I need some advice. I Co-own a small property management company. We currently have 3 employees to handle repairs, marketing, tenant applications, and customer service. We have grown to the level where we need to start hiring agents. We also handle about 60 home sales a year. What kind of compensation package would you suggest that we offer property management agents? I think that we should pay agents a wage and allow them to earn commissions on move-ins and home sales and my business partner wants to pay the agents 100% commission- ( on management fees, move-ins and home sales.) Any advice would be appreciated.

I have found that a base plus a percentage commission creates loyalty plus drive

I like Jerry's comment. I know of a couple other business that have offered small shares in the company. This allows them to feel that it is part of their own and tend to feel motivated and respectful of the business.

Along with the shares idea or a percentage of the company if they get too many perks with no performance controls they can take advantage.

So with commercial firms they might give a salary plus a percentage of commissions and a stake in the company.The stake in the company is tied to performance levels each year.If their performance,training,work ethic goes down then their ownership shares go down.

It keeps them motivated to perform.You wouldn't want to much compensation tied into partial ownership of a company unless you could divest it later when you leave for cash.You don't want a clause where as soon as you leave you can't sell the position and interest reverts back to the other owners.

Have found the same thing as Jerry states. A straight base salary does not motivate performance so combining a base in addition to a percentage commission is a great idea to keep people working hard for you.

Once that you give proper compensation into your agents, they will work hard for you. Bonuses are good for their motivations too.