This Los Angeles Area property management company focuses on the leasing and managing single to multi-family residence rentals. The well-established firm represents approximately 260 homes, providing its owner a stable recurring client base. The business is deemed to be a relatively low maintenance one, in that staff are in place to manage accounting and bookkeeping, and they only field perhaps 1-3 new client calls per day during the November to February low season as well as the high season.
The business is operated out of 1,500 - 1,600 square foot office comprised of 4 rooms and a large reception area and rest room that leases for $1,784 per month.
Competition certainly exists in many facets of the residential property management industry however this business has a unique competitive advantage due to its unparalleled national search engine optimization (SEO) presence and success. Also, it has gained a critical mass of recurring clients that provide it the experience, credibility and stability base that truly sets it apart from its competition. In addition, as it's a franchise operation, they not only benefit from an steady flow of corporate referrals, but they also have the systems in place that have been developed based on decades of best practices learned via their nationwide operations as well as the requisite training and support available to assist owners in navigating any situation. The franchise credibility and support truly set it apart from any competition from start-ups or small operators and puts the operation in a league of its own.
Tremendous upside potential exists for a sales oriented owner-operator that wishes to maximize their return on investment, integrate an in-house maintenance and repair staff, and aggressively promote their services and bolster the numerous avenues for additional service fees (e.g. they waive 95% of late fees, only recently started to charge re-leasing fees, and there is room to increase management fees, etc.). New management may also wish to reach out to the real estate community, which has never occurred. It is estimated that this could bolster the client base by 12 - 18 annual clients. Finally, several avenues exist to optimize expenses up to 30%, which has not been management's focus. It is estimated that potentially $100,000 or more may be added to the bottom-line if repairs and maintenance were managed via in- house staffers.