Most short-term rental property managers have no idea what their business is worth. Not because they’re not smart, but because nobody ever showed them how to look at it the right way.

We sat down with Jacobie from C2G Advisors, a firm that has closed over $750 million in short-term rental transactions, and he pulled back the curtain on exactly how buyers value property management companies, and what you can do today to make yours worth more.

The Yacht Story

Before we get into the numbers, here’s a story Jacobie told us that puts everything into perspective.

A seller came to him ready to list their property management company. His team pulled the financials, dug into the general ledger, and there it was. A yacht. Running through the business books.

Completely legal. Plenty of small business owners run personal expenses through their company. But here’s the problem, when a buyer looks at your books, all they see is a business that looks less profitable than it actually is. And buyers pay based on what they see.

That’s why the first thing Jacobie’s team does before taking any company to market is normalize the financials. Strip out personal expenses, one-time costs, non-recurring fees, and present what the business actually earns. That number is called your adjusted EBITDA, and it is the single most important number in determining what your business is worth.

What Is EBITDA and Why Does It Matter?

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It’s essentially your net profit with a few specific expenses added back in.

Your adjusted EBITDA goes one step further, removing personal expenses and one-time costs that won’t exist after a sale. This gives buyers a clear picture of what the business will actually earn going forward.

Here’s why this number matters so much: buyers don’t pay a flat price for your business. They pay a multiple of your adjusted EBITDA. So the cleaner and higher that number is, the more your business is worth.

A business earning $500K in adjusted EBITDA at a 4x multiple is worth $2 million. If messy books make that same business look like it earns $300K, you’ve just lost $800,000 at the closing table.

The Three Tiers of Value

Not all property management businesses are valued the same way. Jacobie breaks it down into three clear tiers.

Tier 1: $250K – $750K Adjusted EBITDA At this level, buyers will typically pay a 3–5x multiple. These businesses tend to be owner-dependent, with small teams and relationships that live in the owner’s head. Buyers factor in higher risk, which means a lower multiple. The seller usually needs to stay on for an extended transition period.

Tier 2: $750K – $1.5M Adjusted EBITDA This is where things start to shift. A business at this level typically has a general manager who isn’t the owner, a real team, documented systems and processes, and measurable KPIs. Buyers see less risk and pay accordingly, multiples in this range move to 5–6.5x.

Tier 3: $1.5M+ Adjusted EBITDA This is rare territory. Jacobie estimates there are only around 300 companies in the entire United States operating at this level. With more buyers than sellers, companies here have genuine leverage. Multiples start at 7+x and can go significantly higher. At this size, the business runs itself, and buyers will pay a premium for that.

What Buyers Are Actually Looking For

Beyond the numbers, buyers are evaluating several key factors that directly influence what multiple they’ll pay.

Key man risk. If every important relationship and decision flows through you personally, that’s a liability. Buyers want to know the business survives without you.

Team quality. Do you have a general manager? A real operations team? Or is it just you and a couple of part-time helpers?

Clean financials. Are your books up to date, organized, and reviewed regularly? Or are you getting statements six months late and barely glancing at them?

Growth trajectory. Is the business growing, flat, or declining? Buyers pay for momentum.

Market attractiveness. Some markets are simply more desirable to buyers than others. Location matters.

Actionable Steps to Increase Your Business Value Today

You don’t have to be thinking about selling to benefit from this. A more profitable, better-documented business is just a better business. Here’s where to start.

Get your financials in order. This is the most important step. If you don’t have a bookkeeper producing clean, up-to-date monthly statements, fix that first. You cannot make good decisions, or command a good sale price, without visibility into your numbers. Jacobie recommends scheduling a dedicated monthly meeting just to review the financials, no matter the size of your operation.

Audit your take rate. Your take rate is the percentage of the total guest booking amount that flows to your company’s P&L. The industry average is 35–40%. This weekend, secret shop your top three competitors across different seasons, unit sizes, and stay lengths. See what fees they’re charging guests. Something will stand out, a booking fee you’re not charging, an ancillary revenue stream you’re missing entirely.

Watch your team costs. Staff is typically the largest expense for a property management company, averaging 20–25% of net revenue. If yours is sitting at 40–50%, you either need to grow into it or make some difficult decisions. Track this number monthly.

Reduce key man risk. Start documenting processes. Build a team that can operate without you being present for every decision. This single step can move you from a 3x to a 5x multiple over time.

Understand what your business looks like to a buyer, now. Don’t wait until you’re ready to sell to find out. Work with an advisor to normalize your financials and get a realistic picture of your current value. Then you can reverse-engineer what it would take to get where you want to be.

Why the Timing Has Never Been Better

Even if selling is the furthest thing from your mind, this matters right now.

Jacobie told us that 2025 has seen an unprecedented wave of major acquisitions in the short-term rental space, seven significant transactions in a single year. The companies that acquired those businesses now need to multiply their investment over the next three to five years. They are all actively looking for their next deal.

On top of that, every buyer who came in second, third, or fourth place in those bidding processes did their research, got outbid, and is now hunting for their first acquisition. The pipeline of motivated, well-funded buyers has never been larger.

The next three years, according to Jacobie, could be the best window for selling a short-term rental property management business that this industry has ever seen.

But only if your business is ready.

Want to go deeper? We covered all of this and more in our full episode with Jacobie from C2G Advisors , including deal structures, roll-up strategies, and exactly what buyers look for during due diligence. Listen to the full episode on the Short-Term Rental Riches podcast.