Selling a property management company.Your contracts are the business. Value them that way.
Property management and HOA management companies are a growing target for private equity and regional consolidators. JMB helps owners understand what their portfolio of management agreements is worth and sell it to the right acquirer.
What buyers pay for
Recurring management fees
Stable monthly fees across a diversified portfolio of doors or associations are the core of the value.
Contract terms & transferability
How long the agreements run, how easily they can be cancelled and whether they assign to a new owner.
Client concentration & retention
How dependent the company is on a few large owners or boards, and how long clients typically stay.
Systems & staff
Software, processes and managers who keep clients served without the founder in every relationship.
Experience on the owner’s side
John Bush has owned and operated residential rental properties for more than 26 years, handling leasing, tenant relations, rent collection and vendor coordination, and has spent decades in commercial real estate on the acquisition, leasing and asset management sides. Owners get an advisor who understands the work their company actually does.
Questions owners ask
How are property management companies valued?
Typically as a multiple of earnings or of recurring annual management fees, adjusted for contract terms, client concentration, retention and growth. Ancillary revenue such as leasing fees and maintenance markups is valued differently from recurring fees.
Do HOA management companies sell differently from residential property managers?
Yes. HOA contracts are with boards, can turn over with board elections and often have shorter cancellation terms, which buyers weigh carefully. Strong board relationships and retention history support value.
Will my clients follow the sale?
That depends on how the agreements are written and how the transition is handled. Structuring the sale with retention in mind, including the right buyer and the right transition terms, protects both price and clients.
Related services
Start with a confidential conversation
No obligation and no pitch. Tell us about the business, and we’ll tell you honestly what we see.