Real Property Management Franchise Cost, Revenue & Review 2026
- Investment
- $99K – $244K
- Disclosed sales
- partial, no system average
- SBA charge-off
- 10.3%
- on 98 loans
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 and an ongoing 7.0% royalty[2]. The 2026 FDD on file does not yield a unit-revenue figure we can publish. SBA 7(a) loans show a 10.3% charge-off rate across 98 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored4 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $99K – $244K
- 66th pct Real Estate
- Avg gross sales
- N/A
- Projection
- Royalty
- 7.0%
- 48th pct Real Estate
- Units
- 450
- 78th pct Real Estate
- SBA charge-off
- 10.3%
- % 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 median · 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, 7.0% ongoing royalty.
- 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 B (Above average), verdict score 66/100 (higher is better). SBA loan charge-off rate of 10.3% across 98 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +3 franchised outlets in the latest year (39 opened, 2 closed) (Item 20).
- 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
- FDD Item 1, page 11 of the 2026 FDD
- Ultimate parent
- Nest Holdings LP (controlled by investment funds affiliated with Kohlberg Kravis Roberts & Co. L.P. / KKR)
- FDD Item 1, page 11 of the 2026 FDD
- 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
Same owner · FDD Item 1, page 11
17 other brands on this site name Nest Holdings LP (controlled by investment funds affiliated with Kohlberg Kravis Roberts & Co. L.P. / KKR) as parent or ultimate parent in their own FDD.
- AIRE SERVC
- Dryer Vent WizardB
- Five Star PaintingC
- Glass DoctorC
- HouseMasterD
- Molly MaidC
- Mosquito JoeB
- Mr. ApplianceD
- Mr. ElectricB
- Mr. HandymanC
- Mr. RooterA
- Precision Garage Door ServiceA
- Rainbow InternationalD
- Rainbow RestorationA
- ShelfGenieB
- THE GROUNDS GUYSD
- Window GenieD
Portfolio: KKR (Kohlberg Kravis Roberts) (private-equity sponsor) · Neighborly
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Michael Anthony Davis
- Headquarters
- Texas
- Founded
- 2005
- FDD year
- 2026
- States available
- 51
Can you afford it, and what does the money buy?
Entry cost runs 29% above the typical real estate franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 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 2026 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
- 7.0%
- Set by a formula · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 2.0% |
| Technology fee | $121 |
| Transfer fee | $10K |
| Renewal fee | $3K |
| Total fee load | 9.0% of rev |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Real Property Management is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Real Property Management unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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: 2026 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.
Reported per transaction, not per outlet
- Item 19 type
- per unit metric
- Sample size
- 421
- vs category median 53 · large
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
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% — above the Real Estate median of 7.5%.
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 medians
How Real Property Management Compares
Category median of published Real Estate brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · 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
Last fiscal year · Item 20 exits and transfers
- Transferred
- 13
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.
Where the owners are · Item 20 owner list
20 current owners across 18 states; 17 former (terminated, transferred or not renewed) listed separately.
- NC 3
- AL 1
- AZ 1
- CA 1
- FL 1
- GA 1
- IA 1
- MO 1
- MT 1
- NE 1
- NY 1
- OH 1
- +6 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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
- 10.3%
- on 98 loans · 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
- 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Real Property Management from SBA 7(a) FOIA data.
- Principal loss rate
- 1.2%
- Avg SBA guarantee
- 79%
- Avg interest rate
- 7.95%
- Avg chargeoff amount
- $106K
- Lender concentration
- 48.0%
- Job velocity
- 1.6 per $100K
- Startup risk premium
- +21.4pp
- NAICS benchmark
- 13.7%
- NAICS 531311
- Jobs supported
- 415
Top SBA lendersTop lender holds 48% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | United Midwest Savings Bank National Association | 47 | $6.8M | 27.3% |
| 2 | The Huntington National Bank | 8 | $687K | 0.0% |
| 3 | Wells Fargo Bank National Association | 4 | $1.6M | 0.0% |
| 4 | First Bank of the Lake | 4 | $1.3M | N/A |
| 5 | Readycap Lending, LLC | 4 | $772K | 0.0% |
| 6 | Live Oak Banking Company | 3 | $1.3M | N/A |
| 7 | MI Bank | 3 | $1.6M | N/A |
| 8 | Celtic Bank Corporation | 2 | $2.1M | 0.0% |
| 9 | Newtek Small Business Finance, Inc. | 2 | $400K | 0.0% |
| 10 | Hinsdale Bank & Trust Company, National Association | 1 | $50K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 15 | 1 | 16.7% |
| TXTexas | 14 | 0 | 0.0% |
| FLFlorida | 9 | 0 | 0.0% |
| GAGeorgia | 6 | 1 | 33.3% |
| INIndiana | 6 | 0 | 0.0% |
| WAWashington | 5 | 0 | 0.0% |
| MAMassachusetts | 4 | 0 | -- |
| MIMichigan | 4 | 0 | -- |
| MOMissouri | 4 | 0 | 0.0% |
| VAVirginia | 4 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 10.3% — 35% 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)
Subject: the franchisor is a named party (defendant).
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.
Bankruptcy (Item 4)
Subject: the company or an affiliate. Disclosed (Item 4 covers the last 10 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 66 / 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 2026 · 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 | No territory protection |
| 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
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?
Item 19 of the Real Property Management FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Real Property Management?
Real Property Management is franchised by Real Property Management SPV LLC. Its parent company is Neighborly Assetco LLC. The ultimate parent named in the FDD is Nest Holdings LP (controlled by investment funds affiliated with Kohlberg Kravis Roberts & Co. L.P. / KKR). Source: FDD Item 1, 2026 filing.
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 10.3% across 98 loans, meaning 10.3% 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 B-grade franchise with a verdict score of 66 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.