Peter Lohmann's Newsletter - Issue #134

Most Large PM Companies Are Organized Like This.

Author

Peter Lohmann
March 21, 2025

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

How Large PM Companies are Organized

Last week I ran a poll to find out how large property management companies (over 500 doors) organize themselves. Here are the results from 180 recorded votes:

Departmental has the clear and definitive lead, which didn’t totally surprise me. I did expect Pods to have a better showing. I’m not sure if that model is just newer, or if it doesn’t scale as well as I think. There were a lot of great comments which I’m still reading through; thank you to everyone who voted and commented.

As discussed last week, we’re currently pure departmental but considering switching to pods or maybe a hybrid (part departmental, with some functions moved to pods).

If you’re looking to network and mastermind with other property managers about this topic, may I suggest applying for Crane when applications re-open in 13 days (waitlist link). On Wednesday we touched on the topic during our live mastermind session, and there have been several engaged discussions on Circle, our private online platform for the community. Here’s one example:

I’d love to have you join us. In the meantime, I’ll continue to write and share what’s working for us at RL Property Management as we consider our priorities for 2025!

THIS ISSUE IS PRESENTED BY SECOND NATURE

Second Nature is Adding Internet to its Resident Benefit Offerings

For years Second Nature has led the industry in improving experiences for residents, property managers, and investors with its Resident Benefits Package.

Now, they’re adding Group Rate Internet, which provides gigabit-speed internet at below market rates to single-family rental homes. By negotiating rates with multiple major ISPs, Second Nature guarantees the best pricing and coverage.

No more setup fees, equipment charges, or other hidden fees for your residents. They pay for internet right alongside their rent, and you can earn $10-15 per month per door in ancillary revenue.

Want to learn more about Second Nature’s Group Rate Internet?

What is Group-Rate Internet Anyway?

I got really curious why Second Nature was excited about their new internet offering.

Second Nature team on Wednesday

At first I thought it was just another utility concierge thing (those have been around forever). Turns out that’s not at all what it is—instead Second Nature negotiated bulk-rate pricing with most of the major ISPs nationwide, and is now making that available to residents via their property management companies. Anyway, I got SN exec Andrew Smallwood on the mic and got all the details, it’s actually a fascinating new product and I believe has long-term implications for our industry. Check it in your podcast feed or watch the video:

New Property Management Companies For Sale This Week

Generously sponsored by Live Oak Bank’s property management lending team! Let them help you finance your next PM acquisition.

  • Here is a property management company for sale in Palm Springs, CA (asking $299k)

  • Here is an STR management company for sale in Granby, CO (asking $450k, 25 properties)

  • Here is a property management company for sale in Miami Beach, FL (asking $250k)

  • Here is a property management company for sale in Wisconsin (asking $2.1M)

  • Here is an appliance repair company for sale in Erie County, NY. Could be a great bolt-on to a PM company (asking $200k).

Industry News & Events

  • NARPM’s Broker/Owner conference is next week. Catch me speaking on 2 panels: Fees & Trust: Fixing the PM Fee Paradox with Mark Brower; and Research-Backed Strategies for Improving Owner Relationships with Jordan Muela and Sean Forster. They are still selling tix if you’re a last-minute person (no judgement). FYI: There is a dress code at The Broadmoor and its restaurants.

  • Zillow announced a “commitment to transparent pricing for renters”, and will now show detailed fee breakdowns and provide other tools to support this.

  • I’m joining ProfitCoach to discuss new findings from the PM Trends Report survey data. Register here (April 2nd).

  • I thought this article on the next generation of multifamily metrics was really interesting. Definitely some useful KPIs we can bring to SFR in there.

  • If you want to see how I think about a new owner / new property process, catch this live workshop on April 3rd where I’m going to build one for a volunteer in real-time, with special guest Ben Serven. Apply here to volunteer.

  • APM Help shared a nice writeup about the role of women as leaders in property management. Speaking of which, this publication is proud to renew its sponsorship of the NARPM Women’s Council for 2025.

  • Property Meld announced a new integration with zInspector.

Closing Thought

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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.