Property Management Inc. Franchise Costs $70K – $148K (+ 2024 Profits)
Property Management Inc. (PMI) is a distinguished leader in the diverse field of property management. Founded in 2008 and headquartered in Lehi, Utah, PMI quickly positioned itself as a major player by offering comprehensive property management services across four key sectors: residential, commercial, association, and short-term rental management.
This broad spectrum of services allows PMI to cater to a wide range of property management needs, making it a unique presence in the industry.
The company began franchising the same year it was established, reflecting its robust business model and the high demand for skilled property management. PMI’s franchise model is particularly attractive due to its multi-pillar approach, which allows franchisees to diversify their services and revenue streams. This flexibility not only enhances the franchisees’ growth potential but also provides stability in varying economic climates.
Initial investment
Here’s what you can expect to spend to start a Property Management Inc. franchise.
Type of Expenditure | Amount |
---|---|
Franchise Fee | $59,900 to $85,000 |
Rent | $0 to $2,000 |
Rental Improvements | $0 to $2,500 |
Deposits | $0 to $2,500 |
Pillar Certification (Training Program, Workshop, and PMiLAUNCH) | $0 to $3,800 |
Equipment and Business Supplies | $500 to $3,000 |
Computer Hardware and Software | $675 to $5,950 |
Local Advertising expenses for a period of 3 months | $4,500 to $13,500 |
Insurance | $2,000 to $5,000 |
Professional Services | $0 to $1,500 |
VOIP Telephone Equipment (3 months not including FCC fees and taxes) | $300 to $500 |
Additional Funds for period of 3 months (All Pillars) | $0 to $20,000 |
Initial Trust Account deposit (Residential, Commercial, and Short-Term Rental Pillars) | $500 to $1,000 |
STRBooks (Short-Term Rental Pillar only) | $1,750 |
Total | $70,000 to $148,000 |
Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.
Franchise fees & Royalties
Here are the main ongoing fees the franchisor will ask you to pay going forward to run the franchise.
Initial Franchise Fee
The initial franchise fee ranges from $59,900 to $85,000 depending on the type of franchise purchased and specific program enrollments.
Royalty Fee
Royalties are based on multiple criteria: 5% of Brokerage revenues; a tiered percentage of Gross Revenue ranging from 7% to 5%, depending on revenue brackets, and additional percentages for rents collected on self-owned properties and booking revenues.
Marketing/Advertising Fee
The National Marketing Fund fee is 2.0% of Gross Revenue, payable monthly. Local Advertising requires a minimum of $1,500 per month, with additional amounts based on the number of operational pillars.
Technology Fee
Various technology fees apply based on the systems used:
- PMiWARE software for association management: $35 per Association per month, plus a one-time setup fee of $500.
- PMiSTR software for short-term rentals: A setup fee ranging from $1,750 to $1,950 depending on the number of keys, plus a monthly software user fee that varies based on the number of keys managed.
Transfer Fee
A transfer fee of $12,000 is payable at the time of the franchise transfer.
Renewal Fee
The franchise renewal fee is currently $10,000, payable upon the effective date of the renewal franchise agreement.
Franchise pros and cons
The pros:
- Mobile-based opportunity: A Property Management Inc. franchise can be managed from a home or a vehicle. It helps franchisees get started fast with low office development and ongoing costs.
- Financing assistance: The franchisor helps franchisees access in-house financing to fund their startup and franchise fee. In addition, it offers them third-party financing for their startup costs, franchise fee, equipment, inventory, accounts receivable, and payroll.
- Diversified service mix: The franchisor offers its franchisees a variety of options to deliver outstanding value to their customers and increase the earning potential of recurring revenue streams. These include residential, commercial, association, and short-term rental management.
- Simple franchise operations: A Property Management Inc. franchise requires a minimum of one staff member to launch and operate. Franchisees can operate with few staff training requirements and ongoing costs, improving their bottom lines.
- Comprehensive training and support: The franchisor offers its franchisees a detailed online and classroom training program to educate them on its systems and how to make the most of their property management businesses. Also, it helps them with the grand opening of their offices and offers them periodic franchise reviews and growth strategies.
- Marketing and advertising: The franchisor helps its franchisees in their lead generation and public relations through strong marketing methods such as traditional, online, digital, national, and referral marketing channels.
The cons:
- No exclusive territory protection: Property Management Inc. does not grant its franchisees a protected territory to operate their businesses in. Franchisees may face competition from other franchises authorized by the parent company or brands it controls.
- No absentee ownership: The franchise does not present a passive investment opportunity. The franchisees must actively take part in the daily operations and running of their franchises.
- Not a part-time business: The franchisor requires its franchisees to have their offices open on a full-time basis.
How to open a Property Management Inc. franchise
Opening a Property Management Inc. franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a Property Management Inc. franchise.
1: Initial Research and Inquiry
- Understand the Business: Research Property Management Inc. to understand its services across residential, commercial, association, and vacation rental management.
- Contact PMI: Reach out through their official franchising site to express interest and request detailed franchise information.
2: Application Process
- Submit an Application: Complete the franchise application form to officially start the evaluation process.
- Initial Discussions: Engage in discussions with PMI representatives to understand the requirements and expectations. This may include webinars or phone calls.
3: Review Franchise Disclosure Document (FDD)
- Receive and Review FDD: Obtain and carefully study the Franchise Disclosure Document which contains detailed information about the franchise, including investment costs, fees, and obligations.
- Consult with Professionals: It is advisable to review the FDD with a franchise attorney and a financial advisor to ensure you understand all aspects of the franchise agreement.
4: Financial Planning and Approval
- Secure Financing: Determine your financing strategy to cover the initial franchise fee and other startup costs. PMI may offer financing options or assistance in obtaining financing.
- Approval Process: Once your financial and background checks are approved, finalize your franchise agreement with PMI.
5: Training and Setup
- Undergo Comprehensive Training: Participate in PMI’s training program, which covers all aspects of property management, use of their proprietary software, and effective business practices.
- Establish Your Business: Set up your PMI franchise, including office setup and local licensing requirements, with guidance from PMI.
Disclaimer
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