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HOA Management Business for Sale – Sticky Revenue & Huge Potential!

Feb 14, 2025

Discover the fascinating world of HOA management, where a North Carolina company is thriving with nearly $2M in revenue. Learn how this business model benefits from 'sticky' revenue and long-term client relationships. The hosts delve into the differences between property and HOA management, exploring the challenges of governance and the potential for growth through AI and outsourcing. Can this model become a prime target for acquisition? Tune in for insights on profitability and scaling opportunities in a unique industry!

27:40

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Quick takeaways

The HOA management business model generates sticky revenue through long-term contracts, creating both stability and challenges for scalability.

Potential for profitability in HOA management may be amplified through AI and outsourcing, enhancing operational efficiencies and reducing costs.

Deep dives

Challenges of HOA Management

HOA and COA management involves overseeing homeowners and condo associations, creating a complex governance structure that can be dysfunctional. The podcast highlights the friction within these organizations, stemming from disagreements among residents and board members on various issues. These challenges make switching management services difficult, fostering strong but complicated revenue streams driven by long-term contracts. This stickiness in client relationships is identified as both an advantage and a hurdle when it comes to scaling and growing the business effectively.

Intro

2min

Navigating the HOA Management Landscape

10min

Navigating the Complexities of Homeowners Associations

6min

Navigating HOA Management: Finance and Technology

8min

The Importance of Detail in HOA Management

2min

You won’t believe how sticky this business model is—an HOA management company with nearly $2M in revenue and major expansion potential!

Business Listing - https://vrcharlotte.com/listing/hoa-coa-association-management-company/

Sponsored by:
👉 Acquisition Lab - Get the best support and resources for buying a small business. https://www.acquisitionlab.com/
👉 Check out what's going on at the HoldCo Conference: https://www.holdcoconference.com/

In this episode, we dive into a fascinating HOA management company for sale in North Carolina, generating nearly $2M in revenue with 170 contracted associations. The team breaks down the difference between property management and HOA management, explores the sticky revenue model, and discusses potential opportunities for margin expansion through AI and outsourcing. Could this be the ultimate acquisition for an ETA buyer?

Key Highlights:
📌 What does an HOA management company actually do?
💰 $2M revenue, $600K SDE—how profitable is it really?
🔄 The recurring revenue model and why it’s hard to grow organically
📈 How big players are scaling through acquisitions in this space
🤖 Could AI and outsourcing double profitability?
🏠 The headaches of HOA governance—why is this business so sticky?

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