Peter Lohmann's Newsletter - Issue #118

Announcing: The Property Management Trends Report

In 2017, The Iceberg Report (a comprehensive survey of property owners) found that only 30% of US rental properties were professionally managed.

Earlier this year, I commissioned a new survey of rental owners to find out: Is that still true?

Of course, I took the opportunity of a nationwide landlord survey to ask all the burning questions I’d been curious about for years. And I yanked 5-time PropTech founder Jordan Muela into the project as early as possible, given his experience with (and deep interest in) original industry research. We engaged Harris Poll to find out:

• What do property owners really think of property managers?

• What are the most valuable things that a property manager does, from the perspective of an owner?

• What do landlords wish that property managers would do for them?

• What is our industry’s NPS benchmark from the perspective of the owners (not the residents)?

• How do property owners prefer to be communicated with?

• Do they really want a single-point-of-contact?

• What are investor’s priorities for 2025?

I’m thrilled to announce that the results are in! Read the full press release here and:

Key Findings

1. A surge in professionally managed U.S. rentals: 36% of U.S. rentals now managed by pros (up from 30% in the 2017 Iceberg Report).

2. 52% of rental property owners currently use a professional property management service.

3. Net Promoter Score (NPS) of +39 for property managers among current users, a favorable score by industry standards.

4. Common deterrents for non-users of property managers: High cost (54%), control preferences (43%), and maintenance concerns (32%).

5. Top reasons for discontinuing property management services: Decline in service quality (42%), fee increases (27%), and tenant placement delays (29%).

If you’re attending LeadSimple University, you’re in for a treat— Jordan and I will be live onstage discussing the report & key findings, alongside industry experts to help us understand & interpret the results. See ya there!

THIS ISSUE IS PRESENTED BY UTILITY PROFIT

Introducing Utility Profit’s Internet Amenity Program

High-speed internet is one of the most desired amenities for tenants. With Utility Profit’s new Internet Amenity Program, you can offer high-speed internet as a value-added service, giving tenants access at a discounted rate compared to retail pricing.

With this program, an average property manager with 400 homes under management earns $50,000+ annually. You’ll earn $10 to $40 per month per door. Discover how Utility Profit’s program can elevate your property’s offerings and add a new revenue stream.

This Week’s One-Question Survey

Your response is much appreciated! It only takes a single click to record your vote.

I’m curious what PM companies are doing in 2024 for listing photos. Will share the results next Friday.

New Property Management Companies For Sale This Week

• Here is a property management company for sale in Bend, OR (asking $2.2M, 600 units)

• Here is a property management company for sale in Sarasota, FL (asking $550k, 400 clients)

• Here is an association property management firm for sale in Collier Co, FL (asking $120k)

• Here is a property management company for sale in Olympia, WA (asking $250k)

• Here is a property management company for sale in Denver, CO (asking $250k, 85 properties)

• Here is a property management company for sale in Charlotte, NC (asking $1.3M)

Industry News and Events

• New PM software entrant MagicDoor is claiming to be the first “AI-native” solution. They have raised $2M in pre-seed funding.

• DoorLoop raised a $100M Series B round of funding.

• The Colorado AG’s office is investigating (and suing) landlords & property managers who charge what they call “junk fees”. The Denver Post is “covering” the issue.

• Real estate wire fraud justice: A hacker that stole over $20M is sentenced to 10 years in jail.

• Alexander Stringfellow, co-founder of RentEngine, has a a great followup article covering the story about Tenant Turner and Showmojo’s sale to PE that I broke last week. He added useful commentary and context, check it out. I couldn’t help but chuckle at Kyle O’Hehir’s comment on the article: “It’s going to be challenging for PE to make these services worse, but I believe in them.” John Cimba, CEO at PropertyTek, is elsewhere in the comments.

Closing Thought

Correction from last week’s issue: Landlord Studio was NOT sold to PE firm Greater Sum Ventures. Instead, it was actually TenantCloud that was sold. I regret the error. -Peter

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Stats from last week’s issue:

Valid Recipients: 12,958

Open Rate: 63.4%

Clickthrough Rate: 7.5%

Most Popular Link (169 clicks): My List of VC-Backed PM Companies

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That’s all for this week! Have a great weekend. -Peter

^{Peter Lohmann's Newsletter: Data. Details. Dedication.}

The content of this newsletter is for informational purposes only and does not constitute professional advice. I may have consulting agreements with, or financial interests in, companies mentioned in this newsletter. Additionally, some of the links included in this newsletter are affiliate links, meaning I may earn a commission if you make a purchase through these links. Always perform your own due diligence before making any financial or business decisions.