Intro

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Join me, Nik (https://x.com/CoFoundersNik), as I interview Peter Lohmann (https://x.com/pslohmann). In this episode, we dive into the unsexy but incredibly lucrative world of property management with Peter Lohmann, the founder of RL Property Management in Columbus, Ohio.

Peter reveals how he scaled his business from zero to nearly 700 units and $3 million in revenue after leaving his job as an engineer. Peter also shares his controversial advice on why you should start, not buy, a management company if you are new to business, and details the "operational nightmare" you must navigate to reach success.

We even discuss the massive opportunity for exits, where Private Equity firms are paying 1.5x to 2x top-line revenue for established companies.

Questions This Episode Answers:

1. What are the target benchmarks for revenue per door and profit margins in a successful property management business?

2. Why does Peter recommend building a company from scratch rather than acquiring an existing one?

3. What specific marketing strategies—from Google Business Profiles to meetups—would Peter use to get 100 doors in just six months?

4. At what unit count does a property management company typically become self-sustaining enough to hire full-time staff?

5. How are Private Equity groups valuing these businesses, and what multiples can you expect if you sell?

Enjoy the conversation!

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This week we covered:

00:00 Highlights

00:27 Introduction to Property Management

00:54 Revenue and Profit Margins

02:29 Understanding Clients and Tenants

03:06 Key Responsibilities of Property Managers

03:37 Profiles of Property Owners

04:29 Why Hire a Property Management Company?

05:41 Payment Structures and Fees

06:34 Company History and Growth

10:50 Remote and Local Operations

16:16 Starting a Property Management Business

19:02 Finding Your First Clients

19:29 Early Challenges and Strategies

20:47 Benchmarks in Property Management

21:50 The Importance of Community

23:27 Scaling Your Business

30:57 Operational Complexities

32:21 Opportunities in Property Management

35:38 Conclusion and Final Thoughts