Real Property ManagementFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Real Property Management franchise requires a total initial investment of $92K – $266K, including a $60K 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]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $92K – $266K
- 54th pct Real Estate
- Avg gross sales
- N/A
- 25th pct Real Estate
- Royalty
- N/A
- Units
- 423
- 67th pct Real Estate
- SBA default
- 3.1%
- system-wide median varies by category
Quick verdict · Real Estate · color = vs category peers
Green = >15% above Real Estate avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- Total investment $92K – $266K including a $60K franchise fee.
- Item 19 discloses "Annual Revenue Per Unit" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict A (Top Quintile) with a risk score of 46/100. SBA loan charge-off rate of 3.1% across 98 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System growing at 17.5% CAGR over 3 years with 423 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Real Property Management SPV LLC
- Parent company
- Neighborly Assetco LLC
- Incorporated in
- DE
- 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
Franchisees operate residential property management services, overseeing tenant placement, rent collection, maintenance coordination, and tenant relations for residential investment properties. Revenue splits between non-maintenance (leasing/admin) and maintenance services, each taxed at different royalty rates. Daily operations involve tenant communication, contractor coordination, compliance with local landlord-tenant laws, and property inspections.
- CEO
- Michael Anthony Davis
- Headquarters
- TX
- Founded
- 2004
- FDD year
- 2024
- States available
- 51
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $5K | $175K |
| Equipment, build-out, other | $27K | $31K |
| Total initial investment | $92K | $266K |
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
- $92K – $266K
- Near category avg vs category
- Liquid capital req'd
- $5K – $175K
- Better than avg vs category
- Franchise fee
- $10K – $60K
- Below avg, review vs category
- Royalty
- Greater of (i) 7% of Non-Maintenance Gross Sales plus 3% …
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $106 |
| Transfer fee | $10K |
| Renewal fee | $3K |
| Total fee load | 9.0% of rev |
Financial Performance
This brand's FDD disclosed "Annual Revenue Per Unit" in Item 19 rather than annual gross sales. This metric cannot be directly compared across brands, so we omit it from rankings.
vs Real Estate averages
How Real Property Management Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 423
- Opened
- 39
- Last reporting year
- Closed
- 5
- Turnover rate
- 1.2%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +8.7%
- Net unit change last year
- 3-yr CAGR
- +17.5%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 12
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)
- 89.7%
- 5-yr charge-off
- 9.1%
- Loans approved 2021+
- Active lenders
- 30
- Defaults
- 3
Vintage analysis
Real Property Management charge-off rate by loan vintage
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Property management franchise with opaque financials, regulatory/litigation baggage, and ambiguous royalty structure presents moderate-to-high risk despite protected territories and 10-year term.
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 46 / 100 rating
- 01MEDNo Item 19 financial disclosure (avg revenue/net income not disclosed) prevents ROI validation on $91.7k-$266.2k investment
- 02HIGHLitigation involving trademark disputes, tenant habitability claims, and FTC/state regulatory actions against parent company affiliates indicate compliance and operational risk
- 03MEDDual royalty structure (7% non-maintenance + 3% maintenance OR minimum fee) creates unclear cost burden without disclosed minimum threshold
- 04MINORModest unit growth (8.7% YoY on 423 units = ~37 net adds) suggests market saturation or franchisee performance concerns
- 05MEDProperty management business model carries inherent tenant liability exposure, evidenced by disclosed habitability claims against managed properties
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Designated population-based territory |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 6 |
Items 10, 11
Training & Operations
- Classroom training
- 42 hrs
- On-the-job training
- 256 hrs
- POS system
- AppFolio and LeadSimple
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: AppFolio and LeadSimple
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 $92K – $266K, with an initial franchise fee of $60K. 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 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 423 total units in the United States, including 336 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 risk score of 46 out of 100, 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.
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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.