Keyrenter Franchise in 2024: Costs, Fee & FDD
Interested in investing in Keyrenter Property Management? Learn about the franchise’s growth potential, strong support system, and the financials that make it an attractive opportunity for real estate investors. Read our full analysis!
Table of Contents:
Keyrenter Property Management was founded in 2009 with the goal of providing exceptional property management services to real estate investors and homeowners across the United States. The franchise was created by experienced entrepreneurs with a strong background in the real estate industry. The founders recognized a need for a comprehensive property management service that could deliver professional solutions, reliability, and ease for both property owners and tenants. Over the years, Keyrenter has grown into a respected leader in the property management sector, gaining recognition for its operational excellence, customer service, and innovative approach.
Keyrenter’s core services include residential property management, maintenance, and tenant placement. They offer a range of solutions such as leasing, property marketing, rent collection, and tenant screening, ensuring a full suite of services that cover every aspect of property ownership. Ancillary services include maintenance coordination, evictions, and financial reporting for property owners. The company’s core customers are property owners, real estate investors, and landlords who seek reliable, efficient management of their residential properties, as well as tenants in need of rental homes. Keyrenter caters to markets in need of property management, such as urban and suburban areas with high rental demand.
Currently, Keyrenter Property Management operates over 30 locations across the United States, with plans for continued expansion. The franchise has established a strong presence in key U.S. cities and continues to grow, benefiting from the increasing demand for professional property management services. With its scalable business model, Keyrenter is well-positioned for further growth, catering to a daily customer base that includes hundreds of property owners and tenants. Its focus on delivering high-quality services and expanding its footprint makes it a strong contender in the property management franchise industry.
Keyrenter offers an extensive franchise support system to its franchisees. This includes comprehensive training programs that cover operations, marketing, tenant management, financial systems, and business management. Franchisees are equipped with proprietary software designed to streamline property management tasks, making it easier to handle day-to-day operations. The franchise provides ongoing support in terms of marketing assistance, business coaching, and operational guidance. With a low initial investment and a well-established business model, Keyrenter Property Management provides a solid foundation for potential franchisees to build a successful property management business.
Keyrenter Property Management Franchise Insights
- Keyrenter currently operates 54 U.S. locations, all of which are franchised units, highlighting the franchise’s strong market presence and its potential for growth in the property management sector.
- The franchise began offering opportunities in 2014 and continues to expand with a well-established model in the real estate industry.
- With the rise of real estate investment and the ongoing demand for rental properties, Keyrenter Property Management is positioned in a growing industry with the potential for steady, long-term returns.
Keyrenter Property Management Franchise Key indicators
Growth YOY (%)
18%
vs industry 4%
Total U.S. Franchised Units
54
3-Year Failure Rate
7%
vs industry 16%
Sales-to-Investment ratio
2.1:1
How much does it cost to open a Keyrenter Property Management franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Keyrenter Property Management franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a Keyrenter Property Management franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). you can see a breakdown of the costs to open a Keyrenter Property Management below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Franchise Fee | $45,000 | $45,000 |
| E-2 Visa Fee | $0 | $10,000 |
| E-2 Visa Deposit | $0 | $35,000 |
| Training Fee | $5,000 | $5,000 |
| Start-Up Marketing Package Fee | $10,000 | $10,000 |
| Travel and Living Expenses to Attend Initial Training | $3,000 | $5,000 |
| Real Estate/Rent | $2,500 | $5,000 |
| Real Estate Broker Fees | $5,000 | $10,000 |
| Real Estate Licensure or Property Management | $800 | $2,000 |
| Utility Deposits | $0 | $1,500 |
| Leasehold Improvements | $0 | $4,000 |
| Insurance | $1,500 | $4,000 |
| Office Equipment and Supplies | $1,000 | $4,000 |
| Signage | $500 | $5,000 |
| Furniture, Fixtures and Equipment | $1,500 | $2,000 |
| Appfolio Software Implementation Fee | $600 | $600 |
| Licenses and Permits | $1,650 | $3,000 |
| Legal & Accounting | $2,000 | $6,000 |
| Dues and Subscriptions | $1,500 | $3,000 |
| Keyrenter Marketing | $0 | $3,554 |
| Local Marketing and Lead Generation | $0 | $8,550 |
| Additional Funds-3 months | $30,275 | $57,275 |
| TOTAL | $111,825 | $229,479 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
To open a Keyrenter Property Management franchise, the required capital involves both the initial investment costs and a net worth requirement set by Keyrenter Property Management. Let’s take a closer look below:
- Initial Investment As shown above, the total estimated initial investment ranges from $111,825 to $229,479. This includes all the startup costs such as the franchise fee, real estate, construction, equipment, initial inventory, and additional funds for initial operating expenses. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets In the property management industry, franchisors typically expect liquid assets to cover initial operating costs, especially in the first few months. A good estimate would be around $30,000 to $50,000 in liquid assets.
- Net Worth Many property management franchises require a net worth of at least twice the total investment amount. For Keyrenter, this would suggest a required net worth of approximately $223,650 to $458,958.
How much does a Keyrenter Property Management franchise owner make?
Calculating the salary of a Keyrenter Property Management franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Keyrenter Property Management franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
Keyrenter Property Management Revenue & Gross Sales
Keyrenter Property Management has shown steady revenue performance, with median gross sales reaching $317,061. This figure reflects the franchise’s solid market position in the property management industry, driven by growing demand for professional property management services.
Which key factors impact the average revenue performance of Keyrenter Property Management franchisees?
The performance of U.S. franchisee median gross sales for Keyrenter Property Management is likely influenced by several key factors. Increased demand for rental properties, particularly in suburban areas, has driven more property owners to seek professional management services, expanding Keyrenter’s customer base. Additionally, the franchise’s strong brand reputation and proven business model, supported by effective marketing and proprietary systems, have helped franchisees streamline operations and attract more clients. Economic recovery and higher rental property investments also contributed to the growth. Moreover, the ongoing support from Keyrenter, including training, technology tools, and operational guidance, has enabled franchisees to optimize efficiency and improve profitability, further boosting their performance year-over-year.
Keyrenter Property Management Franchise Operational Costs
If you were to open a Keyrenter Property Management franchise, the key primary ongoing operational costs to consider would include:
- Staffing Costs Salaries for employees such as property managers, leasing agents, and support staff are essential for running day-to-day operations.
- Office Rent and Utilities Depending on your location, leasing office space and covering utilities like internet, phone, and electricity will be a significant operational cost.
- Property Maintenance and Repairs As part of property management services, you may need to coordinate and cover expenses for maintenance, repairs, and improvements to properties under management.
- Software and Technology Fees Keyrenter uses proprietary software to manage properties, track tenants, and process payments, so ongoing costs for these tools should be factored in.
- Insurance You’ll need to budget for liability insurance, worker’s compensation, and other business-related insurance policies.
- Local Marketing and Advertising While corporate marketing supports the brand, local marketing efforts to attract clients will require continued investment in online ads, community engagement, and promotions.
- Legal and Professional Fees You may need to budget for legal services, accounting, and other professional consultations as you manage contracts, evictions, and finances.
These ongoing operational costs are essential to running a successful property management business and ensuring smooth operations in the long term.
Keyrenter Property Management Franchise Fees
When considering an investment in Keyrenter Property Management, it’s crucial to understand the ongoing fees that come with operating a franchise. These fees contribute to the franchisor’s support services, brand development, and overall operational systems.
- Royalty Fee Franchisees pay a 7% royalty on gross revenue, which is due on the 15th day of each month. This fee covers the use of the brand, system, and ongoing support provided by Keyrenter.
- Brand Development Fund A 1% contribution to the Brand Development Fund is also required, which helps fund marketing efforts and brand growth. This fee is due on the same schedule as the royalty fee.
- Additional Fees There may be other costs outside of the royalty and brand development fees, or fees for additional services or software upgrades as the franchise grows.
These fees are an essential part of the ongoing operations, ensuring that franchisees receive continual support and that the brand continues to grow. Always confirm the full breakdown of fees directly with the franchisor before proceeding.
Keyrenter Property Management Franchise Earnings
Based on the most recent data, Keyrenter Property Management franchisees reported median gross sales of $317,061. This indicates the franchise’s steady financial performance and its ability to generate consistent revenue. With earnings for owner-operators at approximately $69,753, for franchisees who actively manage their operations.
The earnings represent a healthy return, especially when considering the operational support, training, and technology tools provided by Keyrenter. This allows franchisees to effectively manage their businesses, optimize efficiencies, and capitalize on the growing demand for property management services. However, earnings can vary based on territory, operational management, and local market conditions, so prospective franchisees should carefully assess their financial goals before making an investment decision.
How to Open a Keyrenter Property Management Franchise
Becoming a franchisee with Keyrenter Property Management involves several key steps that ensure both you and the franchisor are aligned in terms of goals, expectations, and readiness. Below is the typical process:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Franchise Application and Interview: After reviewing the FDD, you’ll complete the franchise application and schedule an interview with the Keyrenter team. This interview is an opportunity to ask questions, learn more about the business model, and discuss the specifics of what it takes to succeed as a Keyrenter franchisee.
- Financial Assessment and Approval Keyrenter will assess your financial situation to ensure you meet the capital and net worth requirements. If you qualify, you’ll receive approval to proceed to the next step. This includes ensuring you have the liquid assets necessary to support the franchise startup costs and operations.
- Signing the Franchise Agreement Once approved, you’ll sign the formal franchise agreement, which outlines the terms and obligations for both parties. This agreement officially grants you the rights to operate a Keyrenter Property Management franchise in your selected territory.
- Training and Onboarding Before starting operations, you’ll undergo a comprehensive training program. Keyrenter provides in-depth training on property management, marketing, customer service, business operations, and using their proprietary systems. This ensures you are well-prepared to run your business successfully.
- Site Selection and Setup If needed, Keyrenter will assist in selecting an office location in a high-demand market and help set up the necessary infrastructure. This may include office space, acquiring the necessary technology tools, and getting your vehicles and equipment in place.
- Pre-Opening Marketing and Community Engagement Leading up to the opening of your franchise, Keyrenter helps with pre-opening marketing campaigns and provides tools to help you engage with potential customers in your area. This helps ensure that you hit the ground running when you open your doors.
- Launch and Start Operations Once everything is in place, you’ll officially open for business. Keyrenter continues to support you with ongoing marketing resources, operational guidance, and any additional assistance needed to help grow your business. The focus during this stage is on delivering high-quality property management services to clients and building a loyal customer base.
Pros & Cons
Pros
Proven Business Model: Keyrenter has a well-established, scalable business model that has been successful in over 50 locations across the U.S., with a focus on residential property management.
Steady Revenue Stream: With growing demand for property management services, Keyrenter offers a solid opportunity for consistent revenue through services like tenant placement, maintenance coordination, and rent collection.
Low Initial Investment: The franchise’s initial investment range of $111,825 to $229,479 is relatively moderate compared to other franchises in real estate and property management, making it more accessible to prospective franchisees.
Growth Potential: As the demand for rental properties increases, Keyrenter’s market position and scalability provide strong potential for expansion in both existing and new markets.
Cons
Labor-Intensive: Property management can be demanding, requiring franchisees to oversee a variety of tasks such as maintenance, tenant relations, and leasing, which can be time-consuming.
Competitive Market: While Keyrenter has a strong brand, the property management industry is highly competitive with many independent operators and national franchises vying for market share.
Market Sensitivity: Property management services can be impacted by changes in the real estate market, economic conditions, and local market fluctuations, which may affect revenues.
