Peter Lohmann's Newsletter - Issue #122

FTC victory details, M&A multiples are a mystery

Author

Peter Lohmann
December 20, 2024

A no-fluff weekly publication for the property management industry.

Rental Housing Excluded from “Junk Fee” Rules: FTC Victory

I’m going to quote Todd Ortscheid’s summary here:

The FTC issued its final rule on so-called “junk fees,” and thanks to our lobbyists Tyler Craddock and Benjamin Troy Garrett, and every NARPM member who took part in the call to action to submit comment, we all submitted nearly 4,000 comments and prevented the rule from including long term rental housing. We are free to continue running profitable businesses without federal government overreach telling us what fees we can charge. Enormous victory. Well done.

More info from the NAA here.

Now is a great time to make a donation to NARPM’s PAC or Advocacy Fund. Let’s keep up the momentum. I chose to donate $1,000 of my newsletter sponsorship revenue to the advocacy fund yesterday:

If we don’t take action as an industry, we are going to be steamrolled by organized tenants, politicians and other groups. I’m all in favor of reasonable landlord-tenant laws, but those were put into place decades ago. What’s going on now in many states and cities is completely out of hand. Great job NARPM!

THIS ISSUE IS PRESENTED BY UTILITY PROFIT

Solving the challenges of managing utilities

Managing utilities consistently ranks as one of the biggest challenges for everyone, including your property owners. Many of you likely saw this highlighted in our 2024 Property Management Trends Report a few weeks ago.

You can use this insight to build trust and attract new investor clients. Lean into this pain point and reassure property owners that you can handle the hassle.

Speaking of utilities, our sponsor, Utility Profit, has been driving innovation in this area and is continually raising the bar. Beyond simplifying utility setups, they’re also rolling out exciting initiatives, like a high-speed internet as an amenity program. Remember that the internet is one of the utilities tenants care most about.

I recommend booking a demo to see how they can add value to your portfolio.

PM Purchase Multiples

Nobody knows how much property management companies sell for.

That’s not strictly true, of course. The seller and buyer know the details of their specific transaction. And we all hear whispers and rumors of sale prices and multiples. But there is essentially no public market data on M&A activity in our industry. This seems like a big oversight.

If I started tracking this data, would you submit your PM company purchase or sale info to me with a promise of anonymity? The idea would be to compile average sale prices & multiples across different company sizes, across time, and other relevant factors.

This would benefit everyone: buyers and sellers could both enter a negotiation with more info. This should help streamline transactions and reduce wasted time.

Let me know:

Would you submit your PM Company purchase/sale details to me?

Login or Subscribe to participate in polls.

New Property Management Companies For Sale This Week

  • Here is a STR management company for sale in Tampa, FL (asking $600k, 61 properties)

  • Here is a property management company for sale in Branson, MO (asking $700K)

  • Here is a property management company for sale in Arlington, TX (asking $200k)

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

  • Here are some STR management accounts for sale in Davenport, FL (asking $210k, 30 accounts)

Industry News & Events

  • If you haven't checked out my co-founder Adam Rich's course on how to start, grow and optimize a PM company Maintenance Department, he is running an end-of-year sale. Use code PLNEWS to save 20% off the sale price!

  • Looking for your copy of the PM Trends Report? Get it here.

  • Don’t forget to register for the PM Systems Conference (January). I can’t make it this year, but we’re sending RL team members. Great event.

Closing Thought

NO NEWSLETTER next week—have a great holiday & I’ll see you in 2025! -Peter

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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.