What Is My Property Management Company Worth?

Property management companies are a natural acquisition target — recurring management fees, long-term client relationships, and relatively low capital requirements make them attractive. The industry is fragmented, and consolidation is accelerating as larger operators seek scale.

Here's how to value your property management company.

Typical Valuation Ranges

Property management companies are typically valued as a multiple of annual management fee revenue:

• Small companies (under 200 doors): 1x to 1.5x revenue
• Mid-size companies (200–1,000 doors): 1.5x to 2.5x revenue
• Larger companies (1,000+ doors): 2x to 3x+ revenue

In SDE terms, most companies sell for 2.5x to 4x SDE.

Factors that push toward the higher end:

• Long-term management agreements (multi-year contracts)
• Diversified portfolio (residential + commercial, or multiple property types)
• Scalable technology platform (AppFolio, Buildium, Yardi)
• Ancillary revenue streams (leasing fees, maintenance markups, vendor rebates)
• Low client concentration (no single owner over 10% of doors)
• Professional team with property managers handling day-to-day

Factors that push toward the lower end:

• Month-to-month management agreements (no contracts)
• Owner handles all property management personally
• Single property type or single geographic market
• High client churn (owners pulling properties)
• No technology platform (manual processes)
• Revenue dependent on one or two large property owners

What Makes Property Management Companies Attractive

Recurring revenue. Monthly management fees create predictable cash flow. As long as tenants are in units and owners retain your services, revenue continues.

Low capital requirements. No inventory, minimal equipment. The primary investment is in people and technology.

Scalability. Adding 50 doors to an existing portfolio is mostly incremental margin — the infrastructure to manage them already exists.

Multiple revenue streams. Beyond base management fees, companies earn from leasing fees, maintenance coordination, late fees, and vendor relationships.

Fragmented industry. Most property management companies are small, local operators. Consolidators see acquisition as faster than organic growth.

Key Metrics Buyers Evaluate

Door Count and Growth

Total doors under management and the growth trajectory. Buyers prefer companies adding doors consistently rather than those with a flat or declining portfolio.

Average Management Fee

What do you charge per door per month? Market rates vary, but buyers compare your fees to local competitors. Pricing power — the ability to raise rates without losing clients — matters.

Contract Terms

Multi-year management agreements with auto-renewal are significantly more valuable than month-to-month arrangements. A portfolio of 500 doors on 2-year contracts is worth meaningfully more than 500 doors that can leave with 30 days' notice.

Client Retention

Annual client retention rate matters enormously. 90%+ retention indicates satisfied property owners. Below 85% raises concerns about service quality.

Revenue Per Door

Total revenue (management fees + leasing fees + ancillary income) per door per year. Strong companies generate $1,200–$2,000+ per door annually across all revenue streams.

Technology Platform

Companies running on modern platforms (AppFolio, Buildium, Yardi) are easier to integrate and more scalable than those using spreadsheets and paper.

How to Increase Your Company's Value

1. Move to contracts. Convert month-to-month clients to 1–2 year management agreements with auto-renewal. This single change significantly improves your valuation.
2. Grow your door count. Marketing to property owners, referral programs, and networking with real estate investors adds doors.
3. Diversify your portfolio. Mix of residential and commercial, or single-family and multifamily, reduces concentration risk.
4. Build ancillary revenue. Leasing fees, maintenance markups, vendor rebates, and late fee income improve revenue per door.
5. Invest in technology. Modern PM software streamlines operations and makes your company attractive to buyers who want to integrate efficiently.
6. Hire property managers. Remove yourself from day-to-day operations. A company that runs without the owner is worth dramatically more.

Ready to Find Out What Your Property Management Company Is Worth?

Browse the valuation multiples guide for current industry data, or schedule a free call for a confidential valuation.