free sample business plan property management

How to Create Property Management Business Plan [Free Template]

Shannon Hurlman

Sales Manager - Second Nature

There are as many different perspectives on property management business plans as there are different PM businesses. But one thing holds true – in the classic adage usually attributed to Dwight D. Eisenhower – it’s not the plan that matters so much as the planning . 

Outlining a detailed business plan isn’t just important for defining your own goals, it’s key to communicating those to potential clients and investors. It also requires deep insight into what residents want and are willing to pay for.

Whether you’re new to property management, have been managing properties for years and are ready to start your own business, or own property management business but are looking for greater investment, we’ll cover important topics to address business plan creation.

We’ll explain why business planning can be so important, as well as who to target with your plan. We’ll also share a free template to get you started.

Key Learning Objectives:

• How to identify and find your ideal clients
• How to articulate your value proposition
• What to include in your business plan
• How to outline your business plan
• A free property management business plan template

Meet the Expert: Peter Lohmann , CEO RL Property Management

What to Know before Creating a Property Management Business Plan  

Not to get too deep down the rabbit hole, but the first step to creating a high-quality business plan is – you guessed it – to make a plan for the plan. For entrepreneurs, planning is the key to success.

Going through the following steps first will make the process much easier and more effective in the long run. Here’s what you need to get clear at the outset.

State Laws governing property management business 

As you know, each property management company’s approach is very dependent on regional or state regulations. Before taking any steps to either start or change your business, you need to have a clear understanding of the local laws governing your business venture.

We highly recommend hiring an attorney who can help you navigate those laws and regulations. 

Who are your ideal clients  

Lohmann lays out three critical steps to crystalizing a successful business plan:

• Identify your ideal clients.
• Articulate your unique value proposition for those clients.
• Go out and find leads.

So, first: Who are your ideal new clients? 

“Get really clear on who your ideal customer is,” Lohmann says. “Are you managing associations, office buildings, big apartments, single-family rentals, etc.? The narrower and more specific you can be, the better your life is going to be and the more money you’re going to make.”

In other words, anything outside of this target market is going to be a waste of your time. That’s why this is the first step.

“The more narrow and specific you can be here, the more directly you can speak to your prospects in a way that’s compelling,” Lohmann says. “Everything becomes easier – content strategy, sales conversations, even operations become easier – if you know who you want to manage for and what types of properties you want to manage.”

What type of property management company you are 

The next step is to identify your unique value proposition. There are tons of property management companies out there. Why should your ideal client choose you?

In Lohmann’s words: “Your second step is to ask, ‘Why should anyone care?’ Property management isn’t a new concept; there are tons of property managers. So, identify what your unique value proposition is.”

This is key to figuring out not just who to pitch to but how to pitch to them.

“What are you going to talk about?” Lohmann says. “You can’t just say, ‘Oh, hire us, we’re the best!’ You need clear examples that say, ‘Our company does something a little different.’”

For RL Property Management, that started as a promise that they would never charge a leasing fee. 

“Sure, it’s kind of crazy, and I don’t know anyone else who doesn’t charge that, but it worked,” Lohmann says. “We were trying to figure out why everyone hated their property manager. And we decided that it might be an incentive problem where the property manager’s incentive is to fill the unit as quickly as possible so they can get that big leasing fee, and that was creating bad outcomes for property owners. So we decided that we weren't going to charge a leasing fee, and we've stuck with it ever since.”

How to find your ideal clients 

The third and final step of preparation is to identify where you need to go out and find leads and engage property management marketing .

“Given what you know about how you defined your ideal prospect and your company and what they offer, the next question is where you go and get these leads,” Lohmann says.

“A lot of property managers start with this third step. They just say, ‘How can I get more leads?’ But that’s the wrong question. Why do you deserve those leads? Answer that first. Downstream of that is ‘Where are those people hanging out, and how can I get this to them?’”

Getting this step right involves researching property management and real estate property in your area and getting familiar with industry news, conferences, and listings.

What should a property management business plan include?

Now, let’s talk about the actual outline of your PM business plan. If you’re starting a new business and aiming to present a business plan to investors, or even business partners, you should outline each section below as a presentation deck. The information presented in this section needs to read like it is designed for investors and should highlight key terms and concepts they care about. 

Here’s a sample property management business plan outline, followed by a detailed explanation:

Executive Summary

Company overview, market analysis (industry, customer, and competitive analysis).

• Marketing Plan & Sales Strategy

Operations Management 

Management team, financial plan .

• Growth Opportunities 

This is a high-level overview of your entire presentation. As such, it should be the last section that you write. You want to be concise but interesting and hook the reader quickly. Outline the following in broad strokes:

• The type of property management company you are operating
• Your target market
• Your objectives
• Your plan for meeting these objectives 

The company overview will dive deeper into your property management niche and business model. Explain what types of properties you manage and how you operate. Options include single-family residential property management (SFR), multi-family property management (MFR) or residential apartments, HOA management, and commercial property management.

Give a brief history of your company and your legal business structure. Other important information might include: 

• Your key competitive differentiators and core competencies
• Your metrics for success
• Your management team
• Financial details
• Mission and vision statements

This section benefits you almost as much as it does your audience. Researching for this section will help you more deeply understand the industry, customers, and competition. 

• Industry analysis should include details on the trajectory of the market, its size, and key trends, along with challenges and opportunities.
• Customer analysis should include details about your target customers, their wants and needs, etc.
• Competitive analysis should outline direct competitors (PMCs in your area) and indirect competitors like in-house managers, automated tools, etc. Explain why your value proposition is unique. Ideally, present a thorough SWOT (strengths, weaknesses, opportunities, threats) analysis.

This section should describe the property management services the company plans to offer, such as leasing, maintenance, and rent collection. Depending on the jurisdiction, legal compliance and documentation services may be relevant as well. This section should also discuss the pricing strategy for these services.

This section should describe the company's marketing plan and sales strategy, including how it plans to attract and retain clients. It should also discuss any advertising or promotional campaigns the company plans to undertake. Promotions could include paid advertising in print and on websites, social media marketing, radio advertising, SEO marketing, and more.

Here, it’s important to document your marketing channels (organic online, targeted online, print advertising, professional networking) as well as ongoing sales and marketing programs.

Outline your short-term processes and long-term business goals, as well as estimate day-to-day operations. What property management software are you using in the business? What bottlenecks slow down work that’s moving through the organization? How will you structure your company and your teams? 

It may also be helpful to include details on critical process workflows, risk mitigation strategies, and technology integrations and updates.

Outline your management structure and the skills and experience of your management team. You’ll particularly want to highlight property management and real estate experience. This is a key moment for you to consider who you have in the company, who is a right fit, and who needs to be looked at as not a great fit.

This is where you give your financial projections and approach. Outline your major cost centers and revenue drivers. What management fees are you going to charge? You should include a profit and loss statement, balance sheets, and a cash flow statement.

Growth Opportunities  

Identify and outline the most targeted growth opportunities for your business right now and over the next five and ten years. Knowing your long-term goals requires you to gain a deep understanding of the real estate and property management market in your area and to understand clearly where you fit in and how you can generate growth and value for years to come. 

Typically, in this section you might include:

• Expansion plans
• Strategic alliances
• Technology upgrades
• Emerging market trends

Property Management Business Plan Free Template

Although you may prefer to draft your own property management business plan from scratch, there are a couple of options for short-cutting the process. 

You can use the checklist below to organize your plan, or else simply download our free PMC business plan template to customize as you see fit. 

• Your property management niche and business model
• How you operate
• Company history 
• Your legal business structure
• Financial overview

Market Analysis 

• Industry assessment
• Customer analysis
• Competitive analysis
• Outline of sales and marketing plans
• Marketing channels
• Ongoing sales and marketing programs
• Long-term business goals
• Current processes
• Critical process workflows
• Risk mitigation strategies
• Technology integrations and updates
• Management structure
• Skills and experience
• Financial projections
• Cost centers and revenue drivers
• P&L statement
• Balance sheet
• Cash flow statement
• Targeted growth opportunities

Get your free PMC business plan template here.

Beyond the business plan: Focus on retention with the Second Nature RBP    

At Second Nature, we work with property managers around the country to develop better resident experiences that will generate more value for their clients and more profit for their companies. 

The product we have found most helpful to property managers at every stage of their company’s growth is a fully managed resident benefits package or RBP. Each product in this package aims to deliver something residents want or need and a service that helps set your PMC apart. We want to help make running your business as easy as second nature.

Operational Efficiency

Keep learning

How to Create a Rent Increase Letter that Provides Complete Transparency to Your Residents [Free Template]

As a property manager, navigating rent increases can be a delicate task, particularly at a time when the cost of living is rising all around. And while raising rent is a necessary part of maintaining a financially viable property, it's crucial to do so in a way that fosters trust and maintains positive relationships with your residents. The key to this process? Transparency. By clearly communicating the reasons behind the rent increase and providing all the necessary information, you can ensure your residents understand the rationale behind the decision and feel valued as part of your community. In the end, open communication fosters a sense of trust and respect between you and your residents. When residents understand the reasoning behind a rent increase, they're more likely to accept it and remain satisfied with their living situation. Additionally, a positive resident relationship translates to lower vacancy rates, reduced turnover costs, and a more stable income stream for your property. A note on language: Here at Second Nature, we prefer to use the terms "resident" and “residency” rather than “tenant” and “tenancy,” in order to emphasize the human element of property management work. However, there may be instances where terms such as "tenant" are used for legal or industry-standard purposes within documents or communications. In these cases, please know that our intent remains the same – to provide clear, accurate, and meaningful information to all people involved in the business relationship. Key elements of a transparent rent increase letter Here's what should be included in a rent increase letter to ensure your residents have all the information they need: 1. Resident information: Clearly state the names of the residents you're addressing. Include their address. Mention the end date of their current lease agreement. 2. Clear announcement of rent increase: Unequivocally state the effective date of the rent increase. Clearly outline the new monthly rent amount. If applicable, mention any changes to additional fees like pet rent, parking, or utilities. 3. Justification for the increase (transparency is key!): Highlight specific reasons for the rent increase. This could include rising property taxes, increased maintenance costs due to inflation or repairs, market value adjustments based on comparable rentals, or significant property improvements you've made. Be specific and provide data or evidence to support your claims whenever possible. For instance, mention the percentage increase in real estate property taxes or highlight the specific property improvements that are enhancing the resident's living experience. 4. Resident options (maintain a positive tone): Briefly remind residents of their right to review their new lease agreement. Express your willingness to answer any questions they may have regarding the rent increase. Clearly state your contact information (phone number and email address) for easy communication. How to send a rent increase letter Delivering a rent increase letter requires a balance between convenience and ensuring you have verifiable proof of the notification. First and foremost, you’ll need to consider local regulations. Ideally, consult with a lawyer specializing in landlord-tenant law to determine the mandated method for delivering rent increase notices. Some states or municipalities may require certified mail or another verifiable method (e.g., signed delivery receipts with regular mail). Don't skip this step – non-compliance with local regulations can lead to legal issues down the line. Delivery method options Certified mail: This is generally the safest option. Certified mail provides a receipt confirming the letter's delivery and the date it was received. This documentation can be crucial in case of future disputes or legal proceedings. It is typically more expensive than regular mail, but the added security it offers can be worth the cost. Regular mail with signed delivery receipt: This option offers some level of proof of delivery but may be less secure than certified mail. Residents can potentially refuse to sign for the receipt. Hand delivery: If feasible, handing the rent increase letter to the resident in person and obtaining a signed receipt is the most secure method. Note that while some residents might appreciate the convenience of email, this is not always the most reliable notification method. Consider your residents' demographics and preferred communication channels. In any case, the original lease agreement you have with your residents should explicitly state acceptable methods for delivering important notice letters, including rent increases. For instance, if lease terms include email as an acceptable form of communication, then you may choose to use it for rent increase notifications. A note on property management software Property management software can be useful for maintaining a centralized repository of all your communications with residents, including rent increase letters. It is also a useful tool for furnishing clear audit trails and documentation in case of disputes. Do, however, remember to make updates if the software handles rent collection reminders, in order to reflect the conditions of your new rental agreement. Rent increase FAQs Q: How many days’ notice of rent increase do residents need to be given? A: The required notice period for a rental increase can vary depending on your location and the terms of your lease agreement. In general, most states require that residents be given 30 to 60 days' written notice before a rent increase takes effect (this can vary for year-to-year lease renewals vs month-to-month). It's important to check local rent control regulations for specific details on timeframes. Q: Can the rent increase be contested? A: Depending on your location and specific circumstances, residents may have the right to contest a rent increase. For example, rent control laws in some jurisdictions allow residents to challenge rent hikes that are deemed to be excessive (statewide in California and Oregon, or locally in New York, New Jersey, and Maine). It's best to obtain legal advice from lawyers specializing in applicable local laws and state laws to understand your options. Q: What resources are available for residents? For residents who ask about their rights or renting in general, here are some resources you can provide: HUD Tenant Rights: The U.S. Department of Housing and Urban Development (HUD) website offers a wealth of information on tenant rights, including resources on rent increases and eviction processes. Local tenant rights organizations: Many cities and states have local tenant rights organizations that can provide residents with specific guidance and support for renters based on their location and situation. Sample rent increase letter template Below is a template you can use for your rent increase letter. Simply customize the highlighted sections with your specific information. [Your Property Name and Contact Information] [Date] [Resident names] [Address of rental property] RE: Rent increase effective [effective date] Dear [Resident names], This letter is to inform you of an upcoming rent increase for [property address], effective [effective date]. Your current monthly rent of [current rent amount] will be adjusted to [new rent amount]. Additionally, [mention any changes to additional fees, e.g., "the monthly pet fee will increase to $XX"]. We understand rent increases can be disruptive, and we want to be transparent about the reasons behind this adjustment. The increase is necessary due to [list specific reasons for the increase, e.g., "rising rental rates for comparable units… ," “neighborhood revitalization resulting in enhanced value…”]. [If applicable, provide data or evidence to support your claims]. We value you as a resident and appreciate our relationship. You have the right to review your lease agreement if you have any questions about its terms. We are also happy to answer any questions you may have regarding this rent increase. Please feel free to contact us at [phone number] or [email address]. Sincerely, [Your name and the name of your property management company] Final thoughts Prioritize clear communication and transparency, and you’ll find you can navigate rent increases constructively, while ensuring a healthy and positive relationship with your residents. Such communications are a unique opportunity for positioning with your residents by reconnecting on terms, updating expectations, and more. The way you compose these letters – and the way you position the changes – can make all the difference in your renewal rate and resident satisfaction. It’s also the perfect opportunity to introduce a Resident Benefits Package (RBP) and remind residents of your role in adding value to their living conditions. Learn more about the benefits of Second Nature’s fully managed RBP.

Resident Benefits Package: How to Increase Revenue and Reduce Costs

You might not be surprised to hear that at Second Nature we get asked this a lot: "Exactly what is a resident benefit package?" Or "What is a tenant benefit package?" Simply put, a resident benefits package (RBP) is a suite of services provided by the property manager to make life easier for residents. In today’s marketplace, residents and property investors expect a certain level of ease, convenience, and support. Property managers have noticed that beyond reacting quickly to requests, residents want their needs proactively anticipated. And they're willing to pay and stay for it. (Ready to get started now? Build your Resident Benefits Package today!) In this article, we’ll explore what a resident benefit package is, how it can generate revenue, and how to implement a resident benefits package (RBP) to give your residents, investors, and business a win. What is a resident benefits package (RBP)? The Resident Benefits Package (RBP) is designed to transform the resident's living experience. Sometimes called a "tenant benefits package," the RBP proactively meets residents' wants and needs by providing benefits to make their lives easier. At Second Nature, we pioneered the only fully managed resident benefits package. We chose the term "resident" because the tenant benefit package sounded too impersonal for the value we're driving. Resident benefit packages include an array of services and supports for residents, from filter delivery to credit building to maintenance. Stay tuned for our next suite of services for property managers and investors: the Investor Benefits Package (IBP). What are the benefits of a resident benefits package? The resident benefits package adds value to residents by anticipating their needs and providing them with services that make life easier and better. It adds value to investors by preventing maintenance, vacancy, and delinquency. And, of course, it adds value to property managers because it differentiates them from the competition. Let’s take a deeper look at how the RBP creates a Triple Win – for residents, for investors, and for you, the property manager. Attracting and retaining residents through better experiences Offering a comprehensive benefits package can make a property more appealing to potential residents. By providing desirable perks such as exclusive discounts, concierge services, or access to credit reporting and other financial benefits, the property management company can attract a larger pool of prospective residents and increase occupancy rates. Retaining residents is also crucial for profitability, as turnover costs can be significant. A benefits package can enhance resident satisfaction and loyalty, reducing turnover and associated expenses. Higher rental rates for higher value A well-curated tenant benefit package makes properties more valuable. When residents perceive additional value in the form of amenities, services, or discounts, they are often willing to pay more for their living experience. This allows the property management company to command premium prices for their units, leading to increased revenue and improved profitability. Differentiation and competitive advantage In a crowded real estate market, a distinct resident benefits package can set a property apart from competitors. It becomes a unique selling proposition that highlights the property management company's commitment to providing an exceptional living experience. By offering a package that exceeds what other properties in the area provide, the company gains a competitive advantage and attracts residents who value the added benefits. Ancillary revenue opportunities A tenant benefits package can create opportunities for generating additional revenue streams tied to specific benefits in the package. Resident benefit fee: How much does a resident benefit package cost? Most resident benefits packages cost between $20 and $100, which is often included in the lease and added as a monthly fee for the resident. Prices vary depending on a few key factors, chief among them being the mix of benefits selected by the property manager. What does a resident benefits package include? Here’s what the Second Nature Resident Benefit Package includes. Filter delivery service Air filter delivery was the first service Second Nature offered to scattered-site and single-family property managers. It is a cornerstone of the RBP, and over 1M residents have shown that a physical, tangible product is key to their ongoing perception of value. One of the most common causes of HVAC maintenance requests is a failure to change the home’s air filters on time. Air filter delivery from Second Nature solves the problem by delivering the correct-sized high-quality HVAC filters directly to each home’s front door on a predetermined schedule. The delivery serves as a reminder for the resident to change the filter, and voila – problem solved. The resident breathes clean air, the PM has fewer HVAC tickets to deal with, and the investor has their asset protected. That’s a triple win. Our message to residents: “Changing filters is as easy as opening the front door.” Phil Owen, founder of OnSight PROS, says of the delivery system: “Last year OnSight PROS performed third-party property condition reports at almost 18k single-family rental properties on behalf of property managers. The number of filters that we have to replace or mark as ‘needs attention’ becomes almost zero when a PM implements the Second Nature program. I cannot imagine how a property manager could justify not protecting their landlords with this program. The difference between those using the program and those who simply hope that their tenants go to the store to purchase and install a new filter is staggering.” Our filter delivery service has proven to reduce total HVAC maintenance requests by 38% and save up to $250 per year per property. $1 million identity protection One in four Americans will be victims of identity theft. In 2021, digital theft incidence surpassed home burglary incidents for the first time – and is rapidly rising. With identity protection as part of your RBP, every adult on the lease automatically gets the peace of mind you can expect from professional-level identity protection. Backed by AIG and monitored through IBM’s Watson, Aura Identity Guard works proactively on behalf of the resident to identify fraudulent use of their identity and alert them. In the event of an actual identity theft case, the resident receives a dedicated case manager and is covered up to $1,000,000 for most resulting damages. This protects the resident's ability to pay rent, which makes it a win for the investor. And it keeps property managers out of the middle of another difficult situation and decision. Credit building With RBP’s credit building service, on-time rental payments improve the credit score of your residents. It may seem crazy that people are building credit by paying for Netflix and other small subscriptions, but not their largest monthly payment... rent! But that's the truth for most residents. We asked, how is it even possible that someone's largest monthly expense is the only one they aren't getting credit or rewards for? This credit reporting program reports positive-impact, on-time rent payments automatically to all three credit bureaus, helping residents build their credit simply for paying their rent on time. Residents also get an immediate boost with 24 months of back reporting included. This service directly impacts rates on credit cards, auto loans, and future mortgages, incentivizing residents to get rent in on time and helping set them up for home buying in the future. The property manager and the investor both reap the benefit of the extra incentive to get rent on time and the resident gets to see their credit score rise as a result of something they have to do anyway. It’s a big-time triple win here. Resident rewards program Rental rewards are a favorite among residents and another powerful and positive incentive for on-time rent payments. Rental rewards programs deliver automatic benefits at move-in. Then, residents can unlock even more rewards by paying rent on the day it's due. At Second Nature, all on-time payment tracking is done through the app. Like other services in your RBP, it’s managed for you. Gifts include: $30 gift card for national and local brands $25 restaurant card $40 rewards cash on rent day each month rent is paid on time And more The value of rewards is covered in the cost of the RBP, so the property manager isn’t seeing any additional liabilities. The PM and investor only see a benefit, which is the increase in on-time rent payments. For the resident, rent day is now rewards day. Another triple win. Move-in Concierge Setting up utilities can be a massive headache for a new resident. Residents aren’t sure who to call and who provides utilities and home services like internet and TV for their new address. More, the research for discounts/promotions/coupons available takes more time. Most times, the process is clunky, with lots of friction that gets in the way of it getting 100% done. And it is too easy to overlook fine print in the lease about installing satellite dishes. Move-in Concierge changes all of that for professional property managers. In one phone call, residents find out what their best options are and can even get help simplifying setup. An experienced concierge confidently guides multiple people every day to properly setup their utilities. Renters Insurance Program Nearly all property managers require a renters insurance policy in their lease agreements. As part of our RBP, Second Nature offers price-competitive insurance coverage options through a Renters Insurance Program that property managers can apply to all their residents locked in with one group rate. Residents who have their own renters insurance can receive a waiver on RBP's insurance program, but the current list of enrolled residents is tracked for you by Second Nature, and any resident who drops off of their own insurance is automatically enrolled. No more hassle for you, quality asset coverage for the investor, and immediate and comprehensive liability coverage for the resident – another triple win you can create with your Resident Benefits Package. Additional benefits At Second Nature, we help property managers deliver all their services to residents. If you’re already offering perks and are ready to level up to a resident benefits package, we can help you bundle the above benefits with other services. We’ve worked with PMs to bundle in their existing property management services, including: 24/7 Maintenance Coordination: A huge benefit to residents and PMs is a service that provides after-hours support without dragging the property manager out of bed. This type of program makes reporting pesky maintenance issues easy and fast for the resident. It also helps prioritize emergency maintenance. Online Portal: With a simplified online resident portal, residents can access all of their documents, messages, and more through an app. Residents can also pay rent and receive reminders to pay rent online. Home Buying Assistance: For residents who are building up toward home ownership, some PMs offer assistance in building credit and savings. We help them get there. Vetted Vendor Network: A vetted network ensures that vendors who service your properties are screened to exceed your standards for insurance, licensing, and professionalism on the job. Property managers, residents, and investors can rest easy knowing that they have the best vendors working on their assets. Washer/Dryer Rental: Some properties may have these appliances installed or the residents come with their own, but we’ve seen the impact on prospective applicants choosing homes due the convenience of having the washer/dryer available. Security deposit alternatives: Security deposit alternatives come in different packages, but all serve to provide residents ways to be financially liable for damages without having to pay a significant lump sum up front. Pure insurance, surety bonds, and ACH authorization programs are all versions of deposit alternatives that seek to lower the barriers to rental, which in turn keeps days-on-market low and turnover costs down. Pest control services: Property managers can partner with pest control companies to provide routine or on-demand pest control services to the homes they manage. Bugs are one of the most common complaints from renters, and having services available to prevent infestation issues is a big win for resident experience. When implementing a full-service, fully managed resident benefits package, you don’t have to lose the benefits you already offer. A great service can integrate all of these benefits together – delivering more impact to residents, investors, and property managers. How much revenue can I create per unit with a Resident Benefits Package? The amount of ROI on a resident benefits package will vary depending on the property class type, market, and number and type of services offered. Generally speaking, resident benefits packages are often in the $25-75/mo range for residents, but could be more or less. It depends primarily on the amount and type of products and services. To go back to our concept of the experience economy: a resident benefits package gives residents the kind of incredible experience that they will pay and stay for. In short, keeping residents happy can reduce turnover and lead to lower costs and higher ROI for you and your investor. According to Eric Wetherington, VP of Strategic Initiatives at PURE Property Management, “Revenue is all about providing a service. The younger generations we’re dealing with in property management – they want convenience, they want experiences, and they want things to be simple, and they’re willing to pay to have things taken care of for them.” A fully managed resident benefits package can generate revenue in two key ways: Increasing services to improve resident retention Decreasing costs by increasing efficiency A resident benefits package can help to accomplish both. Routine filter delivery cuts down on HVAC and maintenance costs. A move-in concierge helps cut down time and cost as residents get settled in their new home. Credit building services keep residents invested in paying on time, sending online payments, and deliver incredible value. The list goes on. A resident benefits program creates a huge win for you as a property manager, and your investor, by driving higher ROI over time. How can property managers implement a Resident Benefits Package? If a resident benefits package is new to your company, you may wonder how best to implement it. Should you roll out a mandatory resident benefit package – ensuring the maximum benefits for your investor – or allow residents to choose? What is legal or not? We do recommend mandatory rollouts to create the most ease for you, your investor, and your residents. Having a choice may give residents a short-term positive experience, but in the long term won’t be much of a benefit. Mandatory resident benefits packages tend to go much smoother and eventually have higher benefits for everyone involved. According to Second Natures Head of Sales, Bob Hansen, “You have to look at the value that a resident benefits package brings to the investor and the resident, not just you as the property manager.” At Second Nature, we’ve seen incredibly low pushback from residents when an RBP was introduced. After all, it benefits residents, and most are delighted to have the extra service. How can property managers reduce costs with a resident benefits package? The answer is: in several ways! Implementing a comprehensive residential benefits package can provide property managers with opportunities to reduce costs and increase operational efficiency. Let’s look at examples from the product above. By including air filter delivery as part of the package, property managers can ensure that residents have regular access to clean air filters, reducing the need for costly maintenance and repairs caused by poor air quality. Offering identity protection and credit building services can help mitigate the financial risks associated with identity theft and delinquent payments, potentially reducing costs related to collections and legal procedures. They also improve retention and encourage on-time payments. Including a resident rewards program can also incentivize desirable behaviors such as timely rent payments or positive referrals, fostering resident satisfaction and reducing turnover costs. By partnering with a renter's insurance program, property managers can transfer potential liability and property damage expenses to the insurance provider, minimizing their own financial risks. A move-in concierge service can streamline the onboarding process for new residents, reducing administrative costs and improving operational efficiency. By providing these benefits, property managers can enhance resident satisfaction and retention, ultimately reducing expenses associated with turnover, repairs, and legal issues. Common mistakes property managers make implementing resident benefits packages In our experience helping property managers implement RBPs, we’ve heard our share of concerns or even horror stories from PMs who had bad implementations with other products. Here are some of the most common mistakes in RBP implementations – and how to avoid them! Overpromising and underdelivering Property managers may advertise extravagant benefits that they cannot consistently provide or fulfill, leading to disappointment and resident or investor dissatisfaction. Property managers should accurately represent the benefits package, ensuring that the offered perks are realistically achievable and consistently provided to residents. Lack of communication Failing to effectively communicate the details and availability of the benefits package to residents can result in confusion and missed opportunities for using the offered perks. Property managers should effectively communicate the details, availability, and utilization process of the benefits package to residents through multiple channels, such as newsletters and online platforms. Inadequate research and selection Property managers may choose benefits that do not align with the residents' preferences or needs, leading to a lack of interest and underutilization of the package. Property managers should conduct thorough market research and engage with residents to understand their preferences and needs, ensuring that the benefits selected align with their expectations. Failure to evaluate cost-effectiveness Neglecting to assess the costs and benefits of the package can result in offering benefits that are financially unsustainable or fail to provide a satisfactory return on investment. Property managers should regularly assess the costs and benefits of the package, considering factors such as resident utilization, return on investment, and overall financial sustainability to make informed adjustments as needed. Lack of flexibility and adaptability Not regularly reviewing and updating the benefits package based on resident feedback and changing market trends can make it less competitive and less appealing over time. Property managers should actively seek resident feedback, monitor market trends, and periodically review and update the benefits package to ensure it remains competitive and relevant to residents' changing needs. Insufficient staff training Failing to train property management staff on the benefits package and its administration can lead to ineffective communication, missed opportunities, and difficulty addressing resident inquiries or issues. Property managers should provide comprehensive training to their staff on the benefits package, including its features, administration processes, and effective communication strategies, enabling them to effectively support and engage with residents. Neglecting legal and regulatory considerations Property managers must ensure that the benefits package complies with all relevant laws and regulations, such as data protection requirements or fair housing laws, to avoid legal repercussions. Property managers should consult legal experts or advisors to ensure that the benefits package complies with all applicable laws and regulations, protecting both the company and residents. Ineffective marketing and promotion Inadequate marketing efforts to promote the benefits package can result in low resident awareness and limited participation, reducing the overall effectiveness of the package. Property managers should develop a strategic marketing plan that utilizes various channels to promote the benefits package, highlighting its value proposition and actively engaging residents in participating and utilizing the offered perks. Ignoring resident feedback Neglecting to seek and incorporate resident feedback can hinder the improvement and optimization of the benefits package, missing opportunities for enhancing resident satisfaction and retention. Property managers should establish channels for residents to provide feedback on the benefits package, actively listen to their suggestions and concerns, and make necessary adjustments to enhance resident satisfaction. Lack of coordination with vendors Failing to establish clear communication and expectations with vendors offering benefits can lead to subpar service delivery, difficulty resolving issues, or missed opportunities for cost savings. Property managers should establish clear expectations, contracts, and regular communication channels with vendors offering benefits, ensuring a seamless and satisfactory service delivery process for residents and promptly resolving any issues that may arise. This is A LOT to keep in mind, and avoiding these mistakes might feel like it will cost too much or simply take too much work. But that’s why opting for a fully managed RBP is a solution so many PMCs are turning to. You can rely on a partner to manage all aspects of your RBP, and ensure its delivering on its promises to your residents. More on that in the next section. How 1,000+ property managers are creating Triple Wins with a resident benefits package Rolling out a resident benefits package is a powerful way for property managers to create a Triple Win – for residents, investors, and themselves. An RBP like Second Nature’s is designed to be simple to use and easy to implement. All the services included within it are managed externally by Second Nature, meaning there is no day-do-day upkeep required from the manager. You plug it in and Second Nature keeps it running. The value creation an RBP generates – with such little work required from the PM – is an incredibly easy way to grow your business and create great experiences that residents will pay and stay for. Don't get left behind in the evolving world of resident experience. Learn more about our fully-managed Resident Benefits Package and how we can build ease for you, your investors, and your residents. Learn More About RBP from Second Nature

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How to Write a Property Management Business Plan (Free Template)

If you’re looking to start a property management business, you’ve come to the right place. The success of property management companies—or any companies, for that matter—absolutely depends on first creating a well-researched and thorough business plan .

Luckily, this guide aims to help you do just that. First, we’ll explain what a property management business plan encompasses, why you need one, and tips for going about it the right way. Then, we’ll walk you through the recommended business plan outline step-by-step and share details of what to include in each section.

Finally, we’ll send you off with a free template you can download and update with your business’s own information. Creating a business plan was never so easy!

Let’s dive in.

Don’t see the form to download our free property management business plan template? Click here .

What is a property management business plan?

A property management business plan is a document that summarizes your property management business: its current operations, goals for the future, strategies for achieving those goals, and other supporting details.

While you’ll want to create your business plan before launching your businesses, it’s not a one-and-done document. Instead, you should update it yearly and after major company and industry changes.

Why do you need a property management company business plan?

Whether you’re looking to start a new property management company or grow your existing one, you’re probably eager to get started. But while it can feel productive to hit the ground running, a business plan is crucial to drive your strategy and decision-making . It will serve as a roadmap you can refer back to as you get started and grow your business.

Moreover, business plans are also crucial as tools to help sell your property management agency to potential partners, investors, and banks . There’s no point in asking for their support if you can’t show you know what you’re doing, and business plans are one of the best ways to do that.

Finally, beyond mere financial gains, a thorough property management business plan enables you to measure your success accurately and pinpoint areas for improvement . It empowers you to zero in on critical indicators like your budget, local market insights, and expansion opportunities.

How do you write a property management business plan?

Do your research first.

It’s easy to spot the differences between a well-researched business plan and one that was written haphazardly. And those differences will be just as easy to mark in the results your business sees once it’s up and running.

Tailor it to your type of property management business

Chances are, you’re going to start your business plan from a standard template. There’s nothing wrong with that. In fact, it’s recommended, and we provide a free property management business plan template at the end of this article, if you’re still looking for one.

However, as you fill in your information, be sure to tailor your plan to your specific business. For example, what type of properties does your business manage? Common types of property management include:

• Residential rental property management , including both single-family and multifamily residences
• HOA property management , which typically involves working directly with homeowners’ associations
• Commercial property management , including office, retail, and industrial buildings
• Vacation rental property management , involving managing vacation rentals such as Airbnbs for their owners

Remember your goals

You might wonder whether you really need to include this much detail in your business plan, but remember what you’re hoping to achieve. And we don’t just mean a successful property management agency, but the specific things you’ll use your business plan for.

For example, if you’re hoping to find a partner for your business, your prospects will certainly appreciate a high level of detail in your operations plan. Similarly, potential investors will want to see solid financials.

Use a property management business plan template

Finally, don’t make it harder for yourself than you have to! You’re already going to have to do a significant amount of research, calculations, and brainstorming. Make it easier for yourself by starting with a template you can input specifics to, like the one pictured below:

Don’t have a template already? Scroll to the bottom of the article to download ours!

What is the outline of a property management plan?

Business plans, whether for property management or other industries, tend to follow this standard format:

Executive summary

Company overview, market analysis, marketing plan, operations plan, management team, financial plan, growth opportunities.

Keep reading for more information on what to include in each section. Or scroll to the bottom of the page to download our business plan template for property management and get started.

What to include in a business plan for property management

Your business plan should begin with an executive summary. This section serves as an introduction to both your business plan and your business , and should include information such as:

• The type of property management you plan to do
• How far along your business is
• Your target market
• Your strategy for achieving these goals

Depending on how thorough you want to be, you could even include a brief overview of every section of your business plan. Your goal should be to give a snapshot of your business that compels your readers—whether they be potential partners, investors, or banks—to finish reading your plan.

Pro tip: Because your executive summary needs to sum up your overall business plan, it’s often easiest to write it last. That way, you’ll have all the details ironed out and won’t forget to include anything.

In this section, you’ll give an overview and analysis of your property management company itself.

To start, explain how your company got started and which of the property management niches we explained above you fit into. You’ll also want to share your legal business structure (for example, sole proprietorship, LLC, C corporation, or S corporation).

The majority of this section, however, should be devoted to your competitive differentiators. What core competencies are you bringing to the market?

A market analysis isn’t only an important addition to your business plan. It’s also absolutely essential that you understand your market inside and out before you even consider launching a property management agency.

To be as thorough as possible, make sure that your market analysis includes specific analyses of your industry, target customers, and competitors.

Industry analysis

Provide an overview of your specific niche of the property management industry. Include as much detail as you can to help you become an expert in your industry, such as:

• Market size (in dollars)
• History of the industry
• Prospected growth

Customer analysis

Who are your target customers? Start with your property management niche, and then get even more specific:

• Residential rental property management → Will you target single-family or multifamily residences? Apartment buildings or individual homes? Affordable housing or high-end residences?
• HOA property management → Do you have specific HOAs in mind?
• Commercial property management → Will you manage office, retail, or industrial buildings?
• Vacation rental property management → Do you want to work with a specific type of vacation rental property or owner?

Be sure to include your target customers’ specific needs, goals, and any other information you can find to build a robust profile. The more detailed you can be, the easier it will be to target them with your services!

Competitive analysis

This is where you analyze your competitors, both direct and indirect:

• Your direct competitors include other property management companies in the same niche as you. These companies will likely be located nearby as well.
• Your indirect competitors include other options your customers have outside of property management agencies. This might include property owners who decide to manage their properties themselves, in-house managers, and even automated tools that claim to take the place of property managers.

After identifying the competition, you’ll want to provide additional information about your direct competitors. Who are their target customers? What services do they offer, and how much do they charge?

Gather as much information as you can, and then perform a SWOT (strengths, weakness, opportunities, and threats) analysis to identify potential competitive advantages. Your goal is to determine how you’ll outperform your competitors—whether via superior or additional services, lower prices, greater efficiency, or something else.

Remember: If you can’t identify any clear competitive advantages, your customers won’t be able to, either.

So, you have superior property management services at competitive rates. But how do you plan on getting in front of your target customers?

This is where your marketing plan comes in. Think about what marketing channels you’ll use, prioritizing those which will best reach your target customers. Consider both online and offline marketing, including the following options:

• Business cards
• Advertising in local newspapers and relevant magazines
• SEO marketing
• Email marketing
• Social media marketing
• Paid advertising

Creating your business plan has forced you to set some specific goals. How do you plan on meeting them?

This is exactly what your operations plan sets out to cover, with details on both short- and long-term processes.

Your short-term processes will include everything involved in the day-to-day running of your property management business . Again, these tasks will vary drastically depending on your property management niche. However, the following questions are a good starting point:

• Who will be in charge of running the business?
• Do you need to hire any additional staff? If so, how many people and for which roles?
• How will you structure your team?
• What are your service standards?
• Which manuals will you need to develop?
• What property management software will you use?

Once you’ve defined your daily operations, take a step back and think long-term. At any point in your business’s trajectory, do you plan to:

• Hire additional employees?
• Reach a certain sales figure?
• Grow your portfolio?
• Expand to a new location?

Having these long-term goals documented will not only show potential partners and investors that you’re thinking about the future. It will also give you something to refer back to in order to measure your progress.

Your property management business will only be as strong as the team leading it. So, once you’ve assembled the dream team, you’ll want to highlight its strengths in your business plan, paying specific attention to each member’s background, skills, and relevant experience.

If no one on your management team has property management or real estate experience, or your team is lacking in any way, it might be worthwhile to put together an advisory board. This board consists of a handful of mentors who have the experience necessary to guide your business in the right direction (and reassure any potential investors).

And now for everyone’s favorite part: the financial plan.

Specifically, your financial plan should consist of a five-year financial statement. The first year of your financial statement should include monthly and quarterly projections, with the remaining years including annual figures.

What goes in a financial statement? Let’s break it down:

• Profit and loss statement: Also referred to as an income statement, a profit and loss statement subtracts your costs from your revenue to find your profit. As you can imagine, you’re going to be making a lot of calculated assumptions at this point. Try to be as accurate as possible when predicting your costs and revenue. Otherwise, your profit and loss statement won’t paint a very accurate picture.
• Balance sheet: A balance sheet details your business’s assets (what you own) and liabilities (what you owe) in order to provide a snapshot of its finances. Your assets might include office space or software solutions, whereas liabilities would include any loans you’ve taken out to start your business.
• Cash flow statement: A cash flow statement shows how changes in your income and balance sheet affect your cash flow—and your ability to operate in the short- and long-term. Its goal is to show how much money you need to run your business so that you don’t run out of cash.

If you’re just getting started, it may feel too soon to consider growth opportunities. But thinking about your business’s long-term goals and plans is essential to set yourself up for success. After all, you don’t only want to succeed now. You want to make sure you have what’s necessary to succeed for years to come.

On that note, analyze the property management and real estate market in your area to identify growth opportunities for your business over the next five to 10 years, such as:

• Upgrades to your tech stack
• Strategic partnerships
• Expansion plans
• Opportunities to take advantage of new market trends

If you have any supporting documentation that could strengthen your business plan, such as buyer personas for your target customers or more complete financial projections, feel free to attach them in the appendix. That way, the additional information is there for anyone who wants to see it, but it doesn’t clutter up your business plan.

Property management business plan example

Curious about what a business plan for property management looks like? We’re including a property management business plan sample (the company overview, specifically) below to give you an idea:

Want a customizable version? Scroll to the bottom of the article to download our free template!

Download our free property management business plan template

Ready to get started? We’re here to help!

Download our free template below and simply fill in your own information. Our straightforward guide includes all the details you need to cover before starting your new business.

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Here is a free business plan sample for a property management company.

Embarking on a journey to establish a property management company can be both exciting and daunting.

In the following paragraphs, we will present to you a comprehensive business plan template tailored for a property management company.

As an aspiring entrepreneur in the real estate sector, you're likely aware that a meticulously formulated business plan is crucial for laying a solid foundation for your venture. It serves as a roadmap, guiding you through setting objectives, developing strategies, and managing operations effectively.

To streamline your planning process and ensure you cover all critical aspects, feel free to utilize our property management business plan template. Additionally, our team of experts is available to review and refine your plan at no extra cost.

How to draft a great business plan for your property management company?

A good business plan for a property management company must be tailored to the unique aspects of the real estate and rental market.

To start, it's crucial to provide a comprehensive overview of the property management industry. This includes current statistics and identifying emerging trends, as illustrated in our property management business plan template .

Your business plan should articulate your vision clearly. Define your target market (such as residential landlords, commercial property owners, or real estate investment trusts) and your company's unique value proposition (like exceptional tenant relations, technology-driven management solutions, or specialized services for high-end properties).

Market analysis is a key component. You need to have a thorough understanding of the local property market, competitors, and the needs and expectations of property owners and tenants.

For a property management company, it's important to detail the services you will offer. This could include tenant screening, maintenance and repairs, rent collection, and financial reporting. Explain how these services will benefit your clients and enhance the value of their properties.

The operational plan should outline the logistics of your business. Discuss the location of your office, the technology you will use to manage properties efficiently, your team structure, and the processes for handling routine and emergency property issues.

Quality of service is paramount in property management. Highlight your commitment to maintaining properties, ensuring tenant satisfaction, and adhering to all relevant laws and regulations.

Address your marketing and sales strategy. How will you attract new clients and retain existing ones? Consider your approach to networking, advertising, and building a strong online presence.

Today's digital strategies, such as a professional website, online property listings, and social media engagement, are vital for reaching potential clients and tenants.

The financial plan is another critical element. It should include your startup costs, revenue projections, operating expenses, and the point at which you expect to break even.

In property management, understanding cash flow is essential, as there may be periods of vacancy or unexpected repairs. For this, you can refer to our financial forecast for a property management company .

Compared to other business plans, a property management plan must focus on the nuances of real estate cycles, tenant law, and property maintenance requirements.

A comprehensive business plan will not only help you clarify your strategy and operations but also serve as a tool to attract investors or secure loans.

Lenders and investors are looking for a solid market analysis, realistic financial projections, and a clear plan for managing properties effectively.

By presenting a detailed and substantiated plan, you show your credibility and dedication to building a successful property management company.

To achieve these goals while saving time, you can fill out our property management business plan template .

A free example of business plan for a property management company

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for a property management company .

Here, we will follow the same structure as in our business plan template.

Market Opportunity

Market data and figures.

The property management industry is a robust and essential part of the real estate sector.

Recent estimates value the global property management market at over 15 billion dollars, with expectations for continued growth as the real estate market expands and diversifies.

In the United States alone, there are over 200,000 property management companies, contributing to an annual revenue of approximately 88 billion dollars. This underscores the critical role property management plays in maintaining and enhancing the value of real estate assets.

These figures highlight the significant impact of property management on the overall economy and its importance in the real estate industry.

The property management industry is experiencing several key trends that are shaping its future.

Technology adoption is on the rise, with property management software becoming increasingly sophisticated, offering features like online rent payments, electronic lease signing, and automated maintenance requests.

There is also a growing emphasis on sustainable property management practices, as both residential and commercial tenants seek energy-efficient and environmentally friendly living and working spaces.

Additionally, the rise of remote work has led to changes in tenant preferences, with a higher demand for flexible spaces and amenities that cater to work-from-home needs.

Smart home technology integration is becoming more prevalent, enhancing security and convenience for tenants while providing property managers with better monitoring tools.

Lastly, the importance of strong tenant relations and community building is increasingly recognized as a way to reduce turnover and maintain high occupancy rates.

These trends indicate a dynamic industry that is adapting to the evolving needs of tenants and property owners alike.

Success Factors

Several factors contribute to the success of a property management company.

Efficient operations are paramount, with effective systems in place for handling tenant inquiries, maintenance issues, and financial management.

Strong communication skills are essential, as property managers must effectively liaise between tenants and property owners, ensuring all parties are satisfied.

Expertise in local real estate markets enables property managers to provide valuable insights and advice to property owners, helping to maximize their investment returns.

Adaptability to regulatory changes and market conditions is also crucial for maintaining compliance and staying competitive.

Lastly, a focus on customer service excellence can set a property management company apart, fostering loyalty and referrals from both tenants and property owners.

By prioritizing these success factors, a property management company can thrive and grow in the ever-changing landscape of real estate.

The Project

Project presentation.

Our property management company project is designed to address the needs of property owners and investors seeking professional and reliable management of their real estate assets. Strategically located to serve urban and suburban areas with high rental demand, our company will offer comprehensive property management services, including tenant screening, lease management, maintenance coordination, and financial reporting, all executed with the utmost attention to detail and legal compliance.

We aim to ensure property preservation, maximize rental income, and minimize vacancies by leveraging our market expertise and customer service excellence.

Our property management company is poised to become a trusted partner for property owners, delivering peace of mind and enhancing the value of their investment properties.

Value Proposition

The value proposition of our property management company is centered on delivering exceptional service and results that exceed the expectations of property owners and tenants alike.

Our commitment to proactive management, transparent communication, and efficient operations ensures that properties are well-maintained and profitable. We offer a seamless experience for owners and tenants, reducing the complexities of property management while optimizing asset performance.

We are dedicated to fostering positive relationships with tenants to ensure long-term occupancy and satisfaction, and we are committed to continuous improvement and innovation in the field of property management.

Our company aspires to set a new standard in property management, offering a comprehensive suite of services that empower property owners to realize the full potential of their real estate investments.

Project Owner

The project owner is a seasoned real estate professional with a wealth of experience in property management and a keen understanding of the real estate market's dynamics.

With a background in real estate investment and a track record of successful property management, he is well-equipped to lead a company that prioritizes client satisfaction and asset performance. His expertise in tenant relations, maintenance coordination, and financial oversight positions him as an industry leader.

Driven by a vision of integrity and excellence, he is committed to establishing a property management company that stands out for its dedication to clients and its contribution to the enhancement of property values.

His passion for real estate and his commitment to service excellence are the cornerstones of this project, aiming to deliver top-tier property management solutions to a diverse clientele.

The Market Study

Market segments.

The market segments for this property management company are diverse and cater to various needs within the real estate sector.

Firstly, there are individual property owners who require management services for their rental properties to ensure efficient operation and tenant satisfaction.

Secondly, real estate investors with multiple properties seek professional management to maximize their investment returns and minimize the hassles of day-to-day operations.

Additionally, the market includes residential complexes and homeowners' associations (HOAs) looking for comprehensive management solutions for their communities.

Lastly, commercial property owners form a significant segment, requiring specialized management to handle the unique needs of commercial tenants and maintenance of their properties.

SWOT Analysis

A SWOT analysis of this property management company highlights several key factors.

Strengths include a strong understanding of the local real estate market, a professional team with expertise in property law and tenant relations, and robust technology systems for property maintenance and management.

Weaknesses may involve the challenge of scaling operations to manage a growing portfolio and the need to stay updated with ever-changing real estate regulations.

Opportunities can be found in the increasing demand for rental properties and the potential to offer value-added services such as property renovations and energy efficiency upgrades.

Threats might include the emergence of new competitors with disruptive technology or business models and economic downturns affecting the real estate market.

Competitor Analysis

Competitor analysis in the property management industry indicates a competitive landscape.

Direct competitors include other local and national property management firms that offer similar services to property owners and investors.

These competitors strive to provide exceptional service to maintain client satisfaction and loyalty.

Potential competitive advantages for our company include personalized customer service, a strong local market presence, advanced technology for property management, and a comprehensive suite of services.

Understanding the strengths and weaknesses of competitors is crucial for carving out a niche in the market and ensuring client retention.

Competitive Advantages

Our property management company's competitive edge lies in our dedication to client satisfaction and property care.

We offer a full range of services, from tenant screening and leasing to maintenance and financial reporting, all tailored to meet the specific needs of each property owner.

Our proactive approach to property management helps prevent issues before they arise, ensuring a smooth operation for our clients.

We also pride ourselves on our use of cutting-edge property management software, which provides transparency and ease of access to property information for owners and tenants alike.

You can also read our articles about: - the customer segments of a property management company - the competition study for a property management company

The Strategy

Development plan.

Our three-year development plan for the property management company is designed to establish a strong foothold in the local real estate market.

In the first year, we will concentrate on building a robust portfolio of properties, focusing on exceptional service and client satisfaction to foster a reputation for reliability and professionalism.

The second year will be geared towards optimizing our operational processes and expanding our services to include additional property types, such as commercial and industrial spaces.

In the third year, we aim to leverage technology to enhance property management efficiency and explore strategic partnerships with real estate developers and investors to further expand our market reach.

Throughout this period, we will prioritize customer service, operational excellence, and innovative solutions to stay ahead of market trends and exceed client expectations.

Business Model Canvas

The Business Model Canvas for our property management company focuses on property owners and investors as our primary customer segments.

Our value proposition is centered on providing hassle-free property management, maximizing rental income, and maintaining property value through professional upkeep and tenant relations.

We offer our services through direct engagement with property owners and online platforms, utilizing key resources such as our experienced management team and state-of-the-art property management software.

Key activities include property maintenance, tenant screening, lease management, and financial reporting.

Our revenue streams are generated from property management fees, while our costs are associated with staff salaries, marketing, and technology investments.

Access a comprehensive and editable real Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy is built on establishing trust and demonstrating expertise in the property management field.

We aim to educate property owners on the benefits of professional management services and showcase our track record of maintaining high occupancy rates and tenant satisfaction. Our approach includes targeted online advertising, informative webinars, and networking events within the real estate community.

We will also develop partnerships with real estate agencies and local businesses to extend our reach.

Additionally, we plan to leverage social media and content marketing to share success stories and industry insights, positioning ourselves as thought leaders in property management.

Risk Policy

The risk policy for our property management company is designed to mitigate risks associated with property maintenance, tenant relations, and market fluctuations.

We implement rigorous screening processes for tenants, regular property inspections, and proactive maintenance schedules to prevent property degradation and ensure compliance with housing regulations.

We maintain a conservative financial strategy to manage cash flow effectively and ensure we can navigate economic downturns without compromising service quality.

Furthermore, we carry comprehensive insurance coverage to protect against liability and property damage claims. Our priority is to safeguard the investments of our clients while delivering consistent, high-quality property management services.

Why Our Project is Viable

We are committed to establishing a property management company that addresses the needs of property owners and investors seeking professional, reliable, and efficient management services.

With our focus on customer service, operational efficiency, and market expertise, we are confident in our ability to thrive in the competitive real estate landscape.

We are enthusiastic about the opportunity to enhance property value for our clients and build a successful, sustainable business.

We remain adaptable to market changes and client feedback, and we are optimistic about the future prospects of our property management company.

You can also read our articles about: - the Business Model Canvas of a property management company - the marketing strategy for a property management company

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for a property management company and our financial plan for a property management company .

Initial expenses for our property management company include securing a professional office space, investing in property management software, obtaining necessary business licenses and insurance, training staff on the latest real estate regulations and customer service excellence, as well as costs related to brand development and executing strategic marketing initiatives to attract property owners and tenants.

Our revenue assumptions are based on a comprehensive analysis of the local real estate market, considering factors such as the number of rental properties, average rental rates, and the demand for professional property management services.

We anticipate a steady growth in clientele, starting with a conservative number of properties under management and expanding as our reputation for reliable and efficient service strengthens.

The projected income statement outlines expected revenues from management fees, leasing commissions, and other property-related services, against the costs of operations (staff salaries, office maintenance, technology subscriptions), and general business expenses (utilities, marketing, insurance, etc.).

This results in a forecasted net profit that is essential for assessing the long-term viability of our property management company.

The projected balance sheet presents assets unique to our business, such as office equipment, software, and potential receivables from clients, alongside liabilities that may include business loans and accounts payable.

It provides a snapshot of the company's financial standing at the end of each fiscal period.

Our projected cash flow statement details the inflows and outflows of cash, enabling us to predict our financial needs. This is crucial for maintaining a healthy cash reserve to cover operational costs and unexpected expenses.

The projected financing plan identifies the sources of capital we intend to tap into for covering our initial costs, such as bank loans, investor funds, or personal investments.

The working capital requirement for our property management company will be diligently tracked to ensure we have sufficient funds to manage day-to-day activities, including office expenses, staff salaries, and vendor payments.

The break-even analysis for our venture will calculate the number of properties we need to manage to cover all our costs and begin generating profits.

It will signal the point at which our business becomes financially sustainable.

Key performance indicators we will monitor include the average occupancy rate of managed properties, the client retention rate, the profit margin on our services, the current ratio to evaluate our liquidity, and the return on equity to measure the profitability of the shareholders' investment.

These metrics will assist us in gauging the financial health and success of our property management company.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for a property management company .

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Property Management Business Plan Template

If you want to start a property management business or expand your current one, you need a business plan.

Over the past 20+ years, we have helped over 7,000 entrepreneurs and business owners create business plans to start and grow their property management companies.

Below are links to each section of your property management business plan template:

Next Section: Executive Summary >

Property Management Business Plan FAQs

What is the easiest way to complete my property management business plan.

Growthink's Ultimate Property Management Business Plan Template allows you to quickly and easily complete your Property Management Business Plan.

What Is a Property Management Business Plan?

A business plan provides a snapshot of your property management business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why Do You Need a Business Plan for a Property Management Company?

If you’re looking to start a property management business  or grow your existing property management business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your property management company in order to improve your chances of success. Your property management business plan is a living document that should be updated annually as your company grows and changes.

What Are the Sources of Funding for a Property Management Business?

With regards to funding, the main sources of funding for a property management business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a property management business is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan.

Where can I download a Property Management Business Plan PDF?

You can download our free property management business plan template PDF here . This is a property management business plan template you can use in PDF format.

PROPERTY MANAGEMENT BUSINESS PLAN OUTLINE

• Property Mgmt Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan
• 10. Appendix
• Property Mgmt Business Plan Summary

Other Helpful Business Plan Articles & Templates

How To Write a Winning Property Management Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for property management businesses that want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every property management business owner should include in their business plan.

Download the Ultimate Property Management Business Plan Template

What is a Property Management Business Plan?

A property management business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Property Management Business Plan?

A property management business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Property Management Business Plan

The following are the key components of a successful property management business plan:

Executive Summary

The executive summary of a property management business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your property management company
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your property management business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your property management firm, mention this.

You will also include information about your chosen property management business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a property management business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the property management industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a property management business’ customers may include:

• Commercial property owners/managers

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or property management services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or you may promote your property management business via word-of-mouth marketing.

Operations Plan

This part of your property management business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a property management business include reaching $X in sales. Other examples include increasing the number of customers by X% each year, or expanding to a new market.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific property management industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Property Management Company

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Property Management Company

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup property management business.

Sample Cash Flow Statement for a Startup Property Management Company

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your property management company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

Our guide will help you organize your thoughts and make sure you haven’t missed anything important. Once you have a good outline, flesh out each section with more detail.  

Finish Your Property Management Business Plan in 1 Day!

Wish there was a faster, easier way to finish your Property Management business plan?

With our Ultimate Property Management Business Plan Template you can finish your plan in just 8 hours or less!

• How To Create A Business Plan For Property Management (Guide)
• Property Maintenance & Management

by Stephen Michael White

January 14, 2020

Welcome to the world of property management. Perhaps you’ve already been acting as a landlord to one property for a few months or years now, and you’re ready to expand. Maybe you haven’t actually bought any property yet, but you’ve been itching to be able to call yourself a landlord.

Regardless of how you ended up here, ready to flesh out your property management business plan, welcome to this exciting world!

While many people become landlords almost accidentally as they move houses and hold onto their former properties, there needs to be intention in your business as you grow and move forward if you want to succeed. Without a plan, you’ll be spreading your efforts ineffectively. That will hurt your bottom line.

To succeed in any entrepreneurial effort, you need to have a plan. Business plans can take many different shapes and forms, but the plan needs to be effective for you. Goals, progress points, and overall ambition can be harnessed and directed through a simple document.

Now, it’s time to learn how to create a business plan for property management your way. It’s time to pave your path to success!

A Table Of Contents For Creating Your Business Plan

What is a property management business plan, why you need a business plan, what to do before your write your plan, what to cover in your plan, evaluating and marketing properties.

There is no one-size-fits-all business plan model. In fact, property managers are all likely to have a wide variety of ideas about what their long-term goals are and how they will get there. Additionally, individuals have different short-term goals that act as waymarkers on their path to long-term success.

The business plan is a living document that outlines the idea of how to get from point A to point B. As things change, the document can change, too. If a great property suddenly becomes available when your short-term goals didn’t include a new property, it might be time to adjust the plan!

Part of the beauty and wonder of a business plan is that it should work and grow with you. Sticking to your plans is important, but it is also important to recognize that goals and best steps for success will change along the way. As long as you keep evolving, make sure that you keep your business plan up-to-date with you!

Note: Owner And/Or Manager

On the flip side, you might want to start a property management business that takes on investor clients. These clients own properties, and you manage them. Just as most people tend to do a little bit of both, this guide will cover a little bit of both, too!

There are a few key reasons that you need a business plan. First, you should want to have one to help guide you. Working on your own or with a small team can be overwhelming at times, and you may lose track of where to focus your energy.

When you have a business plan, you can turn to it to find guidance and get back on course.

Another reason that many new property managers want to figure out how to write a property management business plan is because they want to get a loan. Most financial institutions will not give loans to investors unless they have proof of business plans, so having a solid plan in hand can help you get the funds you need to kickstart your business.

Of course, there are many reasons that having a business plan as a property manager might be a good idea. There are even a few reasons that you might not need one right now! Let’s briefly review some of the primary pros and cons of creating your own business plan.

Organize Your Ideas

One of the biggest benefits of creating your own personal business plan is that you can organize your ideas and see how they all fit together. It can help you figure out how to get into this business at all !

Thinking through what you want to do with your business might lead you on twenty tangents; getting them all on paper can help you link up related and relevant ideas.

Regular Guidance

As mentioned, it’s easy to get lost in the world of property management. When you’re dealing with the day-to-day tasks of being a landlord and you also want to expand your investments, you might feel like you don’t have enough brainpower to do it all.

Having the guidance of a solid business plan to recenter and keep you on track is a golden ticket to success.

Pitch To Clients

Another huge benefit of having this document ready to go is that you will be able to bring in clients ASAP! Running a rental property management company will rely on you having a regular stream of investor clients that need their properties handled, so you want to be able to show them your plans and how you will help them succeed.

Adjust As You Go

Another cool thing about business plans is that they should always be written as a living document. A living document is a document that is meant to be changed and adjusted over time. As your business goals and needs change, your document can, too.

Secure Support

Do you want to get backing from a financial institution for your first big investment? Are you hoping to grow a small team to help your business grow? Using a business plan to secure these types of support is a great technique. When you show that you are planning for what’s next, you’ll be sure to find others to support your cause.

Plan Your Next Steps

Finally, writing a business plan can make you think ahead. Many people focus solely on what they want to do in the immediate future. It’s good to live in the moment, but you also need to think about your long-term investment payoff to ensure that the small steps you take today help you make a giant leap in the future.

Time Consuming

The biggest con about a business plan is that it can be very time-consuming to put together, but the time that you save by having this document available makes that investment well worth it for most. If you follow the rest of the guide that we’re sharing today, this process can even go a little bit faster than usual!

Some landlords find the prospect of writing out the one-month, three-month, or three-year future of the business to be very daunting. You should put a lot of passion into the plan’s creation, but you should also remember that the document will never be complete or uneditable. Let go of some of the stress by reminding yourself that adjustments can be made as needed.

Potentially Unnecessary

If you are just dabbling with the idea of becoming a landlord, it might not be necessary for you to dive deep in property management business plans just yet. Not every landlord needs to have a full-fledged rental property or property management business.

Managing just one property can be enough for many people, and those people won’t be needing a business plan to organize themselves.

If, however, it’s time to consider yourself a full business , it’s time to create your plan.

Before you write your plan, there are a few things that you should think about. We recommend getting a blank notebook and using this notebook to jot down any and all ideas that you have about the rental business. Do this for at least one week, and then re-read through the ideas for another week. Add more as you go.

If you aren’t feeling inspired enough to start from scratch, these questions might help you think more about what type of business you want to create and why:

• What are your long-term goals?
• What are your short-term goals?
• How many properties do you want to own?
• How many properties do you own now?
• Do you want to own properties, or do you want to work for clients strictly as a property manager?
• Do you want to hire additional team members?
• Do you have any loans or plans to add any loans?
• Why do you want to be in this business?
• Do you have experience with tenants?
• Are there any skills that you need to learn before becoming a property manager and business owner?

These questions are in no way comprehensive of all the things that you could think about. The idea is that you want to create a brain dump of everything that has been circulating when you think about the business. With all of these scribbles, you can start creating your property management company business plan.

You now have a large list of ideas, thoughts, and dreams about your business. It’s time to formalize those ideas and get them into an organized and achievable plan.

In this part of the guide, we’re going to concentrate on the different sections that you should put into your property management business plan. It’s impossible for us to cover every single thing that you might want to include, but remember that you can be flexible about your plan. Adjust as you need to, but remember that all of these sections are included for a reason.

Our Services & Business Model

This section covers who your business is, what they do, and how they are generally structured. Is it strictly a management company, or is it also an investment company? This small profile should bring clarity to that question.

Our Mission & Goals

Next, outline your short and long-term goals for the business. If possible, it’s also great to create a general mission statement that you can use to pitch your business to clients.

Team Structure

What kind of positions will you have in the business, and what are the position’s responsibilities? Outline the structure of the team, and be sure to update this part of the document as your team expands.

Services Offered

What does the business offer clients? What comes in standard packages, and what must be paid for additionally to complete?

Fee Structure

Cover the general fee structure, and update the fees as soon as they change so that all information included in the document about your fees is accurate.

Finding Clients/Properties

This section should detail how you plan to pitch to clients, what your ideal market is, and what types of properties you expect to run or invest in.

How will your business determine the rental value of a client’s property and market it so that it stands out in a rental-heavy industry?

Screening Tenants

Detail your screening best practices, and be sure to include information about your compliance for federal, state, and local laws when screening. Including expected turnover rate can make for an interesting metric here.

Rent Collection

This section should explain the various types of rent collection that will be available, and it should also include information about how rent will be collected or transferred to the primary owners.

Inspections and Maintenance

A complete guide of inspections needed, maintenance schedules, and what needs to be done in the case of an emergency should also be included in the business plan.

Continuing Education

If there are skills that you need to learn or licenses that you need to get to operate the business legally, you will want to outline how you are going to accomplish these goals in the business plan.

Finally, it is important to give your expected cash flow and budget for each year as well as for sample properties and clients. By creating some basic projections based on old data where available, it will be a little bit easier to plan for the future.

You Can Find Success In A Plan!

Setting up a property management business plan just makes sense if you’re ready to expand your business by buying more property or bringing on more clients that need help with their properties. The only way to smoothly transition into a new phase of your career is to set up a clear plan!

Using a business plan might seem like an old school idea, but it is actually an incredibly invaluable idea that still has a lot of worth and merit in the industry today. What are you waiting for? It’s time for your future to be planned!

Property Management Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Start Your Property Management Plan Here

Property Management Business Plan

You’ve come to the right place to create your property management company business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their property management companies.

Below are links to each section of your property management business plan template:

2. Company Overview – The Company Overview section will provide an overview of your business, history of the company and property management services offered.

3. Industry Analysis – This will include an overview of the property management industry, trends, and issues facing your industry.

4. Customer Analysis – Here, you will outline your target market. This includes information on demographics, psychographics, and behaviors.

5. Competitive Analysis – This section includes an overview of your direct and indirect competitors, their market share, your competitive advantage, and how you plan to compete against them.

6. Marketing Plan – The Marketing Plan will describe your marketing strategies, pricing details, and promotional activities.

7. Operations Plan – This section describes your business operations.

8. Management Team – This section will provide information on the management members of your team. This includes their experience, education, and skills.

Next Section: Executive Summary >

Property Management Business Plan FAQs

What is a property management business plan.

A property management business plan is a plan to start and/or grow your property management business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your property management business plan using our Property Management Business Plan Template here .

What Are the Main Sources of Revenues and Expenses for a Property Management Company?

The main source of revenue for property management companies are management fees and maintenance markups. Revenue is also generated from commissions, lease ups, and upcharges.

The key expenses are payroll and contractor fees, rent, supplies, and utilities.

How Do You Get Funding for Your Property Management Company Business Plan?

Companies are typically funded through small business loans, personal savings and credit card financing.

What are the Steps To Start a Property Management Company?

Starting a property management company can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Property Management Company Business Plan - The first step in starting a business is to create a detailed business plan for  your property management company that outlines all aspects of the venture. This should include market research on the property management industry and potential target market size, information about the property management services you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your business is in compliance with local laws.

3. Register Your Property Management Business - Once you have chosen a legal structure, the next step is to register your business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Property Management Equipment & Supplies - In order to start your   business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful property management company:

• How to Start a Property Management Company
• How to Start a Property Management Business

Where Can I Get Property Management Business Plan PDF?

You can download our free property management business plan template PDF here . This is a property management business plan template you can use in PDF format.

A Conversation with Two Experts in Property Management Business Plans

by Marie Liamzon-Tepman | Aug 20, 2020 | Hints and Tips , Interview , Property Management Business Tips , Property Management Growth , Property Management Industry , Property Management Marketing , Running a Property Management Company , Starting a Property Management Company , The Property Management Show Podcast

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What Property Management Business Plan is Best?

Property management business plans and systems are more important than ever, whether you’re trying to grow your company or simply manage the new normal of this pandemic. But which one is best for your business?

On today’s Property Management Show podcast, we’re talking to Deb Newell and Andy Moore about their expertise in both property management and coaching/consulting. We’re discussing property management business plans and systems and how to choose a path to better operations within your own company.

Introducing Deb and Andy

Deb Newell owns a property management company and has also grown her own consulting business. Real-Time Consulting Services is based in St. Paul, Minnesota. She helps her property management clients focus on three core principles established for businesses: People, Process, and Technology. The mission of Deb’s company is to help businesses see the deficits they have and to find ways to fix some of the gaps and miscommunications. Basically, she dives in as a company’s temporary COO to look at the operations and make them more efficient. She works with companies that are just starting out and have been in business for many years.

Andy Moore owns Gulf Coast Property Management in Sarasota, Florida. As a property management business owner, he realized where the operational challenges were coming from in his own company and in the industry, so he became involved in business consulting. Now he works part time with property management companies to reorganize and focus.

Often, Andy has seen professionals in the property management world start off as technicians. Maybe they were property managers or real estate agents or maybe they worked in maintenance, and then they came into the management or ownership of a company without any real idea for how to run the business. In these scenarios, business plans and systems can give people a better idea of how to properly run a business and guide them through key concepts like hiring, firing, and managing. It helps entrepreneurs set expectations and deliver a quality service.

Note: Andy Moore is no longer an EOS Implementer® as of July 6, 2020. For information about the Entrepreneurial Operating System (EOS) or to find an official EOS Implementer®, please visit www.eosworldwide.com .

Six Sigma and Other Management Frameworks

Deb’s approach in consulting is taking elements from various management frameworks like Six Sigma to help her clients. Her focus is on the lean management side and the idea of eliminating the defects within a business.

Her process is to go through the core principles and evaluate the business in such a way that the company can focus on the customer. By understanding how everything really works, looking at processes and how they flow, concentrating on the value of the business, and removing any blocks or defects, the company is brought to a better result.

An important part of the work is also getting buy-in from the team throughout the process. Every effort has to be systematic where a roadmap is presented. You might think one employee is an issue to your company’s success, but you have to dig deeper. Maybe that employee is struggling because of a lack of training or the absence of clear expectations. There’s always a root cause, and to execute any plan in the right manner, those root causes have to be identified and solved efficiently.

Different Management Systems Fit Different Companies

You cannot completely copy one successful model that you see elsewhere. It might not work for you.

Andy says he runs into the same challenge. He has to make an effort not to impose his management style and the way he is structured on the others that he coaches. Every business is nuanced, and the dynamics from company to company always change.

He has learned to put up guardrails to guide other property management entrepreneurs rather than simply telling a them how he himself would solve a problem in his own business.

There is always a temptation to copy what successful property management companies do. But, if you’re in a different market and you don’t understand why the company you want to copy is doing what they’re doing, you may be missing some key insights.

There’s always a new shiny concept or idea that promises to change everything. There are visionaries in the field, but not everyone is going to be able to implement those visions. Find the change agent in your company to drive what you want. If there’s not a person ready to do that, think about how to develop someone who can lead the path towards the larger goals.

How to Choose a Management Framework for Your Property Management Company

There are two things to keep in mind when choosing a management framework for your company:

• Are you big enough in terms of staff, revenue, or doors managed?
• Does your company operate using a portfolio structure rather than a departmental structure?

In Andy’s personal experience, there are systems that tend to not work for a portfolio-based company where one property manager is performing all of the tasks associated with a property. In a portfolio-based company, the doors tend to slam shut when it comes to accountability and communication, which can render some systems ineffective. Meanwhile, being too small of a company could mean you don’t have enough resources and staff to create necessary boundaries critical to the system you are trying to implement.

Simply deciding to adopt a new process, a new plan, or a new system is not going to magically fix your company either. Some property management businesses have larger problems that need to be solved first before turning to any system. Hiring a consultant or implementing a management system will not erase some of the root problems or the lack of foundation that may be holding you back. It’s not a light switch. Management systems require work – hard work – and they also require a commitment. You’ll be working within their framework for years and once you reach your initial goals, it will be time to set new goals, and that will require additional change management.

Problems take time to solve. As a property manager, you likely have new clients calling when they need a tenant evicted. They’re in emergency mode and they just want to hand off their problem and let it be your problem. But, with change management, you have to be invested yourself, and you have to be committed to the process.

For more about standardized systems in property management , check out our two-part series with Dave Gorham.

Portfolio vs Departmental Property Management Systems

The difference in department-based management companies and portfolio-based companies is often regional. And, companies shift. They go back and forth between the two models depending on where they are and where they’re going.

The best system and structure depends on your company.

It depends on how you manage owners and how accountability is measured and respected in your team. If you’re going to move from a portfolio based system to a departmental system, it’s going to involve more than shuffling around boxes on your organizational chart.

While a departmental system may make sense, most owners you work with will prefer to talk to one person. They don’t want to call five different people to get a report on their property.

At Andy’s property management company, things have evolved from portfolio to departmental to a hybrid where he has realized the value of an account manager who serves as that one contact person that owners can go to. They’re in charge of the portfolio, but they’re supported by different departments within the company.

You can only get to a structure like that with experience and systems.

If you own a property management company, you’re probably managing more than properties. You’re managing people. It’s easy to forget that you have to manage people as well as real estate. There’s an owner and a tenant and employees. When you establish a property management company, your job is to manage many people. Not everyone is equipped to do that.

You can get yourself familiar with structuring your organization with our 3-part series on workflows .

Blind Spots When Managing Your Company

The lack of any operational systems will always be a blind spot. There’s training and strategic planning – all blind spots.

Those blind spots impact reputation. It’s hard enough to maintain a positive reputation in property management. This is a difficult profession to be in – property managers are required to be experts in several different things in order to successfully and effectively manage a rental property. There’s little recognition.

A number of tools are now available in the industry that can help companies avoid and manage those blind spots.

But, those tools aren’t free. Property managers aren’t charging enough for the work that they do. This is true. It’s also true that owners think property managers charge too much money.

Deb uses a babysitting analogy. The two most important and valuable assets people have are real estate and their children. Why are the services associated with real estate and children so devalued? No one wants to pay property managers more than $100 a month and no one wants to pay babysitters more than $10 an hour. It doesn’t make sense.

With companies and individuals entering the property management marketplace and offering to do the work for almost nothing, it further devalues the work that real professionals are doing. But, it doesn’t take long for those low-cost management structures to crumble.

Pandemic Property Management: How to Survive

The world has changed, and property management companies have been required to change, too. No one saw this pandemic coming. But, it’s easy to see which companies were prepared to pivot in a way that they had to and which companies are still scrambling to make it work.

Andy says his company hasn’t missed a beat because remote workers, Key Performance Indicators (KPIs), and clear expectations have always been in place. Policies and procedures are not sexy. They’re not fun. But they’re important, especially when it comes to managing staff and properties through this pandemic.

You may have staff members who are working from home, and you’ll have to be flexible. They may be homeschooling their children. They may be balancing work and home, and parenting with spouses or partners who are also working remotely.

Companies will survive if plans are in place. Companies that were struggling with organization and systems before the pandemic are going to find themselves in trouble.

Good things can come out of this, and if you’re interested in talking to Andy or Deb about their coaching and consulting businesses or you want to learn more about how our structured marketing plans can help your business, contact us at Fourandhalf.

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How to write a business plan for a property management company?

Creating a business plan for a property management company is an essential process for any entrepreneur. It serves as a roadmap that outlines the necessary steps to be taken to start or grow the business, the resources required, and the anticipated financial outcomes. It should be crafted with method and confidence.

This guide is designed to provide you with the tools and knowledge necessary for creating a property management company business plan, covering why it is so important both when starting up and running an established business, what should be included in your plan, how it should be structured, what tools should be used to save time and avoid errors, and other helpful tips.

We have a lot to cover, so let's get to it!

In this guide:

Why write a business plan for a property management company?

• What information is needed to create a business plan for a property management company?
• What goes in the financial forecast for a property management company?
• What goes in the written part of a property management company business plan?
• What tool can I use to write my property management company business plan?

Understanding the document's scope and goals will help you easily grasp its structure and content. Before diving into the specifics of the plan, let's take a moment to explore the key reasons why having a property management company business plan is so crucial.

To have a clear roadmap to grow the business

Small businesses rarely experience a constant and predictable environment. Economic cycles go up and down, while the business landscape is mutating constantly with new regulations, technologies, competitors, and consumer behaviours emerging when we least expect it.

In this dynamic context, it's essential to have a clear roadmap for your property management company. Otherwise, you are navigating in the dark which is dangerous given that - as a business owner - your capital is at risk.

That's why crafting a well-thought-out business plan is crucial to ensure the long-term success and sustainability of your venture.

To create an effective business plan, you'll need to take a step-by-step approach. First, you'll have to assess your current position (if you're already in business), and then identify where you'd like your property management company to be in the next three to five years.

Once you have a clear destination for your property management company, you'll focus on three key areas:

• Resources: you'll determine the human, equipment, and capital resources needed to reach your goals successfully.
• Speed: you'll establish the optimal pace at which your business needs to grow if it is to meet its objectives within the desired timeframe.
• Risks: you'll identify and address potential risks you might encounter along the way.

By going through this process regularly, you'll be able to make informed decisions about resource allocation, paving the way for the long-term success of your business.

To maintain visibility on future cash flows

Businesses can go for years without making a profit, but they go bust as soon as they run out of cash. That's why "cash is king", and maintaining visibility on your property management company's future cash flows is critical.

How do I do that? That's simple: you need an up-to-date financial forecast.

The good news is that your property management company business plan already contains a financial forecast (more on that later in this guide), so all you have to do is to keep it up-to-date.

To do this, you need to regularly compare the actual financial performance of your business to what was planned in your financial forecast, and adjust the forecast based on the current trajectory of your business.

Monitoring your property management company's financial health will enable you to identify potential financial problems (such as an unexpected cash shortfall) early and to put in place corrective measures. It will also allow you to detect and capitalize on potential growth opportunities (higher demand from a given segment of customers for example).

To secure financing

Whether you are a startup or an existing business, writing a detailed property management company business plan is essential when seeking financing from banks or investors.

This makes sense given what we've just seen: financiers want to ensure you have a clear roadmap and visibility on your future cash flows.

Banks will use the information included in the plan to assess your borrowing capacity (how much debt your business can support) and your ability to repay the loan before deciding whether they will extend credit to your business and on what terms.

Similarly, investors will review your plan carefully to assess if their investment can generate an attractive return on investment.

To do so, they will be looking for evidence that your property management company has the potential for healthy growth, profitability, and cash flow generation over time.

Now that you understand why it is important to create a business plan for a property management company, let's take a look at what information is needed to create one.

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Information needed to create a business plan for a property management company

Drafting a property management company business plan requires research so that you can project sales, investments and cost accurately in your financial forecast, and convince the reader that there is a viable commercial opportunity to be seized.

Below, we'll focus on three critical pieces of information you should gather before starting to write your plan.

Carrying out market research for a property management company

Carrying out market research before writing a business plan for a property management company is essential to ensure that the financial projections are accurate and realistic.

Market research helps you gain insight into your target customer base, competitors, pricing strategies and other key factors which can have an impact on the commercial success of your business.

In particular, it is useful in forecasting revenue as it provides valuable data regarding potential customers’ spending habits and preferences.

Your market research may reveal that potential customers may be looking for a property management company that has a good online presence, such as an easy to use website and a good social media presence. Additionally, your market research might show that potential customers could be seeking a property management company that offers a wide range of services, including rent collection, tenant screening, and maintenance services.

This information can then be used to create more accurate financial projections which will help investors make informed decisions about investing in your property management company.

Developing the marketing plan for a property management company

Before delving into your property management company business plan, it's imperative to budget for sales and marketing expenses.

To achieve this, a comprehensive sales and marketing plan is essential. This plan should provide an accurate projection of the necessary actions to acquire and retain customers.

Additionally, it will outline the required workforce to carry out these initiatives and the corresponding budget for promotions, advertising, and other marketing endeavours.

By budgeting accordingly, you can ensure that the right resources are allocated to these vital activities, aligning them with the sales and growth objectives outlined in your business plan.

The staffing and capital expenditure requirements of a property management company

Whether you are starting or expanding a property management company, it is important to have a clear plan for recruitment and capital expenditures (investment in equipment and real estate) in order to ensure the success of the business.

Both the recruitment and investment plans need to be coherent with the timing and level of growth planned in your forecast, and require appropriate funding.

Staffing costs for a property management company might include salaries for property managers, administrative staff, and maintenance personnel. Equipment costs could include computers, software, and other office supplies necessary to operate the business. Additionally, the company may need to purchase tools and other items necessary for the maintenance and repair of the properties they manage.

In order to create a realistic financial forecast, you will also need to consider the other operating expenses associated with running the business on a day-to-day basis (insurance, bookkeeping, etc.). 

Once you have all the necessary information to create a business plan for your property management company, it is time to start creating your financial forecast.

What goes into your property management company's financial forecast?

The financial forecast of your property management company's business plan will enable you to assess the growth, profitability, funding requirements, and cash generation potential of your business in the coming years.

The four key outputs of a financial forecast for a property management company are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

Your property management company forecasted P&L statement enables the reader of your business plan to get an idea of how much revenue and profits your business is expected to make in the near future.

Ideally, your reader will want to see:

• Growth above the inflation level
• Expanding profit margins
• Positive net profit throughout the plan

Expectations for an established property management company will of course be different than for a startup. Existing businesses which have reached their cruising altitude might have slower growth and higher margins than ventures just being started.

The forecasted balance sheet of your property management company

The projected balance sheet of your property management company will enable the reader of your business plan to assess the overall financial health of your business.

It shows three elements: assets, liabilities and equity:

• Assets: are productive resources owned by the business, such as equipment, cash, and accounts receivable (money owed by clients).
• Liabilities: are debts owed to creditors, lenders, and other entities, such as accounts payable (money owed to suppliers).
• Equity: includes the sums invested by the shareholders or business owners and the profits and losses accumulated by the business to date (which are called retained earnings). It is a proxy for the value of the owner's stake in the business.

Analysing your property management company projected balance sheet provides an understanding of your property management company's working capital structure, investment and financing policies.

In particular, the readers of your plan can compare the level of financial debt on the balance sheet to the equity value to measure the level of financial risk (equity doesn't need to be reimbursed, while financial debt must be repaid, making it riskier).

They can also use your balance sheet to assess your property management company's liquidity and solvency:

• A liquidity analysis: focuses on whether or not your business has sufficient cash and short-term assets to cover its liabilities due in the next 12 months.
• A solvency analysis: takes and longer view to assess whether or not your business has the capacity to repay its debts over the medium-term.

The cash flow forecast

A projected cash flow statement for a property management company is used to show how much cash the business is generating or consuming.

The cash flow forecast is usually organized by nature to show three key metrics:

• The operating cash flow: do the core business activities generate or consume cash?
• The investing cash flow: how much is the business investing in long-term assets (this is usually compared to the level of fixed assets on the balance sheet to assess whether the business is regularly maintaining and renewing its equipment)?
• The financing cash flow: is the business raising new financing or repaying financiers (debt repayment, dividends)?

As we discussed earlier, cash is king and keeping an eye on future cash flows an imperative for running a successful business. Therefore, you can expect the reader of your property management company business plan to pay close attention to your cash flow forecast.

Also, note that it is customary to provide both yearly and monthly cash flow forecasts in a business plan - so that the reader can analyze seasonal variation and ensure the property management company is appropriately funded.

The initial financing plan

The initial financing plan, also known as a sources and uses table, is a valuable resource to have in your business plan when starting your property management company as it reveals the origins of the money needed to establish the business (sources) and how it will be allocated (uses).

Having this table helps show what costs are involved in setting up your property management company, how risks are shared between founders, investors and lenders, and what the starting cash position will be. This cash position needs to be sufficient to sustain operations until the business reaches a break-even point.

Now that you have a clear understanding of what goes into the financial forecast of your property management company business plan, let's shift our focus to the written part of the plan.

The written part of a property management company business plan

The written part of a property management company business plan plays a key role: it lays out the plan of action you intend to execute to seize the commercial opportunity you've identified on the market and provides the context needed for the reader to decide if they believe your plan to be achievable and your financial forecast to be realistic.

The written part of a property management company business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

The executive summary, the first section of your property management company's business plan, serves as an inviting snapshot of your entire plan, leaving readers eager to know more about your business.

To compose an effective executive summary, start with a concise introduction of your business, covering its name, concept, location, history, and unique aspects. Share insights about the services or products you intend to offer and your target customer base.

Subsequently, provide an overview of your property management company's addressable market, highlighting current trends and potential growth opportunities.

Then, present a summary of critical financial figures, such as projected revenues, profits, and cash flows.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Lastly, address any funding needs in the "ask" section of your executive summary.

2. The presentation of the company

The second section in your property management company's business plan should focus on the structure and ownership, location, and management team of the company.

The structure and ownership part provides an overview of the legal structure of the business, who the owners are and how much each has invested and owns. If you are seeking financing it is important that the reader gets a clear picture of which legal entity is receiving the funds, and who controls the business.

The location part should give an overview of the premises from which the company is operating, and why that location is of particular interest (catchment area, accessibility, amenities nearby, etc.).

When describing the location of your property management company, you could emphasize the access to resources it might provide for potential tenants. It may be surrounded by plenty of shops and other amenities, and may be in close proximity to major highways and public transportation. Additionally, you could note that the area may have a low crime rate and is likely to be attractive to renters. All of these factors combined could make investing in the property a sound decision.

Finally, you should introduce the management team. Explain each member's role, background, and experience.

It is also important to emphasize any past successes that the members of the management team have achieved, and how long they've been working together, as this will help potential lenders or investors understand why they should trust in their leadership.

3. The products and services section

The products and services section of your business plan should include a detailed description of what your company offers, who are the target customers, and what distribution channels are part of your go-to-market. 

For example, your property maintenance company might offer services such as tenant screening, rental listing, and maintenance coordination. Tenant screening would help protect the property owner from a bad tenant, rental listing would help to attract potential tenants, and maintenance coordination would ensure that all repairs and upkeep of the property are handled in a timely and cost-efficient manner. These services would help to ensure that the property is well maintained and that the property owner's interests are protected.

4. The market analysis

When you present your market analysis in your property management company business plan, it's crucial to include detailed information about customers' demographics and segmentation, target market, competition, barriers to entry, and any relevant regulations.

The main objective of this section is to help the reader understand the size and attractiveness of the market while demonstrating your solid understanding of the industry.

Begin with the demographics and segmentation subsection, providing an overview of the addressable market for your property management company, the key trends in the marketplace, and introducing different customer segments along with their preferences in terms of purchasing habits and budgets.

Next, focus on your target market, zooming in on the specific customer segments your property management company aims to serve and explaining how your products and services fulfil their distinct needs.

For example, your target market might include people who are renting out their first home. These individuals may need assistance understanding rental laws, finding tenants, and managing rental payments. Additionally, they may require guidance in setting the right rent for their property, as well as help with maintenance and repairs.

Then proceed to the competition subsection, where you introduce your main competitors and highlight what sets you apart from them.

Finally, conclude your market analysis with an overview of the key regulations applicable to your property management company.

5. The strategy section

When you write the strategy section of your property management company business plan, remember to cover key elements such as your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, elaborate on what makes your company stand out from competitors. This becomes especially important if you're a startup, aiming to carve a place for yourself amidst established players in the marketplace.

The pricing strategy subsection should demonstrate how you plan to maintain profitability while offering competitive prices to attract customers.

Outline your sales & marketing plan, detailing how you'll reach out to new customers and retain existing ones through loyalty programs or special offers.

For the milestones subsection, outline your company's achievements to date and your main objectives for the future, complete with specific dates to set clear expectations for progress.

Lastly, the risks and mitigants subsection should address the main risks that could affect your plan's execution. Explain the measures you've put in place to minimize these risks, assuring potential investors or lenders.

Your property management company may face several different risks. For example, there could be the risk of a tenant not paying rent on time, or failing to pay rent at all. Another risk could be the possibility of damage to the property due to natural disasters, such as flooding or fire. Both of these risks could result in financial losses for the property management company.

6. The operations section

The operations of your property management company must be presented in detail in your business plan.

The first thing you should cover in this section is your staffing team, the main roles, and the overall recruitment plan to support the growth expected in your business plan. You should also outline the qualifications and experience necessary to fulfil each role, and how you intend to recruit (using job boards, referrals, or headhunters).

You should then state the operating hours of your property management company - so that the reader can check the adequacy of your staffing levels - and any plans for varying opening times during peak season. Additionally, the plan should include details on how you will handle customer queries outside of normal operating hours.

The next part of this section should focus on the key assets and IP required to operate your business. If you depend on any licenses or trademarks, physical structures (equipment or property) or lease agreements, these should all go in there.

You may have key assets such as a list of tenants and landlords, and a database of properties. Intellectual property could include trademarks and trade secrets, such as the company's processes and methods for managing properties. These could be valuable in preventing competitors from replicating the company's approach.

Finally, you should include a list of suppliers that you plan to work with and a breakdown of their services and main commercial terms (price, payment terms, contract duration, etc.). Investors are always keen to know if there is a particular reason why you have chosen to work with a specific supplier (higher-quality products or past relationships for example).

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of the content of a property management company business plan, let's look at some of the tools you can use to create yours.

What tool should I use to write my property management company's business plan?

There are two main ways of creating your property management company business plan:

• Using specialized business planning software,
• Hiring a business plan writer.

Using an online business plan software for your property management company's business plan

The modern and most efficient way to write a property management company business plan is to use business plan software .

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Hiring a business plan writer to write your property management company's business plan

Outsourcing your property management company business plan to a business plan writer can also be a viable option.

Business plan writers are experienced in writing business plans and adept at creating financial forecasts without errors. Furthermore, hiring a consultant can save you time and allow you to focus on the day-to-day operations of your business.

However, hiring business plan writers is expensive as you are paying for the software used by the consultant, plus their time, and their profit margin of course.

From experience, you need to budget at least £1.5k ($2.0k) excluding tax for a complete business plan, more if you need to make changes after the initial version (which happens frequently after the initial meetings with lenders or investors).

You also need to be careful when seeking investment. Investors want their money to be used to grow the business, not spent on consulting fees. Therefore, the amount you spend on business plan writing services (and other consulting services such as legal services) needs to be negligible relative to the amount raised.

The other drawback is that you usually don't own the business plan itself: you just get the output, while the actual document is saved in the consultant's business plan software - which makes it difficult to maintain the document up to date without hiring the consultant on a retainer.

For these reasons, outsourcing the property management company business plan to a business plan writer should be considered carefully, weighing both the advantages and disadvantages of hiring outside help.

Ultimately, it may be the right decision for some businesses, while others may find it beneficial to write their business plan using online software.

Why not create your property management company's business plan using Word or Excel?

I must advise against using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write your property management company business plan. Let me explain why.

Firstly, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is highly technical and requires a strong grasp of accounting principles and financial modelling skills. It is, therefore, unlikely that anyone will fully trust your numbers unless you have both a degree in finance and accounting and significant financial modelling experience, like us at The Business Plan Shop.

Secondly, relying on spreadsheets is inefficient. While it may have been the only option in the past, technology has advanced significantly, and software can now perform these tasks much faster and with greater accuracy. With the rise of AI, software can even help us detect mistakes in forecasts and analyze the numbers for better decision-making.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Moreover, software makes it easier to compare actuals versus forecasts and maintain up-to-date forecasts to keep visibility on future cash flows, as we discussed earlier in this guide. This task is cumbersome when using spreadsheets.

Now, let's talk about the written part of your property management company business plan. While it may be less error-prone, using software can bring tremendous gains in productivity. Word processors, for example, lack instructions and examples for each part of your business plan. They also won't automatically update your numbers when changes occur in your forecast, and they don't handle formatting for you.

Overall, while Word or Excel may seem viable for some entrepreneurs to create a business plan, it's by far becoming an antiquated way of doing things.

• A business plan has 2 complementary parts: a financial forecast showcasing the expected growth, profits and cash flows of the business; and a written part which provides the context needed to judge if the forecast is realistic and relevant.
• Having an up-to-date business plan is the only way to keep visibility on your property management company's future cash flows.
• Using business plan software is the modern way of writing and maintaining business plans.

We hope that this practical guide gave you insights on how to write the business plan for your property management company. Do not hesitate to get in touch with our team if you still have questions.

Also on The Business Plan Shop

• In-depth business plan structure
• How to write the business plan for a grant application?
• Difference between planning and budgeting
• Business case vs business plan
• Key steps to write a business plan?
• Free business plan template

Know someone who owns or wants to start a property management company? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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How To Develop A Property Management Business Plan

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What’s in this article?

You’ve already decided to start a property management business . The first thing you’ll need to do is put together a comprehensive property management business plan. Having everything written out will help you run a very focused business. Your property management business plan should contain a detailed proposal in which you address all of the following:

• Setting up your company
• Choosing a business model
• Setting up short-term goals
• Learning local laws and getting certified
• Setting up an organizational structure with potential employees
• Defining base services to clients/owners/tenants/guests
• Defining perks and extra services to clients/owners/tenants/guests
• Setting up a fee structure
• Maintaining properties
• Getting the properties – locations, size, target rent, target tenants
• Marketing to tenants and guests
• Maintaining clients/owners/tenants/guests
• Setting long-term goals

Property management can be a lucrative way to get involved in real estate and become your own boss . Let’s say you enjoy the nuts and bolts of managing properties, from getting the yard work done to communicating with guests.  If this is true, starting your own property management business could be the start of something great.

Property management businesses are always in demand. This is because property owners frequently want to rid themselves of the burden of taking care of a property or two. Especially if those are in another town or state.

So first, you’ll need a plan.

Property management business plan: Before you start

Before starting any business, you should put together a business plan . A property management business plan is specific to your business, market, and ideal customers. Different states have different requirements for property managers, so be sure to check up on yours. And, your property management business plan should reflect those differences.

In your property management business plan, you must indicate who are your clients going to be and how you will get them . Choose a business model and think about your short-term goals, then outline them. According to Moneycrashers , the easy part will be getting set up as an LLC, which you can do online, by yourself, without an attorney. You will then need to set up your office – whether at home or elsewhere – with all the necessary office materials.

Learning your laws and updating your resume

In some states, such as Texas, New York, and Colorado, you must be a licensed real estate broker before you can manage properties. If you are already a licensed broker, or agent working towards becoming a real estate broker, then you should mention this in your property management business plan.

Denise (Deni) Supplee, a property management specialist and the Operations Director of SparkRental , emphasizes the importance of knowing your laws . “Not just the state landlord-tenant laws,” she adds, “but also contact your local housing and zoning offices to be sure that there are no registration or inspections required.” Supplee recommends getting very familiar with the Fair Housing Law .

Your education and certification levels should be reflected in the plan. If your state requires you to be a real estate broker or to work with one, you will need to detail when and how you will get your license. Also detail how you will take your continuing education credits. Your state may only require that you register or get a license as a property manager. If so, make sure you understand which classes you’ll need to take in order to obtain that license or certification. Be aware of the deadlines, as well.

You may plan on going at it alone for a while. But as you expand you’ll need employees. So, start thinking about an organizational structur e right now. Will you have a portfolio or departmental structure? Think about it, and add it to your plan.

Issues your plan needs to address

Your business plan will need to reflect your entire business . From who your clients are, though how you’ll get them, to how you’ll keep them, and everything you need to do for each of those. You should also define your base services vs. that little bit of extra you can offer.

Clients: who are they and how to find them

Your clients are the people who own properties you will be taking care of. Joining real estate networking groups, Facebook groups for rental advertising and other business networks will benefit you either directly or through word of mouth. Just be wonderfully social and friendly .

Also, many people are now renting their properties out to short-term vacationers. Add a section to your property management business plan about vacation or Airbnb properties. Take beautiful pictures and draft well-written narratives about the unit you’re managing. Offer perks like welcome gifts or baskets, and local recommendations about your city and neighbourhood. Everyone will appreciate it.

Keep in mind that the guest experience is constantly changing . Make it your mission to know what people want and need right now. Be the person who always offers a little extra.

Dedicate space in your property management business plan to the tenants and guests . They are the ones who will be living in the property you manage. Think about how to find them, should you post online ads, rely on word of mouth, or put effort into beautifully written vacation listings. It depends on the property you’re managing and the type of guest you want to attract.

Also consider how you will vet them . Supplee suggests the vetting process needs to be rigorous . “Screen those prospective tenants so thoroughly you know what they eat for breakfast. It goes beyond just doing a credit check. Conduct criminal background and eviction histories on all those over 18. Never go by a hunch or a feeling .”

Common property management business plan sections

We already mentioned you’ll need a section on your continued education and how to get it, and a section on who your clients are and how to get them.

The key to creating the property management business plan is to treat the plan as if every one of your potential clients was going to read it . Make sure to put as much information into your property management business plan, in an organized fashion so that you can refer to it later and look things up as needed.

Make sure you clearly define the base services from extra services. The base services are:

• Evaluating properties
• Marketing properties
• Screening tenants
• Collecting rent
• Regular inspections
• Repair and maintenance

All pretty straightforward, right? It’s how you do some of these things that make people see you’re giving them a little extra. Think of a unique way to offer these services, and market those as extras. Creativity pays off.

According to Jeff Miller, the co-founder of AE Home Group , when it comes to property management, “systems take the longest to build.” He adds that beginners should “use an off-the-shelf system like Hostfully to get a head start in the process. As you learn your specific business’ needs, iterate and improve from there.”

Maintenance of the property is something that you should elaborate on in detail. Teris Pantazes, CEO and Founder of EFynch.com, says you should have a clockwork-like system for maintenance. “For your own operations, make sure to have failsafe reminders in place to NEVER forget deadlines. And this includes accounting or annual maintenance that needs to be taken care of.”

He suggests you add secondary reminders to deal with things like “county inspections, license renewals or scheduling tenant closeouts – there is never an excuse for missing these .”

And speaking of repairs and maintenance, there will always be unexpected repairs. While Pantazes advises to “have a good method of getting bids for projects on the home. This would include a plan for both planned and unplanned repairs,” Supplee urges to “make the inspection report mandatory! This protects the landlord should there be damage and the tenant forgets to turn it in.”

Pantazes claims the best advice he can give for developing a business plan is to have “a feature of your service and make sure it is extraordinary . You need to have one feature that you can PUMP in addition to the nuts and bolts of the business.”

Jeff Rohde, author at JScottDigital.com says one of the most important things when developing your property management business plan is the focus on a “specific real estate asset class, and then ‘drill down’ to a specific sub-class.”

A residential example would be to decide if you’re doing for a single or multi-family homes. After that, narrow it down by price range, geographic area, and a number of units. A commercial example would be deciding on multi-tenant retail or office type of property. “After you chose that, focusing on the class of property (A, B or C), and the property size in terms of square footage.”

This is how you’d develop your niche , because, as Rohde puts it, “tenant personalities and issues, wants and needs, will be similar. Owner personalities and investment goals will be similar. And the skill set that the property manager develops will easily transfer to similar properties to manage.”

Consider your property management business plan a living document that you can use and add to as your business grows over the years.

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Property Management Business Plan Sample

Jan.04, 2017

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Table of Content

Executive Summary

1.1 the business.

Au Fait Property Management Concourse, owned by Jnexty Oloingoru, will be a property management business based in Beverly Hills, California. The business will be aimed at administrating our client’s property and finding suitable tenants for them after doing necessary background checks. It also includes taking measures to update the property and making essential repairs from time to time.

If you are looking for rental property management business plans to get a know-how of how to start this business you can take help from here. In this sample property management business plans template you can learn the entire working and financial plans of the startup, Au Fait Property Management Concourse.

Market and Competitors Research

An essential step to be taken before starting any business is to research on what your competitors are doing.  According to a report by IBISWorld more than 275k property management businesses are running in the United States and they all were successful enough to collectively generate a revenue of $75 billion in the year 2019.

The stats though also report an annual growth rate of 0.5%, are still concerning because they also indicate that you need to come up with extraordinary features to stand out in the tough competition.

2.1 Additional Features You Can Add to Your Property Management Services

Generally, such businesses look after the real estate of those who have their assets in various cities and can’t manage all on their own and also of those who don’t want to just handle unreasonable tenants and ask them for rent. So in order to be ahead of your competitors, you must have to add some additional features to your business so that you can become a valuable choice for your customers.

Here are some measures suggested by Au Fait Property Management Concourse to have a lead upon all of its competitors:

• Be detail-oriented and pursue excellence in every deal no matter how small it is
• Connect to estate owners personally to retain long-term relationships
• Find great communicators who can efficiently interact with others
• Buy or seek software services of a property management software so that the owners can be constantly updated through digital records of transactions, scripts, documents, images, and videos. Through which tenants can also be able to record their complaints and issues and they can be reminded about their dues through notifications

Identify your Clients

If you are thinking about opening a real estate business you must know with whom you are going to deal with. Generally, there are three groups of people with whom you’ll have to interact.

3.1 Landlords: Many owners don’t want to keep their property vacant but also want to be free from the laborious task of finding tenants and handling them if they are troublesome. Therefore, the first group that can approach your property management business is comprised of the landlords who either have their assets in several cities or who have their assets in the same city where they live but find it hard to maintain all of them and manage tenants.

3.2 Renters: The second group comprises of the tenants themselves who want a good space to live in but need someone as a middleman to connect them with the owners. People who are in need of renting a house usually contact property management companies because such companies can provide them with several authentic, safe and reasonable choices.

3.3 Contractors: The third category includes those contractors who also have to find tenants for someone else’s real estate but want the task to be done by more efficient and experienced people of this domain.

Market Analysis

The base of every startup is to first have a clear knowledge about where you are standing and where you are going to serve. To analyze your position with respect to the already established competitors and to explore the market from every aspect you must carry out a detailed marketing analysis.

Marketing analysis if done effectively, reveals the actual dynamics of a market. It gathers information and estimates the possible economical shifts and shifts in customer’s expenditure trend in near future by manipulating past variations in the economy, trends, and competitors in the market.

Another aspect of effective marketing analysis is that it investigates the strengths and weaknesses of a startup as compared to others and examine the possible opportunities and threats that can come in the way.

4.1 Long-term Benefits

Property management market analysis can affect your startup in the long run as it can impact major decisions. Other aspects of a business that are affected by the market are given as:

• Deciding what should be the promotional activities and property management marketing strategies for business plan
• Coming up with features that can influence owners so they ask you for managing their property
• Acquiring necessary legal documentation to avoid any hurdles

Thus, it’s certain that a startup can’t survive if decisions are not taken wisely – which again is dependent on how well you have explored your target market. So, if you are going to start a property management business, you must hire an experienced marketing analyst to devise a market analysis plan for you. In other cases, if you have a know-how of the marketplace you can do it yourself by studying examples and samples available on the web.

Personnel plan

Before you finalize your property management business staff you must look into property management business plans to get a clear idea of which personnel will be needed.

5.1 Company Staff

Jnexty will manage all the staff himself, however, the list of persons he has decided to hire after reading several samples of how to start property management business plans is given here with job descriptions.

Property Manager:

• Oversee client’s property
• Identify overhead costs
• Settle rental rates according to market and local rates
• Manage market depreciation costs
• Manage tenant referral program

Property Maintenance Manager:

• Supervise repairing works
• Oversee maintenance and repairing staff
• Upgrade commercial and residential properties by landscaping and modern means to make them look pleasant

Property Management Service Representative:

• Interact with owners and tenants and explaining to them, the company’s strategies
• Publicize vacant properties and locations to attract tenants
• Represent the company on various platforms through presentation and seminars

HR Manager:

• Announce job vacancies and hire suitable persons
• Train and assess the performance of the company’s staff
• Monitor overall work division and employees’ hierarchy

Software Engineer:

• Manage and operate property management software
• Ensure information security for both clients and company
• Manage to assign login IDs and passwords to tenants and respective owners

Company’s Accountant & Financial Advisor:

• Record transactions, receipts of owners and tenants
• Keep a record of the company’s budget and expenses
• Plan discount strategy by analyzing financial stats

Sales & Marketing Officer:

• Advertise company in local newspapers, and on social media
• Discover ventures to reach out more customer groups
• Collaborate with property management services representative to promote the company

Front Desk Officer:

• Receive and guide customers
• Handle phone calls and letters

Legal Advisor:

• Acquire and complete legal documentation
• Advise clients on relevant legal issues
• Provide legal assistance and guidance on all activities

Repairmen & General Staff:

• Work under property maintenance manager to keep up client’s property
• Handle emergencies regarding property and construction

To select potential individuals from a bundle of available resumes Jnexty will be holding some tests and interviews while collaborating with HR Manager. Persons will be employed after making sure that will not prove a threat to the company’s reputation and will not lead to customer dissatisfaction.

5.2 Modern Tools & Inventory

The company will purchase computers, office furniture, transport car, repairing stuff, and other required items two weeks before launch.

5.3 Average Salary of Employees

The company will be paying employees more than its competitors to get top-notch service and output.

Download Property Management Business Plan Sample in pdf

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Rental Property Business Plan

A rental property business is a great way of earning a passive income. It can help you have great finances if you go about it in the right way.

The rental property market stood at a size of 174.2 bn dollars in the US in 2021. And with the subsiding pandemic isn’t about to shrink any time soon.

Now, if you are planning to become a landlord, you might need just one thing before you start your business. A business plan.

A business plan would become a guide in your business journey. It would also make your journey a less difficult and more successful one. So, if you are ready to start your rental property business , read on to find out all about a rental property business plan.

How can a rental property business plan help you?

A rental property business plan can help you have a clear goal, a well-defined business model, and strategies that work. It can also help you navigate smoothly through roadblocks in your journey and steer clear of costly business mistakes.

Also, putting your idea on paper makes it look more real and clear. Moreover, a business plan also comes in handy while you explain your ideas to your collaborators and investors.

All in all a business plan will help you figure out your way around obstacles through rigorous analysis and strategic planning. This brings us to our next section, how to write a business plan.

Rental Property Business Plan Outline

This is the standard rental property business plan outline which will cover all important sections that you should include in your business plan.

• Business Objectives
• Mission Statement
• Guiding Principles
• Keys to Success
• Start-Up Summary
• Location and Facilities
• Products/Services Descriptions
• Competitive Comparison
• Market Size
• Industry Participants
• Main Competitors
• Market Segments
• Market Tests
• Market Needs
• Market Trends
• Market Growth
• Positioning
• SWOT Analysis
• Strategy Pyramid
• Unique Selling Proposition (USP)
• Competitive Edge
• Positioning Statement
• Pricing Strategy
• Promotion and Advertising Strategy
• Marketing Programs
• Sales Forecast
• Sales Programs
• Exit Strategy
• Organizational Structure
• Steve Rogers
• Linda Rogers
• Management Team Gaps
• Personnel Plan
• Important Assumptions
• Start-Up Costs
• Source and Use of Funds
• Projected Profit and Loss
• Projected Cash Flow
• Projected Balance Sheet

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After getting started with Upmetrics , you can copy this rental property business plan example into your business plan and modify the required information and download your rental property business plan pdf and doc file. It’s the fastest and easiest way to start writing your business plan.

How to write a rental property business plan?

Before writing a business plan, it is always good to ask yourself a few questions. It would surely make the process shorter and easier.

You should think about the following questions:

• What do you wish to achieve with your business?
• Who is your target audience?
• How would your business model work?
• What are your sources of funding?
• What would be your marketing strategy and so on?

All these questions would help you understand what you are getting yourself into. After that, you can start writing a business plan that focuses on all the different aspects of your business.

You can easily write such a plan either by using a premade template on the internet or through an online business plan software that’ll help you write a flexible and ever-changing plan.

What to include in a rental property business plan?

This section would give you a brief overview of the segments you can include in your business plan to make it a well-rounded one. They are as follows:

1. Executive Summary

The executive summary section contains a precise summary of all that your business stands for. If written well, it can help your business in getting funded. As it is mostly the only page an investor would read.

Professionals frequently suggest that this section should be written at the very end while writing your business plan, even if it is the first page. This helps you in summing up your business ideas properly.

2. Company Description

This section would consist of all the information about your business including its location, the services you offer, and your team.

It would also have information about your company’s history and its current position in the market. You can also include information about the projects you have worked on in the past.

3. Market Analysis

This is one of the chief sections of any business plan. It helps you understand what you are getting yourself into.

In this section, write down everything you can find out about the market. Include your target market, ways of reaching out to them, your market position, etc. Also, it is a good practice to include competitive analysis and take note of what your direct and indirect competitors are doing.

4. Marketing Strategy

While market analysis helps you in understanding the market, a marketing strategy helps you while getting into the market.

While formulating a marketing strategy, the most important thing is to have your target audience and market position in mind. Besides, keep in mind that your branding campaign should resonate with the client base you plan on serving.

5. Organization and management

This section includes information about the functioning aspects of your firm as well as about your team.

Include the roles and responsibilities of your team members as well as the progress they are making in their work.

If you write this section clearly and precisely, you’ll be able to identify the gaps you have in your team and your management system. This helps you in resolving those issues on time.

6. Financial Plan

This is one of the most crucial aspects of your business plan. More so in the rental property business. Planning your finances early on saves you from having financial troubles later on.

A financial plan section includes everything from your financial history, funding options, and requirements to projected cash flow and profits.

Download a sample rental property business plan

Need help writing your business plan from scratch? Here you go;  download our free rental property business plan pdf  to start.

It’s a modern business plan template specifically designed for your rental property business. Use the example business plan as a guide for writing your own.

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Rental property business plan summary

In conclusion, a good business plan can help you have good finances, a proper marketing strategy, a well-managed company and team as well as clear business goals.

Especially, in the rental property business, planning the flow and structure of your business as well as your finances can take you a long way.

A rental property business depends highly upon well-managed finances and strategies. Planning your business is necessary to make it a good source of passive or primary income.

Moreover, it also makes the process of carrying out your business easier and smoother. So, if you are ready to start your rental property business, go ahead and start planning.

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Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Free Property Management Templates

By Diana Ramos | October 24, 2017

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For property managers and landlords, maintaining accurate records is important not only for staying organized, but also for providing legal protection. Accurate property management forms can help you meet state and local requirements while also improving the flow of your business operations. And, efficiency and security contribute to a positive customer experience. To support your management process and your relationship with tenants, you can download free property management forms from the list below. Choose from 18 professional templates, including checklists, receipts, and property management agreement forms. These are generic templates designed to be customized for your specific needs, so it’s crucial to check state guidelines to make sure that whatever forms you are using follow proper legal requirements.

Property Management Templates

Property management spreadsheet - excel.

‌ Download Property Management Spreadsheet

Manage finances for multiple properties with this Excel template. The spreadsheet lists rental income and expenses so that you can quickly view which properties are most profitable. While this spreadsheet is designed for tracking financial data, you can easily modify it to include tenant details and other property management information.

Property Management Agreement Template

Download Property Management Agreement Template

Word  |  PDF

A property management agreement form provides a binding contract between a landlord and a property manager in order to protect both parties and provide clear expectations. This template provides a basic outline that you can edit to suit your specific needs. A typical agreement describes the property manager’s responsibilities, payment details, dates of service, and other terms.

Property Management Checklist Template

Excel  |  PDF

Having an organized checklist of tasks to follow can make the management process feel less overwhelming, reduce the chances of forgetting important duties — especially those that affect legal compliance — and keep your business operating smoothly. Anything that fosters good business practices can reinforce a positive reputation with tenants. Use this template as is, or adjust it to create your own comprehensive checklist.

Vacation Rental Property Management Checklist

Download Vacation Rental Property Management Checklist

This checklist template is specifically for vacation properties, allowing you to create a detailed list of duties, from marketing and leasing to cleaning and exterior maintenance. You may want to create separate checklists for seasonal responsibilities or keep administrative tasks separate from maintenance duties. No matter how you use the template, a simple checklist can help you stay on top of managing vacation rentals.

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Maintenance and Inspection Templates

Maintenance work order template - excel.

Download Work Order Template

Excel | Smartsheet

Use this maintenance work order template for repairs or routine maintenance projects. The template includes important details, such as the terms of service, the work description, itemized costs for labor and materials, and an approval signature. Keep copies of your work orders so that you have detailed records of maintenance issues and associated costs.

Maintenance Log Template

Download Maintenance Log Template

Record maintenance data in a running log in order to keep track of damages, repairs, and preventive maintenance. Issues may include updating household appliances, ordering repairs, or preparing a unit for new tenants. This simple log template can help ensure that you approve and complete maintenance requests in a timely manner.

Property Management Inspection Checklist

Download Property Management Inspection Checklist

Use this inspection checklist as a move-in or move-out form. Edit the checklist so that the list of items conforms to your property, and include any necessary move-out tasks, such as collecting keys or returning a security deposit. An inspection checklist can help keep you from overlooking items and can provide a comparison between the property’s move-in and move-out condition.

Commercial Property Inspection Checklist

Download Commercial Property Inspection Checklist

Designed specifically for commercial properties, this inspection checklist includes exterior and interior spaces, such as common areas and elevators. Depending on the size and type of building, you may need to add details to or remove details from the checklist. To meet safety standards for commercial buildings, include items such as emergency equipment, heating and cooling systems, and accessibility requirements.

Leasing Templates

Rental application template.

Download Rental Application Template

Excel    |    PDF

A rental application helps you collect and verify tenant information, including references and rental history. You can customize the template to include whatever instructions or disclosures you need. You can share this PDF application with prospective tenants via a website, an email, or a printed copy.

Tenant Reference Check Template

Download Tenant Reference Check Template

Excel  |  Word  |  PDF

This simple template can help you organize your process of checking references, ensuring that you’ve contacted all individuals and verified important questions. This form also makes it easy to compare applicants if you are choosing between multiple renters. 

Rent Receipt Template

Download Rent Receipt Template

Providing rent receipts and maintaining copies creates important documentation for both tenants and property managers. This Excel template has sections for listing landlord and property information, payment date and method, rental period, and more. Tenants may appreciate receiving a rent receipt for their own tax records or other purposes.

Security Deposit Receipt

Download Security Deposit Receipt

This receipt template includes landlord and tenant details, plus information regarding the terms of refunding a security deposit. If you want to include the terms described in a lease agreement, simply copy and paste that text into this Word template. Typically, you refund a security deposit to tenants upon their moving out, provided that the residents haven’t caused damages to the unit beyond the normal wear and tear.

Month-to-Month Rental Agreement

Download Month-to-Month Rental Agreement

A month-to-month rental agreement can provide flexibility for both tenants and landlords. Use this contract template to describe the terms of a month-to-month lease, including the cost of rent and the payment due date, the number of occupants allowed, and other agreements. The landlord and tenant sign the template to create a binding agreement. 

Lease Amendment Template

Download Lease Amendment Template

If you need to make changes to a lease, an amendment describes the updates and allows tenants to agree to the changes. As with any contract template, check your state laws or consult with an attorney to ensure that you are following proper guidelines when creating or changing a lease agreement. 

Lease Extension Template

Download Lease Extension Template

If a tenant and property manager decide to renew a lease that is ending, an extension agreement can briefly describe the continuing terms of the lease. It’s important to document these changes so that tenants receive clear communication and so that all agreements are in writing. This template provides a simple outline that you can modify for your specific needs.

Lease Termination and Tenant Vacancy Templates

Tenant to vacate form.

Download Tenant to Vacate Form

Tenants can use this form to notify landlords or property managers that they intend to move. Offering a notification in writing creates a record of the date of the alert and provides landlords with a tenant’s forwarding address and contact information. 

Notice to Pay Rent or Quit

Download Notice to Pay Rent or Quit

A notice to pay rent or quit informs tenants that the rent payment is overdue and serves as a warning that failure to comply will result in legal action. The notice provides instructions for paying the amount due (including any late fees) or vacating the property by a certain date.

Eviction Notice Template

Download Eviction Notice Template

An eviction notice provides tenants with a specific period of time, such as 60 days, to move out of a rental property. Rules related to evictions and the amount of time tenants have to vacate may vary in different geographical locations. Maintaining records of tenant evictions can provide documentation that you may need if the eviction process leads to legal proceedings.

What Is Property Management?

In its broadest sense, the term property management encompasses all the duties and responsibilities involved in the administration and oversight of real estate. We typically use this term in the context of managing rental properties. A landlord may take on these tasks independently, or hire a property management company to manage properties and tenants. In some geographical locations, the municipal government may require a landlord to use a property management company if said owner lives far from the apartment or home that they are renting out. Rules and regulations for property management companies vary depending on location, but many states require managers to have a real estate license in order to provide services. The various elements of property management include building maintenance, financial management, working with insurance companies, and consulting with attorneys to address legal issues. 

When it comes to the responsibilities associated with leasing properties, there is a tenant lifecycle that begins with attracting renters, continues with screening and retaining renters, and concludes with turning units around after tenants move out. For a quick overview of some common tasks related to this lifecycle, here is a partial list of property management responsibilities:

• New Tenants: Attracting new tenants includes setting appropriate rental rates, marketing the property with high-quality photos, advertising the unit online (including on your own website if possible), and hosting open houses. Once you have potential tenants, it’s time to undertake a screening process, which may include an interview, an application, a background check, and a reference collection. You will need to give new tenants a lease and any other agreements, and, after you collect a security deposit and rent payment, you’ll provide the tenant with keys. You will copy and retain all signed documents and complete any administrative tasks in order to update tenant information and verify payments.
• Current Tenants: When new tenants are going through the orientation process and signing agreements, make sure that you clearly state expectations to avoid issues later. Maintaining positive relationships with renters helps with tenant retention, which can save time and money. You should document for reference any communication or issue that arises with a tenant. Other ongoing tasks include performing routine maintenance on properties, dealing with repairs, collecting rent payments, and notifying tenants when it is time to renew a lease. 
• Tenant Turnaround: Hopefully, tenants will stay on top of payments and provide adequate notice when they decide to move. If not, you will have to provide warning notices to a tenant, which can ultimately lead to an eviction process. When tenants are moving out, you conduct an inspection to determine whether they are responsible for any needed repairs. Their portion of that responsibility determines the amount of their security deposit refund. As you prepare the unit for the next renters, tasks focus once again on attracting new tenants, thus, restarting the tenant lifecycle.

Management companies typically create and follow a property management policies and procedures manual in order to create consistency in business practices and establish clear guidelines for handling all of the tasks listed above, and more.

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• Multifamily
• Property Manager

How to start a property management company

• May 1, 2024

The property management industry is more competitive today than ever. As of September 2023, there were 296,000 property management firms in the US alone. 

As a prospective property manager, it’s important to prepare yourself with the right tools and knowledge to succeed. Otherwise, you won’t be able to handle the various challenges this field can bring, from difficult residents to periods of particularly high competition. 

Keep reading to learn how to start a successful property management company in 2024 and beyond.  

What to know about becoming a property manager 

You’ll need a firm grasp of the real estate industry to become a successful property manager . This includes learning how to get residents to renew, familiarizing yourself with landlord-tenant laws , and knowing how to budget. 

One way to gain all this knowledge is to obtain a certification such as one of the following (or something similar): 

• Residential Management Professional , offered by the National Association of Residential Property Managers
• Real Estate Management , provided by Harvard Business School
• Certified Apartment Leasing Professional , which you can study for locally at several accredited associations

While you don’t need a college degree, studying sound management and business principles helps you master a property management company’s operational and financial aspects—which you’ll need for sustained profitability.

National and international associations, such as the Institute of Real Estate Management , the National Association of Residential Property Managers , and the National Apartment Association , can also help you network. 

To enhance your skills in this field, consider exploring Realtor.com’s Virtual Learning Academy. It hosts weekly webinars, so you can easily book a session and expand your knowledge of specific topics. 

Setting up your property management company

Here are the general steps to setting up a property management company:  

1. Develop your business plan and entity strategically

A business plan details your company’s objectives and the actions needed to achieve them. It usually includes a market analysis, business structure information, a list of your services, and more. Without a comprehensive plan, you risk financial or operational difficulties because you won’t know how to allocate resources effectively . 

Keep the following in mind when creating your business plan: 

• Be clear about your target residents since they’ll impact your marketing strategies, your operations, and the property types you’ll focus on. 
• Develop resident retention and lease renewal strategies , such as community building or cash bonuses, to show how you plan to increase occupancy and profit. 
• Research the latest property management trends to ensure your strategies are based on facts. Always include relevant research to show real estate investors that you know the industry and that they can trust you with their money. 
• Register for an Employment Identification Number (EIN) to open a business bank account and for tax purposes.
• Apply for a state license before beginning any operations.
• To avoid confusion, it’s recommended that you trademark your business name to ensure no one else can use it or your logo. 

It’s also important to highlight your company’s entity type within your business plan. There are four primary types of legal entities for property management companies: 

• Limited liability companies (LLCs) protect business owners from being personally responsible for debts. Your liability is limited to the amount of your investment in the company, and company profits pass through your tax returns. 
• S-corporations are similar to LLCs with limited liability protection, and company income also passes through shareholders’ tax returns. However, this type of entity has more restrictions on ownership and is limited to a maximum of 100 shareholders. 
• C-corporations have no restrictions on the number of shareholders. Owners are also not responsible for the company’s debts and liabilities. But, unlike LLCs, C-corporations have double taxation, meaning they are taxed on their profits, and shareholders are taxed again on the proceeds they receive.  
• Real Estate Investment Trusts (REITs) own, operate, and finance income-producing real estate. Unlike other entities, REITs primarily develop properties not to sell them but to use them in their property portfolios. 

If you’re stuck on where to begin with your business plan, the National Association of Realtors offers free business plan templates . 

2. Organize your business finances

Understanding all your financial obligations is essential to ensure you don’t run out of money before your business takes off. 

There are startup costs that’ll require considerable money upfront, such as the following: 

• Licenses and permits 
• Business insurance
• Business formation fees  
• Office setup 
• Marketing and advertising 
• Software and technology
• Staff training 
• Membership fees 
• Legal and professional services 

Create a system for monitoring your income and expenses to keep your finances organized. This will help you track rent payments and operational costs, such as bills and mortgages. It’ll also help you create accurate budgets and financial plans for ongoing expenses, such as repairs and staff salaries, so you always have enough funds to cover your costs. 

Note that proper income and expense tracking is also vital for tax compliance. 

3. Forecast your property management company’s revenue

Calculate your ongoing expenses and compare them against your predicted income to forecast your company’s revenue. 

Here’s how to determine your costs and pricing: 

• Perform a cost analysis to determine your operating costs, including maintenance, repairs, staff salaries, marketing, and software subscriptions. 
• Conduct market research to determine what other companies are charging for similar services. The most recent Realtor.com rental report can help you determine rent prices in your area. Remember to consider your property type, level of service, and ongoing management fees.
• Determine your unique value proposition, such as excellent customer service or unique technology solutions. Offering something distinctive could enable you to increase your rent price.
• Compare this number to broader economic factors, such as rising interest rates, employment trends, and legislative changes. After determining your pricing and costs, compare these numbers to determine your potential revenue. 

Pro tip: Be careful not to overprice your services, especially if you’re new to the market. To make your prices more accessible, consider offering flexible payment options to accommodate different types of residents. 

4. Identify and hire your team

There are three structural models you can adopt when building your team: 

• The portfolio framework: Each property manager is assigned a rental property.
• The departmental framework: Employees manage specific aspects of the business, such as inspections and resident relations. 
• The hybrid framework: You combine the portfolio and departmental frameworks. 

No matter which framework you choose, eventually, you’ll need a team consisting of: 

• On-site managers 
• Leasing agent(s)
• Maintenance manager(s) 
• Accounting staff 
• Admin staff 
• Legal and compliance specialist(s) 
• Marketing specialists 
• Customer service representative(s) 
• Facilities manager(s) 
• Property inspector(s) 

Building a reputation for having a trustworthy team can help you stand out among competitors. Here are some tips for hiring an expert team: 

• Implement a robust screening process to help you find reliable candidates with the qualifications and experience needed for their roles. 
• Offer attractive compensation packages that include health insurance, good salaries, and other perks to attract higher-quality talent. 
• Invest in training and development to help new employees learn the company’s policies and systems faster and expand their skills.

5. Identify property management software your company could use

Property management software is a smart investment, as it helps automate operations. It can help your company start out on the right path and avoid future issues. 

With Avail , for example, you can create the proper application forms and conduct background checks to find reliable residents. You can also use it to help you scale your property management company by making the rental process more enjoyable for your residents since they’ll get to: 

• Pay their rent online
• Submit maintenance issues and requests from their phones
• Communicate with you directly

6. Acquire your first property 

Acquiring your first property is a significant milestone. Make sure to conduct adequate market research to find a property that aligns with your goals and investment criteria. 

For instance, look for a property in a desirable area with high rental demand. But before you put an offer on it, assess its financial and operational feasibility. This involves:

• Inspecting the property for any damage or problems
• Looking at financial records
• Considering potential risks and opportunities

Once you find a suitable property that meets your requirements, you can negotiate purchase terms with the seller. 

When you agree on the purchasing terms, you can complete the purchase. This usually involves signing an agreement, obtaining the necessary finances, and closing the deal. 

7. Market your company

According to a recent survey, property management companies with 11 to 50 doors should allocate a minimum of $375 monthly to their marketing efforts. 

In 2024, the most effective and cost-efficient way to market your property management company is by using digital marketing strategies . Here are some practical marketing ideas: 

• List your property on a reputable website to get your rental units in front of the right people. This way, you can find high-quality leads actively searching for a place to stay.
• Create a referral program, encouraging current residents to promote your properties by giving them incentives such as upgraded appliances or free parking. 
• Leverage testimonials by encouraging current residents to leave reviews on platforms like Google My Business and Yelp. Targeting satisfied residents and providing a review template can increase the likelihood of residents leaving reviews. 
• Use paid advertising on platforms such as YouTube, Google, or Facebook to build your online presence and help you reach specific demographics and locations. 

8. Provide an excellent resident experience

If you want residents to renew their leases and leave positive reviews, you need to provide an exceptional living experience for them. Here are some ways to do so: 

• Respond quickly to maintenance requests to ensure your properties stay well-maintained and in excellent condition. This is where a property management tool such as Avail comes in handy. 
• Host community events to foster a sense of belonging among your residents. For example, hold holiday celebrations, fitness classes, or social gatherings so neighbors can interact.
• Invest in quality amenities and facilities, such as swimming pools or parking areas, to enhance your residents’ quality of life.

There’s a lot involved in the property management game. Not only do you have to manage multiple properties at once, but you’re also responsible for keeping your residents satisfied.

Following the tips above will help you set up your company correctly so you don’t have to backtrack later. Once you’re launched and ready to market your units, use Avail to increase visibility on available units.

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500+ business plans and financial models

Real Estate Agency Business Plan PDF Example

• May 7, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful real estate agency. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your real estate agency’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a real estate agency business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the real estate industry, this guide, complete with a business plan example, lays the groundwork for turning your real estate agency concept into reality. Let’s dive in!

Our real estate agency business plan covers all essential aspects necessary for a comprehensive strategy. It details operations, marketing strategy , market environment, competitors, management team, and financial forecasts.

• Executive Summary : Provides an overview of the real estate agency’s business concept, market analysis , management, and financial strategy.
• Real Estate Brokerage Services & Fees: Describes the brokerage services including property sales and acquisitions, along with a fee structure.
• Property Management Services & Fees: Outlines property management services offered and their respective fees.
• Key Stats : Offers data on industry size , growth trends, and market positioning.
• Key Trends: Highlights significant trends impacting the industry, such as digital transformation and changing buyer preferences.
• Key Competitors : Analyzes primary competitors and differentiates the agency from these competitors.
• SWOT : Analyzes strengths, weaknesses, opportunities, and threats.
• Marketing Plan : Outlines tactics for attracting new clients and maintaining relationships.
• Timeline : Sets out key milestones from inception through the first year of operations.
• Management: Information on the management team and their roles within the agency.
• Financial Plan: Projects the agency’s financial performance over the next five years, detailing revenue, profits, and anticipated expenses.

Real Estate Agency Business Plan

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Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces your real estate agency’s business plan, offering a concise overview of your agency and its services. This section outlines your market positioning, the variety of real estate services offered—including property sales, rentals, and property management—its location, size, and a description of day-to-day operations.

This section should also discuss how your real estate agency will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your agency’s unique selling points that differentiate it from these competitors.

Additionally, you should include information about the management and co-founding team, detailing their roles and contributions to the agency’s success. Furthermore, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your agency’s financial plan.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Dive deeper into Executive Summary

Business Overview

For a Real Estate Agency, the Business Overview section can be concisely divided into 2 main slides:

Real Estate Brokerage Services & Fees

Briefly describe the agency’s professional and welcoming office environment and its conveniently located premises near major residential and commercial areas, which enhances accessibility and client traffic. Detail the range of real estate brokerage services including buying, selling, and leasing properties, and discuss the agency’s fee structure, which is typically based on a percentage of the property sale or lease price, reflecting the high quality of service and market alignment.

Property Management Services & Fees

Describe the comprehensive property management services offered that cover tenant screening, rent collection, maintenance, and financial reporting. The pricing for these services is usually based on a percentage of monthly rental income or a flat monthly fee, with potential additional charges for special services like emergency maintenance or tenant placement, ensuring landlords a hassle-free ownership experience.

Make sure to cover here _ Real Estate Brokerage Services & Fees _ Property Management Services & Fees

Market Overview

Industry size & growth.

In the Market Overview of your real estate agency business plan, start by examining the size of the real estate industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying expansion opportunities.

Key Market Trends

Proceed to discuss recent market trends , such as the increasing consumer interest in sustainable and eco-friendly properties, the growing demand for smart homes equipped with the latest technology, and the rising popularity of urban living spaces among millennials and young professionals. For example, highlight the demand for properties that cater to specific lifestyle needs, alongside the rising preference for locations with comprehensive amenities and green spaces.

Key Competitors

Then, consider the competitive landscape, which includes a range of agencies from large national firms to local boutiques, as well as online real estate platforms. For example, emphasize what makes your agency distinctive, whether it’s through exceptional customer service, a unique range of property management services, or specialization in certain types of properties such as luxury homes or commercial real estate. This section will help articulate the demand for real estate services, the competitive environment, and how your agency is positioned to thrive within this dynamic market.

Make sure to cover here _ Industry size & growth _ Key competitors _ Key market trends

Dive deeper into Key competitors

First, conduct a SWOT analysis for the real estate agency , highlighting Strengths (such as experienced realtors and a diverse property portfolio), Weaknesses (including high agent turnover or reliance on local market conditions), Opportunities (for example, the growing demand for rental properties or the potential for tapping into luxury real estate markets), and Threats (such as fluctuations in real estate prices or new housing regulations that may impact operations).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain clients through targeted advertising, promotional events like open houses, an engaging online presence, and community involvement. This strategy should also incorporate using social media platforms to showcase properties and share customer testimonials, enhancing the agency’s visibility and client engagement.

Finally, create a detailed timeline that outlines critical milestones for the real estate agency’s launch, marketing initiatives, client acquisition, and expansion goals. This timeline should ensure that the business moves forward with clear direction and purpose, setting specific objectives for brand establishment, market penetration, and long-term growth.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the real estate agency’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the real estate agency toward its financial and operational goals.

For your real estate agency business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your real estate agency’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your real estate agency business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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