Keyrenter Franchise: A Leading Property Manager (2024)
Jack: Well, thank you, everyone, for reading this article. You have Jack Findaro here, co-founder at Vetted Biz, speaking with Dimitri from Keyrenter. We’re here to learn all about Keyrenter: the concept, the property management industry in general. And hopefully, educate individuals who might be interested in the Keyrenter franchise. Dimitri, thank you so much for joining.
Dimitri: Thank you, Jack, for having me. I’d been with Keyrenter for about 15 months now, and it’s been quite enjoyable. We’ve had a very successful year. The property management space is growing. And is gaining a lot of attention just because of the real estate market right now. And there are a lot of similarities in how they’re tied together there. This is where I kind of want to introduce the opportunity.
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The Differential Offer of Keyrenter
With property management, a lot of people kind of get a sour taste or a bad idea of property management. And I can assure you that a lot of what you think about property management isn’t the case. Some worries, for example, like having to deal with maintenance calls or other issues like that.
In our case, we have tools and processes in place that make it very easy. So you don’t have to deal with midnight calls, which is a very common misconception. But talking about the industry itself, before being in this space, I didn’t or wouldn’t have even guessed that the numbers looked like this.
The Property Management Demand on Numbers
You have 45 million U.S. households in the United States that are renting out their homes. And you have about 110 million people that are renting. So a little bit north of a third of the population in the U.S. is looking to rent, the number there is 37%.
And with the current conditions of the real estate market, it is driving homebuyers further and further away from that and drawing them more towards the idea of renting, so that’s continuing to increase as time goes on. We’re seeing our business grow tremendously right now.
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Making the Difference
Looking at, kind of, what makes Keyrenter a little bit different is the fact that Keyrenter focuses solely on single-family homes. You have some competitors of other property management companies or even some mom-and-pops that try and do short-term vacation rentals, commercial properties, or apartment complexes.
We have found that our bread and butter is single-family homes. It is proven to be the most profitable and the most sustainable long-term.
Keyrenter remains hyper-focused on that area. Now, that’s not to say that after you have some experience that you can’t venture out into some of those other areas, but our support and our focus is in that single-family home market. Just to give you an idea on kind of what makes Keyrenter a good opportunity, it’s that the industry is booming.
A Very Projectable and Scalable Business
As you look for, essentially, putting together a pro forma for yourself, it’s fairly easy to do so. For example, let’s say you’re charging 10% as a management fee and it’s $2,000 a month for rent, your income for that property is gonna be $200 a month. It’s pretty easy to put together your income there, and then your expenses, as you go through that process, can outline what that’ll look like for you.
How About the Initial Investment
As far as franchising is concerned, it’s a very low capital investment. Of course, that’s relatively speaking. I’m not saying that $80,000 to $130,000 isn’t a lot of money because certainly, it is. But in the franchising world, it’s very affordable.
Also, this is a model where it’s almost impossible to go bankrupt. Almost no barriers to entry in this space. We have a lot of prime territories still available. The only markets that are essentially sold out are Denver, Dallas, and parts of Florida. The rest of the country is very wide open, so a lot of amazing opportunities.
Then, the final piece that is the most important thing that makes Keyrenter a good opportunity and makes us different is the company culture and support that we provide. If you engaged in this discovery process and started to meet our team a little bit, you would realize how entrepreneurial and how different it is with Keyrenter Property Management.
Who is the ideal franchise owner for Keyrenter
We want to make sure we set the right expectations. And we’re looking for someone that’s going to work full-time in the business. This isn’t something that we see being successful if you are doing it part-time. Embraces technology, and what we mean by that is, is everything that we do is software-based. As long as you have a wi-fi connection, you can do your work from anywhere, which is nice and appeals to a lot of people.
The three things that will make you the most successful or trends that we see in our top 20% of performing franchisees will encompass the next three points that I’ll talk about.
An entrepreneurial spirit and a drive to succeed:
When you understand truly your why, and why it is that you wanna be a business owner, as you go through those beginning stages where you’re not making money and continue to stay motivated with that why factor, that will help you to push through those times and be successful.
The natural people personality:
Real estate is such a relationship-driven industry. Your ability to network, build, and grow those relationships in your area will be a large driving factor in your ability to succeed in this industry.
And then, finally, kind of what we’re looking for is someone willing to follow those proven systems that we have:
We spent, you know, the last seven years of franchising, understanding how to alleviate the learning curve the right way, and so we have the proper systems and tools in place to help you to be successful.
Essentially, 90% of our franchisees come from a background that has nothing to do with real estate or property management. We don't have any sort of non-negotiables as far as the ideal franchise owner. We think that various types of backgrounds are useful in growing a business.
Training Franchisee
Something that we emphasize is that even with someone with no property management experience at day zero, by the end of that first year, we want you to have full confidence moving forward to be successful in running and operating your business.
We have weekly one-on-one coaching calls, as an example, where we go through those conversations. And we’ll go through scenarios of different types of conversations that may come up, and how to navigate through those to be successful on those properties.
Also, we have a contract with AppFolio. Our new franchisees can just come in and utilize that software, so that’s a major benefit there. Then we have some training and other software that we’ve developed in-house to help assist with that back-end items.
How does Keyrenter Compete in the Market?
Out of that 45 million people that are renting out their houses, 70% of that 45 million are do-it-yourself property managers. One thing that sets Keyrenter apart is the tenant screening process that we have. Relationships first are the ultimate priority in this industry.
In the seven years that we have been franchising, to date, we’re managing about 60 to 100 properties. We’ve evicted less than 1% in those 7 years. We have a phenomenal eviction rate percentage there.
