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State Of The Industry 2022 - My Thoughts

I've just returned from spending 3 days in Las Vegas with 800 other property management company owners and operators.

Here are my takeaways:

• This (NARPM's annual conference) was the largest residential property management conference ever held, to my knowledge. It seems the industry is getting bigger - time for an update to the 2017 Iceberg Report?

• The energy was intoxicating. Everyone I spoke to seemed upbeat, happy, and optimistic about the future of their business and the industry. I'm really glad I decided to go this year.

• Vendors are driving real innovation in the space. Standouts were AppFolio's Stack (marketplace), Second Nature's forthcoming products (I got a sneak peak), LeadSimple's direct integrations with Buildium and AppFolio, and ProfitCoach's 2022 industry benchmark report.

• There is huge demand for global talent. I believe there were at least 5 different vendors there helping to place remote team members (RTMs) in property management companies!

• Many property management company owners are choosing this moment to sell or merge, including several friends (and competitors) of mine. Valuations are at all-time highs, and sellers are taking notice. Buyers are getting more sophisticated, more cash-flush, and more creative. It's now possible to get north of 2x gross revenue if you want out of the business. Price isn't everything, but let's be real - it matters.

I don't see M&A slowing down anytime soon. However - not all the rollups will be successful, and shrewd operators who can resist their siren song may be well-positioned to pick up liquidated portfolios at some point down the road.

Speaking of rollups, I spoke with execs in two interesting groups quietly executing right now:

1. FYVE, primarily operating on the east coast but expanding rapidly.

2. Rhome, a spinoff from Associa. Rhome's model is very berkshire-esque; they leave the operator, the brand, the playbook, and just about everything else in place at the acquired company (fairly unusual).

On the plane flight back, I updated my blog post ranking VC-backed property management companies. You can check that out here. Several groups have recently raised additional rounds of funding. Mynd continues to top the list with 175M raised.

AppFolio and Buildium's app marketplaces (which allow 3rd party vendors to directly integrate) were definitely creating buzz. There is no doubt they will unlock value, efficiency, and revenue opportunities for everyone involved (the vendors, property managers, owners, residents and AF/Buildium themselves). If I was a vendor in the property management space, I would drop EVERYTHING and prioritize getting onto both of those marketplaces.

NARPM and ProfitCoach released their much-anticipated update to the property management financial benchmark study. I'll have a lot more to say about this in future issues, but congratulations to everyone involved on the outstanding research and presentation. Everyone in the industry should personally thank these folks for driving us toward better financial clarity and performance.

How Expensive Is A Property Management Franchise?

Brand new blog post! Don't let the brevity of this one fool you - it took many many hours of research. If you've ever wondered about the world of property management franchises, this is for you.

Here's the summary table - if you want more details & opinions, click through to read the whole article.

I'm Working With LeadSimple

I'm thrilled to announce I am working with the LeadSimple executive team! I've been a happy customer for 5+ years, and annoying CEO Jordan Muela with every random thought that pops in my head for almost as long.

I got to know their team last week at NARPM; what an incredible group of people. Generous, kind, whip-smart, and absolutely laser-focused on their customers.

What does this mean for my company, RL Property Management? Not much - I had no trouble carving out a few hours a week for LeadSimple, thanks to our own great team, executing on the battle-tested property management playbook we have in place.

If you're wondering about process and workflow automation for your property management business, or if you got started and hit a roadblock, I would love to show you what's worked for us & connect you with the right person at LeadSimple.

If this is all new to you, or you're curious how we use it within our property management company, a few weeks ago I hosted a live event where I rebuilt our New Property process in LeadSimple. You can watch that recording for free right here!

Closing Thought

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