Are you a seasoned real estate investor or a homeowner exploring rental opportunities in your locality? Have you been planning to venture into the Property Management industry but lacking in-depth knowledge about it?
Whatever may be the reason, you have indeed come to the right place, where we’ll not only discuss about the Property management industry growth prospects but also provide a detailed insight on Keyrenter chain.
In this blog, we’ll be covering a comprehensive article on starting a Keyrenter Franchise in your city with its capital required, cost, profit, expansion strategies, and step-by-step guidelines to get this franchise – and answer some common questions about the chain.
- Brand: Keyrenter
- Founded: 2007
- Founder: Aaron Marshall and Nate Tew
- Industry: Real Estate
- No. of outlet: 52+
- Area served: United States
- Franchise Fee: $40,000
- Royalty Fee: 7%
- Model: Franchise
- Initial Investment: $104,625 and $220,279
Table of Contents
Overview of Keyrenter Franchise
Keyrenter is one of the most popular and leading Property management chain that was founded during the financial crisis of in 2007 by two visionary entrepreneurs, Aaron Marshall and Nate Tew.
Aaron Marshall, who had already established himself as a successful broker, not only built a real estate team specializing in bank-owned, foreclosure, and short-sale properties but also outperformed competitors by closing 96% of the listed deals along the Wasatch Front.
While Aaron was busy flipping homes that were difficult to sell for his clients, he accumulated a number of properties. To prevent foreclosures and avoid other bad credit situations, Aaron began his hunt for a company that could provide essential services at a reasonable cost.
Unfortunately, he encountered several companies willing to offer the necessary services, but Aaron wasn’t prepared to pay the given cost. While his search was on, he met with Nate Tew, who later partnered with Aaron to establish “Keyrenter”.
Keyrenter has started its franchising program in 2014 and since then they haven’t looked back. As of today, the chain manages over 8600+ doors across the U.S. with 52 operating Franchises.
But how did Keyrenter garner such tremendous growth?
Well, it all lies in their business model. Right from offering a extended services in selecting and screening tenants to managing property maintenance, handling repairs and rent collection, Keyrenter were always on the top of their game, which not only helped them to position themselves as a leading brand but also garner immense customer base for its services.
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The Journey of Keyrenter
Keyrenter wasn’t an overnight company that came into existence. Its journey started way back in 2007, when a small real estate company diversified and sought solutions to common property management problems.
Even though the chain began selling its franchises in 2014, they had already been representing approximately 350 property owners by that time.
Managing all operations and providing 24/7 property management services to over 700 individuals, Keyrenter has undoubtedly navigated through challenging times with resilience and determination.
Key facts on Keyrenter
| Sr No. | Type | Private |
|---|---|---|
| 1 | Trade Name | Keyrenter Property Management |
| 2 | Industry | Property Management & Real estate |
| 3 | Founded | 2007 |
| 4 | Founders | Aaron Marshall and Nate Tew |
| 5 | Headquarters | 79 E Fort Union Blvd Midvale, Utah 84047 |
| 6 | Number of locations | Over 52+ |
| 7 | Area served | United states |
| 8 | Model | Franchise |
| 9 | Services offered | Extensive range of Property Management related services |
| 10 | Parent Company | Keyrenter Franchise LLC |
| 11 | Revenue | USD 1.2 million in 2019 |
| 12 | Website | https://keyrenterfranchise.com |
Why consider owning a Keyrenter Franchise?
Indeed there could be limitless reason to partner with Keyrenter chain. Nevertheless, if you are a new entrant into this industry and still looking for some promising reason, then you should consider reading the below points;
- Rapidly growing market:
- It is worth mentioning that Keyrenter has undeniably cracked the code to become a reliable property management company, which not only expanded to services to other cities but also allowed its franchisee to partner with them and explore the limitless opportunity in the rapidly growing industry.
- Affordable business setup:
- To become an approved Keyrenter partner, one will require a reasonable investment of at least $104,625 – $220,279, eventually making it a highly demanding and accessible business model.
- Financing option and discounts veterans:
- The chain may also provide extended financing support by offering 50% of initial franchise fee to its aspiring entrepreneurs to get started with their journey into the Property management industry.
- In addition to this, Keyrenter offer a one-time 20% discount on the initial franchise fee to the Veterans for the first Keyrenter market purchased. There are other options available for assistance that can be opted through VetFran and the SBA.
- The chain may also provide extended financing support by offering 50% of initial franchise fee to its aspiring entrepreneurs to get started with their journey into the Property management industry.
- Innovative approach for clientele acquisition:
- As the industry is growing at unprecedented pace, Keyrenter chain has also enhanced their processes and approach that has helped them to position themselves much ahead of its competitors.
- Some of its strategy includes, search engine optimization, pay-per-click advertising, social media, and content marketing.
- As the industry is growing at unprecedented pace, Keyrenter chain has also enhanced their processes and approach that has helped them to position themselves much ahead of its competitors.
- High ROI:
- As a Keyrenter property management franchise owner, you’ll have access to keyrenter’s property analysis tools and other leading management systems, ensuring investors making the most out their properties.
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How much does Keyrenter Franchise Cost?
The starting capital for Keyrenter Franchise ranges between $104,625 and $220,279, which includes the costs like franchise fee, system & proprietary software costs, leasehold improvements, and working capital.
In addition to the initial investment, you’ll also receive several perks, such as 20% discount on initial franchise fee for Veterans and financial aid of at least 50% of the franchise fee to the aspiring candidates.
If you currently own a property management business and are interested in transitioning to the Keyrenter brand, you can smoothly make the switch by paying an initial franchise fee of $25,000.
How much is the Keyrenter Franchise Fee?
The franchise fee for Keyrenter is $40,000, and $32,000 for the Veterans(20% discount). Furthermore, Interested candidates should also meet the minimum financial requirement of at least a Net Worth of $150,000 and at least $50,000 in liquid assets.
Additional Cost for Keyrenter
Operating and sustaining a Keyrenter location involves adhering to the franchise’s standards and incurring additional costs such as royalty fees, advertisement fees, maintenance fees, and other necessary investments.
At present, the franchisee prospects will be liable to pay a royalty fee of 7% and ad royalty fee of 1%, which will be calculated on monthly gross sales. These fees contribute to the ongoing support and promotion of the Keyrenter chain.
| Type of Fee | Cost and its details |
|---|---|
| Franchise Fee | $40,000 |
| Royalty Fee | 7% |
| Ad Royalty Fee | 1% |
| Veteran Discount | 20% of the initial franchisee fee |
| Net Worth | $150,000 |
| Capital Required | $50,000 |
| Agreement Period | 10 Years, renewable |
| Total Initial Investment | $104,625 and $220,279 |
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How much is Keyrenter Franchise Profit Margin?
The earning or profit potential for a Keyrenter chain is widely dependent on the chosen market, growth potential and size, census data, asset base value and the overall local economy.
It will be always an added advantage for the franchisees who understands the local market and thriving to put up 100% of their efforts in the industry. There is no denying that global real estate market is booming and currently present at unprecedented level.
Additionally, taking into account the nature of the real estate environment and its operational model, which demands an upfront investment of time and energy, as well as multiple follow-up calls to establish a robust clientele, when executed flawlessly, there’s no turning back.
According to the Keyrenter’s official website, a franchise owner operating in a strong urban real estate market with significant investor presence and a thriving local economy is expected to earn a higher margins.
Furthermore, considering the several factors, including the recurring and multiple monthly revenue stream, diversified clientele for consistent and stable business flow, and inventory-free business model, a franchise owner is anticipated to churn a profit margin of 8-15%.
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What the requirements for the Keyrenter Franchise?
- First and foremost, one should be financially well-qualified and have good credit to start a Keyrenter Property Management location. Additionally, they should be prepared to invest a minimum of $104,625 and $220,279.
- You need to find a high-traffic locations in a strong urban real estate market with significant investor presence.
- The franchise prospects should be comfortable working with technology and new digital systems.
- Above all, one must possess excellent communication skills, be customer service-oriented, and value honesty and business ethics.
- Interested franchisees should have passion to work in the Real estate industry and should possess the leadership and financial skills to operate a Keyrenter location.
- One should/or their partner should meet the minimum financial requirement of at least a Net Worth of $150,000 and at least $50,000 in liquid assets to embark on their journey with Keyrenter.
What are the Alternatives to Keyrenter Franchise?
As you embark on your search for real estate business opportunities in the US market, Keyrenter may have caught your attention as a top choice brand. However, overlooking other available franchises in the specific industry may help you find a better opportunity or provide potential advantages of selected chain over others.
Here are the few options available:
ERA Real Estate Franchise
One of the popular and leading Real estate chain, which was started in 1971 by Jim Jackson in Madison, US. Since its establishment, ERA has grown into a chain of over 2300+ locations across the globe.
Having over four decade of experience in the real estate industry, ERA real estate distinguishes itself from other brands by offering a variety of customer-tailored services for buyers, sellers, or investors.
The chain boasts a presence in over 33 countries, which proudly offers its franchises to aspiring entrepreneurs at an initial investment of $27,350 – $435,050 (comparatively affordable than keyrenter, at least on the initial ask).
Read more: ERA Real Estate Franchise: Alternatives, Cost, & Profit
KeyGlee Franchise
How can you even finish your hunting program without considering the KeyGlee business opportunity?
Established two years following (in 2016) the introduction of Keyrenter’s franchise program, KeyGlee has undeniably cemented its reputation as a dependable brand within the real estate industry. While its offerings may vary from those of its competitors, KeyGlee undoubtedly merits thorough consideration from real estate franchise enthusiasts.
KeyGlee currently operates in more than 45 locations across the United States and is well set to spread its presence in other territory in coming years.
The initial investment for KeyGlee chain could range between $124,800 and $274,050.
Read more: KeyGlee Franchise Opportunity – Benefits, Cost, & Profit
Tabular Comparison of KeyGlee, ERA Real Estate, and Keyrenter
| Type of Costs | KeyRenter | ERA Real Estate | KeyGlee |
|---|---|---|---|
| Franchise Fee | $40,000 | $0 – $25,000 | $100,000 |
| Royalty Fee | 7% | 6% | 10% |
| Ad Royalty Fee | 1% | 1% | 1% |
| Net Worth | $150,000 | $150,000 | $60,000 |
| Capital Required | $50,000 | $75,000 | $60,000 |
| Agreement Period | 10 Years | 10 Years | 10 Years |
| Total Initial Investment | $104,625 – $220,279 | $27,350 – $435,050 | $124,800 – $274,050 |
How to Get Keyrenter Franchise?
To become an approved Keyrenter franchisee owner, one has to certainly meet the required investment ask and should have passion to work in the real estate industry
Nevertheless, the Keyrenter chain may offer several benefits, and interested candidates can take up franchise outlets locally and expand through their expertise and endless support systems further.
One can avail this franchise with the following steps;
- Visit Keyrenter official website and navigate to the Contact us tab
- You need to fill in the details like Name, Email ID, Phone Number, City, State, Zip Code, and other necessary information.
- Or, you can directly connect with them at – (801) 316-1525
Final Takeaway – Conclusion
Undeniably, Keyrenter franchise seems to be an enticing business opportunity for the candidates looking to venture into the real estate industry desperately.
With an extensive experience of nearly two decades and variety in service offerings at an competitive prices, Keyrenter certainly takes a lead. However, A little lower percentage of the Royalty fee (should have been in range of 5-6%) could have added extra benefits to its franchisees.
It is also worth noting that the Real Estate industry is irrefutably a money-making field and once executed perfectly, there is no set back.
We at FranchiseGoal firmly recommend to consider multiple factors, such as service offerings, brand reputation in the chosen market, support (especially ongoing support) & training programs, and competitive advantage over others.
Good Luck!! Happy Franchising!!
Want to explore more? Then check out below franchising opportunities.
Food & Beverages Franchise, Bakery Franchise, Home Improvement, Car wash, Real Estate, and Tea & Café Franchise
FAQ
How much does it cost to start a Keyrenter Franchise?
Ans: To become an approved Keyrenter Franchisee, one would at least require an initial investment of $104,625 and $220,279. Furthermore, you may also require a Net Worth of $150,000 and at least $50,000 in liquid assets.
Is Keyrenter Franchise Profitable?
Ans: It certainly depends on the factors like census data, asset base value, and local country’s economy. Additionally, the average annual gross revenue systemwide for Keyrenter in 2021 stood at $387,677.
Consequently, if a franchisee selects an optimal urban location, they can reasonably anticipate an annual profit ranging from at least $30,000 to potentially exceeding $50,000. For accurate information, you are advised to connect directly with the franchise’s representative.
