Detailed Estimates of Renters Warehouse Franchise Costs Based on Item 7 (Estimated Initial Investment) of Renters Warehouse’s 2014 Franchise Disclosure Document
- A Renters Warehouse franchised Business will provide property management and tenant placement services and other services the franchisor approves.
- The clients of the Business will be anyone responsible for maintaining or leasing single family residences, condominiums, townhomes, and apartments. In most cases, this will be the owner of the premises, but in some instances it may be a leasing agent or other third party already working with the owner of the property.
- None of your payments to Renters Warehouse or any affiliate are refundable. Payments you make to third-party suppliers may or may not be refundable depending on the terms of your arrangement with each such supplier.
1. Initial Franchise Fee: $20,000 to $35,000
2. Start-Up Business Package: $5,000
3. Real Property, Furniture, and Fixtures: $1,000 to $8,000
- You may locate your Business in any office space that is at least 500 square feet and that meets Renters Warehouse’s other requirements.
- These requirements include that the building be at least a Class C building and cannot be a house or a duplex. The building must also be located in a commercial area with access to parking.
- Renters Warehouse cannot estimate the amount of money you might spend to lease or purchase space because that amount will vary from site to site, depending upon the location and layout of the site, your wishes, and financial capabilities.
- Renters Warehouse has based these estimates on 500 square feet of office space at $10 to $20 per square foot.
4. Office Equipment: $0 to $4,000
- This estimate is for 2 computers with high-speed Internet access and a printer. If you already have computers with high-speed Internet access and a printer, you will not have to purchase additional computer equipment.
5. Software: $2,350 to $3,000
- This estimate includes a license for the Appfolio property management software and RentFeeder Software, which you must purchase for use in your Business.
6. Signage: $0 to $1,500
- Although Renters Warehouse will provide you with 50 “For Rent” signs as part of the Start-Up Business Package Fee, the high range assumes that you purchase an additional 450 “For Rent” signs for use in the Business.
7. Travel and Living Expenses While Training: $1,250 to $2,750
- The low estimate assumes one person attends training and that the person plans sufficiently in advance to obtain a discounted airline ticket. The high estimate assumes two people attend the training and that they purchase more expensive, but still discounted airline tickets.
- Both estimates assume that the person or persons stay at an economy hotel while at training.
8. Insurance: $625 to $2,250
- Renters Warehouse estimates annual insurance premiums of $2,500 to $9,000, assuming you are a new business with less than 200 properties under management.
- If you have more than 200 properties under management, your premiums could be higher (perhaps significantly) than those identified here.
9. Miscellaneous Opening Costs: $3,000 to $15,000
- Includes security deposits, utility deposits, business licenses, bonding fees, attorneys’ fees, and prepaid expenses.
10. Additional Funds – Three Months: $5,000 to $20,000
- This amount is an estimate of additional funds for expenses you may incur before operations begin and during the initial period of operations (typically, your first 3 months operating the Business).
- These expenses include rent, advertising, phone and Internet, payroll costs for one office manager on the high range (the low range assumes you are the office manager), and other related business expenses.
11. Total: $38,225 to $96,500
- In putting together these estimates, Renters Warehouse relied on the experience of its affiliates.
- Your actual investment could be different from the franchisor’s experience, particularly if you need to retain a real estate broker, you lease rental space in a location that is more expensive than Renters Warehouse recommends, or you choose to pay your property managers or leasing agents on other than a straight commission basis.
- The availability and terms of financing will depend on factors like the availability of financing generally, your credit worthiness, your relationship with local banks, and any additional collateral you may offer to a lender to secure the loan.
- Renters Warehouse may finance a portion of the Initial Franchise Fee.
- These estimates do not include any finance charges, interest, or debt.