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Updated over 6 years ago on . Most recent reply
How “Recession-Proof” is a Property Management Business?
I'm wondering What segment of real estate business is recession proof? Would a property management business thrive in recession? If not, what would be ideal real estate business during recession?
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@Jay Hinrichs $200 a door....that would be nice. I think recession proof is a strong word, but people always need a place to live. If your mgmt company has good doors to manage, then I would say you will fair much better then managing low class properties. Property Mgmt income may go down as rents go softer, but certainly sustainable. While that doesn't sound that bad, typically staffing is based on current mgmt income. The cost to operate a good property mgmt company is much more then most think; so lower income into your mgmt company may mean managing the same amount of properties with the same overhead cost, but less revenue. You can't just lay people off or hire a bunch of dummies if you plan to run a mgmt company, so those 2 options are not an option.
- Alex Craig
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