How does the business operate on a daily basis?
The business is being run in 2 separate legal entities, both PTY LTD Businesses.
One business focuses on managing properties with Body Corporates, and the other focuses on properties with Home Owners Associations.
The current two owners each have an assistant and focus on different functions within the business.

The business deals with all aspects of: the day‑to‑day management of the real estate.

Here’s a clear breakdown of what they do:


1.Financial Administration
Monitor arrears and follow up on late payments
Pay expenses (rates, levies, maintenance) if mandated
Provide monthly financial reports to the owner
Handle deposits and ensure legal compliance

2.Body Corporate / Sectional Title Management (if applicable)
If managing flats or complexes:
Collect levies from owners
Organise meetings (AGMs)
Enforce rules of the complex
Manage common property maintenance
Prepare budgets and financial statements

How are the clients attracted to the business?
Word of Mouth.

What Advertising/Marketing is carried out?
None

What competition exists?
Other Property Managing Agents in the Area

Is the business VAT Registered?
The one entity is NOT, as they mainly deal with Body Corporates.
The other entity is VAT registered.

What VAT documentation is on file?
To be provided during DD

Are there up-to-date Management Accounts available?
To be provided during DD

How could the profitability of the business be improved?
Get more properties to manage
They currently have 21 properties.

Is Seller finance available and for what amount?
No

What is the total staff complement?
The business functions with the 2 owners and 2 other employees - assistants.
One owner handles meetings and admin, whereas the other handles capturing, banking, etc.
The two assistants have been with the business for a while and know it well.

There is an Accounting Person who handles all legalities of the business, including the consultancy fee, on the Financial documents. ( A saving of around R 525 000 can be made annually if this gets taken over by the buyer or their back office )

How involved is the Owner in running the business?
Fairly but not full time

When does the current lease end?
The Lease is currently on a month-to-month basis.
This brings another cost saving if the operations are moved to an existing property management company, or if the owner wants to deal with the Business in another / cheaper property.

What is the square meters of the business?
+- 50sqm

What are the main assets of the business?
The business has:
4 x laptops
2 x printers
Shelving

Strengths?
Strengths
Proven presence in large, high‑visibility estates: 11 HOA Properties with 1074 units and 10 Body Corporate Properties with 242 units.
Documented management across multiple schemes
HOA + sectional title administration experience
Operational admin footprint & communications

Weaknesses?
Limited online/social media presence - no web presence

Opportunities?
Small market share - the area has 51.3% sectional title vs freehold properties, of which this business ONLY has 21.
Strong rental market dynamics in the Western Cape
Value‑add services in estates (solar, building applications, governance support)

Threats?
Regulatory and compliance pressure is rising
Intense competition from scaled players
Economic shocks hit arrears & scheme finances

What is the reason for the sale?
Both the owners want to exit and they are tired of the industry.

Why is this a good business?
An entrepreneur should consider purchasing this property management business because it is established in a high-demand market with a strong, growing concentration of sectional title and estate living, indicating consistent demand for managing agent services.
The business already has proven, recurring income streams through long-term contracts with estates and body corporates, which typically generate stable monthly levy-based management fees.
It also benefits from barriers to entry, including regulatory compliance requirements, industry relationships, and operational systems, making it difficult for new entrants to compete quickly.
Finally, there is strong scalability potential—by adding more schemes or units under management, the entrepreneur can increase revenue with relatively low incremental cost, especially if systems and staffing are already in place.