Should We Sell Management Portfolio

[Chris G.]

We have technically two management companies for two separate county's in the area. They're both ran out of the same office. County 1 portfolio is about 3x the size and owners call us to get management since there isn't much competition in the area making new properties usually easy to get. A majority of the properties are SFH in this portfolio too. For county 2 portfolio getting owner leads is a lot more time consuming since there's way more competition there, usually we're the ones making follow up calls and being a sales person to try and get more properties, making it difficult to grow the portfolio. A majority of the rentals are shared housing for students and condos which ends up being alot more work than SFH. County 2 also is now requiring rental permits and certain "energy efficient requirements" for rentals.

Our idea would be to sell the county 2 portfolio off to another management company or individual and solely focus on county 1 portfolio to grow even more. Both are profitable at the moment. Or even ideas to keep both but make it worth the time.  Any thoughts or ideas would be helpful. 

[Chris Seveney]

Quote from @Chris G.:

We have technically two management companies for two separate county's in the area. They're both ran out of the same office. County 1 portfolio is about 3x the size and owners call us to get management since there isn't much competition in the area making new properties usually easy to get. A majority of the properties are SFH in this portfolio too. For county 2 portfolio getting owner leads is a lot more time consuming since there's way more competition there, usually we're the ones making follow up calls and being a sales person to try and get more properties, making it difficult to grow the portfolio. A majority of the rentals are shared housing for students and condos which ends up being alot more work than SFH. County 2 also is now requiring rental permits and certain "energy efficient requirements" for rentals.

Our idea would be to sell the county 2 portfolio off to another management company or individual and solely focus on county 1 portfolio to grow even more. Both are profitable at the moment. Or even ideas to keep both but make it worth the time.  Any thoughts or ideas would be helpful. 

 Some things to consider if you sell:

1. Will it allow the team working on that portfolio more opporunities in your current area?

2. Would you be more profitable by focusing on one area?

3. Would the lack of diversification in another area be a detriment?

4. Are you the #1 PM firm in either area, if not in area 1 could you?

5. If you opened an office in area 2 would that help or hurt the situation?

Sometimes less is more, but I wanted to throw some questions out there, and remember to look long term big picture.