A Closer Look of IPG Florida Property Management Franchise
Written by: Laura Vazquez
Last Updated by
María Fernández Amato: March 14, 2023
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IPG is a property management franchise, managing and renting out vacation homes (single-family homes with private swimming pools) and condominiums. All homes are located either close to Florida’s Disney World or the Florida Gulf Coast beaches. Established for more than 20 years, IPG Florida Professional Management, Inc. along with Bay Pointe Property Management now manage over 650 homes in the Orlando and Gulf Coast areas of Florida.
Contents
Management Team
The International Property Group was formed in 1990 in the United Kingdom by Graham Greene. It began with the marketing of properties for sale in Florida and soon expanded its activities to include properties for sale in Spain, Cyprus, Tenerife, and South Africa. In September 1996, IPG Realty, Inc. (now IPG Realty, LLC) and IPG Professional Management, Inc. were formed. IPG Realty, LLC is a real estate brokerage that is licensed by the Department of Business and Professional Regulation to broker real estate sales anywhere in the State of Florida.
IPG Professional Management, Inc. is a full-service property management company specializing in the management and short-term rental of absentee owned homes. Its rental division IPG Florida Vacation Homes has become a major player in the vacation rental marketplace.
Franchise Property Management Industry Analysis
Franchise Strengths
- Instant book of clients already secured by the opening of the business, which facilities income generation immediately
- IPG can offer the best of both worlds to homeowners, the care and service of a small property management company (through its franchisees), and a large enough presence to attract a high number of renters
- Ability to generate revenue through multiple revenue streams
- Ability to have a managed portfolio by IPG corporate
Franchise Weaknesses
- If active in the business, must be willing to put in the time and effort necessary to grow the business for the first few years, but will then have the option to enjoy the freedom that comes through scalability and a large book of clients
- Competing with both large property management firms and smaller mom-and-pop property management firms
- Can be more time intensive than traditional property management due to the short duration of stays
Property Management Industry Franchise Opportunities in Florida
- Over 60 million tourists visit Florida per year, with an increasing amount choosing to stay in vacation rentals instead of hotels
- Many online portals like Expedia, Booking.com, and Airbnb exist that can be utilized quite effectively in order to rent out the locations
- Ability to obtain more properties over time
Threats in the Property Management Industry Franchise Market in Florida
- Potential for new competitors entering the space, whether franchise models or corporations
- Potential for very stressful weeks during hurricanes and extreme weather situations
How Much Is an IPG Florida Franchise?
Owner Operator Franchise (Diverse Portfolio)
IPG Florida Franchise cost ranges from $184,000 to $389,850 according to their 2022 FDD.
Estimated Initial Investment
| Type of Expenditure | Amount | To Whom Payment Is to Be Made | |
|---|---|---|---|
| Low | High | ||
| Initial License Fee | $25,000 | $25,000 | Us |
| Initial Business Fee (Certified Property Operations Manager Agreements provided FOC on a 2 for 1 basis) | $120,000 | $240,000 | Us |
| Escrow Fee | $0 | $10,000 | Us |
| Leasehold Improvements | $1,000 | $2,000 | Third party suppliers |
| Vehicle | $7,000 | $30,000 | Third party suppliers |
| Property Maintenance Equipment | $500 | $2,000 | Third party suppliers |
| Rent – first 3 months | $1,000 | $1,600 | Third party suppliers |
| Architectural, Legal & Accounting Services | $2,500 | $9,500 | Third party suppliers |
| Furniture, Fixtures and Equipment (exclusing vehicles and trailer) | $1,000 | $3,250 | Third party suppliers |
| Propietary Materials | $500 | $1,000 | Third party suppliers |
| Opening inventory, supplies and ancillary products | $300 | $700 | Third party suppliers |
| Utility Deposits | $200 | $300 | Third party suppliers |
| Training | $2,500 | $5,000 | Third party suppliers |
| Insurance | $2,500 | $4,500 | Third party suppliers |
| Additional Funds – 3 months | $20,000 | $55,000 | Third party suppliers |
Semi-Absentee Franchise (Rental Management Assisted)
IPG Florida Franchise cost ranges from $300,800 to $1,115,000 according to their 2022 FDD.
Estimated Initial Investment
| Type of Expenditure | Amount | To Whom Payment Is to Be Made | |
|---|---|---|---|
| Low | High | ||
| Initial License Fee | $25,000 | $25,000 | Us |
| Initial Business Fee | $249,000 | $999,000 | Us |
| Escrow Fee | $0 | $10,000 | Us |
| Leasehold Improvements | $1,000 | $2,000 | Third party suppliers |
| Rent – first 3 months | $1,000 | $3,750 | Third party suppliers |
| Architectural, Legal & Accounting Services | $2,500 | $9,500 | Third party suppliers |
| Furniture, Fixtures and Equipment (exclusing vehicles and trailer) | $1,000 | $5,250 | Third party suppliers |
| Propietary Materials | $500 | $1,000 | Third party suppliers |
| Opening inventory, supplies and ancillary products | $300 | $700 | Third party suppliers |
| Utility Deposits | $200 | $300 | Third party suppliers |
| Training | $2,500 | $5,000 | Third party suppliers |
| Insurance | $2,500 | $8,500 | Third party suppliers |
| Additional Funds – 3 months | $15,000 | $45,000 | Third party suppliers |
Royalty Fee: $60 for each property under management on the last day of each month.
Marketing Fee: $5 for each property under management on the last day of each month.
Conclusion
IPG Florida’s long experience in the vacation rental space and ability to start the business with either 8 or 20 homes is quite compelling, especially given the flexibility that the business offers its franchisees. IPG corporate’s ability to manage the doors and grow the business is also a major benefit.
If you are interested in more franchise opportunities in the Real Estate industry, make sure to check out our website Vetted Biz and learn all about them!
