Keyrenter Property Management Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$94,325 - $240,979
Franchise Fee
$30,000
Total US Locations
58
Business Summary
Keyrenter Property Management businesses offer a full range of real estate services, primarily focusing on managing residential properties like single-family homes, condominiums, and multi-family units. Keyrenter Property Management provides services such as leasing, maintenance and repair management, tenant relations, and rent collection, helping property owners manage their investments. The business may also generate revenue from real estate sales commissions or referral fees by utilizing real estate brokerages when rental properties are bought or sold. Keyrenter Property Management also offers Brand Conversion Franchises for individuals who already own an existing residential property management company.
Corporate History
Keyrenter Franchise LLC was formed in Utah on December 10, 2013, and began offering franchises in 2014. Keyrenter Property Management businesses specialize in a full range of real estate services, primarily focusing on property management and rental services for owners of various residential properties. The company operates under its corporate name and the Keyrenter Property Management brand. Keyrenter Franchise LLC does not operate any company-owned businesses directly. However, its affiliate, Premier Management of Utah, LLC, has owned and operated similar businesses in Midvale, Utah, since December 2007. Another affiliate, Key IP, LLC, holds the intellectual property sublicensed to franchisees.
Financial Overview
Investment Range
$94,325 - $240,979
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$50,000
Royalty %
7%
Marketing %
1%
Equipment Costs (Low)
$3,000
Equipment Costs (High)
$17,000
Working Capital
$43,775
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
Keyrenter Property Management's financial statements have been prepared under the assumption that the company will continue to operate as a going concern. The auditor notes that the company's ability to sustain operations depends on its capacity to generate sufficient cash flows and secure additional capital to meet its financial obligations. This indicates that Keyrenter Property Management faces financial challenges that raise doubts about its long-term viability without improved cash flow or new funding.
Financing Details
Keyrenter Property Management does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any notes, leases, or other obligations for franchisees. Franchisees are responsible for securing their own funding through third-party sources.
Performance Metrics
Total US Locations
58
Franchised Units
58
Corporate Units
0
Avg Square Footage
1,250
Franchising Since
2014
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
Keyrenter Property Management has one disclosed arbitration action filed on June 24, 2024. A customer of a former franchisee initiated the action against the former franchisee and Keyrenter Property Management, alleging breach of contract, unjust enrichment, conversion, deceit, fraud, and corporate negligence related to the former franchisee's property management services. The customer is seeking declaratory judgment and damages not exceeding $50,000, along with interest, costs, and fees. Keyrenter Property Management denies liability, asserting it was not a party to the contract. As of the FDD issuance date, Keyrenter Property Management is responding to discovery requests, and the parties are evaluating potential arbitration dates.
Bankruptcy History
Keyrenter Property Management has no bankruptcy history to report. Item 4 of the FDD states that no bankruptcy information is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Keyrenter Property Management franchisees must notify the franchisor in writing between 6 and 12 months before the current term expires. They must be in full compliance with their franchise agreement and any other agreements with the franchisor, and must not have received a written notice of default in the 12 months leading up to renewal. Franchisees are required to sign the then-current franchise agreement (which may include significantly different terms), all related documents, and a general release of claims against the franchisor. A non-refundable renewal fee of $2,500 is also required. Additionally, franchisees must renovate and upgrade their location to meet current brand standards 60 to 180 days before their term ends, and they must have the right to occupy their approved location for the duration of the renewal term.
Training & Support Program
Franchisor Assistance
Keyrenter Property Management provides comprehensive support to its franchisees. Before opening, Keyrenter Property Management assists with site selection by providing criteria and evaluating proposed locations. The franchisor also offers training and support for finding a broker, reviews and approves lease agreements, and provides specifications for remodeling and equipping the location. Initial training, known as "Key University," is provided for up to two people and includes both online and in-person instruction. Franchisees also receive access to the Confidential Operations Manual and a custom website with territory-specific URLs and email addresses. After opening, Keyrenter Property Management offers ongoing assistance and guidance in operating and managing the business, including preparing reports with suggestions for improvements. Ongoing training, coaching, and modifications to the Confidential Operations Manual are also provided. An affiliate may offer client support if deemed necessary. Additionally, ongoing training and system updates are provided through weekly live webinars called "Keyrenter Kickstart." Franchisees receive a business development accountability coach, and access to the "Keyrenter Group Forum" for real-time access to veteran franchisees and the leadership team. The online Learning Management System provides access to manuals, training videos, and templates. Franchisees are also required to attend an annual Keyrenter Summit Convention, which is part of ongoing training.
Initial Training Hours
76
Training Location
Remotely and at Key University headquarters in Midvale, Utah
Ongoing Support
Keyrenter Property Management provides ongoing assistance and guidance in operating and managing the franchised business, including written reports suggesting changes or improvements. Ongoing training and coaching are offered, along with updates to the Confidential Operations Manual. An affiliate may provide client support if needed. Franchisees receive ongoing training and system updates through weekly live webinars called "Keyrenter Kickstart." A business development accountability coach is provided at no additional cost to help franchisees meet performance goals and troubleshoot areas for improvement, offered remotely through group webinars and mastermind events. Franchisees also gain access to the "Keyrenter Group Forum" for real-time interaction with veteran franchisees and the leadership team. Keyrenter Property Management manuals, training videos, and templates are available through Key University's online Learning Management System. Franchisees are required to attend an annual Keyrenter Summit Convention, which does not exceed four days.
Franchise Requirements
Ideal Candidate Profile
Keyrenter Property Management seeks individuals, or entities with a designated owner, who will either actively run the business full-time or appoint an approved manager in limited circumstances. The designated owner must be actively involved full-time and provide on-site management, unless delegation to an approved designated manager is permitted. All candidates must obtain a real estate license in their state of operation and, if required, a property management license before opening. For Brand Conversion franchises, candidates must already own an existing residential property management company with at least 20 residential units under management. Keyrenter Property Management also offers franchises to foreign individuals through the E-2 Visa program.
Industry Experience Required
Yes
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Full-Time
Territory Type
Non-Exclusive
Territory Size Requirements
Keyrenter Property Management assigns non-exclusive territories that have a minimum population of 100,000 people. These territories are defined by specific geographic boundaries such as city, county, state, or highway. The franchisor uses population data from the U.S. Census Bureau or other reliable sources to determine market size. Once established, these territories are typically not redefined, even if the population changes. Franchisees are expected to focus their property management efforts within a 45-mile radius of their Approved Location, provided they do not service properties outside of their state.
Staffing Notes
Keyrenter Property Management franchisees are responsible for determining appropriate staffing levels and for hiring, training, and supervising their own employees or independent contractors. The franchisor explicitly states that these individuals are the franchisee's employees or contractors, not the franchisor's, and the franchisor does not control their day-to-day activities. Franchisees must use their legal business entity name on all employment-related documents and inform employees that they are solely responsible for supervision. Employees and independent contractors who access confidential information are required to sign confidentiality agreements. If the franchisee is not yet a licensed managing principal broker, they should budget for paying a supervising broker approximately $500 or more per month until they obtain the necessary license.