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Property Management Franchise & Business Opportunities

Property Management Industry

General Industry

The property management industry oversees both residential and non residential real estate for property owners, primarily in the form of apartment buildings. The very nature of this industry means that the majority of the consumer base in this industry are high net worth individuals, since real estate as a whole is generally reserved for the wealthy who can afford to buy and sell multiple properties. Responsibilities of owners in the property management industry include, but are not limited to rent collection, trash removal, indoor plumbing, and other general maintenance. This sub industry is distinct from the actual investment and transaction of real estate, even though those in the property management sector frequently deal with accounting matters.

Real Estate Industry Trends

The real estate industry has not been exempt from the debilitating economic impacts of the COVID-19 pandemic. At the base level, stay at home orders and fear of transmission has limited open-houses, and economic insecurity has reduced demand in the housing market. However, changes in the real estate industry has largely been regional — real estate in rural areas have experienced a surge in demand while real estate in metropolitan areas have declined as remote work becomes a prominent alternative to traditional work. The temporary halt of rent payments in 2020 and tenants continuing to struggle to pay rent thanks to the economic downturn brought on by the pandemic has also affected the real estate industry significantly, especially small-scale landlords and property owners who depend on rent payments to make mortgage payments.

Key Industry Numbers

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Paid-in-Full Rate

The Paid-in-Full Rate is when the SBA loan is fully paid off by the small business owner including interest, indicating financial strength.

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Charge Off Rate

The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the small business owner.

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SBA Loan Success Ratio

For every 21 SBA loans fully paid including interest, 1 SBA loan was unable to be paid back, or defaulted. 

*SBA Loan Data from 2010-2019

*Non-Franchise Businesses taken into account: 9,131

Property Management Industry Trends

Currently, the property management industry is worth over $88 billion and has almost 300,000 operating businesses. Due to the pandemic, the industry experienced a 2.7% decline in 2020 thanks to a temporary federal halt on rent payments, leaving landlords to pay mortgage payments without this crucial source of income. Furthermore, COVID-19 and the advent of remote work has led many to move out of once busting metropolitan areas and into cheaper, more suburban or rural areas, severely impacting the future of property management in urban areas. Remote work will also likely affect property management of commercial spaces in the future, as less companies will rent out office spaces once leases expire if work can be accomplished virtually.

Average Real Estate Franchise Industry Percentage Fees

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Royalty Fee
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Marketing Fee

Standard Real Estate Franchise Industry Investment

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This metric is the standard industry investment amount for a single unit franchise investment in this industry. Our research and analytics team analyzed over 69 franchise concept investment breakdowns in order to calculate this figure.

SBA Franchise Loan Data

0 %
Paid-in-Full Rate

The Paid-in-Full Rate is when the SBA loan is fully paid off by the franchisee including interest, indicating financial strength.

0 %
Charged Off Rate

The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the franchisee.

0 :1
SBA Loan Success Ratio

For every 26 SBA franchise loans fully paid including interest, 1 SBA franchise loan was unable to be paid back, or defaulted. 

*SBA Franchise Loan Data from 2010-2019

*Franchise Businesses taken into account: 542

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