Are you about starting a property management & maintenance company? If YES, here’s a complete sample rental property management business plan template you can use for FREE.
Okay, so we have considered all the requirements for starting a property management company. We also took it further by analyzing and drafting a sample property management marketing plan template backed up by actionable guerrilla marketing ideas for property management businesses. So let’s proceed to the business planning section.
Table of Content
- Executive Summary
- Market Analysis
- SWOT Analysis
- Financial Projection
- Marketing Plan
- Marketing ideas & Strategies
Why Start a Property Management Business?
It is one thing to own properties, it is yet another to have them properly managed. This is because of the need to adequately put attention on these properties so that in the long run they turn out well and yield profit. However, that might not be the case all the time as there are times when one wrong decision about a property might cause a decline in profit. Good news is that there folks who are vast in the management of properties. As such property owners can just relax and expect that all goes down really well.
Starting a property management business just like any other trade requires that one draws up a plan that will help with the immediate as well as the future projections of the business. This is where the business plan comes in. If you look at businesses that have had to always refer to their plans put on paper, you will find that they do pretty well as time unfolds.
Drawing up a detailed business plan might not come easy as there may be hitches that are being encountered. Respite is here, as this read shows you ways that you can use an existing business plan to carve out yours. What is required is a similar business plan- preferably one from the same trade you are embarking on.
This way you will be able to be conversant with some technicalities as well as know how to structure yours. Here below is a sample property management business plan to help you tweak yours.
A Sample Property Management Business Plan Template
- Property Management Business Overview
Property management which is a subset of the real estate industry is perhaps one of the easiest and affordable real estate businesses to start. It is basically about lease contracting or accepting rent using legal documents approved for the area in which the property is located. In a nutshell, property management companies are responsible for taking care of and managing buildings and other real estate properties for individuals (landlords) or for groups of owners.
In the United States, states such as Texas, New York, and Colorado, make it mandatory for property management companies to be licensed real estate brokers, if they are going to be involved in collecting rent, listing properties for rent or helping negotiate leases and doing inspections as required by their business. Although a property manager may be a licensed real estate salesperson, but generally they must be working under a licensed real estate broker.
A few states, such as Idaho, Maine, and Vermont do not require property managers to have real estate licenses. Other states, such as Montana, Oregon, and South Carolina, allow property managers to work under a property management license rather than a broker’s license. Washington State requires property managers to have a State Real Estate License if they do not own the property.
Landlords who manage their own property are not required by the law to have a real estate license in many states; however, they must at least have a business license to rent out their own home. It’s only landlords who do not live close to the rental property that may be required, by local government, to hire the services of a property management company.
Interestingly, the minimum educational requirement for any one that wants to start his or her own property management business is a High School Diploma and hands on job experience. It is one of the many businesses that an individual can start from his or her home and basically with just a business card.
Since property management business is all about managing property / properties on behalf of your clients, and then you may not need a huge financial base to be able to launch the business except you just want to start pretty big.
As a property manager, your core business responsibility is to liaise with landlords, tenants, and in some case various contractors and for you to effectively conduct your business, you are expected to have a full grasp of the law when it comes to landlord and tenants relationships et al.
As a property manager, it is your responsibility to create efficient and effective protocols that will make you relate well with your clients (landlords, tenants and contractors). For example; you are going to be responsible for the full and proper screening or testing of an applicant’s credit, criminal history, rental history and ability to pay his or her rent when due. If you can get that aspect of your job / business right, you will sure enjoy your business.
Property management companies are also involved in mitigation and remediation regarding any maintenance issues, generally within a budget, with prior or conveyed consent via a Limited Power of Attorney legally agreed to by the property owner.
In fact, there are numerous aspect of the profession and some of them include helping their clients in managing the accounts and finances of the real estate properties, and participating in or initiating litigation with tenants, contractors and insurance agencies.
No doubt, if an aspiring entrepreneur who intends starting his or her own property management business has the right connections, networks, managerial skills, and takes delight in managing real estate for clients, then he or she is going to find property management business very rewarding and lucrative.
Sample Property Management Business Plan Template – MARKET ANALYSIS
- Market Trends
The market trends as it involves the property management business are indeed dynamic and at the same time, pretty much easier for a newbie to come in and still make money from the industry. All that is needed for any property management company to do well in the industry is to have good managerial skills and health relationship with landlords (property owners). Every detail we need to excel is contained in our property management marketing plan.
Some of the factors that count positively in this line of business are trust, honesty and relationship management and any property management company that has this will indeed do pretty well in the industry. Landlords and property owners ensure that they put their properties under the care of someone they can trust.
- Our Target Market
Our target market as a property management company cuts across people of different class and people from all walks of life. We are coming into the industry with a business concept that will enable us work with the highly placed people in the country and at the same with the lowly placed people who are only interested in putting a roof under their head at an affordable fee that won’t be so much of a stress to raise..
Although finding tenants is relatively easy, but the truth is that, finding qualified and law abiding tenants can be somewhat challenging.
It is important to note that the target market for those who are into property management business goes beyond those who make use of the internet (Craigslist) to search for properties; some of them only rely on the print media (local daily or weekly newspaper both in English and in Spanish for the Spanish community in the US), some on word of mouth adverts and others on street to street search. The bottom line is that, the market trend for property management business is indeed a dynamic one.
In other words, our target market is the whole of the United States of America and below is a list of the people and organizations that we have plans to do business with;
- Families who are interested in renting / leasing or acquiring a property
- Corporate organizations that are interested in renting / leasing or acquiring their own property / properties
- Land Owners and landlords who are interested in renting / leasing out their properties
- Corporate organizations (real estate agencies, property development companies et al) that are interested in renting / leasing out their properties
- Foreign investors who are interested in owning properties or leasing properties in the United States of America
- Managers of public facilities
Our Competitive Advantage
Hilary Tyson and Co Property Management Company obviously is a newbie in property management business, but one thing is certain; we have done our homework and we have been able to highlight some factors that will give us competitive advantage in the marketplace; some of the factors are trust, honesty, good network and excellent relationship management.
Another competitive advantage that we are bringing to the industry is the fact that we have designed our business in such a way that we can comfortably work with both the highly placed clients and the lowly placed clients. Lastly, our employees will be well taken care of, and their welfare package is amongst the best in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our objectives.
Property Management Business Plan – SALES AND MARKETING STRATEGY
Networking is an effective way to begin building your clients base and we have plans in place to leverage on all our networks. In view of that, we will continue to find local real estate clubs and connect with them and also we will find local business organizations like the Chamber of Commerce and connect with them as well.
We will also network with real estate brokers who are constantly in touch with landlords and properties owners. We are not going to ignore local lending institutions, we are aware that they are also good sources of leads for property management companies.
The truth is that, they may have properties for which they are responsible and also to outsource such properties to property management companies in some cases lenders sometimes find themselves stuck with rental properties, and are not in the business of property management, so they tend to outsource it to property management companies. We also enter business partnership with local contractors since they also interface with property owners regularly.
Lastly, we will leverage on the power of the media by advertising our services using both online and offline platforms. For instance; the phrase “property management companies” is searched about 90,500 times monthly in Google in the U.S alone and the phrase “property management firms” is searched about 30,100 times monthly, that is why we will ensure that we run paid search campaign to capture property owners and even potential tenants who are searching on this subjects within the area that we operate.
Over and above, we have perfected strategies to network with people who are likely to refer businesses to the ways of people. Also, check out some non-traditional places and events for networking opportunities. In summary, Hilary Tyson and Co Property Management Company will adopt the following strategies in sourcing for clients for our business;
- Introduce our business by sending introductory letters alongside our brochures to stake holders in the real estate industry and also property owners.
- Promptness in bidding for contracts
- Advertise our business in real estate / properties magazines and websites
- List our business on yellow pages
- Attend expos, seminars, and business fairs et al
- Create different packages for different category of clients in order to work with their budgets and still deliver quality housing/ property to them
- Leverage on the internet to promote our business
- Places a “To Let” sign on the properties under our care with details of what we do et al.
Our Pricing Strategy
Part of business strategy is to ensure that we work within the budget of our clients to deliver excellent properties to them. The real estate industry is based on commissions and properties are valued by professionals based on the area the facility is located, the type of facility and other factors.
Since we are not directly in control of the pricing system in the real estate industry we can only abide by what is obtainable when it comes to pricing structure. Part of what we intended doing that will help us cut cost is to reduce to barest minimum all maintenance cost by renting / leasing any property under our care to responsible tenants who won’t cause damage to our facility.
- Payment Options
Our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. But at the same time, we will not accept payment by cash because of the volume of cash that will be involved in most of our transactions. Real estate deals usually involves huge amount of money. Here are the payment options that Hilary Tyson and Co Property Management Company will make available to her clients;
- Payment by via bank transfer
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our tenants pay their rents and bills without any difficulty. Our bank account numbers will be made available to tenants who may want to deposit cash.
Property Management Business Plan – Publicity and Advertising Strategy
Any business that wants to grow beyond the corner of the street they are operating should be ready and willing to utilize every available means (conventional and non – conventional means) to advertise and promote the business.
We intend growing our business beyond Atlanta, Georgia which is why we have perfected plans to build our brand via every available means. Below are the platforms Hilary Tyson and Co Property Management Company intend to leverage on to promote and advertise her property management business;
- Place adverts on both print and electronic media platforms
- Place our flexi banners with our company’s logo and contacts in every property we put up for sale or lease.
- Sponsor relevant TV shows
- Maximize our company’s website to promote our business
- Leverage on the internet and social media platforms like; Instagram, Facebook ,Twitter, LinkedIn, Badoo, Google+ and other platforms (real estate online forums) to promote our business and list our properties for sale and for lease.
- Install our Bill Boards on strategic locations
- Distribute our fliers and handbills in targeted areas from time to time
- Attend landlord and residence association meetings with the aim of networking and introducing our business.
Generating Funding / Startup Capital for Hillary Tyson and Co
The Founder Mr. Hilary Tyson is the sole financier of the business and he has been able to generate the start – up capital from his personal savings Please note that as it stands, the start – capital of $60,000 is already available for the business.
PROPERTY MANAGEMENT BUSINESS GROWTH: Sustainability and Expansion Strategy
We are set to take on new business territories in the United States of America; which is why we have hired some of the best hands in the real estate industry to help us lay a solid foundation for growth and expansion of the business.
Part of the sustainability strategy that we have adopted is continuous training of our workforce (both fulltime staff and freelancers working for us) so as to provide them with the capacity to perform effectively in the highly competitive property management business in the United States of America. In other to be in business for a long time, we will not in any way comprise our integrity and trust.
Check List / Milestone
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts various banks in the United States: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of All form of Insurance for the Business: Completed
- Renting of Office Facility in Atlanta, Georgia: Completed
- Conducting Feasibility Studies: Completed
- Start – up Capital Generation: Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents (Tenancy Agreements, and freelance agreements et al), and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the Needed furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with key players in the industry (networking and membership of relevant real estate bodies): Complete