In this article, we will take a look at the 11 largest property management companies in the US. If you want to see more companies in this selection, go to the 5Largest Property Management Companies in the US.
According to a survey conducted by Buildium, 63% of owners of rental properties were working with a property manager for smooth operations and proper care of their respective properties during 2021 and 2022. The proportion of owners opting for a property manager has increased from 55% in 2019.
According to experts, certain property management companies anticipate that in the next two years, they will observe very strong growth in their portfolios. The revenue growth expectations are at their highest point since 2018. Such bullish sentiments have not been seen in the property management market since 2017. A survey conducted by Propertyware in 2023 revealed that 92% of property managers expect the property management industry to either grow significantly or slightly over the next two years. Meanwhile, 6% forecast the industry size to remain the same, and only 2% forecast the property management industry to shrink.
Changing Trends
Property managers have ranked growth, efficiency, and profitability as the top three priorities for this year as opposed to growth, residents, and owners in 2022. Residents and owners were among the top three priorities in 2022 because of the challenges related to the COVID-19 pandemic. The shift of priority towards efficiency and profitability reflects that property management companies are geared up to restore the health of their respective businesses following the challenges of the last two years. Property management companies still value the owners and residents, and they are committed to providing the best service to them. However, they will now shift back their focus towards balancing concerns related to owners and residents with issues related to growth and operations. Rental property ownership remains complicated and expensive, with higher legal risks as opposed to the past. Thus, the involvement of a property management firm lowers the stress of the property owner even though it lowers the owner’s returns on the property due to higher costs. Property managers are critical because one-third of the property owners rely on the rental income to make the mortgage payment. Property managers ensure that the properties are rented at an attractive price without any delay in payments.
Growth Outlook
The level of competition has increased significantly in the property management market because of the increase in demand for rental spaces. Property management companies have expanded their horizons into widely known markets like the Sun Belt to increase their footprint in popular urban areas. Some property management companies opt for organic expansion through their network, while some opt for inorganic growth by buying local property management firms. These entities understand the local dynamics, providing a competitive edge. Furthermore, small local property management companies do not have enough resources to compete with bigger entities, justifying a takeover.
According to Fortune Business Insights, the size of the property management market is expected to increase from $19.33 billion in 2022 to $37.25 billion by 2029, reflecting a compound annual growth rate (CAGR) of 9.8%. Market expansion is being driven by the rising demand for management software to suit consumers’ altering real estate tastes, as well as the expanding demand for better client management. The property management industry is experiencing the positive impact of technology. As per Asmag, a B2B and media site for global security players, 86% of Gen Z or millennials are willing to pay higher rent for a ‘smart’ apartment or house. Jones Lang LaSalle Inc (NYSE:JLL), Colliers International Group Inc (NASDAQ:CIGI), and CBRE Group Inc (NYSE:CBRE) are some of the largest property management companies in the US that are capitalizing on these changing trends to expand their client base.
Photo by Owen Lystrup on Unsplash
Our Methodology
We have ranked the 11 largest property management companies in the US in ascending order of the number of properties managed by them at the end of 2022. We used National Multifamily Housing Council Database for those metrics. These companies are known for providing an extensive range of services with a strong client management reputation. We have looked at the assets under management for the leading companies where data regarding the number of properties managed was not available.
11. BH
Number of Units Managed: 106,353
Founded in 1993, BH offers a diverse range of property management, construction, equities, and architecture and design services.
In addition to operating over 106,000 multifamily units, the company also has 8,080 student housing units and 483 single-family homes in its portfolio as of 2023. BH has operations all across the United States, including portions of the Mid-Atlantic, Midwest, Texas, Florida, and West Coast. BH claims it can achieve scale-based operating efficiencies and provide better value with a varied portfolio dispersed across regions. To identify and evaluate investment prospects, the company leverages in-depth market-level data from its own properties, including past rent growth and income. Furthermore, with the help of its extensive network of water and energy-saving techniques from the Green Initiative, BH looks for chances to make communities economically and environmentally viable.
10. Apartment Management Consultants, LLC (AMC)
Number of Units Managed: 132,364
Apartment Management Consultants, LLC (AMC) is a Salt Lake City, Utah-based company that manages properties across 30 states in the US.
The entity provides management services for apartment complexes and other residential properties. This can include tasks such as managing tenant relations, collecting rent, maintaining the property, and handling legal compliance. Apartment Management Consultants, LLC also provides additional services such as leasing, marketing, and financial reporting. The firm is focused on generating the highest possible return for the owners of the properties. The company has 3,162 employees and provides residence to 248,844 people across the US through 793 properties as of 2023. Apartment Management Consultants, LLC claims that 94.76% of its portfolio is occupied as of 2023.
9. FPI Management
Number of Units Managed: 155,000
FPI Management is a privately-held Folsom, California-based property management company founded in 1968. The company employs 3,000 people across the US and provides services across 18 states.
FPI Management has a diversified client list that comprises city, county, and state agencies, financial institutions, institutional investors, international real estate investment companies, multifamily development builders, and private investors. The company claims that 68%, or 92,622, of its units are being offered at market rate as of 2023. Meanwhile, the remaining 32% of its units are offered at affordable rates.
8. Asset Living
Number of Units Managed: 159,352
Asset Living is known for providing a full range of services that position properties for success by fusing more than 36 years of experience and cutting-edge technology. The company operates in 40 states and has 13 corporate offices.
By acquiring Shelton Residential in 2020, Asset Living increased its multifamily presence in the Southwest. Later in the year, the firm also purchased Alpha Barnes Real Estate Services, enhancing its portfolio of cost-effective property management. In 2021, Asset Living expanded its reach into the Southwest and Southeast by acquiring City Gate Property Group, JMGRealty, and Echelon Property Group. The company is currently led by Ryan McGrath as its CEO and President.
7. Pinnacle Property Management Services, LLC
Number of Units Managed: 169,000
Pinnacle Property Management Services, LLC is a subsidiary of Cushman & Wakefield. The company has a headcount of 4,500 employees, 839 residential properties, and two million sqft of commercial space in its portfolio. The property management company, founded in 1980, has a presence in 32 states as of 2023.
Cushman & Wakefield completed the acquisition of the Dallas, Texas-based Pinnacle in March 2020. Pinnacle Property Management Services, LLC is focused on providing long-term profitability, full transparency, and monthly accountability to the property owners. Some of the tasks that Pinnacle Property Management Services, LLC accomplishes include managing and maintaining rental properties, collecting rent from tenants, and handling tenant complaints and issues. The company also handles tasks related to advertising and showing rental properties, screening potential tenants, and handling evictions.
6. Cushman & Wakefield PLC (NYSE:CWK)
Number of Units Managed: 172,145
Cushman & Wakefield PLC (NYSE:CWK) is a Chicago, Illinois-based real estate services company. The company is one of the biggest commercial real estate services corporations in the world.
With a team of 50,000 members, Cushman & Wakefield PLC (NYSE:CWK) posted revenue of $9.4 billion in 2021. Cushman & Wakefield PLC (NYSE:CWK) claims to have a portfolio of 700 million sqft across the Americas as of 2022. The company provides residential property management, property marketing, accounting, financial reporting, construction management and maintenance, technology, and energy sustainability services to its clients.
Here's what Vulcan Value Partners said about Cushman & Wakefield PLC (NYSE:CWK) in its Q3 2022 investor letter:
“Cushman & Wakefield plc(NYSE:CWK) had good operating results in the second quarter but was a material detractor. Company management did not increase their guidance for the year, suggesting the possibility of a weak second half, and the market may be worried about that possibility. We expect economic conditions to be more challenging as we enter 2023, and we are taking a cautious approach to our valuation. The company recently authorized a share buyback for 10% of its outstanding shares, which we think is both a positive sign and an intelligent capital allocation decision. Overall, we think the company is performing well, and its results are in line with our expectations.”
In addition to Cushman & Wakefield PLC (NYSE:CWK), Jones Lang LaSalle Inc (NYSE:JLL), Colliers International Group Inc (NASDAQ:CIGI), and CBRE Group Inc (NYSE:CBRE) are also some of the largest property management companies in the US.
Click to continue reading and see the 5Largest Property Management Companies in the US.
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Disclosure: None.11 Largest Property Management Companies in the US is originally published on Insider Monkey.
