Real Property Management Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$91,796 - $234,150
Franchise Fee
$5,000
Min Cash Required
$5,000
Total US Locations
447
Business Summary
Real Property Management franchises operate businesses that provide comprehensive property management services. This includes managing maintenance and repair, collecting rent, and handling various tasks like tenant screening, placement, leasing, evictions, and accounting. Real Property Management also offers marketing and advertising support for single and multi-family residential properties, commercial properties, Real Estate Owned (REO) properties, vacation rentals, and common interest communities. These businesses typically operate from an office building or shared office complex, requiring 500 to 1,000 square feet of space.
Corporate History
Real Property Management SPV LLC was organized in Delaware on November 13, 2020. However, the business itself has a longer history through its predecessor, Property Management Business Solutions, LLC, which was formed in Utah on April 21, 2004. This predecessor began offering franchises for property management services under the Real Property Management name in 2005. In February 2018, Property Management Business Solutions, LLC was acquired by Dwyer Franchising, LLC, which is now known as Neighborly. As part of a securitization financing transaction in March 2021, all existing U.S. franchise agreements and associated intellectual property for Real Property Management were transferred to Real Property Management SPV LLC, establishing it as the current franchisor. The brand also operates under the names Property Management Business Solutions and Realevate.
Financial Overview
Investment Range
$91,796 - $234,150
Franchise Fee (Low)
$5,000
Franchise Fee (High)
$59,900
Minimum Cash Required
$5,000
Royalty %
7%
Marketing %
2%
Equipment Costs (Low)
$2,500
Equipment Costs (High)
$5,000
Working Capital
$52,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Real Property Management's direct parent, Neighborly Assetco LLC, guarantees the franchisor's performance under the Franchise Agreement. This entity is part of a securitization financing transaction with significant debt, totaling over $1.4 billion in senior secured notes as of December 31, 2024. However, the independent auditors for Neighborly Assetco LLC issued an unqualified opinion, meaning its financial statements present fairly, and the company reported compliance with all debt-service coverage covenants as of December 31, 2024. The overall financial picture indicates significant long-term obligations related to its securitization structure, but no immediate concerns about its ability to continue as a going concern were raised by the independent auditors. The Manager, Neighborly Company, which provides support services to franchisees, also carries over $1.5 billion in long-term debt as of December 31, 2024, but its auditors also issued an unqualified opinion.
Financing Details
Real Property Management may offer financing for a portion of the initial franchise fee to qualified prospective franchisees. This financing is typically limited to less than 50% of the total financial support required for the business. Standard financing can cover up to 70% of the initial franchise fee, and in some cases, up to 80% if specific requirements are met. Interest rates are based on the franchisee's credit score, with 10% for scores between 650-699 and 9% for scores of 700 or more. Repayment terms vary from up to 5 years for loans under $59,900, extending to 9 years for loans over $150,000. Franchisees must sign a promissory note, grant a security interest in their business assets, and provide a personal guarantee. Real Property Management does not offer financing for transactions involving brokers. They may also, in limited situations, finance a portion of any renewal fee at a 12% interest rate for qualified franchisees. The franchisor does not guarantee a franchisee's obligations to third parties.
Performance Metrics
Total US Locations
447
Franchised Units
447
Corporate Units
0
Avg Square Footage
750
Franchising Since
2005
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
Yes
Litigation Count
6
Litigation Summary
Real Property Management has been involved in several legal disputes. In 2016, former Real Property Management franchisees filed a complaint against the franchisor's predecessor, alleging breach of contract, fraud, and violations of franchise rules due to prior knowledge of competing trademark usage. This case was settled in 2017, resulting in the termination of two franchises, forgiveness of owed amounts, and the franchisor purchasing one of the franchisee's outlets. In 2014, Real Property Management's predecessor was named as a defendant in two separate tenant lawsuits. These cases alleged property disrepair, California housing code violations, and retaliation by certain defendants. Both lawsuits were settled in 2017, with the predecessor paying $13,000 in one case and $75,000 to Fannie Mae in the other. Additionally, two administrative orders involved affiliates of Real Property Management: in 2017, a predecessor to Window Genie was ordered to pay a $5,000 penalty and provide remedial training for failing to submit advertising documents, and in 2010, a predecessor to Molly Maid paid civil penalties and costs totaling over $50,000 for alleged Kansas Consumer Protection Act violations related to background checks and gift certificates. Most recently, on March 15, 2024, Real Property Management SPV LLC initiated a lawsuit against a franchisee to enforce a covenant not-to-compete.
Bankruptcy History
Real Property Management itself does not have a direct bankruptcy history. However, its indirect parent, Kohlberg Kravis Roberts & Co. L.P. (KKR), has had several portfolio companies file for bankruptcy. The Collected Group LLC, a fashion brand owner, filed a Chapter 11 reorganization in April 2021 and emerged in May 2021. Envision Healthcare Corporation, a healthcare provider, filed Chapter 11 in May 2023 and emerged in November 2023. Genesis Care Pty Limited, another healthcare provider, filed Chapter 11 in June 2023 and emerged in February 2024. IPI Legacy Liquidation Co., a pharmaceutical company, filed Chapter 11 in December 2023 and emerged in April 2024. Additionally, Café Coffee Day, a cafe operator in India, filed an insolvency resolution in August 2024, though this order was later set aside in February 2025.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Real Property Management franchise, franchisees must notify the franchisor in writing between 180 and 240 days before their current agreement expires. They must be in good standing, meaning they have not defaulted on their agreement or any related agreements, have met all financial and other significant obligations on time, and have received no more than two written default notices throughout the term. Franchisees must also have met the Minimum Performance Standards for no more than two calendar years or measurement periods during the term. Additionally, they are required to sign a general release of claims, pay a renewal fee of $3,000, complete the franchisor's then-current training requirements, and sign the current version of the franchise agreement, which may have different terms, conditions, and fees.
Training & Support Program
Franchisor Assistance
Before opening, Real Property Management provides franchisees with site selection guidelines, approved supplies lists, and access to an Operating Manual detailing business specifications and procedures. Franchisees also receive initial training programs and general opening support. After opening, Real Property Management offers ongoing consultation and guidance, updates to its approved supplier lists, and continuous communication regarding the Operating Manual. The franchisor manages a Marketing, Advertising, and Promotion Fund (MAP Fund) to which franchisees contribute, used for system-wide marketing and brand awareness. Real Property Management also provides refresher training, regional meetings, and annual conventions, which franchisees are required to attend, covering their own travel and living expenses. The franchisor may also offer suggestions on pricing policies and negotiate national account arrangements.
Initial Training Hours
298.5
Training Location
Waco or Dallas, Texas or virtual training
Ongoing Support
After opening, Real Property Management provides franchisees with ongoing consultation and guidance as reasonably necessary. Franchisees receive updates to the lists of approved supplies and suppliers, as well as ongoing communication and updates to the Operating Manual. The franchisor maintains a Marketing, Advertising, and Promotion Fund (MAP Fund) to which franchisees contribute for system-wide marketing and brand awareness initiatives. Real Property Management may also offer refresher training courses and regional meetings and conventions, which franchisees are required to attend, covering their own travel and living expenses.
Franchise Requirements
Ideal Candidate Profile
Real Property Management seeks qualified individuals or entities to become franchisees. New franchisees should be located in metropolitan areas with populations exceeding 100,000 people and more than 10,000 single-family rentals, though the franchisor may consider areas with smaller populations at its discretion. Veterans may receive a discount on the initial franchise fee if they meet the franchisor's qualifications. For existing business owners, those with 20 or more properties under management can receive a roll-in discount if they merge their business into the franchise. Current franchisees looking to expand into additional, smaller territories must be in good standing, manage at least 80 units, and possess an established infrastructure. All franchisees must secure a real estate license and a sponsoring real estate broker before attending training. Owners, or designated principal owners if the franchisee is a legal entity, are required to provide direct, active, and full-time supervision and management of the business. Individual franchisees must also maintain valid immigration status to live and work in the United States throughout the franchise term.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
commercial
Owner Participation
Hands-On
Territory Type
non-exclusive
Territory Size Requirements
Real Property Management generally grants territories in metropolitan areas with populations exceeding 100,000 people and more than 10,000 single-family rentals. However, the franchisor may, at its discretion, grant territories in isolated metropolitan areas with fewer than 100,000 people, or additional territories to existing franchisees in areas with populations of 60,000 or less. While not exclusive, the franchisor commits not to establish or operate more than one additional company- or affiliate-owned or franchised Real Property Management business for every 100,000 persons within a franchisee's territory. Population demographics are determined using the most recent data from the U.S. Census Bureau or similar third-party sources. If a franchisee needs to relocate, they may move to another site within a three-mile radius of their initial location, subject to prior authorization.
Staffing Notes
Real Property Management franchisees are responsible for hiring a sufficient number of competent and trained employees to ensure efficient customer service. It is required that all employees and subcontractors pass necessary background checks before entering a customer's home. Franchisees are solely responsible for training their own employees and ensuring they receive adequate training. Additionally, franchisees are required to engage a licensed real estate broker and execute a Brokerage Agreement. The business must always be under the direct and active supervision of the franchisee or a designated principal owner.