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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 make operating the business. As we know all too well, our bottom line is directly correlated to rents brought in, and empty units don’t drive revenue. Rent isn’t like other products or sources of income in other industries, because you can never make up for a lost month of it. Once it’s gone, it’s gone. Managing vacancies is essential to the health of your business, so let’s look at some tips to help your owners and your bottom line:

1. Create strong systems to help your property managers stay on top of tenant cycles. Property managers have complex jobs. They’re juggling current tenants’ inquiries, complaints, and maintenance requests. They’re taking applications and screening prospective tenants, showing units, and tracking tenants who are moving out or who are behind in their rent. Customer Relationship Management (CRM) systems can help property managers stay on top of all the details and plan for the upcoming turnovers so details aren’t missed.

A CRM for property management enables you to track key metrics, including maintenance requests, vacancy rates, and overall property performance. You can also automate tasks like lease renewal reminders and tenant communications, making it easier to reach everyone at one time and send follow-ups when needed.

You should also have an incentive program that rewards property managers for reducing turn times and maintaining low vacancies. The highest-performing PM companies have vacancy rates of under 2 percent, which can translate to a significant increase in your income, depending on the size of your book of business.

2. Stay on top of market rental trends. What’s going on in your market (or nationally for that matter) that is impacting housing trends? Are those things pushing prices up or down? Vacancy rates are driven, in part, by pricing, so be proactive on your approach. If your units are staying vacant for longer periods, you might not be competitive in the local market, and you need to adjust. New properties with more amenities might be eating into your market share, or the demographics of the neighborhood might have changed over time, or there’s something pressing on consumer confidence. No one looks forward to a conversation with the property owner about lowering rents, but this is actually something that can save them money by minimizing losses. Remind owners that their biggest “expense” usually isn’t the extra $50 they complain about on a repair invoice….it’s the lost income stemming from delays in necessary price adjustments.

3. Monitor your internal trends, especially if you’re planning to sell the business within the next three years. Business brokers agree that the worst thing any owner who’s planning to retire or sell can do is take their foot off the gas pedal. Buyers look at three years of revenue and financial trends, so if vacancies are trending up and rents are trending down, it will definitely affect your ability to attract buyers and get quality offers. One year of good numbers isn’t enough to make up for two previous years of poor performance. That’s why staying on top of Key Performance Indicators like vacancies is essential to your current success and your future payoff when you sell.

Of course, neglecting to closely monitor vacancy rates will impact your income and, inevitably, your company’s value. Nobody strives to be average. Shoot for less than 7 percent and you’ll have a business that buyers will pay top dollar for.

If you want to find out what your business is worth in this market, click here to get a complimentary and confidential opinion of value.

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 to launch a business from scratch. We’ve all heard the stats: if you’ve started a business and are still standing, you’re already in rare company. According to the Small Business Administration (SBA), roughly 20% of new businesses fail within the first year. That number jumps to 30% by year two, and by the fifth year, nearly half have shut down.

Those numbers don’t reflect a lack of desire—there are plenty of people who dream of owning a business. But the truth is, most people either never take the leap or jump in only to find themselves overwhelmed by the demands. Starting a business means more than just having an idea or passion. It requires wearing every hat—sales, service, marketing, operations, accounting—and building everything from the ground up without a playbook. That pressure leads to burnout, disorganization, and stagnation. Even among those who survive the early years, many find themselves plateauing. They’re good at their craft, but struggle to scale. They get stuck working in the business instead of on it.

That’s why more buyers today are opting to skip the startup phase entirely—and instead invest in someone else’s proven success. When a well-run property management company hits the market, it often attracts multiple qualified buyers.

Buyers tend to fall into a few key categories:

1. The Competitor
   This is the most attractive type of buyer. They’re already in the property management space, so they understand the business inside and out. They’re often looking to expand their footprint, enter new markets, or gain operational efficiencies by consolidating marketing, maintenance, or back-office functions. They’re strategic, they move quickly, and they often submit top-of-range offers because they know exactly how much value your company brings to their existing operation.
2. The Corporate Refugee
   This buyer has left—or been pushed out of—corporate America. They’re tired of office politics, stalled promotions, and building wealth for someone else. They want to bet on themselves. These buyers are often well-capitalized, highly motivated, and seeking a business where their work ethic directly impacts their success. Property management is appealing because it’s structured, recurring, and tied to tangible assets.
3. The Dreamer
   There’s always a group of would-be buyers who like the idea of owning a business, but aren’t prepared to follow through. They either can’t secure financing, lack the confidence to step into ownership, or get cold feet when challenges arise. Dreamers tend to see roadblocks instead of opportunities. A good broker knows how to spot these early and keeps them from wasting a seller’s time.
   
   That’s why working with an experienced business broker is essential. A broker will filter out the noise,
   screen buyers for both financial readiness and operational fit, and ensure only serious contenders reach the negotiation table. That frees up the seller to focus on running the business until the right deal is in place.
   
   Selling a business is usually a once-in-a-lifetime event. It’s complex, high-stakes, and emotionally loaded. Working with a broker who understands your industry—especially one who specializes in property management—means you don’t have to figure it out alone. From valuation to marketing to deal structure, they guide the process, avoid common pitfalls, and help you secure a buyer who will continue the legacy you’ve built. In the best scenarios, multiple buyers compete to acquire your
   company—driving up value and maximizing your return.
   
   When the time comes to sell, you want more than a buyer. You want a smart process, a strategic
   partner, and a successful outcome. That’s what a great broker brings to the table
   

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 how you operate—and they won’t overlook critical details that a generalist might miss. They know what buyers care about, what questions they’ll ask, and what red flags will give them pause.

Even better, some industry-specific brokers—like myself—are still active operators in the field. That means we stay current with market trends, regulations, and day-to-day challenges, because we’re living them too. This insight allows us to offer real-world advice and practical strategies for getting your business ready to sell.

They Know the Right Buyers

A niche broker comes with a network of qualified, motivated buyers who are specifically looking for businesses like yours. These aren’t tire-kickers or people casually browsing for an investment—they’re strategic buyers who already understand the industry or are serious about entering it. That saves you time and spares you from having to educate a generalist buyer about your operations, risks, or value drivers.

They Know How to Price Your Business

Valuation is everything. Price your company too low, and you leave money on the table. Too high, and you scare away serious buyers. An industry-specialized broker knows what similar businesses are selling for and how to assess your company’s true market value—because they’ve done it many times before. Unlike a generalist who might pull comps from unrelated industries, a specialized broker understands the key levers that influence price in your space.

They can also advise you on how to increase your company’s value before going to market, helping you address weaknesses and showcase strengths.

They’re Willing to Have the Hard Conversations

The right broker won’t just tell you what you want to hear. They’ll tell you what you need to know. Whether it’s managing expectations about pricing, identifying areas that need improvement, or evaluating the buyer pool your business is likely to attract, an experienced broker will provide clear, candid guidance throughout the process. Many have bought and sold their own companies and understand the emotional and financial dynamics involved from both sides of the table.

They Come with the Right Partners

Selling a property management company isn’t just about finding a buyer—it’s about having the right team in place to close the deal smoothly. An industry-focused broker knows which lenders are comfortable financing PM businesses, which attorneys and CPAs understand the nuances of your business structure, and which advisors can help you reduce tax exposure. These relationships are invaluable and can save you time, money, and stress.

They Protect Their Reputation—Because It’s All They Have

In a niche industry like property management, word travels fast. A broker who specializes in your field can’t afford to cut corners, burn bridges, or do a mediocre job—they rely on referrals and a solid reputation to stay in business. That means your deal gets the attention, care, and professionalism it deserves. When your broker is part of your industry, your success is directly tied to theirs.

They Understand Deal Structure Nuances Specific to Property Management

Because PM companies are often asset-light, their value lies in contracts, systems, and relationships. An industry-specific broker knows how to navigate these details—whether it’s client assignment clauses, retention strategies, or structuring earnouts that align with actual performance.

They Help You Avoid Operational Pitfalls During the Sale

Your business still needs to run while it’s on the market. A broker who knows your day-to-day can take the reins on sale logistics, helping you keep operations stable so value doesn’t drop during the process.

They Know What Buyers Are Looking For—and How to Help You Prepare

From financials to staff structure to technology, a specialized broker can guide you in getting your business ‘sale-ready.’ They’ll identify red flags, coach you on improvements, and highlight strengths that resonate with qualified buyers.

They Protect Confidentiality More Effectively

In our relationship-based industry, a breach in confidentiality can spook clients or staff. Niche brokers understand how to market your business discreetly, screen buyers carefully, and prevent unwanted exposure.

They Can Offer a Realistic Exit Timeline

Industry brokers have a pulse on the market and can give you a much clearer sense of how long the sale will take, what kind of buyers are active, and what to expect throughout the process.
They Often Continue to Support You Post-Sale

The relationship doesn’t end at closing. Many industry brokers stay connected to ensure a smooth transition for you, the buyer, and the clients—because their reputation depends on it.
There are plenty of brokers out there who will take your listing. But very few can bring you the right buyers, avoid costly mistakes, and guide you through a successful sale with confidence.

Selling your business isn’t just about “getting it done”—it’s about getting it done right. And that starts with choosing a broker who lives and breathes your industry.

If you’re considering selling your property management company, a great first step is to find out what it’s worth. I’d be happy to help you get started.

If I can help you start planning to sell your property management company, a good first step it to find out what it’s worth.

About Patrick Hurley:

He’s a Tallahassee native with over 20 years of experience in property management, real estate, construction, and business brokerage. Having owned, operated, bought, and sold property management companies in the past, Hurley is uniquely positioned to help others in the industry find their exit.
He’s been described as dependable, highly efficient, effective, and hard-working with a no-nonsense attitude. He takes pride in his professionalism and attention to detail and focuses on his client’s desired outcome.

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 causes, meaning that a small percentage of inputs often produce a disproportionately large number of results. That goes for good things (20% of your clients produce 80% of your revenues) and not so good things; 80% of your problems probably come from 20% of your portfolio properties or your tenants.

That’s why it’s always a good idea to regularly evaluate your portfolio to determine if it’s the right mix for you.  Maybe some properties simply aren’t producing the results you hope for. Maybe it’s location – the property eats up valuable staff time in travel. Or it’s too far from attractive amenities or too close to undesirable elements. Perhaps it’s the level of property or tenant, bringing your average monthly rent down, but taking up just as much time  – or more – to manage. 

Maybe it’s an owner (or several).  It’s not uncommon to have different perspectives and opinions than some owners, and you just don’t see eye to eye on how to handle issues or how and how much to invest in repairs and updates. Maybe the property is just on the edge of losing its appeal, built cheaply or so long ago that it’s no longer a draw for top-tier renters. Are they willing to invest to bring the property up to your standards and/or those of renters in the area?

Whatever the reason, there are options for you to consider. One is to give it a final shot to bring things up to your standards, investing the time and money to solve whatever the performance issue is. If you do this, have a deadline.  Don’t let this effort and expenditure of resources drag on.  It’s time to make it better, or make it go away.  Another possibility is to have a frank conversation with an owner and work toward an early termination.  Will you forgo some income?  Yes, but it will also free you up quickly so you can refocus time and energy in another direction to hopefully make it up and then some.  Lastly, you can let the contract expire and politely explain that it’s best to part ways. Though this is probably my last choice on the list, it is an option.  This kind of delays the inevitable and seems like a copout, but there are some owners or properties that just have no hope.  Sometimes, it’s the right call.

Those are the options within your portfolio, but sometimes outside the box is the best place to think.

What about finding someone to sell the contract(s) to? You know what they say about one man’s trash and another’s treasure. Use your contacts to find someone who’s a better fit for the properties. It may be someone who specializes in that kind of property or someone whose portfolio is closer geographically. There might be someone who’s just starting out as a property manager and who would appreciate acquiring a known entity with the benefit of your history and recommendations for it.  Even if there isn’t any actual money in this option, maybe you’re helping someone else get started or saving a good owner (with properties that don’t fit your profile) the trouble and risk of finding someone new.  Giving a hand could just be the right thing to do and boost your reputation.

I’ve written before about how micro acquisitions can help you grow your business. This is the same principle, but you’re on the opposite side of the transaction. You shrink your business (temporarily), but you are left with a higher-quality portfolio. That frees up your time and resources to find properties that are a better fit for your current business and your plans for future growth. 

If I can help you start planning to sell your property management company, a good first step it to find out what it’s worth.

About Patrick Hurley:

He’s a Tallahassee native with over 20 years of experience in property management, real estate, construction, and business brokerage. Having owned, operated, bought, and sold property management companies in the past, Hurley is uniquely positioned to help others in the industry find their exit.
He’s been described as dependable, highly efficient, effective, and hard-working with a no-nonsense attitude. He takes pride in his professionalism and attention to detail and focuses on his client’s desired outcome.

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 news, you can’t control what’s happening on a national level, but you can shape the direction of your company.

So, I always recommend that you work on controlling what you can: your own business. Focusing on what’s in front of you will be the best way to build a strong, sellable company. Review and reduce expenses, update agreements to protect from sudden changes in revenue, and ensure your documentation and bookkeeping are current and in good order. Build stronger client, tenant, and vendor relationships to increase sustainability. Do research to make sure your pricing and rents are in line with your local market and identify opportunities. Develop a plan for growth—or for selling your portfolio.

Not only are all of these actions important, they’re also productive and time-consuming. You won’t have much time left over for doom scrolling, and might just find yourself in a much better place. 

You’ll also be focused on what matters in your property management career and why you got into this work in the first place. Entrepreneurs are naturally optimistic; they believe in their service and ability. They’re future-focused, and so are the people who want to buy their business. They see opportunity and aren’t afraid to take risks in times that can lead to rewards.

Elections always bring uncertainty, which can keep people from making decisions and moving quickly when a good deal presents itself. It’s possible that some federal policies will increase prices; it’s also likely that some deregulation will benefit small businesses like yours. Your job is to make your business as strong as possible and to be ready to recognize opportunities when they appear.

Many thought leaders and entrepreneurs follow the Stoic philosophers, and for good reason. They understood the importance of putting your thoughts and your energy only into what you can control. “You have power over your mind – not outside events. Realize this, and you will find strength.” (Marcus Aurelius)

Whether you’re growing your business or planning to sell in the next couple of years, I can help you understand your portfolio’s current market value. Click here for a confidential and complimentary opinion of value. 

About Patrick Hurley:

He’s a Tallahassee native with over 20 years of experience in property management, real estate, construction, and business brokerage. Having owned, operated, bought, and sold property management companies in the past, Hurley is uniquely positioned to help others in the industry find their exit. He’s been described as dependable, highly efficient, effective, and hard-working with a no-nonsense attitude. He takes pride in his professionalism and attention to detail and focuses on his client’s desired outcome.

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. 

Now that their lives and livelihoods have changed overnight, they’ll be forced to evaluate options.  With small businesses being the backbone of our economy, my educated guess says that many will consider starting or buying businesses with their severance pay, and why not have a property management business at the top of their list? 

Of course, owning a property management company can be rewarding for people who are organized and have strong people and communication skills. It can offer flexible hours, independence, a low barrier to entry, and rewards hard work. It can be an entrée into real estate ownership, which is a time-proven way to build wealth, and property management companies often operate with healthy margins and endless opportunity. 

People will always need places to live, and, therefore, landlords will always need managers. In most rental markets, property management can provide a relatively stable career (similar to what they may have experienced with their previous job), and people who have had success in large organizations and who have strong problem-solving skills can thrive. That experience will prepare them to take on their new adventure and even their own portfolio of rental properties. 

Which brings us back to your property management business. If you’ve been thinking about selling your company or part of your portfolio, this is a good time. Don’t look at every significant event as a challenge… instead, see what opportunities it presents.  Every large corporate or government Reduction in Force sends experienced and qualified people into either the job market or the market for buying well-run companies. They may have buyouts or retirement savings that allow them to invest in an industry that will pay them commensurate with their effort, something even the best government jobs don’t always offer.

It’s never too early to schedule a discovery to talk about your business’s health. We’ll explore the strengths, weaknesses, and opportunities of your portfolio and operations, and how those relate to the market’s perception of value.

We’ll also talk about your personal goals. Why are you thinking about selling? When do you believe you’ll be ready to exit the business? What do you need to fund your retirement or the next phase of your life? Would you be willing to stay in the business if you had a partner who could infuse cash and help the business get healthier or bigger?

Knowing what you want and need from a sale is step one. Step two is knowing where you stand right now. How close are you to that goal? A broker’s opinion of value is an informal valuation based on high level financial analysis, market conditions, and looking at comparable companies that have sold within the last year. 

Knowing what you have, what you want, and what you need means that when an opportunity to sell, take on an investor or partner, or grow the business comes along, you’ll be ready.

To get a professional opinion of value, click here.