Well Established Southwest CO Property Management Co, 90 Percent Recurring Revenue

Financial & Assets Details

About the Business

Business Description

Southwest Colorado Property Management Company

This company is currently under a full price for both the business and the real estate letter of intent from August 2nd to October 13. The LOI allows me to continue to market the business but I can’t have the Seller answer questions, meet, talk to, or accept any offers. I will let you know if it falls through. Jeff

This Property Management company has 90% Recurring Revenues and 85% of those customers are 3 years or older relationships. This means that the business will be the same the day after the closing as it was the day before plus, they have 4 loyal/professional employees.

The trailing 12 months revenues to April 30th were 861K with 341K in earnings. There is no money spent on advertising. They rely on being the oldest and largest property management company in their market.

There is one owner who works 40 hours a week overseeing the business, holds the real estate license, and meets with existing and new potential customers. The owner is going to retire.

This business works with Homeowners Associations with anything they need: facility management, inspections, renting of units including all paperwork/handling of funds, and accounting services. They also coordinate indoor/outdoor maintenance, cleaning, emergency services, snow removal, and small or large repairs all through local reputable and reasonably priced sub-contractors. 60% of their revenues are from the 74 HOA’s that they work with and 40% is from their 215 longer-term rental units that they manage. Some of the associations are still growing and adding more buildings and units to their portfolios.

The Seller believes that the company should be easy to grow. They are the largest property management company in market. The owner states: Recently, many of the HOA Boards are getting tired of volunteering and are seeking management leadership for their Associations. Offer minimal or full service and gain these additional clients. Represent Sellers of residential real estate which may gain you a new investor. You might retain the rental in your client portfolio, gain a commission on the sale, or meet the buyer who may have an interest in renting in the future. A win, win for all! While I love what I do, it’s time to pass on my knowledge and skillset. It’s now your turn to make money. Respectfully, Owner/Broker.

They are an office based company and only have office furniture and office equipment for assets. They own their offices in the middle of town which they want to sell as well and is being offered for 710K. The office has 1,468.50 square feet of space including a large conference room, several large offices, an administrative room, private bathroom, a patio, storage, and has room for growth. There is plenty of parking underneath.

The price for the business is 1.275M which is a low multiple for property management and the real estate is 710K. The company is being offered for debt free with the Seller willing to carry 10%. The buyer will need to have a Colorado real estate license or be willing to hire a realtor as a co-owner.

Brief Overview and More Details:

The company primarily manages Community Homeowners Associations, commonly called HOA’s. This includes running the associations, providing accounting, and arranging and/or coordinating maintenance, etc by overseeing vendors and contractors. They also hold board and annual meetings almost entirely by zoom. Some of the associations are condominiums and some are community/single family associations. Most have a flat monthly/ quarterly fees which are renewed annually and have add on hourly services based on the Association’s needs. Many of their customers have been serviced for over 10 to 25 years and have been long-term reliable customers as well as newer association units as their town grows.

They have 4 full or part time employees. They have a rental manager, accountant, administrator, and an HOA manager and primary contact for customer service/needs. The owner is committing to help with a smooth transition. The company has a solid reputation and has no legal battles. The company has had top notch customer service for over 25 years.

Marketing: The company does no advertising. The work finds them based on their location, great customer service, high profile, and referrals. The company has grown “organically”. If the new buyer wants to increase this growth rate, he/she just needs to add more qualified employees to solicit more HOA’s. A new buyer could expand their territory and even add short-term rentals to their list of services. Add a licensed salesperson and you can then enter the sales portion of our industry to provide this service for your customers willing to amend their investment portfolio.

Their online presence is a good website with no SEO, no Facebook, no Instagram, and no presence on LinkedIn.

Asking: 1.275M for the business and a separate 710K for the real estate which is a perfectly located office that also has parking. They will keep their cash and AR and pay off all debt including any payables.

Please Email or Call for Information: jeff@businessbrokercolorado.com or call Jeff Eisnaugle any time at 303-905-7607 to discuss your interest in this offering.

Thank you for your consideration,

Jeff C Eisnaugle
Business Broker Colorado, LLC
Direct 303-905-7607
Fax 720-524-6482
jeff@businessbrokercolorado.com

Growth & Expansion

The Seller believes that the company should be easy to grow. They are the largest property management company in market. The owner states: Recently, many of the HOA Boards are getting tired of volunteering and are seeking management leadership for their Associations. Offer minimal or full service and gain these additional clients. Represent Sellers of residential real estate which may gain you a new investor. You might retain the rental in your client portfolio, gain a commission on the sale, or meet the buyer who may have an interest in renting in the future. A win, win for all! While I love what I do, it’s time to pass on my knowledge and skillset. It’s now your turn to make money. Respectfully, Owner/Broker.

Market Competition:

The company primarily manages Community Homeowners Associations, commonly called HOA’s. This includes running the associations, providing accounting, and arranging and/or coordinating maintenance, etc by overseeing vendors and contractors. They also hold board and annual meetings almost entirely by zoom. Some of the associations are condominiums and some are community/single family associations. Most have a flat monthly/ quarterly fees which are renewed annually and have add on hourly services based on the Association’s needs. Many of their customers have been serviced for over 10 to 25 years and have been long-term reliable customers as well as newer association units as their town grows.

Location Details:

They are an office based company and only have office furniture and office equipment for assets. They own their offices in the middle of town which they want to sell as well and is being offered for 710K. The office has 1,468.50 square feet of space including a large conference room, several large offices, an administrative room, private bathroom, a patio, storage, and has room for growth. There is plenty of parking underneath.

Support & Training

Will stay as long as needed

Reason for Selling:

Retiring