Property Management Startup Costs

The investment level required to participate in an All County® Property Management franchise is usually $59,700 to $89,400. If you already have an office, the startup expenses could be considerably reduced. Up front franchise fee of $39,500 and $29,700 - $59,400 estimated start up capital and operating expenses.

 

Here's the Breakdown

Office Rent and Improvements $1,000 - $2,000 You will need to purchase or lease 950 to 1,200 square feet of office space to operate the business.
Signs $500 - $1,000
Capital Equipment and Supplies $4,000 - $5,000 The estimate for required office furniture, including a conference table, desks, chairs, etc. The estimate also includes an initial supply of yard signs and lock boxes.
Technology, Office Equipment, and Supplies $3,000 - $4,500 You will need to purchase or lease 3 desktop personal computers that comply with our specifications. The estimate includes 3 months of the software license fee. The estimate includes other required office equipment such as a printer, scanner, and related supplies.
Start-Up Marketing $3,000 - $5,000 We will train you in our marketing methods that have allowed our franchises to achieve the highest average revenue in the property management industry, but you will need to fund and implement the marketing program.
Insurance $2,500 Our franchises obtain both general liability and errors & omissions insurance.
Professional Fees $1,000 - $1,500 Professional fees may include setting up a corporation or other business entity, filing the necessary forms, setting up an accounting system, etc.
Licenses/Bonds $1,500 - $2,000 Your franchise must be under the direct control of a Managing Owner. This is an estimate of any required state licensing fees for the franchisee entity and the Managing Owner. Also, this estimate includes initial fees to join the National Association of Realtors.
Office Deposit $500 - $1,000
Other Deposits $2,000 - $3,000 This estimate includes any required deposits for utilities and leased equipment, including for a copier and the telephone system.
Expenses While Attending Training $700 - $2,400 You must attend 4 days of training at our main office in St. Petersburg, Florida. This is our estimate of your potential travel and living expenses to attend the training course.

 

Additional Funds $20,000 - $30,000 Additional funds are an estimate of the amount of cash required to cover any operating expenses during your first 3 months of operation.

These expenses are estimates of your initial investment in one location prior to commencing operations and for the first three months thereafter. We make no estimate regarding real estate acquisition costs. We do not require you to acquire real estate, other than your lease, to operate your All County® business. We relied upon personal experience and our affiliate’s experience in opening a similar business to the Franchise Business in compiling these estimates. You should review these figures carefully with a business advisor before making any decision to purchase the franchise.

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 $1 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 $250 for the first user per month and $65/month for each additional user. Since a full-time property manager should be able to manage about 100 units, this equates to about $2.50 per unit per month. Our franchises' rental vacancies can be automatically posted to 20-30 different rental vacancy websites, such as Zillow.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 $12 per unit. 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 $45 per month.

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.