The History of PMI: How the Brand Became the Largest Property Management Franchise in the United States

Property Management Inc. (PMI), the nation’s fastest-growing property management franchise with over 420 units across the United States, has been continuing to hit milestones since its inception more than 15 years ago. 

A decade ago, the brand had just 17 Franchisees, today, a decade later the system is at over 400 units. Today, the brand gives Franchisees the ability to quickly build their portfolios with multiple streams of revenue, including residential, commercial, short-term rentals, and association management. 

But how did it get here? PMI CEO, Co-Founder, and President Steve Hart shared the history of PMI and how it has grown with 1851 Franchise. 

The Origin of PMI 

In 2008, Hart was the owner of a construction company that, like many other businesses in that industry, was getting hit hard by the recession. Left with no business, unsold land and loans that were due, he began exploring other options. It was then that a friend already in property management suggested getting into that industry. Hart wasn’t sold at first because he saw property management work as collecting rents and dealing with troubled tenants and upset owners. However, his friend managed to convince him to visit his own property management business in Las Vegas.

This business was small with no major systems or processes, but this friend explained to Hart that property management was a recession-resistant industry. He emphasized that a third of the United States population rents housing and that people need management for those houses—regardless of the economic conditions. Hart was struck by the stability and income potential of the industry and began to explore it further.

“The recession-resistant nature of the business really struck a chord with me coming out of just having lost everything,” says Hart. “And during the same time, I was losing my house, my cars, my boats, and I just wanted something stable. That stability message really hit home with me.’

Hart soon began doing some digging into what starting his own property management company would look like. What he found was that 70% of property managers in the country are small, mom and pop operations. There were no national brands at the time. 

“There was no way for me to join a franchise and have someone else show me the ropes and give me all the tools and software,” he says. “There was some property management training going on but there were very few resources 15 years ago for someone who wanted to be a property manager. To plug into a turnkey system was really nonexistent.”

His friend suggested that both of them take his property management business and turn it into a franchise. “He said, ‘I’ll put up the money, you do the work, and let’s do this,’” recalls Hart. “I found myself thinking ‘I’m an entrepreneur, I’m not afraid of anything.’” 

Building the Biggest Property Management Brand in the U.S. 

Although neither knew much about franchising at the time, what they did know was that there was a huge opportunity to create a turnkey solution for people that wanted to do property management, and do it right. 

Hart quickly learned that there was a reason that most property management companies start and stay small, and that there was a reason that no big real estate brands jumped into property management. It was a tough business. 

“It's a business with a lot of issues and concerns and things that need to be done in processes that need to happen smoothly,” says Hart. “I realized that what I thought would take us just a year to open 20 to 40 offices, would take a lot longer. No one wanted to be part of a new franchise when there was no known brand and we were just developing those processes.”

Eventually, the team began to build better processes, bring in more talent that really understood the industry, and introduce the marketing, software, and other key components that were missing. 

“People started to see my vision and started to join,” says Hart. “Things were a little rough in those early years, but people began to believe in what we wanted to create, which was a national brand and household name.” 

15 years later, PMI is the largest property management brand in the United States, with over 420 open locations managing properties throughout the country. And although there are more property management companies than there were when the brand first started, no one is doing it like PMI. One element that sets the company apart is its four pillars of property management. 

PMI trains to and supports the four pillars of property management—residential, commercial, short-term rentals, and association management—and realty, providing its franchise owners with service options that capitalize on emerging trends in the industry. 

“Our Franchisees have the opportunity to come in and practice in just one of those verticals, or eventually add all four to their business if they want,” says Hart. “We're the only company that's offering this type of full scale training. We have the processes, the systems, the software, the technology, and the marketing to build and to win in one or any of these four categories.” 

Looking Ahead

PMI is well on its way to becoming a national brand and has plans to go international, as well. The company has already opened locations in Puerto Rico, Costa Rica, Malta, and Aruba. 

“We’re expanding gradually into an international brand, but our primary focus is right here in the United States,” says Hart. “We're helping young entrepreneurs or people wanting to grow their property management business. And we really are creating success amongst these entrepreneurs.” 

“Property management is a really stable industry—it's probably one of the most stable businesses I've ever seen,” says Hart. “At PMI, we create a lot of different revenue channels for our Franchisees. They're not just collecting rents and making a profit off of management. We love to say that we teach our Franchisees how to participate in over 50 different revenue streams, which really makes this business a great one to get into.” 

In fact, PMI has a goal as a company over the next few years to create 200 millionaires within its system. The brand has already seen several Franchisees hit or surpass that mark, and Hart noted they are confident they will reach their goal. To find out more information on costs to buy PMI, please visit https://1851franchise.com/propertymanagementinc/info.