Nikonomics - The Economics of Small Business 260 - Best of 2025! How Private Equity Valuations Are Changing the Property Management Game with Peter Lohmann
Dec 11, 2025
Peter Lohmann, founder of RL Property Management, dives into the often-overlooked property management landscape. He shares insights on scaling his company to 700 units and a whopping $3M in annual revenue, all while offering unconventional advice to new entrepreneurs: start your own management company instead of buying one. Lohmann breaks down key metrics for profitability, explains how to acquire clients quickly, and discusses the lucrative opportunities private equity firms see in this sector, with valuations reaching up to 2x top-line revenue.
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Property Management Is Financially Attractive
- Property management is sticky, contractually recurring revenue with strong cashflow dynamics.
- Peter Lohmann highlights high predictability and low CAPEX as core business strengths.
Target Revenue Per Door
- Aim for at least $200 revenue per unit per month to build a nicely profitable management business.
- Top performers hit the upper $200s to $300s per unit monthly depending on market.
Margins Are Solid But Variable
- Profit margins vary but commonly fall between 10% and 18% depending on year and optimization.
- That translates to substantial owner earnings at scale for well-run firms.