The property management industry, according to IBISWorld, is worth $76 billion in 2019 (combining both the residential and commercial sectors). Entrepreneurs who want to take advantage of the strong rental market have a small but solid list of options with the top 4 property management franchises of 2019.
Everybody needs a place to live, which is why housing is considered a basic need. But when it comes to the choice between home ownership and renting, things get more complicated. While the housing market crash and the Great Recession forced more people than ever to become renters instead of owners, the long economic recovery has not caused as much change in home ownership rates as one might expect. Millennials facing rising mortgage rates, increasing home prices, and a lack of starter homes continue to choose renting over owning, which is good news for property management franchises.
By the numbers, 34% of all housing is renter-occupied, totaling something like 34 million rental properties in the U.S. Rental vacancy rates have been falling and median rents have been steadily rising for two decades. Back in 2017, Pew Research Center reported that more households were renting than at any time since 1965. These statistics and state of the industry help explain why three out of the four companies on this list have achieved rankings on Entrepreneur magazine’s Franchise 500 list.
Here are the 4 best property management franchises of 2019:
1. Real Property Management
Real Property Management has been around since the mid-1980s when Kirk McGary and two friends offered property management services as a way to make money during college. The emphasis has always been on how each day a rental property stays vacant is money out of the property owner’s pocket, arguing that the costs of property management services are offset by shorter vacancy times.
The company offers on-going communication, comprehensive marketing and advertising, thorough tenant screening and selection, full-service leasing, timely rent collection, regular inspections, cost-effective and reliable maintenance, strict and compliant evictions, and comprehensive accounting.
Services also include determining a competitive monthly rental rate based on a comprehensive analysis of property condition, upgrades, school districts, location and access to transportation, and area rental market rates. They also provide recommendations and guidance on how to make a property rent-ready. The goal is to minimize costs and maximize rental income.
While the primary emphasis is on single-family residential homes, franchisees are free to manage other kinds of properties such as apartment complexes, Homeowners’ Associations (HOAs), vacation rentals, and commercial properties.
This company currently ranks #491 on Entrepreneur magazine’s Franchise 500 list. Founded in 1986 and franchising since 2004, the number of locations has been on the rise over the past decade from 95 in 2009 to the current total of 310, none of which are company-owned and 29 of which are located outside the U.S.
2. Property Management, Inc.
Property Management, Inc. (PMI) provides full-service property management across four categories of properties, including residential, commercial, association/HOA, and vacation rentals. In the residential category, the focus is on preserving the value of the home as a long-term investment.
Steve Hart started the company after years of navigating the ups and downs of land development, construction, and real estate sales. He came to realize how the property management sector of the real estate industry remains stable despite what’s happening with housing.
The company claims that although the monthly rental fee is a franchisee’s main source of revenue, there are something like 50+ other revenue streams in the form of leasing fees, sign-up fees, late fees, and others.
PMI also offers a full six-week training program for new franchisees leading up to opening a location. It then continues its support with weekly business launch training sessions during the first year of operation, as well as ongoing support through webinars and workshops to develop the expertise necessary to remain competitive in the industry. Ongoing marketing support includes traditional, online, and referral marketing.
This company currently ranks #262 on Entrepreneur magazine’s Franchise 500 list. Founded in 2008 and franchising since then, the number of locations has been steadily climbing from just seven in 2009 to the current total of 210, only one of which is company-owned and two of which are located outside the U.S.
3. All County Property Management
All County Property Management was founded by Scott McPherson and Sandy Fererra to provide residential landlords with a range of property management services, including rental property evaluation, marketing rental properties, tenant screening, lease execution and enforcement, rent collection, lease renewals, evictions, security deposit administration, property maintenance, property inspections, accounting, and reporting.
Pre-opening training includes four intensive days at corporate headquarters in Saint Petersburg, Florida, and two more on-site days of training upon opening. Ongoing training and support is provided year-round as needed.
Each location gets its own customized interactive website with listing integration and a comprehensive web-based software package to manage the business. Each franchisee gets a protected territory with no worries about competing with other All County franchisees.
This company currently ranks #452 on Entrepreneur magazine’s Franchise 500 list. Founded in 1990 and franchising since 2008, the number of locations has expanded in recent years from 13 in 2011 to the current total of 50, only one of which is company-owned and all of which are located in the U.S.
4. Keyrenter Property Management
Keyrenter Property Management was started by CEO and co-founder Aaron Marshall after nearly a decade of success as a real estate investor, agent, and broker. Services offered include finding quality tenants with a 13-point tenant screening process to identify quality tenants who are able to meet the commitments of Keyrenter’s tried and tested lease agreement. The company is proud of its low eviction rates, with less than 1% of Keyrenter lease agreements ending in eviction.
It advertises a vacant rental on more than a hundred syndicated sites online in order to quickly attract the right tenant. Its comprehensive property analysis service enables the negotiation of the highest possible rent while proactive management systems help reduce maintenance costs. Constant communication with landlords about every task associated with the management of a property occurs through email notices and an online owner portal.
Founded in 2007 and franchising since 2014, the number of locations currently stands at 31, three of which are company-owned and all of which are located in the U.S.
An Important Note About Our Methodology
The franchises on this list were ranked according to the number of units in the franchise system. If you are a prospective franchisee searching for franchise opportunities that meet or exceed certain performance benchmarks for sales, profits, and return on investment, please check out this list of America’s Most Lucrative Franchises.