How Property Management Inc. Franchisee Lowell Richardson Expanded Into Long-Term Residential Rentals

Brands across all industries are being forced to adapt to the unprecedented situation of COVID-19, leaving some business owners feeling uncertain about the future. However, franchise brands like Property Management Inc. offer franchisees a built-in support system designed to help them navigate uncharted waters.

When the COVID-19 crisis began, Property Management Inc. prepared for the inevitability of residential and commercial tenants being unable to pay their rent. According to brand president Danessa Itaya, Property Management Inc. immediately began implementing new strategies to help franchisees weather the storm and generate revenue. 

In addition to supporting franchisees and providing guidance on their finances, Property Management Inc. actively began taking steps to help franchisees diversify their portfolios. One of the biggest advantages that comes with being a Property Management Inc. franchisee is the fact that there are four pillars of the business—residential, commercial, association and short-term rental. Now, franchisees have the opportunity to add an additional pillar to their business without the additional cost.

“Normally, there’s a $5,000 fee for franchisees who want to expand their business and break into another pillar, but we’ve waived that for now,” Itaya said. “If franchisees want to expand and pick up another type of business, we’ll offer virtual training to get them up and running as soon as possible.” 

For example, franchisees only operating in the short-term rental pillar aren’t as active right now due to the fact that people aren’t traveling. During this time, those franchisees can expand into the Residential pillar, which is a more stable and constant stream of revenue. 

Lowell Richardson, a Property Management Inc. franchisee in Estes Park, Colorado, found himself in a difficult position when COVID-19 hit. Since Estes Park is a summer destination community adjacent to Rocky Mountain National Park, Richardson primarily worked within the short-term rental pillar.

“Initially, when the COVID-19 pandemic was declared a national emergency, we had to completely shut down operations and evacuate all guests that were staying here with us,” said Richardson. “We lost all revenue throughout April and May, so this crisis has had a huge impact on us and our owners.” 

Luckily, Property Management Inc. had already encouraged Richardson to expand his horizons even before COVID-19. “When we got back from the new franchisee workshop in December 2019, one of the things that corporate had really ingrained in us was the importance of joining a networking organization,” he said. “We joined the local board of realtors for Estes Park and as a result of that, we had realtors coming to us on a regular basis asking us about managing long-term rental properties. Eventually, one of our vacation owners came to us and told us he also owned three long term rentals and needed property management, so we got creative and dipped our toe into that pre-COVID, taking care of the property and tenants.”

When the COVID-19 crisis began, Property Management Inc. approached all franchisees and suggested that they consider expanding into a second pillar. For Richardson, who was struggling with the short-term rental pillar, the opportunity to expand into long-term residential was a perfect solution. 

“After adding the second pillar, we had a potential client come to us and ask us to do a proposal for a long-term rental property, which represented 48 doors,” said Richardson. “Given what was going on with COVID-19, the timing was perfect. Plus, Property Management Inc. waived the $5,000 fee for adding another pillar to encourage franchisees to go out and initiate new business, which was a huge help.” 

Since deciding to expand into the long-term residential pillar, Richardson notes that Property Management Inc. has been extremely supportive. Property Management Inc. has provided him with a robust suite of virtual support on the learning processes and software systems that are significantly different than those associated with short-term rentals. To date, the Estes Park franchise has signed contracts on 53 long-term residential doors and is starting to see a profit.

“Prior to Property Management Inc., I worked for an independent property management company, and this experience has really shown me that value of a franchise system,” said Richardson. “The availability of resources and support that Property Management Inc. has provided is amazing, and I don’t know if we would have been able to navigate the waters of COVID-19 without them. When I joined Property Management Inc., I was looking for a company that had a history of operating with integrity, offered a strong support infrastructure and had been successful and experienced significant growth — the brand has truly proven its value during this difficult time.” 

The initial start-up investment for a Property Management Inc. franchise ranges from $21,250 to $106,800 and has a franchise fee ranging from $15,000 to $62,900. To learn more about franchise opportunities with Property Management Inc., visit https://propertymanagementincfranchise.com/.