Real Estate & Property
Business Funding for Property Management Companies
Property management companies collect rent on behalf of owners and earn a management fee, typically 8 to 12 percent of collected rent. The business itself is capital-light once established, but growing your portfolio requires hiring maintenance coordinators, leasing agents, and bookkeepers. The real capital need comes when you take on a new property that requires turnover work, deferred maintenance, or tenant improvements before it can generate rent.
Common Uses
What Property Management Companies Use Funding For
- Fund property turnover costs including painting, cleaning, and repairs between tenants
- Hire maintenance technicians, leasing agents, and administrative staff to support a growing portfolio
- Invest in property management software for accounting, maintenance tracking, and tenant portals
- Cover security deposits, utility transfers, and other carrying costs when onboarding new properties
Funding Options
Best Funding Types for Property Management Companies
Business Line of Credit
A revolving line covers the uneven cash flow of property management. Large maintenance expenses hit unpredictably, and a credit line lets you handle emergency repairs without touching your management fee income.
Term Loan
Fund a specific growth initiative like acquiring another management company's portfolio, opening a satellite office, or hiring a maintenance team. Fixed payments work well against the predictable management fee income.
SBA 7(a) Loan
Acquire a competing property management company and its client portfolio. SBA loans can cover the purchase price including client contracts and goodwill, with terms that align with the long-term nature of management agreements.
What Lenders Look For
Qualification Notes for Property Management Companies
Related Industries
Related Real Estate & Property Funding
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