Who is PMI?With more than 200 franchises operating in 40 states, Puerto Rico, Costa Rica and under a masterlicensing agreement in Malta, Property Management Incorporated Franchise, LLC (“PMI” or “Company”) is one of the nation’s leading franchisors of property management and real estate services. Ma…
Who is PMI?
With more than 200 franchises operating in 40 states, Puerto Rico, Costa Rica and under a master
licensing agreement in Malta, Property Management Incorporated Franchise, LLC (“PMI” or “Company”) is one of the nation’s leading franchisors of property management and real estate services. Management is strategically building its franchise network upon four property management sectors: Association, Commercial, Residential and Vacation, with a connecting bridge to Brokerage/Real Estate Sales.
PMI didn’t set out to build a business comprised of just residential property management franchises. We’ll leave that to others. PMI’s goal is to build the nation’s leading franchised real estate management company. To us, this means building a wide and deep foundation upon which our franchisees can build a business that “cross-pollinates” across the entire real estate industry—i.e. Association generates Residential which generates Vacation which generates Brokerage, which leads to more Residential, etc.
As far as we are aware, PMI is one of the only real estate management franchise companies that provides its franchise network with a comprehensive franchise platform that services the Association, Commercial, Residential and Vacation management sectors. These four management classes are
important, and there are large distinctions between them, as detailed below.
Residential (each residential property managed is referred to herein as a “Door”) is a mature fragmented industry that is extremely competitive. The market has a few franchised management companies, but instead, 90% of the market is managed by small property management companies or property owners themselves. The selection of a property manager is primarily determined by price. Management fees range between a fixed fee of $75 per Door to 6% to 10% of collected rents, plus leasing and ancillary fees. PMI’s franchise network currently manages approximately $3.0 billion in Residential assets.
Commercial (each commercial property managed is referred to herein as a “Door” or “Suite”) is a
mature industry with a few very large national and global franchised property management companies. These companies dominate the large and middle market sector. However, a large portion of the “small buildings” market is either owner managed or managed by a local property manager. While the commercial sector is a harder market to enter, once established therein, the monthly revenues generated from a commercial Door/Suite may significantly exceed those generated by a residential Door. As a Franchisor, high revenue collections mean more royalties.
Association (each association property managed is referred to herein as a “Unit”) is a market sector
that, except for a few large national companies, is managed by small, local or regional property management companies. Management believes PMI is one of the only franchised association management companies in the nation. One association often has 100+ Units. Since the “soft launch” of its Association platform (January 2016), PMI has grown its Units managed from less than 1,000 to approximately 20,000 (approximately $5 billion in assets now under management). Management’s goal is for its franchise network to manage approximately 40,000 Units by YE 2018 and more than 150,000 Units ($25 to $35 billion in assets under management) by YE 2022.
Vacation (each vacation property managed is referred to herein as a “Key”) is a relatively new
property management sector with market growth fueled by companies such as Airbnb, VRBO, etc.
Management believes this sector is growing faster than Residential or Commercial. Compared to a Door, Management projections indicate a Key generates twice the gross rental income of a Door and between five to eight times more in managements fees and royalties. Presently, one of PMI’s largest franchisees specializes in Vacation management, and in the first quarter of 2018, PMI expanded its Vacation management platform. PMI’s Vacation Division’s goal is for its franchise network to manage more than $350 million in assets under management by YE 2020. Royalties from Vacation rentals are only one source of PMI’s revenue, with multiple vendors providing PMI with rebates or fees for access to PMI’s franchise network.
