The real estate industry has always had great curb appeal for entrepreneurs. In property management especially, the demand and potential for revenue growth has always been great. The problem for most entrepreneurs is finding the right business to help guide them and offer them the tools they need to succeed.
The Real Property Management franchise, however, has opened the door for entrepreneurs for decades now. The property management company has established itself as one of the best-known and most-respected brands in the real estate industry, making it a great option for anyone interested in a serious career in real estate.
AskMrFranchise takes a closer look at this property management franchise below!
The Real Property Management Story
The origins of the Real Property Management franchise date back to when co-founder and chairman Kirk McGary started working part-time in property management with some friends during his college years, sparking his interest in the real estate industry. After finding success in software development and accounting, McGary founded Real Property Management in 1986.
The company, which specializes in almost all aspects of property management such as property maintenance and repair, rent collection, real estate inspection, tenant screening and accounting, grew steadily over the years and established itself as a leading brand in the real estate world.
Around 2004, McGary partnered with fellow entrepreneur Doug Oler, who had extensive experience in operating multi-unit companies. Together, the pair opted for franchising as a means to continue expanding the business, officially launching their first franchise unit shortly thereafter in 2005.
Since turning to franchising, Real Property Management has seen tremendous growth and even more success. The business opened its 50th franchise in 2009, 100th in 2011 and 300th in 2017, reflecting its rapid expansion in recent years. Today, the Salt Lake City, Utah-based company is the largest property management business in North America and continues to be a recognized market leader in the real estate industry year after year.
Why Do Entrepreneurs Find Real Success with Real Property Management?
1. Positioned for Strong Growth in the Future
In recent years, renting in the United States has increased greatly in popularity, with over one-third of households now renting and homeownership declining. With vacancies trending downward in many major markets and monthly rental rates on the rise, companies like the Real Property Management franchise are positioned for solid growth in the years ahead.
2. A Well-Known Market Leader
The Real Property Management franchise was established in 1986 and has been franchising since 2004. With decades of experience and brand recognition to its credit, the company is widely seen as a well-known and respected market leader, giving it an edge in a crowded and competitive industry.
3. Extensive Training and Ongoing Corporate Support
The company offers a very extensive training program and robust corporate support to help franchisees succeed.
Prior to officially starting training, new franchisees are required to obtain their real estate license in the state they’ll be operating in and complete all pre-training requirements. After this, they’ll officially undergo an initial training program at the company’s Salt Lake City, Utah headquarter or another designated location before completing an extensive 12-week training course that includes working with a support specialist to lay out their business goals and understand how to operate their franchise unit successfully.
New franchisees also receive six weeks of sales training via webinars and conference calls and can also attend additional training sessions and the company’s national convention to hone their skills and network with others.
The Real Property Management franchise’s support for its franchisees doesn’t stop there. In addition to this comprehensive training, the company also offers ongoing support for marketing, technology, volume purchasing power, and much more.
4. Accessible for Just About Everyone
One of the great aspects of Real Property Management is that it’s accessible to just anyone, not just seasoned real estate professionals. All that’s needed to begin training is a valid real estate license – that’s it!
5. Great Revenue Potential
Under the company’s business model, franchisees aren’t burdened by inventory or accounts receivable and also enjoy affordable start-up costs. This creates great revenue potential for franchisees to tap into as they enter the world of real estate.
Initial Franchise Fee: $55,000
According to the 2020 Real Property Management FDD, the company requires a nonrefundable $55,000 initial franchise fee for all franchisees payable upon signing the franchise agreement. Qualifying franchisees may see their fee reduced below this amount through the VetFran discount, however. Other discounts for cash payments, additional territories, additional concepts, and entrepreneurs with 100 or more properties under management who opt to merge with the company under specific conditions are also available.
Royalty Fees: 7%
Real Property Management’s royalty fee, known as a license fee, is determined as the greater of 7 percent of gross sales plus 3 percent of maintenance revenue or $250, except for “roll-in” sales from merged businesses. The fee is payable on the 15th day of each month.
Estimated Initial Investment Costs: $101,224 – $154,974
|Name of Fee||Low||High|
|Initial Franchise Fee||$55,000||$55,000|
|Marketing (3 months)||$5,000||$5,000|
|Equipment and Supplies||$2,500||$5,000|
|Training, Travel, Lodging and Food||$1,000||$2,000|
|Furniture, Fixtures, and Equipment||$500||$2,000|
|Property Management Software||$1,024||$1,024|
|Software Subscription Fee||$384||$384|
|Task Management Software||$66||$66|
|Licenses, Permits and Subscriptions||$500||$1,000|
|Legal and Accounting||$250||$5,000|
|Additional Funds (3 Months)||$30,000||$40,000|
Revenue Range: See FDD
The 2020 Real Property Management FDD provides further details on the revenue ranges that franchisees may be able to expect based on their length of operation.
However, the company’s total number of franchises overall reported an average annual revenue of $3,170 per unit based on the most recent data. It should be noted that this figure is only an average and not a guarantee in any way of what franchisees can expect to generate in terms of revenue.
Is Real Property Management the Right Investment for You?
It’s easy to see why Real Property Management has had so much success over the years, especially since turning to franchising to help it grow.
With its position as a market leading in a growing industry, excellent training and support, and accessibility for entrepreneurs with little to no experience, the Real Property Management franchise might just be the right investment for you!
For more information on the Real Property Management franchise, check out their client page!