Due diligence for a property management company

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August 15, 2024

by a searcher from University of Wisconsin - Whitewater in Chicago, IL, USA

Looking for advice on due diligence for acquiring a property management company. Also, I'm curious about the pros and cons of this business model. Is anyone here in the single-family property management and real estate space or looking to get into it? I'd love to talk shop, discuss trends, and explore valuations that folks are seeing. I know many are probably in the multi-family space, so single-family might be a bit harder to network around, but I’m eager to connect and share insights.

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Reply by a searcher
from University of Pennsylvania in New York, NY, USA
3rd party property management businesses tend to be relatively low margin businesses with a lot of personnel turnover. They can be very management intensive and there is often a high level of competition in the space. If you explore an opco/propco path that could be a good way to diversify and better control your income streams while keeping the door open for 3rd party management work too. Feel free to DM if you'd like to chat. Curious to hear what you're seeing out there.
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Reply by a searcher
from University of Miami in Key Biscayne, FL 33149, USA
^redacted‌ that is not my experience at all. If you can manage your overhead, and scale units under management, it’s pretty high margin - but has to be at scale.
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