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If you’re looking to acquire a property management company, there’s good news and bad news. The good news is that there are some great companies out there. The bad news is that you’re probably not the only person looking to buy them. The property management M&A market has far more qualified buyers than owners ready to sell. When a strong company enters the market, sellers often have choices. That means your job isn’t simply to determine whether you want to buy the company. You also have to give the seller a reason to choose you. Having the money makes you…

Artificial Intelligence. Real Value. If you’re thinking about selling your property management company, you’re probably looking for ways to make it more valuable. Increasing revenue and improving profitability certainly matter, but buyers are looking at more than just the bottom line. They’re also asking how efficiently the company produces those earnings, how dependent it is on the owner, and how easily the operation can scale under new ownership. That’s where AI gets interesting. Simply using AI doesn’t make your company more valuable. A buyer isn’t likely to pay a higher multiple because you have a chatbot, automate a few emails,…

One of the questions I ask owners who are considering an acquisition is surprisingly simple: “Why do you want to buy this company?” You’d be amazed how often the answer is some version of, “Well…it’s available.” That’s not a strategy. Just because a company is for sale doesn’t mean it’s a good acquisition. In fact, some of the worst acquisitions happen because buyers become more excited about the opportunity than they are about the purpose behind it. Every acquisition needs a job. Before you ever begin due diligence, you should know exactly what role that company is supposed to play…

One of the factors brokers consider when deciding to accept a listing is how much work a seller is willing to put in before going to market. Creating a well-organized, easy-to-understand package adds value for buyers and helps the deal move faster and more smoothly. Here’s what I tell both sellers and buyers: Take the time (or get help) to put your books in order and organize your financials. Your broker will give you a list of documents you’ll need to have ready for lenders and buyers: tax returns, P&Ls, and specific data about your properties, such as turnover and…

Growth is exciting. Adding doors, entering new markets, and announcing acquisitions all feel like progress. But after years of operating property management companies and helping owners buy and sell them, I’ve learned something important: Not all growth creates value. I’ve seen companies double in size while becoming harder to operate, less profitable, and ultimately less attractive to buyers. I’ve also seen companies make one strategic acquisition that dramatically increased the value of the entire business. The difference isn’t how much they grew. It’s how they grew. Every acquisition should begin with a simple question: Will this make my company more…

I’ve met a lot of people in business who believe that a company’s buyer and seller are opponents. The objective for each is to “win” the deal. In my experience, however, the most successful transactions are those in which the two parties view themselves as partners working toward a common goal. Of course, both buyers and sellers want to negotiate the best possible price and terms, and that process can sometimes be emotional. But those negotiations represent only a small part of the overall transaction. In many cases, the really important work begins after the contract, or even closing documents,…

It might be natural to think that signing a large account is good for your property management business. It certainly can be, however, there is a point when any one customer can represent too much of your overall client mix. Why is this a problem?  It’s not an issue—until it is. You may have staffed up to support the workload and lined up vendors accordingly, but that also means your business could face significant disruption if that account is lost. Even with a strong relationship with the property owner, factors beyond your control—such as a sale of the properties, changes…

If you’re selling your property management business, you may attract buyers who are new to the industry. As a seller, you’ll probably spend some time educating them on the industry, your revenue model, and your performance metrics. That’s why buyers with experience in property management are so valued. Strategic buyers speak your PM “language” already; they’ll be most interested in the financial health of your business as it compares to others in the industry. A few years back, the National Association of Residential Property Managers (NARPM) worked with seasoned PMC owners and operators to develop the NARPM Accounting Standards as…

What Buyers and Sellers Get Wrong in PM Acquisitions with Patrick Hurley In this episode, I sat down with Stacey Salyer to break down acquisitions from a broker’s point of view – what actually determines whether a deal closes, stalls, or quietly dies in the messy middle. This is a practical conversation about exposure vs off-market deals, valuation reality, deal structure, retention clauses, financing readiness, and the operational details that quietly carry the most risk. In This Episode We talk about: What brokers actually do in PM acquisitions and why representation changes outcomesWhy “What’s my company worth?” is the wrong…

How Owner Involvement Impacts Business Value — and Your Ability to Sell One of the first questions serious buyers ask when evaluating a company is simple: How dependent is this business on the owner? In real transactions, owner dependence is one of the fastest ways to reduce both buyer interest and sale price. Buyers aren’t looking to purchase a demanding job—they’re looking to acquire a stable, transferable stream of cash flow. If a business cannot operate smoothly without the owner’s constant involvement, many qualified buyers will simply move on. There’s a practical rule of thumb that applies across nearly every…

Most business owners eventually reach one of two natural endpoints: They either hit the number they need to retire and move on, or they simply know—without a doubt—that it’s time. Sometimes that realization comes from burnout, personal or family changes, health concerns, or just waking up one morning feeling ready for a new chapter. The holiday season and the end of another year have a way of bringing these thoughts to the surface. As the year winds down, you reflect on what’s working, what isn’t, and what you want for the future. If the idea of selling your business has…

If you manage properties, I’m not telling you anything new; vacancies are bad for business. The national rental vacancy rate is 7 percent, according to second quarter 2025 Census data. If your vacancy rate is higher than average, it doesn’t just affect your owners. It can affect your ability to grow your portfolio and significantly impact the value of your business when you’re ready to list and sell the business. The offer you’ll get to buy your property management company will be based on a multiple of your Seller Discretionary Earnings (SDE) – what a business owner can expect to…

Property management is an attractive industry for aspiring business owners. Nearly everyone has lived in a home or apartment, so they have a basic understanding of what it takes to manage a well-run property. It’s a business with relatively low startup costs, the flexibility to grow gradually, and the potential to become highly profitable. Property managers gain hands-on experience in real estate, investing, and operations—making it one of the most accessible and effective paths to long-term wealth. Right now, the market is strong for sellers across nearly every industry, and property management is no exception. But not everyone is built…

For most business owners, selling their company is a once-in-a-lifetime event. The stakes are high—often, the proceeds from the sale are funding your retirement—so you only get one shot to get it right. That’s why I always recommend working with an experienced business broker. But not just any broker—if you want to maximize the value of your sale, you should choose one who specializes in your industry. Here’s why that matters. They Speak Your Language An industry-specific broker understands your business model, revenue streams, and the nuances that make property management companies unique. They don’t need a crash course in…

Larger isn’t always better, even in property management. Sometimes, a slightly smaller, but higher quality portfolio will be more valuable and will probably be less trouble to manage.  Most educated buyers will look at this like “RPU” (Revenue Per Unit) as an initial assessment of a portfolio and this is impacted by your average rent rate and various revenue streams.  Do you know yours?  Is it in line with local and national averages, or is there work to be done? The Pareto Principle, also known as the 80/20 rule, tells us that roughly 80% of outcomes come from 20% of…

When I say ‘mind your own business,’ I mean it literally (no snark). It’s easy, especially in times of change and uncertainty, to focus on the national news, the pundits who tell you the sky is falling, and the scary economic predictions (tariffs, struggling stock market, “recession”) The fact is that most of the news probably won’t affect your day-to-day business operations, and nothing good comes from worrying about what hasn’t yet happened. News, economics, and politics have always been cyclical, and what’s happening now will be old news in a year or less. Whether it’s good news or bad…

From Government to Private Sector Let me start by saying, this is NOT a political statement or article. Rather, it’s looking at our current environment to identify opportunities for my clients and our industry as a whole. At last count, over 75,000 federal employees have been laid off or offered buyouts. Contrary to what many people assume, most federal employees are not based in Washington, DC.  Many of them work remotely and live in communities all over the country. They choose government jobs for a variety of reasons: the chance to serve, the benefits, and until recently, the job security. …

Growth is the goal of almost every business owner.  As property managers, we gain experience over the years, and this largely comes with gains in efficiency that allow us to increase volume and take more units under management. That’s the idea…more properties and, ultimately, more money. More money that hopefully leads to a more profitable business and a more valuable company.   I’ve been in the property management industry for 20+ years, and I’ve learned a lot about smart ways to grow your portfolio, along with plenty of things to avoid.  There are two basic strategies that business owners employ…

Is there a best time, an ideal time, to sell your company? The answer is highly personal, but my experience with business owners has given me some insight into how you know the time is right. First, the time to “plan to sell” is long before you’re serious about the process of selling. I always advise owners to build your business as if you’re about to sell it. If it’s always in a “sale ready” position, you have a much more flexible exit at any time.  One good reason for planning ahead is to get clarity on your financial goals…

Owning and operating any company is hard work, but if you’re reading this, chances are that you know property management companies can be especially challenging because you’re also in the people business. Some days, you might even wish you weren’t. In those moments, it can be hard to tell if your thoughts about selling are the beginning of a serious decision  – or just a reaction to a bad day. There are plenty of reasons PM company owners don’t make a call to a business broker every time they think about selling. Here are my reactions to some of the…

If you’re selling your company (or just thinking about it), chances are you’re doing it for the first time. We’ve prepared a helpful list of terms that you’ll come across during the course of listing your business and negotiating a deal. Understanding these phrases and how they apply to transactions will help you when you talk to your broker, your attorney, and the seller. Pertaining to Your Business Business Broker Terms Buyer Terms Clawback  As the name indicates, it is a contractual provision that allows for the buyer to take back money already paid to the seller.  It is a…

Our company has identified the need for a program that allows realtors to refer small portfolios to free up their time to concentrate on sales. Internally, we’re calling these “micro-acquisitions” since they are manageable chunks and simpler to work with agents as growth partners instead of a more formal buyout. Externally, we present it as a vehicle for Realtors to provide better value to their clients without forgoing all of the revenue. Perhaps this growth strategy works for you.  Many Realtors get into property management by accident.  It’s at the request of an owner with whom they have a relationship,…

If you’re considering putting your property management company on the market, staff may be one of the pieces you’re evaluating. Should you add or subtract staff before the sale?  The answer will vary between companies and situations because there are multiple sides from which to view it.  Do you have so many people on staff that your NET income is lower than it should be, or do you personally take on so much responsibility that your bottom line appears to be artificially high compared to a new owner who doesn’t intend to be working fully in the business day to…

In his bestseller, The Seven Habits of Highly Effective People, Stephen Covey wrote, “Begin with the end in mind.” Covey meant that effective people start any project by defining clear measures of success and a plan to achieve them. Business owners who know they want to sell their business and retire someday should start planning for their exit years before that day comes. That means keeping an eye on value the whole time you’re building and running the business. As you get nearer to retirement, you’ll be able to calculate how much you’ll need to get for the business to…

You’ve probably heard of the 80/20 Rule (FUN FACT – also called the Pareto Principle, after the Italian sociologist and economist Vilfredo Pareto, who wrote about it in 1906), which states that in almost any situation you can name, 80% of the consequences come from 20% of the causes. For example, you tend to wear 20% of your wardrobe 80% of the time, or a little closer to home for PM’s,  80% of a company’s sales are generated by 20% of its clients. And, most likely, 80% of your everyday headaches are caused by 20% of your property portfolio. What if we told you…

I’ve met plenty of property management company owners who woke up one day and knew it was time to get out. They realized they’re tired, they just don’t have the energy and passion for it anymore, or they’re finally ready to move on to the next phase of their lives. I’m happy to help them list and sell their companies, but I know they’re probably not going to get everything they want from the sale. That’s because by the time they’re ready to get out, they care more about closing quickly than negotiating the best deal. Selling under pressure, even…

If you’ve been thinking about selling your business within the next year or so, some of the challenges starting to face the market might actually make this the right time to list it. Here are some of the factors you should consider. Business brokers across almost every industry agree that many owners wait too long to start the sale of their companies. The ideal time to sell is when you’ve almost reached peak profitability, but still have some gas in the tank for a good push. Knowing when you’ve reached peak profitability is both an art and a science, and…

Here’s Why That’s a Bad Idea Dreaded words to almost every Realtor….For Sale By Owner (FSBO). We’ve all heard them, and in almost every case, a FSBO property is going to be a messier transaction with more issues, more setbacks, and more hurdles than one conducted by experts in their trade. The sad part is that most sellers trying to “save the fee” are simply misinformed or uneducated regarding the value created by working with a Broker specializing in that field.  A true professional makes the transaction easier and can net them more money in the sale.  What seller wouldn’t…

Over the years, I’ve spoken with many property managers, and the majority of them seem to undervalue the role they fill for their investor clients. Being a property manager is often viewed as a “job” or maybe even as a “Realtor” who manages properties. They don’t think of themselves as business owners, especially those who manage a smaller number of properties. They’ve been earning a good living and working hard. They enjoy the work and may have acquired more and better properties over the years, but the mindset has remained the same as the day they took the first rental…

Selling Your Property Management Company If you’re thinking about getting out of the property management business in the next year or two, you’ll need a plan. There are plenty of steps you can take to increase the value of your portfolio and make it more attractive to potential buyers, It’s important that you put things in motion with enough time to make a difference.  The first step to improving your portfolio is assessing your portfolio. Take a realistic look at the properties you have under management to see how attractive they’ll be to the new manager. Once you have these…

When it comes to selling their property management company, most owners think about a sale where they walk away from their business, and have a lump sum in their pocket. It’s the more “traditional” route, and some think it’s the only option.  While it may be the right choice for some, there’s another path that can create additional options for working a deal and has the potential to yield a higher sale price and increased proceeds in the end. Sounds interesting, doesn’t it? Let’s talk Owner (or Seller) financing…it’s a transactional model where the owner gets a down payment on…

Many property managers take the path of least resistance when it comes to raising rent. I get it; raising rates is never fun, and you sometimes get pushback from tenants, but having strong systems and consistent processes in place makes it easier for everyone involved, and the payoff can be significant. First, let’s clear up the issue of who you work for and who you work with. The tenants are your customers, but the owner is your client. Customers are people who pay rent. They’re important – we wouldn’t be in business without them – but remember, they selected the…

You have two options when you want to sell a property: put it on the market as a fixer-upper or put the work in to get full value from a buyer. You know the steps to take to be able to charge top dollar: make sure everything’s in good repair. Spruce up the landscaping. Improve the curb appeal and fix the glaring issues. Part of your job as an owner is to know how to calculate the return on your investment – is the work it needs going to pay off? If you’re thinking about selling all or some of…

Property management is big business. In 2021, the property management industry generated over 88 billion dollars in the United States. Real estate comprised 16% of the national gross domestic product (GDP). However, property management is also small business; more than 300,000 property management companies are registered in the United States, and the national industry employs over 367,000 workers and tens of thousands of self-employed managers. You might be one of them. And you might be looking for an exit strategy. Property management is rewarding, but it is also hard work. Dealing with prospects, tenants, employees, contractors, maintenance, repairs, weather, and…

The market for acquiring successful businesses in almost every industry is heating up. Buyers are motivated by companies with strong performance, consistent revenue, and big potential. That’s why they love the idea of buying a property management company. If you’re thinking about your exit strategy, consider these factors.

Property management companies have become more and more attractive to buyers in today’s marketplace. We started seeing intense interest in property management companies as appealing acquisition targets shortly after 2008’s “Great Recession” when the housing bubble burst and real estate sales were viewed as inconsistent. When it became harder to buy a home, good people with decent credit were forced to rent and the need for management services did nothing but increase. The industry has become even more attractive to business buyers, and with interest rates on the rise and housing prices high, the buying challenge may begin again.