Property Management Company Valuation

[Hunter Hughey]

I am wondering if anyone has had any experience with buying or selling or valuing a property management business.  What are typical formulas for valuing the company, such as 3 times net profit, or 3 times gross revenues, etc.?  Please let me know if you have any input on this.

[Kim Meredith Hampton]

A lot of different ways to value PM company. You can do it on gross or net, and/or per account. I am seeing $1500 to $3000 per account based on due diligence I.e: management fees, late fees, renewal fees, maintenance markup, etc.,,

Also what type of owners do they have, is the majority of the portfolio made up of one or two owners (not good), how long has each client been under management, has the current owner held their hand, or has or been run like a business. What does the accounting look like. I could go on and on.,,,