Real Property Management Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Real Property Management is a property-management franchise handling leasing, rent collection, maintenance, and tenant relations for residential and commercial owners. Franchisees run a local office managing portfolios of rental properties and vendor coordination.
FranchiseVerdict summary · 2026
A Real Property Management franchise requires a total initial investment of $99K – $244K, including a $70K franchise fee. The 2024 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 3.1% charge-off rate across 98 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $99K – $244K
- 65th pct Real Estate
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 450
- 78th pct Real Estate
- SBA charge-off
- 3.1%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Real Estate · color = vs category peers
Green = favorable by >10% vs Real Estate avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $99K – $244K including a $70K franchise fee.
- RETURNSItem 19 discloses Average/Median ANNUAL REVENUE PER PROPERTY UNIT MANAGED (not whole-outlet revenue): overall 421 reporting franchises, average $4,552/unit, median $4,256/unit, range $405.99-$19,257.03; broken out further by outlet age (1-3 years old vs. over 3 years old). Average number of property units managed per franchise (systemwide) = 260 (avg) / 123 (median). Average/median monthly rent charged per unit also disclosed: avg $1,541, median $1,496.
- RISKVerdict A (Strongest tier), verdict score 78/100 (higher is better). SBA loan charge-off rate of 3.1% across 98 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Real Property Management SPV LLC
- Parent company
- Neighborly Assetco LLC
- Ultimate parent
- Nest Holdings LP (controlled by investment funds affiliated with Kohlberg Kravis Roberts & Co. L.P. / KKR)
- Predecessor
- Property Management Business Solutions, LLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer (for Neighborly and Manager)
- Michael Anthony Davis
- Incorporated in
- Delaware
- HQ
- 1010 North University Parks Drive, Waco, Texas 76707
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $383.2M
- vs $451.9M prior year
Overview
About
- CEO
- Michael Anthony Davis
- Headquarters
- Texas
- Founded
- 2005
- FDD year
- 2024
- States available
- 51
Can you afford it, and what does the money buy?
Entry cost runs 20% below the typical real estate franchise.
Source: FDD 2024 · Items 5–7
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $70K | $70K |
| Working capital (3–6 mo) | $3K | $100K |
| Equipment, build-out, other | $27K | $74K |
| Total initial investment | $99K | $244K |
Source: Real Property Management 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $99K – $244K
- Middle of category vs category
- Liquid capital req'd
- $3K – $100K
- Top 40% of category vs category
- Franchise fee
- $70K – $70K
- Bottom third — review vs category
- Royalty
- License Fee = the greater of (i) 7% of Non-Maintenance Gr…
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | Minimum License Fee (tiered floor applied only if the percentage-based amount is lower): $0/month months 1-4, $250/month months 5-12, $500/month months 13-24, $1,000/month thereafter |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $121 |
| Transfer fee | $10K |
| Renewal fee | $3K |
| Total fee load | 9.0% of rev |
What do units actually make?
Source: FDD 2024 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Real Property Management did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Real Property Management unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
50%
Within the 30–60% "attractive franchise" band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2024 FDD
Financial Performance
Item 19 discloses Average/Median ANNUAL REVENUE PER PROPERTY UNIT MANAGED (not whole-outlet revenue): overall 421 reporting franchises, average $4,552/unit, median $4,256/unit, range $405.99-$19,257.03; broken out further by outlet age (1-3 years old vs. over 3 years old). Average number of property units managed per franchise (systemwide) = 260 (avg) / 123 (median). Average/median monthly rent charged per unit also disclosed: avg $1,541, median $1,496.
- Item 19 type
- per unit metric
- Sample size
- 421
- vs category median 64 · large
- Source filing
- FDD 2024
- The FDD edition these figures were read from
- Transparency
- 0 / 10
- vs category median 0 / 10 · typical
Compared against 101 Real Estate brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 9.0% (near the Real Estate average).
Disclosure
Item 19 reports per unit metric rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System expanding at 6.6% CAGR over 3 years across 450 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Real Estate averages
How Real Property Management Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 450
- Opened
- 39
- Last reporting year
- Closed
- 2
- Turnover rate
- 6.2%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +6.6%
- Net unit change over 3 years
- 3-yr CAGR
- +6.6%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 31
- Closed (3yr)
- 2
- Terminated (3yr)
- 19
- Non-renewed (3yr)
- 7
- Transfers (3yr)
- 13
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 20 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 98
- Loan volume
- $26.4M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 3.1%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 96.9%
- 5-yr charge-off
- 9.1%
- Loans approved 2021+
- Active lenders
- 30
- Defaults
- 3
- Typical loan rate
- 8.0%
- avg rate to borrowers
- Franchised industry avg
- 21.5%
- brand beats franchise avg ↓
- Jobs supported
- 415
- 1.6 per loan
- Lender concentration
- 48%
- top lender's share
Borrower mix: 82% went to startups / new businesses, 18% to established operators
Franchise vs independent — in residential property managers, franchised businesses charge off at 21.5% vs 27.5% for independents — franchising is associated with 22% lower SBA default risk in this category.
Vintage analysis
Real Property Management charge-off rate by loan vintage
Top lenders financing Real Property Management franchisees
Showing 3 of 30 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Real Property Management's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 12-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
What could kill this investment?
SBA loans charge off at 3.1% — 81% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Financially strong (KKR-backed): positive equity $2.95B, $480.8M revenue, $154M net income, audited, Item 19 disclosed. 4 litigation matters (non-compete disputes, some pending 2025) are routine relative to 450 units. Bankruptcies listed are unrelated KKR portfolio companies, not the franchisor. One minor concern from active non-compete litigation.
Litigation (Item 3)
Two pending/recent franchisee disputes (Solano Properties - pending; Rego - settled for $175,000 paid to Franchisor) allege Franchisor's post-termination restrictive covenants violate California UCL, met with Franchisor counterclaims for breach of contract. Three older, resolved cases (Gitlin 2016-2017, Garcia 2014-2018, Bechard 2014-2017) involved Predecessor, mostly tenant/franchisee disputes settled for modest amounts ($13,000-$75,000) or franchise buybacks.
Largest disclosed settlement: $175,000
Bankruptcy (Item 4)
Disclosed in last 7 years
No bankruptcy involving the Franchisor itself; disclosed bankruptcies are of KKR portfolio companies (Marelli Holdings, The Collected Group, Envision Healthcare, Genesis Care, IPI Legacy Liquidation, Cafe Coffee Day) unrelated to Franchisor operations.
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
Score breakdown · what drove the 78 / 100 verdict
- 01HIGH4 litigation matters (non-compete disputes) vs 450 units — routine
- 02MINORBankruptcies are unrelated KKR portfolio cos, not franchisor
- 03MINORVery strong financials: $2.95B equity, $154M net income
- 04MINOR15.7% net unit growth
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory population | 100,000 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Arbitration location | McLennan County, Texas (mediation/arbitration/litigation venue; arbitration only if a court invalidates jury/class-action waiver) |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 5 |
View Item 3 litigation summary
Two pending/recent franchisee disputes (Solano Properties - pending; Rego - settled for $175,000 paid to Franchisor) allege Franchisor's post-termination restrictive covenants violate California UCL, met with Franchisor counterclaims for breach of contract. Three older, resolved cases (Gitlin 2016-2017, Garcia 2014-2018, Bechard 2014-2017) involved Predecessor, mostly tenant/franchisee disputes settled for modest amounts ($13,000-$75,000) or franchise buybacks.
Items 10, 11
Training & Operations
- Classroom training
- 42 hrs
- On-the-job training
- 256 hrs
- Training location
- Waco or Dallas, Texas, or virtual/webinar training
- Field support
- 256 hrs/yr
- On-site visits per year
- Franchisor financing
- Offered
- Item 10
- POS system
- AppFolio (Property Management Software); LeadSimple (Task/Lead Management)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: AppFolio (Property Management Software); LeadSimple (Task/Lead Management)
Item 20 · call current owners
Franchisee Contacts
37 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Real Property Management · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Real Property Management franchise?
The total investment to open a Real Property Management franchise ranges from $99K – $244K, with an initial franchise fee of $70K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Real Property Management franchise owners earn?
Real Property Management does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Real Property Management FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Real Property Management FDD and qualifies whose outlets they describe.
What is Real Property Management's franchise failure rate?
Based on SBA 7(a) loan data, Real Property Management has a charge-off rate of 3.1% across 98 loans, meaning 3.1% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Real Property Management franchise locations are there?
As of their most recent FDD filing, Real Property Management has 450 total units in the United States, including 450 franchised units and 0 company-owned units. 39 new units were opened in the latest reporting year.
Is Real Property Management a good franchise to buy?
FranchiseVerdict rates Real Property Management as a A-grade franchise with a verdict score of 78 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.