In addition to office rental costs, below are some of the ongoing expenses.
Royalty and National Ad Fund Fees
There is a royalty of 7% of gross property management revenue and a National Ad Fund contribution of 1% of the property management revenue. In other words, if you manage a rental unit with a monthly rent of $1000 and charge a 10% monthly management fee, then your monthly property management revenue is $100, and you would pay $7 in royalties and contribute $2 to the National Ad Fund each month. The National Ad Fund helps you obtain new rental property owner clients from national and regional methods unavailable to the small mom-and-pop property managers that predominate in the industry, so this is a tremendous competitive advantage.
Property Management and Accounting Software Fees
Our property management and accounting software cost is $50 per user per month. Since a full-time property manager should be able to manage about 100 units, this equates to about $.50 per unit per month. Our franchises' rental vacancies can be automatically posted to 20-30 different rental vacancy websites, such as HotPads.com. The cost for this feed is a flat $30 per month for each franchise, and this is a major marketing resource for placing new tenants.
Bookkeeping Assistance Program
Our Bookkeeping Assistance Program is free for the first six months and $125 per month for the next 12 months. The Bookkeeping Assistance Program allows our franchise owners to focus on growing their businesses rather than hassling with the accounting, which can be extremely time consuming.
Website, Email, and Learning Center
Each franchise receives one of our standard websites at no additional charge. For ongoing website hosting, e-mail hosting, and access to our online learning center, the cost is $300 per year.
Salary and Wage Expenses
Most of our franchises start with the franchise owner growing the business full-time and with a part-time receptionist as support. When the franchise grows to 60-100 units under management, then those units are delegated to a property manager while the franchise owner focuses on growing the business. Salary expenses are kept low and only increased as revenue builds.