Build or buy property management company:

[Rich Lathrop]

Does anyone on this forum own a property management company with 100 or more "doors" ?  At one time I owned 17 rental properties that my wife managed but when my daughter was born we liquidated. We would have kept them if we had more confidence in the local property management companies. All that to say, I feel their is demand in my town for a high quality operation.  I'm in the early stages of doing some research and I'm hopeful that someone on this forum may be able to share their experience with regard to the following questions:

1. Is there a good franchise operation that you would recommend ?  I believe it wise to pay for a system but not all are very good.

2. Is the property management business scalable ?  I suspect that at some # of doors  one can afford a team that would do the bulk of the day to day.  At what size does the PM business become a "quadrant b" business ?  That is one that can thrive without my direct involvement.  I'm interested in building/buying  assets not a job.

3.  What are the typical gross margins on a sizable property management company ? Say 400 doors ?

Thanks in advance for any insight on these questions.  I have noticed in my reading through this website that there are a number of really smart people willing to share their knowledge.  That is a wonderful thing - thank you !

Rich