Deal Flow: Property Management Business
A Golden Opportunity Near Disney with a Thriving Property Management Business for Sale
Nestled in one of the most vibrant tourist hubs in the United States, just steps away from Disney, this highly regarded property management business presents a prime opportunity for acquisition entrepreneurs seeking to enter a thriving market.
Generating $1,000,000 in annual cash flow, the business shows impressive growth projections, a stellar 5-star Google rating, and strategic partnerships with top-tier platforms like Airbnb and VRBO. The added benefit of SBA pre-approval financing further enhances the accessibility of this business for the qualified ETA.
Just remember, success in this venture hinges on a seamless transition of ownership, maintaining the business’s core values of quality and customer satisfaction while scaling operations. Opportunities to refine the sales and marketing strategy offer substantial potential for further expansion.
Let’s dive into the listing:
Business Overview
Asking Price: $1,600,000
Cash Flow/SDE: $1,000,000
Gross Revenue: N/A (Revenue not specified in the listing)
Employees: 6 (including a Business Development Manager)
Established: 2022
Reason for Selling: Owner relocating outside the United States
Location: Lake Buena Vista, FL (near Disney)
Facilities: Virtual office model, with staff working remotely except for the Business Development Manager (BDM)
Financing: No owner financing available
Key Metrics & Valuation
Cash Flow to Asking Price Ratio: The business generates $1,000,000 in cash flow with an asking price of $1,600,000, resulting in a cash flow multiple of 1.6x. This is an extremely attractive multiple, particularly for a property management business. Typically, property management companies with recurring revenue and strong market positions sell for multiples ranging from 3x to 5x cash flow, so this business is priced attractively for a quick sale. The low multiple makes it appealing for buyers looking for strong returns.
Revenue and Profitability: While the exact gross revenue isn’t provided, the projected gross profit for 2025 is expected to be between $900,000 and $1,000,000, which reflects the potential growth and profitability of the business. Given the growth trajectory, the business is poised to become even more profitable in the coming years.
Business Model and Operations
Service Offering: The business specializes in property management services, handling both short-term rental properties (70 units) and long-term rental properties (50 units). Their services include everything from managing bookings (Airbnb, VRBO) to maintenance, cleaning, and guest communications. The company also benefits from a 5-star Google My Business rating, an Airbnb Superhost account, and a high-performing SEO-optimized website that generates consistent leads.
Growth and Client Base: The company has shown remarkable growth, starting with 1 unit under management in 2022 and expanding to 120 units by the current year. The projected growth for the next few years is ambitious, with expectations to manage over 500 units by 2027. The high demand for short-term and long-term rentals in the Orlando area (with over 80 million visitors annually) provides a solid foundation for this rapid growth.
Operations: The business operates on a virtual model, with most of the staff working remotely. The Business Development Manager (BDM) is the only local team member, responsible for acquiring new contracts and growing the business. The business relies on automation tools and systems for communication, cleaning, and maintenance to streamline operations and reduce overhead.
Technology and Systems: The business has invested heavily in technology, including an advanced property management system (PMS), tools for guest communication, and a robust, SEO-optimized website. The website has been instrumental in generating leads and driving bookings, particularly for Airbnb and VRBO properties. The company also uses QuickBooks for financial tracking, which integrates seamlessly with the overall business operations.
Strengths
Strong Cash Flow: The business generates $1,000,000 in cash flow, which represents a high return on investment given the asking price of $1,600,000. This level of profitability is highly attractive for buyers looking for a business with strong earnings and minimal risk.
High Growth Potential: The business has shown exceptional growth, expanding from 1 unit in 2022 to 120 units under management today. With projections to reach 500 units by 2027, this demonstrates the scalability of the business model and the increasing demand for both short-term and long-term rental properties in the Orlando area.
Established Reputation: The business has built a reliable and trustworthy brand, with an Airbnb Superhost account, a 5-star Google My Business rating, and a strong online presence. These factors make it easier to attract clients and maintain a solid reputation in a competitive market.
Streamlined Operations: The business uses automated systems for managing operations, including guest communication and maintenance scheduling. The integration of technology, such as the property management system and SEO-optimized website, reduces the need for manual labor and increases efficiency.
Relocatable Model: The business is home-based with remote operations, which provides flexibility for the buyer. This allows the business to be operated from anywhere, and the ability to scale without the need for physical offices or additional overhead.
SBA Pre-Approval: Although owner financing is not available, the business has been pre-approved for SBA 7a financing.
Loyal Client Base: The business has 120 units under management and a strong client base across both short-term and long-term rentals, reducing the risk associated with customer turnover. The diversity in clientele (from local residents to international visitors) adds to the stability of the revenue.
Risks and Considerations
Dependence on the Owner: The business is currently owner-operated, with the owner being the driving force behind operations. While there is a Business Development Manager (BDM) focused on growth, you’ll need to make sure you can transition into the business smoothly. The success of the business is somewhat dependent on the owner’s ability to manage the operations, so there may be some risk if you lack experience in property management.
Market Dependency: The business operates in a highly competitive market and is significantly reliant on the Orlando tourism and rental market. While the Orlando area attracts millions of visitors each year, any significant downturn in tourism or changes in rental regulations could impact the business. You should assess the local real estate and regulatory environment to ensure continued demand.
Scalability Challenges: Although the business has shown strong growth, scaling to 500+ units will require additional resources, like more staff for property management, marketing, and operations. You will need to ensure they have the capacity to scale up effectively and manage the increased workload.
No Direct Sales or Marketing: While the business has a high-performing website and strong SEO, the lack of direct sales and marketing efforts could limit the potential for further growth. If you have strong sales and marketing experience, you may be able to enhance the company’s outreach and acquisition efforts.
Owner’s Exit Strategy: The owner is selling due to relocation outside of the U.S., which means the transition will need to be carefully managed to make sure the business continues to operate smoothly. The 30 days of training offered by the seller might not be sufficient if you’re new to the property management industry.
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About: Silverwave Deal Flow combs through and analyzes thousands of businesses available for sale that may be of interest to entrepreneurs looking to acquire an existing business. We are not affiliated with the business listed for sale unless otherwise disclosed.