Evernest Property Management Show Episode 146: Selling a PM Company in 2025: What’s Changed and What Hasn’t
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Jun 2, 2025 Thinking of selling your property management business? Discover how market shifts since 2021 have impacted valuations and led many to feel stuck in a 'slog.' Learn the crucial role of density in profitability and what makes a company attractive to buyers. Explore red flags that can derail deals and essential strategies for boosting your company's value—even years before selling. Seller financing is on the rise, so get insider tips on navigating today's complex landscape and effectively managing transitions.
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Market Slowdown from Capital Crunch
- Rising interest rates and capital market disruptions have slowed property management company acquisitions since 2022.
- The supply of rental homes has decreased by about 10%, making stable portfolios harder to maintain.
Savvy Buyers Replace FOMO Era
- Buyers are savvier now, cautious of pricing and churn risks from earlier acquisition mistakes.
- The market is shifting from FOMO buying to risk-conscious purchasing strategies.
Density Drives Profitability
- Density in a market dramatically increases profitability for property management companies.
- Managing 600+ doors yields five times more gross margin than managing 200 doors.