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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
