants.Overall, look at the entire deal and cost in to work your numbers.

I'd work out some kind of compensation plan before you start sending them leads. 

The argument can further be made that even advertising the sale of the contract (as opposed to advertising the property) is still brokering because you are bringing a buyer and seller together with the full intention of receiving compensation for your efforts.