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Property Management Business Plan

People buy multiple properties these days, it can be for investment or to act as a future home, office space, some dream project, or whatnot.

And as they have so many properties, they’ll surely need someone to manage them and deal with all aspects of having a property. Also, most people are running short of time more often than not. Hence, they hire property managers to help them deal with their property efficiently and effectively.

So, it comes as no surprise that the property management business is growing. And if you are planning to get into it, all you need is a few tips and a property management business plan.

If you are planning to start a new property management business, the first thing you will need is a business plan. Use our sample property management business plan  to start writing your business plan in no time.

Before you start writing your business plan for your new property management business, spend as much time as you can reading through some examples of real estate-related business plans .

Industry Overview

The global property management market stood at a whopping market value of 13.88 billion US dollars in 2020 and isn’t going to slow down anytime soon.

The major reason for the growth in this industry is the requirement for mobility management as companies are promoting remote work due to the pandemic.

The other factors that have affected the property market are the adoption of technology, software services, and other such things which have brought about a change in trends in the real estate market.

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Things to Consider Before Writing a Property Management Business Plan

Build relevant skills.

Having skills relevant to your business, be it foundational skills for managing property soft skills for dealing with the people in your business, or the deals and exchanges aspect of your business would always act as an added advantage for you. Hence, before getting started, it would be good to develop some basic skills and have a method to keep updating them as you work. Your skills alone can also become your business’s unique selling point.

Join Associations and Build Your Network

Networking is a crucial aspect in every field related to real estate, hence it is essential for your property management business too. Your network should be good and diverse and consist of a variety of people, even if they are your competitors. You’ll never know who might get you your next deal.

You can easily do so by building strong connections and joining relevant associations which give you more opportunities to network.

Use Technology

We owe the speed and efficiency of our work to technology. The same holds for the property management business too. You no longer need to work traditionally and laboriously of managing your properties, and use technology instead to make your work of maintaining all those details easier and more organized.

Build your Website

Building your website early gives you a head start on promoting your business and makes reaching out to your potential clients easier. Hence, if you plan on starting a business, build your website today to help you promote as much as you can.

Chalking out Your Business Plan

Reading sample business plans will give you a good idea of what you’re aiming for and also it will show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample property management business plan for you to get a good idea about how perfect a property management business plan should look and what details you will need to include in your stunning business plan.

Property Management Business Plan Outline

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

• Mission statement
• Vision Statement
• Customer Focus
• Success Factors
• Financial Summary
• 3 Year profit forecast
• Business Structure
• Startup cost
• Products and services
• Market Analysis
• Industry Analysis
• Market Trends
• Target Market
• SWOT Analysis
• Targeted Cold Calls
• Online Marketing
• Publications
• Community Events/Organizations
• Pricing Strategy
• Financial Plan
• Important Assumptions
• Brake-even Analysis
• Profit Yearly
• Gross Margin Yearly
• Projected Cash Flow
• Projected Balance Sheet
• Business Ratios

After getting started with Upmetrics , you can copy this sample property management business plan into your business plan and modify the required information and download your property management business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

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Download a sample property management business plan

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

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

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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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Real Estate Investing & Rental Management | How To

How to Write a Real Estate Investment Business Plan (+ Free Template)

Published September 22, 2023

Published Sep 22, 2023

REVIEWED BY: Gina Baker

WRITTEN BY: Jealie Dacanay

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This article is part of a larger series on Investing in Real Estate .

Get the templates and resources you need as a landlord

• 1 Write Your Mission & Vision Statement
• 2 Conduct a SWOT Analysis
• 3 Choose a Real Estate Business Investing Model
• 4 Set Specific & Measurable Goals
• 5 Write a Company Summary
• 6 Determine Your Financial Plan
• 7 Perform a Rental Market Analysis
• 8 Create a Marketing Plan
• 9 Build a Team & Implement Systems
• 10 Have an Exit Strategy
• 11 Bottom Line

A real estate investment business plan is a guide with actionable steps for determining how you’ll operate your real estate investing business. It also indicates how you’ll measure your business’ success. The plan outlines your mission and vision statement, lets you conduct a strengths, weaknesses, opportunities, and threats (SWOT) analysis, and sets goals in place. It’s similar to a business plan for any business, but the objectives are geared toward how you will manage the business, grow your investment, and secure funding.

We’ve created a free real estate investment business plan template for you to download and use as a guide as you read through the article and learn how to write a business plan for real estate investment:

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Free Real Estate Investment Business Plan Template

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1. write your mission & vision statement.

Every real estate investment business plan should begin with a concrete mission statement and vision. A mission statement declares actions and strategies the organization will use—serving as its North Star in achieving its business or investment objectives. A strong mission statement directs a real estate business, keeps teams accountable, inspires customers, and helps you measure success.

Before you compose your mission statement, you need to think about the following questions to do it effectively:

• What exactly is our business? The answer should encompass the essential functions of your real estate organization.
• How are we doing it? The response must explain your real estate goals and methods based on your core principles.
• Who are we doing it for? The response explains who your primary market is.
• What are our guiding principles? The “why” for your real estate company’s existence.

Mission statement example (Source: Oak Tree Capital )

The example above provides the mission statement of Oak Tree Capital. As a real estate investment business, it’s clear what its ultimate business objective is and how it will approach investing with integrity to maximize profit. Essentially, the investment company will drive monetary results—while maintaining its moral principles.

On the other hand, vision statements differ slightly from mission statements. They’re a bit more inspirational and provide some direction for future planning and execution of business investment strategies. Vision statements touch on a company’s desires and purpose beyond day-to-day operational activity. A vision statement outlines what the business desires to be once its mission statement is achieved.

For more mission statement examples, read our 16 Small Business Mission Statement Examples & Why They Inspire article and download our free mission statement template to get started.

If you want to write a vision statement that is truly aspirational and motivating, you should include your significant stakeholders as well as words that describe your products, services, values, initiatives, and goals. It would be best if you also answer the following questions:

• What is the primary goal of your organization?
• What are the key strengths of your business?
• What are the core values of your company?
• How do you aim to change the world as a business?
• What kind of global influence do you want your business to have?
• What needs and wants does your company have?
• How would the world be different if our organization achieved its goals?

In the example below from Aguila Real Estate, it hopes to be the preferred real estate company in its market.

Example of a vision statement (Source: Aguila Real Estate )

To make it easier, download our free template and follow our steps to create a vision statement for your small business. Take a look also at our 12 Inspiring Vision Statement Examples for Small Businesses in 2023 article to better understand how to create an impactful vision statement.

2. Conduct a SWOT Analysis

A SWOT analysis section of your real estate investing business plan template helps identify a business’ strengths, weaknesses, opportunities, and threats. This tool enables real estate investors to identify internal areas of improvement within their business through their strengths and weaknesses.

The opportunities and threats can assist with motivating a team to take actions that keep them ahead of an ever-changing real estate landscape. For a real estate business investor, the SWOT analysis is aimed at helping grow and protect investments over time.

Strengths & Weaknesses

Specifically for real estate investing, strengths and weaknesses correlate with the investment properties’ success and touch on items that will drive investment growth. The strengths can be the property’s location, condition, available amenities, and decreased vacancy. All of these items contribute to the success of a property.

On the contrary, the weaknesses include small unit sizes, excessive expenditures (finances to repair, upgrade, properties to acquire), low rents, and low cap rates. These weaknesses indicate less money is being collected and a lower overall return on investment (ROI). They are all factors that limit cash flow into the business and are internal factors that an investor can change.

See below for an example of strengths and weaknesses that could be included in a SWOT analysis:

Opportunities & Threats

Opportunities and threats are external factors that can affect an investment business. You don’t have control over these items, but you can maneuver your business to take advantage of the opportunities or mitigate any long-term effects of external threats. Opportunities relating to investment properties can be receiving certification with a city as a preferred development or having excess equity.

However, threats to an investment property do not need to be particularly connected to the property itself. They can be factors that affect your overall business. For example, interest rates may be high, which cuts your profits if you obtain a mortgage during that time frame.

An example of possible opportunities and threats for an investment business could be:

After creating your SWOT analysis, an investor can use these factors to develop business goals to support your strengths and opportunities while implementing change to combat the weaknesses and threats you anticipate. It also helps investors prioritize what items need to be addressed to succeed. These factors in a SWOT can change as the business grows, so don’t forget to revisit this portion and continuously reevaluate your SWOT.

3. Choose a Real Estate Business Investing Model

The core of real estate investing is to purchase and sell properties for a profit. How to make that profit is a factor in identifying your investment model. Different investing models are beneficial to an investor at different times.

For example, when interest rates are low, you may consider selling your property altogether. When interest rates are high and it is more difficult for people to obtain a mortgage, you may choose to rent out your properties instead. Sometimes, you must try a few models to see what works best for your business, given your area of expertise.

We’ve identified some investment business models to consider:

• Buy and hold: This strategy mainly involves renting out the property and earning regular rental income. This is also considered the BRRRR method : buy, rehab, rent, refinance, and repeat until you have increased your portfolio.
• Flipping properties : Flipping a property entails purchasing, adding value, and selling it higher than the investment costs. Many investors have a set profitability number they would like to hit but should consider market fluctuations on what they can realistically receive during the sale.
• Owner-occupied: Investors can live in the property while renting out extra units to reduce their housing costs and have rental income coming in simultaneously. This model is best if you own multifamily units, especially duplexes, triplexes, or fourplexes . It’s also a great way to understand the complexities of being a landlord. You can transition your unit to another renter when you want to move.
• Turnkey: Buying a turnkey property is the best option for investors who wish to enter the real estate market without having to deal with renovations or tenant management. It’s a practical way for seasoned investors to diversify their portfolios with fewer time commitments.

Investors don’t have to stick to one model, and they can have a few of these investment models within their portfolio, depending on how much effort they would like to put into each property. Before choosing an investment model, consider which will help you meet your investing goals most efficiently.

Read our Investing in Real Estate: The 14-Tip Guide for Beginners article to learn how real estate investment works and other investing business models. Also, if you’re new to real estate investing and are looking for foundational knowledge to get started or seeking information about the best online courses for real estate investing, look at our The 13 Best Real Estate Investing Courses Online 2023 article.

4. Set Specific & Measurable Goals

The next step to completing a real estate investment business plan for real estate investing is to set SMART goals. SMART is an acronym that stands for specific, measurable, achievable, relevant, and time-bound. Creating goals that contain all of the criteria of SMART goals results in extremely specific goals, provides focus, and sets an investor up for achieving the goals. The process of creating these goals takes some experience and continued practice.

An investor’s goals can consist of small short-term goals and more monumental long-term goals. Whether big or small, ideal goals will propel your business forward. For example, your end goal could be having a specific number of properties in your portfolio or setting a particular return on investment (ROI) you want to achieve annually.

Remember that your SMART goals don’t always have to be property-related just because you’re an investor. They can be goals that help you improve your networking or public speaking skills that can also add to a growing business.

Example of improving goals with SMART in mind:

Begin creating SMART goals with an initial goal. Then, take that initial goal and break it down into the different SMART components. SMART goals leave no room for error or confusion. The specific, measurable, and time-bound criteria identify the exact components for success.

However, the relevant and achievable parts of the goal require a little extra work to identify. The relevancy should align with your company’s mission, and extra research must be performed to ensure the goal is attainable.

Initial goal: Receive a 5% return on investment from the property

Smart goal:

• Specific: I want to achieve a 5% return on the 99 Park Place property.
• Measurable: The goal is to sell it for greater than or equal to $499,000.
• Achievable: The current market value for a two-bedroom in Chicago is selling for $500,000 and growing by 1% yearly.
• Relevant: I aim to meet my overall portfolio returns by 20% annually.
• Time-bound: I want to offload this property in the next three years.

5. Write a Company Summary

The company summary section of a business plan for investors is a high-level overview, giving insight into your business, its services, goals, and mission, and how you differentiate yourself from your competition. Other items that can be included in this overview are business legal structure, business location, and business goals. The company summary is beneficial if you want to involve outside investors or partners in your business.

​​Example company profile from Choueri Real Estate

A company summary is customizable to your target audience. If you’re using this section to recruit high-level executives to your team, center it around business operations and corporate culture. However, if you’re looking to target funding and develop investor relationships for a new project, then you should include investor-specific topics relating to profitability, investment strategy, and company business structure.

Partners and outside investors will want to consider your company’s specific legal business structure to know what types of liabilities are at hand. Legal business structure determines how taxes are charged and paid and what legal entity owns the assets. This information helps determine how the liabilities are separated from personal assets. For example, if a tenant wants to seek legal damages against the landlord and the property is owned by an LLC, personal assets like your personal home will not be at risk.

6. Determine Your Financial Plan

The most essential part of creating a real estate investing business is the financial aspect since much of the business involves purchasing, managing, and selling real estate. To buy real estate initially, you’ll have to determine where funding will come from. Funding can come from your personal assets, a line of credit, or external investors.

A few options are available to real estate investors when obtaining a loan to purchase properties. The lending options available to most real estate investors include the following:

• Mortgage: This is one of the most common means of obtaining financing. A financial institution will provide money based on a borrower’s credit score and ability to repay the loan.
• Federal Housing Authority (FHA) loans : This loan is secured by the FHA to assist with getting you a low down payment or lower closing costs, and sometimes easily obtain credit. There are some restrictions to qualify for this loan—but it could be suitable for newer investors who want to begin investing starting with their primary home.
• Home equity line of credit (HELOC) : If you currently have property, obtain a HELOC by using your current property to secure the line of credit and borrow against the equity in your property. As you repay the loan, your available balance on the line of credit gets replenished.
• Private lenders : These are lenders who are not financial institutions. These individual lenders typically have fewer restrictions than traditional lenders and will lend money to individuals who can grow their investments.
• Hard-money loans : This loan requires a hard asset to be leveraged for money. For example, you can put up the home you want to purchase as the asset for cash upfront, and the hard-money loan will be paid back once the home is sold or other funding is secured. This is great for short-term deals due to quick approval and little upfront money.

After funding is obtained to purchase property, financial projections help investors understand their financial standing. These projections can tell you potential income, profits, and when you may need additional funding in the future. Similar to lending options, these calculations are specific to your investing model. If you’re not planning to rent out the property, then calculations like gross rent multiplier are not applicable.

For more information on what is needed to obtain financing, read our articles Investment Property Financing & Requirements and 5 Best Crowdfunding Sites for Investors 2023 .

Additional Investment Calculations

In a rental property business plan, it’s important to use a rental property calculator to determine a property’s potential return on investment. The calculator considers various factors, such as purchase price, operating expenses, monthly income, or vacancy rates, to determine whether a property is a good investment.

Click on the tabs below for the other important calculations all investors should be aware of when purchasing and managing rental properties :

• Gross Operating Income
• Gross Rent Multiplier
• Vacancy Rate

The gross operating income (GOI) calculates the amount of rent and income received from a property minus any vacancy. It doesn’t take into account other expenses. It tells an investor how much income they’ll make after some assumed losses with vacancy.

GOI = Total rent + Other income – Vacancy losses

The capitalization (cap) rate calculates the return on investment (ROI) of a property. This equation is used to compare the return of one building to another. The higher the cap rate, the better since the purchase price is low.

Cap Rate = Net operating income / Purchase price

The gross rent multiplier (GRM) is a factor that helps determine a property’s potential profitability. It can be used to compare perspective buildings to determine which one is the better deal.

GRM = Property price / Gross annual income

The vacancy rate calculates the vacancy percentage of all your investment properties during a specific period. Percentage helps an investor determine how their property performs given current market conditions. If you have a high vacancy rate, you must determine the cause. Perhaps your asking rents are too high for the current housing market.

Vacancy Rate Formula = # of Vacant Units x 100 / Total # of Units

Cash flow is the movement of money in and out of your business, also known as net operating income. In an ideal scenario, investors will bring in more income than expenses, thus showing profit and a positive cash flow. Positive cash flow allows investors to decide how to use that profit. They can invest it in growing their portfolio or increasing their cash reserves for unexpected expenses.

Cash Flow = Gross rental income – Total expenses

Investors can use their current cash flow to forecast future cash flows, which will give you an idea of how much profit you will see over a specific period. Use past cash flow information to determine if there are any trends. For example, during the summer, your water expenses increase, or possibly every few months, you see an increase in property repairs. Consider these trends when estimating future cash flows and compare actual numbers to determine if your forecasting is accurate.

Use the template below to forecast future cash flow for six months and determine how much cash flow reserves you will have:

Cash Flow Template

💡 Quick tip:

In addition to the template, investing in property management software like TenantCloud will set you up for success. The free plan from TenantCloud will help you list apartments, collect rent payments, and screen applicants to maximize profits and minimize vacancies.

7. Perform a Rental Market Analysis

While determining what properties to purchase, investors should perform a rental market analysis (RMA) to gauge the investment potential of a rental property. The RMA consists of running comparables against current units on the market and collecting data that may affect your rental rate to understand if the rental property in question is a solid long-term investment. The analysis helps determine the average rental rate and future rent if you want to make any property upgrades.

Investors can use resources like Zillow to pull comparable property information and gather information on unit layout, building amenities, rental concessions offered, or listing prices. Once the information is gathered, the spreadsheet itemizes the average, median, highest, and lowest rent. When such information is available, it also provides an average price per square foot compared to the subject property. With this information, investors can decide whether the subject property is worth the investment.

Read our 10 Best States to Invest in Real Estate (& 5 Worst) in 2023 article to better understand which states yield a positive cash flow, build equity, and have long-term profitability.

8. Create a Marketing Plan

Once you determine which property to invest in, investors should identify a marketing plan to list the vacant units. Some investors offload the marketing and advertising to real estate agents and brokerages, which will also collect a fee for renting out the property. Refer to some of the best real estate marketing materials to get started, or use our free real estate marketing plan template to lay out your objectives and tactics.

A real estate marketing plan should include your goals, budget, target market, competitors, feasible marketing strategies, and unique selling offers. In addition, it’s crucial to balance your strategy and split your potential marketing plans into categories, like print materials, online ads, email, and social media, so that you can be very specific with your goals and metrics.

Here are some of the real estate marketing mediums to include as you set your marketing goals:

• Real estate website and landing pages
• Email marketing
• SMS and text message marketing
• Real estate ads
• Social media marketing
• Print marketing materials
• Real estate signs

Download our marketing plan template by visiting our article Free Real Estate Marketing Plan Template & Strategy Guide .

9. Build a Team & Implement Systems

As a new investor, you may be unable to hire an entire team of employees to help perform research, run analysis, property management , and accounting duties. It is best to have a list of vendors you can rely on to assist you with purchasing, rehabilitating, and buying or selling your investment properties. Find vendors you trust so you can free yourself from having to micromanage them and know they have your best interest and the interest of your investments in mind.

Here are a few people you want to include on your team:

• Contractors
• Electricians
• Property managers
• Accountants

You should also utilize real estate investing apps and property intelligence software like Baselane that relieve you of manually performing daily duties to keep your investments profitable.

Automated rent collection feature (Source: Baselane )

Baselane is an all-in-one solution—from banking to rent collection, bookkeeping, reporting, and analytics. This software will help you efficiently manage your portfolio and eliminate the need for manual tasks. Learn more about how Baselane can make you a better property owner.

Visit Baselane

If you’re looking for more tools to help you get started, improve your portfolio management, and streamline your operations, read our 6 Best Real Estate Software for Investors 2023 article. We listed the six best software tools available for real estate investing based on affordability, customer reviews, features, and support to assist you in finding the best software that suits your needs.

10. Have an Exit Strategy

Since an investor’s money is tied up in the properties they own until they choose to sell, deciding when to sell or liquidate to get access to your money is part of an investor’s overall real estate exit strategy. The exit strategy for a real estate investment business is a plan for when an investor would like to remove themself from a deal or the business altogether. It helps weigh the different scenarios to minimize business risks and maximize the total return on investments.

A few exit strategy examples are:

The factors that an investor should consider when devising an exit strategy are minimizing financial loss, recouping as much of their original investment as possible, and avoiding any unseen fees that will cut into profits like tax consequences. An investor’s plan should always be to grow their original investment, but unforeseen circumstances may occur that will require you to plan on when to cut your losses as well.

Bottom Line

Before launching a successful real estate investment business, you must have an efficient business plan, aligning your strategies with your business objectives. Our real estate investment business plan template can help get you started. These plans act as a roadmap so you can focus on the steps required to grow your business. Business plans evolve, so continuously revisit and improve your strategies. There is no right or wrong way to write a real estate investor business plan as long as it is used to achieve your goals.

About the Author

Find Jealie On LinkedIn

Jealie Dacanay

Jealie is a staff writer expert focusing on real estate education, lead generation, marketing, and investing. She has always seen writing as an opportunity to apply her knowledge and express her ideas. Over the years and through her internship at a real estate developer in the Philippines, Camella, she developed and discovered essential skills for producing high-quality online content.

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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

Best Tenant Onboarding Software in 2024

The tenant onboarding process is an opportunity for property management companies to establish positive expectations and create an excellent resident experience. It’s one of the most opportune moments for resident education – in other words, to help them understand key responsibilities and the information they’ll need to take care of the home and their side of the lease, in tandem with investor and property manager responsibilities. It’s also a process with a number of different steps – many of which have traditionally involved cumbersome, manual processes. In today’s post, we’ll examine tools that alleviate these processes, and identify some of the top performers on the market. Note on language: "Tenant onboarding” is an industry term used from time to time. But we here at Second Nature are trying to evolve the word "tenant." We’ve seen the incredible work property managers do day in and day out to make renters feel like they’re so much more than just tenants – they’re residents. Making renters feel like residents isn’t just philosophical, it also encourages them to invest in care for their home and add value to the property. This is why, at Second Nature, we prefer to call tenants “residents.” Like you, we think of them as people first – making your property their home. What is tenant onboarding software? It’s important to dispel the notion that “tenant onboarding software” is a monolithic category of software applications. There really is no such category, as no single rental property management software will cover everything you need to address. Instead, property management companies are using disparate software tools to solve different pain points during the onboarding process. Indeed, the tenant onboarding process can present a multitude of pains for both property managers and tenants. Below are just a few examples. Cumbersome, time-consuming paperwork Filling out paper applications, manually processing documents, and chasing signatures can eat up valuable time. Communication challenges Back-and-forth messaging, calls, and emails regarding lease agreement details and payments are inefficient and can lead to misunderstandings. Data security concerns Traditional methods that use physical documents pose a risk of data insecurity or outright data breaches. Process inefficiency risks Accurately tracking onboarding tasks such as key handover, utility activation, or maintenance checks can be difficult without proper tools. Lack of transparency Uncertainty about application status or lease details can be frustrating for new tenants. Tenant onboarding software tools alleviate challenges such as these by offering features that translate into a smoother experience for everyone involved, saving time, reducing errors, and fostering better communication. Key features expected of tenant onboarding software There are several attributes that you should expect to find across tenant onboarding software tools, regardless of the specific platform or category. Here are some of the key features: User-friendly interface Clear instructions and intuitive functionality should enable property managers, potential tenants, and tenants (as well as property owners, in some cases) to use the software easily. Mobile accessibility In today's mobile-first world, the ability to access the software and complete tasks like online applications, payments, or maintenance requests on smartphones or tablets is crucial. Secure data management tools The software should ensure that all sensitive applicant and tenant PII (personally identifiable information) is stored securely with encryption and suitable access controls. This is particularly important for SaaS-based applications. Workflow automation Features like automated application processing can significantly streamline the onboarding process. Integration capabilities The ability to integrate with other onboarding tools, accounting software, or background check/tenant screening services in real time can create a more unified workflow. Reporting and analytics Property managers should be able to generate reports on application trends, rent collection rates, or tenant feedback to gain valuable insights. Customer support The onboarding software provider should offer comprehensive resources to support property managers in their usage of the software. This may include tutorials, webinars, or dedicated customer support representatives. Top Tools for Tenant Onboarding From the initial applicant screening stages through to move-in and the tenancy period, we’ll take a look at each step of the tenant onboarding process and popular tools in each category. 1. Applicant screening Property managers often use tenant screening services such as Plaid, Finicity, Pinwheel, and others to conduct rental screening and replace manual document upload and review. As identity fraud becomes more prevalent, identity verification tools are also becoming more sophisticated. Note that Second Nature’s Resident Benefits Package includes a $1 million identity protection program and credit building for tenants. These programs protect your tenants and help draw people who want to build responsible financial security. 2. Lease management Property management software solutions like AppFolio or Buildium often include features for lease creation, storage, and e-signing within their suite. Platforms such as DocuSign, PandaDoc, or Dropbox Sign enable property managers to then send lease agreements electronically for secure online signatures. Pay attention to the differing pricing models between these platforms, as they can vary substantially. 3. Rent collection and payment processing For rent collection, PMs typically require certified funds and will accept ACH/debit, or leverage a service like PayNearMe, where residents can pay cash at a local Walmart or convenience store location (while on the PM side, the process remains completely digital). Payment processing is typically handled by property management accounting software, although third-party tools like Zego are used in the SFH space. In addition, tools like EliseAI (a chatbot-type tool for use cases such as leasing, among others) are innovating in this space. 4. Move-in communication and coordination Platforms like AppFolio, Buildium, Propertyware, or Rent Manager provide a central tenant portal to access lease documents, pay rent, submit maintenance requests, and communicate with property managers. As for task management, Tools like Leadsimple, Aptly, or Monday.com can be used by property managers to track and assign move-in tasks, ensuring a smooth transition for new residents. For instance, the onboarding process may include tasks such as orientation calls and/or enrollment of the resident into ancillary products and services such as Second Nature’s Resident Benefits Package (RBP). Second Nature also includes a move-in concierge as part of its RBP. 5. Feedback/reputation management tools Tools like Grade.us, opiniion, and Birdeye can be used to gather feedback from tenants after move-in, helping property managers identify areas for improvement. The specific tools you use will depend on your requirements and processes. However, by and large, any of them can be used to transform the tenant onboarding process from a paper-heavy slog into an efficient digital experience. Final thoughts Remember, the onboarding process is the ideal mechanism for enhancing communication, establishing expectations, and creating a positive resident experience. Our top recommendation for ensuring a world-class onboarding and resident experience is to build a resident benefits program. Second Nature has pioneered the only fully managed Resident Benefits Package for single-family property managers. Learn more about resident experience management in our State of Resident Experience Report.

How to Optimize Operational Frequency with Processes and Software

Property management software is currently helping property managers establish efficient and reliable processes at a higher rate than ever before in the PM industry. With that development in the proptech industry has come the development of tech for self-managers that has changed the capacity of the accidental landlord. Thus, the demand for efficiency at scale has risen in order to separate the professional from the amateur, and the establishment of processes that allow such a thing has become a critical topic for professional property managers. Optimizing property management processes Carter Fleck of Triton Property Management, a growth-oriented firm out of northern Virginia that is approaching 300 units with larger goals for 2024, joins us to share his expertise on process definition. Fleck is the General Manager responsible for operations and strategic growth, and he has been developing effective processes to ensure efficiency at Scale at Triton, and in the process, he has garnered an understanding of how to do so. “A lot of failing,” says Fleck. “In the early days, we were getting a lot of good and bad feedback, but typically the bad feedback is what you adjust off of.” Fleck believes that assumptions are the enemy when it comes to defining procedures and sourcing software for your PMC. “The image that we use is if you're going to build a sidewalk before people even start walking on a field, it's kind of dumb. You have to see where people will walk first, and then you'll build a gravel path. So number one, you see where they walk, see where their intentions are in the grass, then you build a gravel path. And then eventually, once that walkway is established, that's where you build your processes and procedures.” The analogy is a visualization of the concept that you have to see how people operate before you can establish processes to make how they operate more efficient. Fleck encourages the negative experiences of process breakdown and cites them as the only way to really nail down what your processes should look like. “Over time, between the tenants giving feedback and owners giving feedback, we adjusted our processes. It's a mix between figuring out where the owners walk and where the tenants walk, and then building paths that align.” Fleck details an example of how Triton adjusted its process after an assumption it made got challenged: "We had an assumption that payment plans were helpful for residents," says Fleck. "And so the way we handled delinquency is we would reach out to them and would be like, ‘you need to pay this. Do you have a payment plan option?’ And they would always say yes. Our process was we'll put you on a payment plan, we'll invite you to a payment plan, you'll accept the payment plan, and then we'll monitor the payment plan. That in itself was a lot of work, but we thought it was doing well. But some of the owners that we had managed for mentioned that another property manager doesn't allow any payment plans. And if you're not fully paid up by the end of the month, then the eviction process starts if you’re over $500 due. So we're like 'alright, well, we'll serve you in that we'll change our processes.' And we did, and our delinquency percentage shrunk significantly. So, consistently, by the end of every month, we're around 5% APR. Whereas with payment plans we're like 5 to 10%.” Fleck obviously credits seeing the assumptions in motion as what prompted the need for process iteration, and he firmly believes that making too many of these assumptions is one of the biggest mistakes growing property management companies make. Like any business experiencing growth, process definition is critical to achieve efficiency at larger volumes. What Fleck is essentially advocating for is processes based on what you know, not what you think, and there is a big distinction. Managing property management software Fleck has installed both general and tech-based processes, and cites that understanding of how people interact with processes as the key in both areas. "They don't focus on user experience. That's really important. Number one, how the tenants like the tech, but specifically how the people who are using the tech are gonna adopt it. So when we were choosing a rent inspection software, we had so many people recommend one, software and I, we almost pulled the trigger on it. But then I was like, let's do a trial run on both these two. And we chose the other one because it was way better user experience for property managers. So user experience, both for us and for residents." Tech is a tool that is ultimately as good as its users, and if it's not used correctly or at all, its potential is wasted. An over-reliance on technology can actually go hand-in-hand with an under-reliance, as both often spring up from a lack of understanding of how to choose, implement, and manage it. In this vein, Fleck can't recall many property managers who operate with too much tech. As long as you're not purchasing redundant software and you've done and continue to do your due diligence, tech-based process can make your business more efficient. "I more often find myself having that conversation," says Fleck. "When I'm talking to property managers in my sub-market, who aren't connected with like a NARPM, who aren't connected with like a Crane group, or who aren't connected with a Second Nature, aren't connected to the tune of what the property management industry is doing and the cutting edge of it, I'm just like, 'you could save so much of your time and you could scale this so much more if you only even if you just had tenant Turner, or if you had LeadSimple.'" No matter what your story is a property manager, if growth is in the cards, so is process and technology refinement. Hopefully, Fleck's experience in these areas can help you stay efficient and organized as door counts grow.

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How to Write a Real Estate Investment Business Plan + Free Sample Plan PDF

Elon Glucklich

8 min. read

Updated February 19, 2024

Download a free one-page real estate investment sample business plan

With the worst of recent inflation in the rear-view mirror and interest rates projected to start falling in 2024, real estate investors see signs of optimism. 

New apartment construction is rising sharply . These new properties coming onto the market and the prospect of lower borrowing costs point to plenty of long-term opportunities for investors.

However, investing in real estate requires a sharp eye for market trends, as well as significant upfront resources. Investors need to understand the different strategies for securing financing, and how to manage their properties to increase their value before reselling.

A business plan reduces your likelihood of making a bad investment, because it gets you in the habit of organizing your market research, and updating it as conditions evolve. The plan ultimately helps align your investment strategies with your opportunities.

| Looking for a fix and flip , home inspection , or other type of plan? Browse the Bplans library of sample real estate business plans |

• What should you include in a real estate investment business plan?

Here are the most common sections any real estate investor should consider including in their plan:

• Executive summary
• Company overview
• Investment strategy
• Market analysis
• SWOT analysis
• Financial plan and forecasts
• Exit strategy

The length and depth of your business plan will vary depending on your business. For instance, a real estate investment firm with a national portfolio of office and apartment buildings is bound to have a more complex set of financial projections and supporting documents than an investor with single-family houses in a few markets.

Here’s an example of a real estate investment business plan outline.

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• The 8 elements of an effective real estate investment business plan

1. Executive summary

Most business plans start with an executive summary outlining the business opportunity and the core strategies of your business. 

It’s the first section that most readers (including loan officers) will read. You’ll want to highlight any unique value or competitive edge you have, such as a track record of generating positive returns, or knowledge of a specific market. 

You should also give a high-level overview of your financial projections and anticipated returns, which you’ll go into greater detail on in the plan’s financial section. If you’re writing a business plan because you’re seeking bank financing or an investment, this is a good section to state your funding request and how you’ll use those funds.

2. Company overview 

The company overview describes your company’s operational and legal structure . 

List whether you have any partners, and detail your team’s experience, expertise, and roles within the company. Also, outline your portfolio, such as investing in residential properties, commercial buildings, or new development projects. 

3. Investment strategy

There are many ways to invest in real estate — buying homes to rent out, fixing and flipping houses, pooling your resources with partners into a real estate investment group, investing in real estate investment trusts, and more. Describe your strategy and why it will generate the highest returns.You should also describe your criteria for choosing properties to invest in, and whether your primary focus is to invest in a certain geographic region or a type of property, such as apartments or fixer-upper homes.

4. Market analysis

If you have any experience in investment real estate, you know how important market research is. Imagine paying $1 million for an apartment building and adding $100,000 on renovations, only to realize you can’t find tenants to pay the higher rents you want to charge.

That’s where a thorough market analysis comes in. It helps you understand the landscape you’re operating in. 

Use resources like the U.S. Census Bureau to research your target market’s age, income, and population trends. Look online for local data about real estate prices and how they’ve changed over time, or reach out to local realtors to get a feel for the market.

You should also try to determine how much investment activity is taking place in the market and who you’re competing with for opportunities. 

Many cities and larger towns with development departments make their building permit databases available online, since permits are typically public records. Reviewing permit records can show you how much development activity is already occurring where you plan to invest.

5. SWOT analysis

Because of the risks involved in real estate investment, a SWOT analysis can be a helpful exercise. It’s a strategic way of evaluating your company’s internal and external environment (think about your company’s financial health as an internal factor, and interest rates as an external factor).

The SWOT analysis gets you thinking about your company’s:

Strengths: What you do well , and what unique resources you have.

Weaknesses: What you need to improve on, what resources you lack, or what your competitors do better than you.

Opportunities: What are the current opportunities you want to take advantage of?

Threats: What factors could expose your company to risk, or what might competitors do to harm your position?

6. Financial plan and forecasts

Your financial plan should provide a detailed view of the expected financial performance of your real estate investments. Include income statements , cash flow forecasts , and balance sheets projecting the next 3-5 years. 

List the assumptions you used in your projections, such as rental income changes from rent increases or unrealized revenue due to certain amounts of vacant commercial space. 

You should also include a break-even analysis. This calculates when you expect a property’s operating income to exceed the debt taken to buy and maintain it.

7. Exit strategy

If you’re writing your business plan for investors, detailing your exit strategy will clarify their pathways for realizing their returns. It also trains you to think about the long-term timeline for your investments and how to maximize their value. 

Consider strategies that will help you maximize your profits, like refinancing your properties or looking into potential tax-deferral opportunities like a 1031 exchange.

8. Appendix

The appendix is an optional section at the end of your business plan. It’s where you include additional documents that support your business plan but don’t fit in the plan. This might include your detailed market research data, financial tables not covered in the main sections of the plan, legal documents, or permit records.

• Key considerations for writing a real estate investment business plan

To write a business plan that you can use as a guide for your decision making, consider places in the plan to emphasize these key points.

1. Develop a niche

If you’re a small investor or just starting, focus on carving out a specific niche for your investment strategy instead of trying to compete in multiple real estate segments. This could mean concentrating on a particular property type, such as multi-family homes, commercial real estate, or foreclosure properties, and diversifying your portfolio only after you’ve developed some traction. Or, you may decide to focus only on the segment you have the greatest advantage in.

2. Understand your risks

Real estate investment is inherently risky. 

Market dynamics, regulatory changes, and economic fluctuations can all impact the performance of your investments. 

As you compile research for your market analysis, dedicate time to conduct a detailed risk analysis to understand these factors and their potential impact on your investments. This includes assessing location-specific risks, economic cycles, and tenant or occupancy issues. 

Writing these out before they happen will help you think of strategies to mitigate these risks if they actually occur.

3. Network and develop market knowledge

Building a strong network with other real estate professionals, such as brokers and contractors, can provide valuable insights into the markets you hope to operate in. Document in your business plan how you will cultivate these relationships — you can include timelines for developing contacts in the milestones section of your plan.

Also, try to keep up to date on current events in the area, especially news about the regional economy. Look into the tax climate in the area, as well. All of this helps you build a deeper understanding of your market dynamics, and helps validate your investment strategy — or gives you reasons to reconsider.

4. Consider help with your financials

Even if you have the financial background to write financial forecasts, you may want to leave room in your budget for accounting support. 

If you’re starting or investing in an unfamiliar market, a CPA will help you navigate tricky tax issues that could throw off your projections. 

Include the expense of hiring an accountant in your plan if you decide to bring one on, and describe their role, whether it’s helping with budgeting, tax planning, or financial analysis.

• Download your free real estate investment one page sample business plan

Download your free real estate investment sample business plan right now, or explore the Bplans gallery of over 550 sample business plans if you want to see plans for other industries.

You can also see how other real estate businesses have written their plans by checking out our free library of real estate business plans .

There are many reasons why real estate investors should write a business plan . Not only does it demonstrate credibility to the banks or investors you want to fund your acquisitions — it also increases your chances for growth , and gives you a strategy to manage your finances for the long term.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

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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.  

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BUSINESS STRATEGIES

How to create a rental property business plan

• Annabelle Amery

In the dynamic realm of real estate and rental properties, a well-designed business plan is the cornerstone of starting a thriving rental property venture . It goes beyond a mere document, serving as a strategic guide that shapes your goals, operations and adaptability.

Your business plan plays a vital role in making informed decisions and navigating market shifts. Moreover, it enhances your credibility with potential partners and investors, showcasing your grasp of the industry. When you’re starting a business in the real estate industry, a solid business plan can truly pave the way for rental property triumph.

Looking to expand your business online by making a website ? Check out Wix’s website builder .

How to write a rental property business plan in 6 steps

Writing a comprehensive business plan for your rental property business is crucial for setting a solid foundation and ensuring long-term success. It provides a roadmap for your business, outlining your goals, strategies, and financial projections. Here are the six main parts of a rental property business plan:

Executive summary

Business and domain names

Market analysis and research

Operation plan

Marketing and advertising plan

Financial plan

01. Executive summary

The executive summary is the first section of your rental property business plan. It provides an overview of your business and highlights the key points from each section of the plan. The executive summary should be concise, clear and engaging to capture the reader's attention. It should include:

A brief description of your rental property business

Your mission statement and vision for the business

A summary of your target market and competition

An overview of your marketing and growth strategies

Your financial projections and funding requirements

Example of an executive summary for rental property businesses

“ABC Rentals is a leading provider of high-quality rental properties in the city. Our mission is to provide comfortable and affordable housing solutions for individuals and families. With a strong focus on customer satisfaction, we aim to exceed our tenants' expectations by offering well-maintained properties, excellent customer service and competitive rental rates.

In an increasingly competitive rental market, ABC Rentals stands out by offering unique amenities such as on-site laundry facilities, secure parking and pet-friendly options. Our marketing strategies include targeted online advertising, partnerships with local businesses and word-of-mouth referrals. With an initial investment of $500,000 from private investors, we project steady growth over the next five years.”

02. Business and domain names

Choosing the right business name for your rental property is crucial for building brand awareness and trust. Start by brainstorming ideas that reflect the essence of your business and resonate with your target market. You can use a business name generator tool for inspiration and to check the availability of domain names .

When choosing a domain name make sure to keep it short, memorable and easy to spell. Include relevant keywords and avoid numbers, hyphens or special characters.

After you’ve decided on a name and the right legal structure, make sure to register your business .

03. Market analysis and research

Including a market analysis and research section in your rental property business plan is essential for understanding the competitive environment and developing effective business strategies. Conduct market research to identify trends, demand and competition in the rental property market.

Your market analysis should cover:

An overview of the rental property market in your target area

Demographic information about your target audience

Competitor analysis, including their strengths and weaknesses

Pricing strategies and rental rates in the market

Opportunities for differentiation and unique selling propositions

04. Operations plan

The operations plan outlines the logistical aspects of your rental property business. It covers important details such as location, premises, equipment and staffing needs.

Detail the ideal location for your rental properties based on target market preferences and accessibility to amenities. Include in this the size and layout of the premises, including the number of units and common areas. Remember to list all of the necessary equipment for property management, maintenance and tenant services.

You should also include staffing requirements. This includes property managers, maintenance personnel and administrative staff.

05. Marketing and advertising plan

Your rental property business plan should include a detailed marketing and advertising plan to attract tenants. Some strategies to consider: online advertising through rental listing websites, social media platforms and targeted online ads.

You can also look into traditional advertising methods like print ads in local newspapers or magazines—and at the same time partnerships with local businesses or organizations for referral programs. Don’t forget to create a business website to showcase your services and land more leads.

No matter where you promote your business, you’ll want to keep your branding consistent. As a first step, use a logo maker to generate real estate logo ideas .

06. Financial plan

When it comes to a rental property business, the financial plan lays out the money side of things, like how much it'll cost to start up, where the funds are coming from, how much you expect to earn and when you're likely to start making a profit. This section isn't just about showing your business's money smarts, but it's also a way for potential backers and lenders to figure out what they might get out of investing in your business.

Rental property business plan examples

Creating a business plan for your rental property business is essential for setting a solid foundation and ensuring long-term success. To help you get started, here are two draft business plans for a hypothetical rental property business.

Business plan template 1: Urban Rentals

Urban Rentals is a premier rental property business specializing in providing high-quality urban living spaces for young professionals and students in the city. Our mission is to offer modern, well-designed apartments in desirable locations at competitive rental rates. With a focus on customer satisfaction, we aim to create a hassle-free rental experience for our tenants.

Company and domain names

The company name, Urban Rentals, reflects our target market and the type of properties we offer. We have secured the domain name urbanrentals.com, which aligns perfectly with our brand identity and makes it easy for potential tenants to find us online.

We have conducted extensive market research to understand the demand for rental properties in urban areas. Our target audience consists of young professionals and students seeking convenient, stylish and affordable apartments. We have identified several competitors in the market but believe that our unique amenities and competitive pricing will set us apart.

Operations plan

Urban Rentals plans to acquire properties in desirable urban neighborhoods close to public transportation, restaurants, and entertainment options. We will renovate these properties to meet modern standards and provide essential amenities such as high-speed internet, laundry facilities, and secure access. Our dedicated property management team will handle tenant inquiries, maintenance requests, and ensure that all properties are well-maintained.

To attract tenants, we will utilize a multi-channel marketing approach. This includes online advertising through rental listing websites and social media platforms, as well as targeted online ads. We will also establish partnerships with local colleges and universities to reach student tenants. Additionally, we will implement referral programs and incentivize word-of-mouth marketing through satisfied tenants.

Urban Rentals will be initially funded through a combination of personal savings and a small business loan. We project steady growth over the next five years, with a focus on maintaining high occupancy rates and increasing rental income. Our financial plan includes detailed revenue projections, expense forecasts and cash flow analysis.

Business plan template 2: Coastal Properties

Coastal Properties is a rental property business specializing in providing beachfront vacation homes for tourists and travelers seeking a luxurious coastal experience. Our mission is to offer premium properties with stunning ocean views, top-notch amenities and exceptional customer service. We aim to create unforgettable vacation experiences for our guests.

The company name, Coastal Properties, reflects our focus on beachfront locations and coastal living. We have secured the domain name coastalproperties.com, which perfectly represents our brand and helps potential guests find us easily online.

We have conducted extensive market research to understand the demand for vacation rentals in popular coastal destinations. Our target audience consists of affluent travelers seeking high-end accommodations with breathtaking views. We have identified competitors in the market but believe that our exclusive properties and exceptional service will attract discerning guests.

Coastal Properties plans to acquire premium beachfront properties in sought-after coastal destinations. These properties will be fully furnished with upscale amenities like private pools, beach access and concierge services. We will work with reputable property management companies to handle guest inquiries, reservations and property maintenance.

To reach our target audience, we will implement a comprehensive marketing and advertising plan. This includes online advertising through vacation rental platforms and luxury travel websites. We will also collaborate with travel influencers and establish partnerships with local businesses to promote our properties. Additionally, we will leverage social media platforms to showcase stunning visuals of our properties and engage with potential guests.

Coastal Properties will be initially funded through a combination of personal investments and private investors. We project strong revenue growth based on high occupancy rates and premium rental rates. Our financial plan includes detailed income projections, expense forecasts and return on investment analysis.

Benefits of a rental property business plan

Writing a business plan for your rental property business is a crucial step in setting yourself up for success. It provides numerous benefits that can help attract investors and funding, ensure you have the necessary resources and staff, and create a plan to achieve long-term success.

Attracting funding: A well-written business plan is essential for attracting investors and raising money for your business . Investors want to see a clear and comprehensive plan that demonstrates your understanding of the market, your target audience and your strategies for success. A business plan that outlines your financial projections, marketing strategies and competitive analysis will give potential investors confidence in your ability to generate returns on their investment.

Resource requirements: Creating a business plan helps you understand the resources, supplies and staff required to start and operate your rental property business. It allows you to assess the upfront costs of acquiring properties, renovating them if necessary, and furnishing them with the necessary amenities. Additionally, it helps you determine the ongoing expenses like maintenance costs, property management fees and marketing expenses. By having a clear understanding of these resource requirements, you can budget effectively and avoid unexpected financial challenges.

Business success: A rental property business plan serves as a roadmap for achieving long-term success. It allows you to set specific goals and outline actionable steps to reach those goals. By identifying potential challenges and developing strategies to overcome them, you can mitigate risks and increase the likelihood of success. A well-thought-out business plan also helps you stay focused on your objectives and track your progress over time.

Guiding decision-making: A comprehensive business plan provides a framework for making informed decisions in your rental property business. It helps you evaluate potential investment opportunities, assess risks and prioritize tasks. When faced with important decisions, you can refer back to your business plan to ensure alignment with your overall vision and goals. This ensures that you make decisions that are in the best interest of your business's long-term success.

Financial forecasting: A crucial part of any business plan is the financial plan, which includes information on how your rental property business will be funded initially and its projected profitability over time. By outlining your sources of funding, such as personal savings or loans, you can ensure that you have the necessary capital to start and grow your business. Financial forecasting allows you to estimate future revenue, expenses and cash flow, helping you make informed financial decisions and plan for growth.

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How to Create a Real Estate Investment Business Plan for Residential Rental Properties (Free Template)

Ready to unlock the potential of real estate investment and build your financial future? Whether you’re an experienced investor or just starting out , crafting a well-thought-out business plan is critical if you're to succeed in the world of residential rental properties. 

This article will guide you through the essential steps, considerations, and components of creating a real estate investment business plan. Plus, we've got a valuable free template to make your journey even more manageable.

Why You Need a Business Plan for Real Estate Investment

Crafting an effective real estate investment business plan is about more than paperwork; it's about turning your aspirations into achievements.

Creating a formalized business plan for your real estate investment venture is tantamount to success. It forces you—the investor—to organize your thoughts, feelings, goals, and ideas moving forward in the business in a single, powerful document. 

Remember, this is a living document meant to be flexible as your business grows or changes tactics over the years. It keeps you on target, helps expand your business, and keeps your financial goals on track. 

It’s also a helpful document for potential investors, creditors, and partners to peruse before pursuing a business venture with you. 

And speaking of collaborators, finding sample real estate investment business plans or a template to download to get you started is a good idea. But before diving into that, let's look at a few general considerations that will shape your plan.

General Considerations for a Real Estate Investment Business Plan

Before you start actually writing your business plan, there are a few general considerations to keep in mind:

• The Why. When you start any new venture, it’s good to know you’ve got the strength to realize your goals, even when things get tricky. Defining why you’re embarking upon this real estate investment journey is necessary if you want  to reach your destination. Why do you want to invest in real estate? To create financial independence? To serve the community? To provide for your family? Everyone’s “why” is unique to them. As such, your underlying motivation should be the starting point of creating a business plan. Everything follows from this origin.
• Financial Goals. Next, it’s wise to consider your financial goals. What are you hoping to accomplish financially? This is a business, and having defined financial goals will help keep your real estate investments trending in the right direction. 
• Timeline. When do you want to achieve all this? Are you taking this business from now until retirement or looking to flip a few houses before the decade closes? Having a general timeline in mind when planning means you’ll be realistic about what goals you can accomplish. 
• Real Estate Investment Strategy. There are countless ways to jumpstart your real estate investments. Doing a bit of research to discover which real estate investment strategies best suit your financial goals and desired timeline will ensure your business plan is realistic moving forward.

These considerations form the foundation of your real estate investment business plan. But how do you piece it together and create a comprehensive, winning document? 

Spoiler alert: Property managers can be your secret weapon in crafting an airtight plan and guiding you through your investment journey. 

But first, let's explore the essential components of your business plan and how a property manager can make the process smoother.

Essential Components of a Business Plan for Real Estate Investment 

A well-thought-out business plan for real estate investment should help you secure the financing and partnerships needed to bring your dream to fruition. 

To do this, it must include the following components:

• Executive Summary: a bird’s eye view. The first section of a business plan is like an abstract for a research paper. Here, you’ll introduce the plan and give an overview of what comes later in the document. 
• Define your team. Who are you bringing on this journey? What are their qualifications? This section can attract new investors and partners by touting the team's accomplishments. 
• Outline marketing strategy. A business plan won’t succeed without a marketing strategy to connect with potential clients, in this case, future tenants. Your real estate business plan must include understanding the need for top-quality marketing and a method to market your business successfully. Will you run social media ads? Rent local billboard space? 
• Demonstrate initiative and a willingness to learn. Include a section to show that you know this industry, have researched the competition, and are aware of local real estate market trends and areas for growth. This will communicate to potential investors you’re willing to put in the elbow grease it takes to succeed long-term in this business. 
• Describe the “What”. What services will you offer? What type of properties will you invest in? What are the next steps to your plan moving forward? 

As you dive deeper into your real estate investment journey, remember that the strength of every property manager relationship reflects the property owner's dedication. 

How to Create a Residential Real Estate Business Plan Quickly 

If you're looking to create a residential real estate business plan quickly, here are a few must-have tips to get you started:

• Define: Mission. Vision. Values. A business is only as strong as its “big three” pillars: the mission, vision, and values. Begin your business plan by defining what the purpose of your business is (its mission), your plan to bring this mission to life (vision), and the values that will guide your actions when the going gets tough. Careful consideration of these will give you clarity when finding team members to build your business later on. You need people who click with what your business stands for. 
• Identify short and long-term goals. A real estate business is only as successful as it prepares to be. Remember the adage: if you fail to plan, you plan to fail. Spending time identifying short (3-12 months out) and long (1-5 years in the future) term goals gives you and your team ways to mark the journey to success with well-defined milestones. 
• Figure out the finances. How will you fund your business? There are many ways to find capital to bring your real estate business plan to life, but you may have to get creative. And you’ll need to stay organized and on task to bring your financial goals to fruition. 
• Find the perfect property manager. The quickest way to accomplish this magnificent business plan you’re creating? Hire a property manager to help you skip the grunt work. But while finding the right manager for your business isn’t easy—you’ll need to research and interview several property managers before you get a feel for what’s best for you—the road will be much less bumpy with a solid business plan in hand. 

How a Property Manager Can Help You Create a Real Estate Investment Business Plan

A property manager can help you create a real estate investment business plan in five important  ways. 

• Provide you with insights into the local real estate market.
• Help you identify and evaluate potential investment properties.
• Help you develop a marketing strategy to attract tenants.
• Help you manage your finances and keep track of your expenses.
• Provide you with guidance and support throughout the investment process.

When you enter property manager interviews armed with a robust business plan, you demonstrate your commitment and pave the way for a successful partnership. 

Ultimately, creating the ideal business plan for real estate investment begins with you. Every property manager relationship is only as strong as the drive of the property owner. 

Download APM’s free sample real estate investment business plan template to get started.

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Rental Property Business Plan

Used 4,872 times

Develop a rental property business plan tailored to serve as a valuable resource for entrepreneurs to organize their rental business.

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Created by:

​ [Sender.FirstName] [Sender.LastName] ​

​ [Sender.Company] ​

Prepared for:

​ [Recipient.FirstName] [Recipient.LastName]

​ [Recipient.Company] ​

Executive Summary

​ [Sender.Company] is a reputable rental business located in [Sender.StreetAddress] [Sender.City] [Sender.State] [Sender.PostalCode] (Company Location), specializing in property management, rental, and leasing.

Through expert knowledge and technological innovation, [Sender.Company] strives to make the property rental journey as straightforward as possible. The online platform, in particular, serves as a user-friendly hub where clients can effortlessly navigate and find properties that precisely align with their unique preferences and requirements. This emphasis on simplification ensures clients enjoy a hassle-free and tailored experience throughout their rental process.

​ [Sender.Company] 's commitment to enhancing the rental experience underscores its mission to provide clients with a seamless and customized journey, setting it apart as a leader in the industry.

Company Description

Who is [sender.company] .

​ [Sender.Company] is located in [Sender.StreetAddress] [Sender.City] [Sender.State] [Sender.PostalCode] and operates as a rental property agency specializing in providing short-term and long-term rentals and leased properties to the local community. The rental properties offered by [Sender.Company] are distinguished by their clean and modern aesthetics, perfectly aligned with the preferences of today's renters.

All properties managed by [Sender.Company] are fully furnished and equipped with high-end technology and modern accessories, ensuring tenants a hassle-free and comfortable living experience.

​ [Sender.Company] is under the ownership of (Owner Name), a seasoned professional in the rental property industry. [Sender.FirstName] [Sender.LastName] (Founder's Name) decided to launch [Sender.Company] in (month, date), driven by a recognition of the growing demand from students, working professionals, and individuals relocating from overseas.

With a keen focus on meeting the diverse housing needs of the local community, [Sender.Company] is committed to delivering outstanding rental property services. Under (Owner Name)'s guidance, the company is well-positioned to thrive and make a lasting impact in the rental property industry.

​ [Sender.Company] ’s Products

Some of the offerings available through [Sender.Company] include:

(Company Product/Option): (Insert description)

Industry Analysis

Customer analysis, profile of target market.

The target market of [Sender.Company] includes consumers from all demographics. The market [Sender.Company] serves value-conscious, with a preference for excellent comfort and basic amenities aimed at families, students, and the working population.

The following are the exact demographics of (Location) where the business is located:

Localities:

Economic levels:

Customer Segmentation

​ [Sender.Company] will target the following customer segments:

Working Professionals

High-Income Earners

Competitive Analysis

Main competitors.

(Competitor Name 1) – (Brief Overview of Competitor 1)

(Competitor Name 2) – (Brief Overview of Competitor 2)

(Competitor Name 3) – (Brief Overview of Competitor 3)

Competitive Advantage

​ [Sender.Company] has several competitive edges over its competitors. These edges are the following:

(Competitive Advantage 1)

(Competitive Advantage 2)

(Competitive Advantage 3)

Marketing and Strategy Implementation

​ [sender.company] ’s branding and positioning.

​ [Sender.Company] places a strong emphasis on its unique value proposition, which encompasses several key aspects:

Rental Offerings

​ [Sender.Company] specializes in offering various rental properties designed to meet different customer segments' specific needs and preferences. From spacious family homes to budget-friendly options for students, upscale residences for working professionals, and welcoming accommodations for international migrants.

Strategic Location

​ [Sender.Company] is dedicated to offering a broad range of rental homes in carefully selected areas. This variety in locations means that residents can enjoy different amenities and services and choose the lifestyle that best suits their preferences and requirements.

Exceptional Customer Service

Exceptional customer service is the cornerstone of the [Sender.Company] . Their dedicated team is always available to assist with inquiries, property viewings, lease agreements, and maintenance requests.

Innovative Technology Integration

​ [Sender.Company] stays at the forefront of technology trends by integrating smart home solutions and digital platforms to enhance convenience and security for their tenants. This includes keyless entry systems, remote property management tools, and online rent payment options.

Promotions Strategy

​ [Sender.Company] anticipates its primary target audience to consist of students, international migrants, the working population, and local families residing primarily in the [Sender.StreetAddress] [Sender.City] [Sender.State] [Sender.PostalCode] . To effectively engage with these potential clients, the company has developed a comprehensive promotion strategy, which encompasses the following key elements:

Referrals: (Description).

Advertisement: (Description).

Public Relations: (Description).

Social Media Marketing: (Description).

Print Advertising: (Description).

Website/SEO Marketing: (Description).

Pricing Strategy

​ [Sender.Company] is dedicated to offering a variety of flexible payment alternatives tailored to accommodate diverse customer preferences. The following list provides a comprehensive overview of these payment options, which can be customized as necessary:

(Payment Option 1)

(Payment Option 2)

(Payment Option 3)

By offering these flexible payment choices, [Sender.Company] aims to ensure that its valued customers have a range of selections to suit their financial requirements and preferences, thus enhancing their overall satisfaction.

Operations Plan

Organizational structure.

At [Sender.Company] , the rental property management team is composed of a diverse and skilled group of individuals, each contributing their unique talents to drive the success of the company's property ventures.

CEO/Founder

As the visionary leader of the rental property management team, (Mr./Mrs./Ms.) (Name) is deeply committed to excellence. He/she lays the foundation for the creative journey while guiding everyone towards new heights of achievement in the rental property sector.

Office Manager

(Mr./Mrs./Ms.) (Name) is the creative force behind [Sender.Company] 's property management efforts, ensuring rental properties provide exceptional living experiences. He/she meticulously oversees property details, from maintenance to tenant satisfaction.

Maintenance Director

(Mr./Mrs./Ms.) (Name) leads maintenance and property improvement initiatives, consistently exceeding industry standards in property upkeep, repairs, and enhancement.

Additional Team Members

Beyond the core team, [Sender.Company] has a dedicated group of professionals, including property managers, maintenance staff, leasing agents, and administrative personnel, who work cohesively to deliver exceptional rental property management services.

Over the following (Number of Months) months, [Sender.Company] has set ambitious milestones to accomplish in its journey toward establishing a strong and prosperous presence in the (Industry Name).

Financial Plan

Source and use of funds.

​ [Sender.Company] will get (Amount) from (Source of Fund) to start its rental property business.

​ [Sender.Company] will use the funds to secure the initial rental and office space and purchase supplies and equipment. The proposed startup costs are shown in the table below:

Financial Projections

These are [Sender.Company] 's pro forma financial statements for the next five (5) years. It contains the business's income statement, balance sheet, and cash flow statement.

​ [Recipient.FirstName] [Recipient.LastName] ​

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How to create a rental property business plan (and why you need one)

Last updated: 21 October 2022

Take it from someone who’s spoken to a lot of investors over the last few years: almost everyone who achieves great success started out with a solid plan.

All businesses start out with a plan . Even if that plan is just “I think I can buy this widget for £1 and sell it for £1.50”, it’s still a statement of what the business will do and how it will make a profit.

But many – in fact, most – wannabe property investors start out without even the most basic of plans. Often, people have nothing more than vague thoughts like “ property prices go up, so it’s a good investment ” or “ most wealthy people seem to own property ”.

It might feel like sitting around planning is just delaying you from getting out to look at properties and start making money. But take it from someone who’s spoken to a lot of investors over the last few years: almost everyone who achieves great success started out with a solid plan.

(Or to put it another, more painful way: almost everyone who didn’t start with a plan ends up disappointed with where they end up – however much effort, money and time they put in.)

What does a rental property business plan look like?

It certainly doesn't need to be 100 spiral-bound pages of projections and fancy charts. In fact, the best plan would be so simple that it fits on the back of an index card – meaning that you can commit it to memory and use it to drive every decision you make.

In order to get to that simplicity though, you might need to do some seriously brain-straining thinking first.

It's not easy, but it is simple: your plan basically just needs to set out…

Where you are now

• Where you want to get to, and
• What actions you're going to take to bridge the gap

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To give a cheesy analogy, you can't plan a route unless you know where you're starting from.

Working out your starting point is the easiest part, because it involves information that's either known or easily knowable to you.

You'll need to be clear about:

• The amount of money you've got to invest
• The amount of savings you can allocate to property investment in future years
• The time you can invest each week or month
• The skills and knowledge you can apply to your property business

Note that I said it was the easiest part, but still not easy – because it involves honesty about what you can commit, and self-knowledge to determine where your strengths lie.

Knowing how much money you've got to invest should be straightforward, but it's probably worthwhile speaking to a mortgage broker to check that you'll have borrowing options – because this will determine your total investment figure. A broker will also be able to tell you about your options around releasing equity from your own home, if that's something you want to consider.

I'd also strongly encourage you to consider what “emergency fund” you want to keep in cash, and deduct that from your total investable funds. I suggest having at least six months' expenses in the bank at all times: the last thing you want is to plough every last penny into investments, then lose your job the next day and be unable to pay your bills.

Where you want to get to

So now you know where you're starting from, where do you want to end up? In other words, what's your goal?

Yes, you want to be “rich”, or “secure”, or “build a future” – but what does that actually mean, in pounds and pence terms, for you?

And just as importantly, when do you want to have achieved that?

You might be surprised by how much thought is involved in answering these questions properly. It's easy to throw around terms like “enough to fund my lifestyle” and assume that it might involve an income of £10,000 per month, but it's another matter entirely to look honestly at your ideal lifestyle and determine what a genuinely meaningful figure is.

The same is true for “when” – and it's an often-ignored factor that actually cuts to the heart of the most basic of investment decisions.

For example, take a choice between two properties:

• Property 1 will give a return on your investment of 15% but will probably never increase in value
• Property 2 will give a return of 7% but has the potential to double in value over the next decade.

If your goal is to create a certain monthly income within three years, the Property 1 is likely to be a better choice. Growth is unlikely to happen to any great extent over that time, so you need to optimise for cash in the bank right now.

On the other hand, if you have a decade before you want to have achieved your goal, Property 2 is probably the better bet. It very much is a “bet” because you're taking something of a gamble on capital growth, but it's got a lot of time to happen – and when it does, your returns will dwarf the higher rental income you'd have made from the other property.

That's just one example of why making even simple decisions in your property business are impossible without having that most basic ingredient of your plan: where you ultimately want to end up, and when.

So, by this point in the plan you need to:

• Assess your finances to build up an honest picture of where you are now
• Put some serious thought into where you want to get to, and when

If you need help with this goal-setting process, I co-own Property Hub Invest which offers free strategy meetings . It's often easier to work this stuff out in conversation with someone who knows their stuff, rather than doing it all in your own head.

That's a great start, but for most people it'll produce an uncomfortable insight: the gap between where you are and where you want to be seems impossibly large! With the resources you've got now, how are you possibly going to reach your goal in a sensible period of time?

Well, that's where it's time to start thinking about the details of the third step: the strategy you'll use to pursue your goal.

A strategy to bridge the gap

The steps you take to get from Point A to Point Z are what's commonly referred to as your strategy – and strategy is a vital component of your business plan.

The way I like to think about strategy is the way you compensate for a lack of cash . It's an unusual way to look at it, but I find it useful – because it tells you (given your timeframe and your goal) how much heavy-lifting your strategy will need to do to keep you on track.

Think of it like this: if you had £10m in the bank and your goal was to make an income of £5,000 per month within a year, you wouldn't need any strategy at all . You could just use your £10m to buy any properties, anywhere – you wouldn't need to maximise the rent, manage them well or even keep them all occupied at all times! You'd be able to buy so much property that you really couldn't fail.

Sure, it'd be a pretty stupid thing to do – you should really have had a more ambitious goal – but you get the point.

Obviously, most of us aren't in that position – and that's why we need a strategy.

So, just what position are you in?

A rule of thumb

A handy way of looking at it is to take the amount of money you've got to invest in property, and assume that you can get a 5% annual return on that money (ROI) – which is a rough rule-of-thumb for a normal property bought with a 75% mortgage.

So, if you've got £100,000, you can generate a (pre-tax) profit of £5,000 per year – or £416 per month.

That's unlikely to be enough to hit most people's goals – but then there's the time factor. If you save up the rental income for 20 years, you'll be able to buy another batch of properties just like the first – so you'll now have income of £832 per month.

If you're happy with that, then you've already got your strategy: buy properties that will give you your desired ROI, then wait!

Portfolio-building strategies

But most people will want more than that: we've hardly been talking about life-changing sums, and 20 years is a long time to wait before you can buy again!

This is where more of an advanced strategy comes in, allowing you to get better results, faster.

This might include:

• Buying properties and adding value, so you can refinance at the higher value and buy your next property more quickly ( learn more about this strategy )
• Buying properties at a discount, allowing you again to refinance at the higher value and move on to the next one
• Turning properties into HMOs, so you can generate a higher ROI on them
• “Flipping” properties for a profit, so you can replenish your cash more quickly ( read my guide to flipping )

…or something else entirely.

I go into different strategies in enormous detail in my book, The Complete Guide To Property Investment .

Simply appreciating the need for one of these strategies from the start is a really big deal.

Most people don't: they'll rush in, use all their money to buy properties that generate (say) £500 profit per month, then…what? They'll be stuck – because they didn't go in with a plan for how they were going to get to their target number . They'll effectively be starting from scratch, having to scrape together the money to go again.

It's extremely common, and it doesn't surprise me – but it does frustrate me. If they'd started with just a bit of time making a plan, they wouldn't have made this mistake – because it would have become very obvious that they wouldn't reach their goal without applying some strategy.

Any of the strategies I listed (or a different one, or a combination of several of them), when applied effectively, can get you to where you need to be. But that's not to say that all of them will be equally good for you. Each of them has different risk factors, requires different time commitments, are suited to different skill sets, and so on.

That's why this is your business plan: copying someone else's homework isn't going to do you any good, because their skills, attributes and preferences will be different from yours.

For example, one person's plan might be to get their hands dirty by renovating properties for resale – completing two projects per year, and using the profits to buy an HMO. Within five years they'll have five HMOs, which will give them all the income they need.

Someone else might be hopeless at anything hands-on, but a master negotiator. Their plan could be to buy at enough of a discount that they can pull at least half of their funds back out again by refinancing – and keep doing that until in ten years' time they have 15 single-let properties giving them their target income figure.

(That's why when someone emails me asking if their strategy “sounds good”, I have to say that I don't know: usually it sounds like on paper like it would work for someone , but I have no idea if they're the right person to execute it.)

So, coming up with your strategy involves:

• Starting with an assessment of where you are now
• Deciding where you want to get to, and by when
• Seeing how far you'll fall short by just buying “normal” properties
• Thinking about your own skills, time and preferences to choose which strategy (or strategies) you'll use to fill in the gap

It might take a while, and that's OK – it's not an easy decision . To take the pressure off though, remember: your plan isn't set in stone. It's important to start with a clear vision and not get distracted by every new opportunity that comes your way, but every plan is just a starting point: you'll be seeing what works, reviewing and adjusting course along the way.

Once you've got a strategy down on paper, that's a huge step – and you should congratulate yourself, because it's a step that most people will never make (and will suffer for).

But of course, the act of writing the plan isn't going to magic it into existence: you need to get out there and execute on the plan.

Turning your property business plan into action

Having an appropriate goal and a solid strategy to get you there are essential, sure – but nothing is going to happen until you actually take the steps that are necessary to execute that strategy.

If you don't take the time to identify the steps and make a plan to carry them out, you'll end up in “pulling an all-nighter the day before your homework is due in” mode. And you don't want that: it's no good setting a five-year goal, feeling all virtuous for being such a strategic and big-picture thinker, then realising in four years and 364 days that you've not actually got any closer towards making it a reality!

So let's get those steps in place. And the good news is…it's really simple. (The best things usually are.)

Breaking it down

However big, ambitious and far in the future a goal seems to be, all goals are achieved in exactly the same way : by breaking them down into individual tasks, and working through those tasks one by one.

As you work through those tasks, it’s important to have sub-goals as “checkpoints” along the way.

Sub-goals are how you stay on track: by setting a deadline for each sub-goal, you can make sure that your progress is fast enough. They also keep you motivated, because it means you’ll always have a small “win” on the horizon: you won’t just be looking at the main goal (potentially) years off in the future. Think of them as mile markers at the side of a marathon course.

To put it another way:

Small task + Small task + Small task = Sub-goal Sub-goal + Sub-goal + Sub-goal = Overall goal

It's those small daily tasks that are the foundations of your achievement. And that's the beauty of a good plan: all you need to concentrate on is ticking off your tasks each day, and your overall goal is achieved automatically!

So, this final step in your plan is about breaking that big goal down into sub-goals, and those sub-goals down into bite-sized individual tasks. That's it!

As you break it down, there are a few things I find are useful to think about…

One-off tasks v recurring tasks

Your business will have two types of task:

• One-off tasks , like finding a mortgage broker
• Recurring tasks , like viewing properties and making offers

These two types of task will both appear in your weekly, monthly and quarterly to-do lists. A useful way of planning your time is to start by filling in your recurring tasks – like going through portals to find new potential acquisitions every day, and calling agents to follow up on offers once per week – then adding your recurring tasks on top.

By thinking about both types, you'll make sure you're not dropping the ball on the important day-by-day stuff, but you're also not ignoring the big-picture one-offs that are going to make a huge difference to your business in the long run.

The first, simplest step

Just like you break a goal down into sub-goals and sub-goals down into tasks, I favour breaking every one-off task down into the smallest possible unit .

For example, “find a mortgage broker” could be an important one-off task for you, but it's not something you can just sit down and do until it's done. Because it seems nebulous and you can never identify a block of time when you can do it from start to finish, you can end up never doing it at all.

Instead, you'll make yourself feel better by ticking off smaller tasks that seem easier – but are often less important.

The solution is to break every task down into as many sub-tasks as possible. So instead of “find a mortgage broker”, the tasks become :

• Email 3 contacts to ask for recommendations
• Post on The Property Hub forum to ask for recommendations
• Email everyone who is recommended to set up a quick call
• Draw up a shortlist of 2-3 people to have a longer conversation with
• Pick a winner

Doesn't that seem much easier already? You can imagine sitting down and bashing out the first task in five minutes right now, then you're underway!

Who will do each job?

Here's a potential lightbulb moment: you don't have to do everything in your business yourself.

Any business has different “functions”, or departments – like sales, manufacturing, and admin. A property business is no exception.

The basic functions of all property businesses are the same:

• Acquisition
• Refurbishment
• Refinancing/selling

The types of task that fall within each function will depend on your business plan. For example, if your aim is to find properties you can buy “below market value”, acquisition could be a major part of the business – involving direct-to-vendor marketing, networking with estate agents, and attending auctions.

On the other hand, if your model involves buying properties that you think will experience strong capital growth, there could be a lot more tasks in the “research” part of the business – and acquisition could be very straightforward once you’ve identified the opportunity itself.

Could you do every task within every function yourself? Maybe.

Could the business achieve better results if you bring in specialists to do what they do best? Definitely .

You could go big and employ an assistant to view properties and make offers for you, or just make sure you outsource functions like management and accountancy to the relevant professionals.

Whatever you do, once you start thinking about your property venture as a business with various departments, you'll start to break away from the idea that this is something you have to do all on your own – and that's a very powerful insight.

OK, this has been a long one – but we've covered a lot of ground.

To recap, those critical steps are:

• Assess where you are now
• Work out where you want to be, and by when
• Outline a strategy to get you there
• Fill in the detail, to get you from “big picture” to individual steps

It's a process that's worked for me, and I've seen it work for many investors I've encouraged to put it into action too.

Its power is in its simplicity: you take the time to intelligently decide exactly what you need to do, then you figure out a way to (to borrow a registered trademark) just do it . As long as you show up and work through your to-do list each day, the big, scary, long-term goal takes care of itself!

Of course, you'll need to assess your progress and adjust course along the way: nothing will pan out exactly as expected, and there's a lot that can change over a timespan of several years.

But by having your plan, what you won't do is get distracted by every new idea that comes your way – researching HMOs one day, and holiday lets the next – and end up getting nowhere.

(You'd be amazed by how many plan-less people that description fits to a tee.)

So now you know how to put a property business plan together. It's not a plan that will necessarily get you funding from the bank, but it's something more important than that: a plan you can use every day to make sure you stay on track to hit your goals.

The one thing that every successful investor does

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How To Start A Rental Property Business Like A Pro

What is a rental property business?

Starting a rental property business

Writing a business plan

Is a rental property business a good investment?

As Antoine de Saint-Exupery once said, “A goal without a plan is just a wish.” Consequently, the best plans have developed a reputation for helping people in every industry realize their own goals, no matter how lofty they may be. There literally isn’t a single professional who couldn’t benefit more from a well-crafted strategy, and real estate investors are no exception. When learning how to start a rental property business , buy-and-hold investors in particular stand to improve their long term outlook by establishing a rental property business plan.

A proven rental property business plan can help layout the systems and benchmarks investors need to realize success at a higher level. That said, only one question remains: what does a rental property business plan look like?

If you are interested in starting a rental property business, there are several valuable lessons to take away from experience. Meanwhile, here’s a guide for developing a bullet-proof rental property business plan; it may be just what you have been waiting for.

On the FortuneBuilders Real Estate Investing Show , join our host, Jeffrey Rutkowski, as he talks to Gregg Cohen, the Co-Founder of JWB Real Estate Capital, on the subject of passive income and rental properties. Listen to the podcast here:

What Is A Rental Property Business?

A rental property business is a venture through which an investor will purchase and manage one or more income-producing properties. These properties can have one or more units leased out to tenants in exchange for monthly rental fees. Investors can have an effective rental plan without directly managing these properties; property management companies can be hired to carry out the duties often associated with landlords, such as rent collection and maintenance.

Is My Rental Property A Business?

Renting a house may be considered a business endeavor, depending on who you ask. This may seem like a controversial question, and there are at least two answers to consider. From a financial standpoint, renting a residential property may result in passive income. It is important to note that investors do not have to pay self-employment taxes when reporting their rental properties. Therefore, many would argue that owning a rental property is not considered a “business,” specifically in the lens of tax filing. However, from a career standpoint, many individuals live on passive income derived from their rental property companies; in this lens, renting a house can be considered a business. It’s entirely possible to manage a rental property portfolio as a business. Still, those with a single rental property may not need to start a company to collect passive income. It’s only once the portfolio starts to grow that turning the practice of renting into a business becomes more important.

How To Start A Rental Property Business

Learning how to start a rental property business isn’t all that different from just about every other entrepreneurial endeavor. Investors need to identify several key elements before getting started; that way, they can start their business on a solid foundation. Here are some of the most important steps to consider when drafting a rental property business plan and becoming a real estate entrepreneur:

Join a local REI club and start networking

Pick a niche and choose your rental property market

Figure out the proper financing and secure it

Conduct the appropriate research and hire a manager

Implement systems to improve efficiency

Manage the properties and scale the business at a sustainable pace

1. Join A Real Estate Investor Club

Joining a local real estate investing club or association provides networking opportunities, not the least of which may actually help rental property investors find a partner—or perhaps anyone else who may help them further their rental property business plan. Nathan Hughes at DiggityMarketing suggests that “investors need to identify various factors before entering the rental property business. Investors should join some real estate investors clubs as a beginner”. There’s absolutely no reason to think new investors, specifically aspiring rental property owners, can’t find a helpful hand at a real estate investor club. These types of meet-ups are specifically designed to help their attendees, and there’s always someone willing to lend a hand. At the very least, investors will gain insight into local professionals who are most likely already doing the one thing they want to do.

2. Pick A Niche & Choose A Market

Determining where to invest can often be more important to investors than how much capital or experience they bring to the table. After all, the golden rule of real estate persists: location, location, location. There is perhaps no more influential factor to a rental property investor’s success than the location in which they choose to invest. The location will determine everything from demand and price, not to mention the property’s long-term potential. Therefore, a truly great rental property business plan will want to make sure it answers these questions and many more like them:

How distant a market am I willing to invest in?

Do I have a team in place to handle the day-to-day, or will I have to commute back-and-forth?

How much will commute and market research cost me?

How stable and diverse is the economy in a market? Are there various business sectors that can help keep jobs and businesses? Is there one main employer?

What’s the average market price for property acquisition?

What’s the average rental price?

No rule says investors need to live in the markets they invest in, but there is no excuse for neglecting to mind due diligence and research the local housing market. To invest successfully, investors need to know every detail about a specific area, not to mention the specific niche they intend to serve.

Jordon Scrinko, the Founder & Marketing Director of Precondo states that “Investors’ decisions on where to invest are frequently more significant than their capital or experience. After all, when it comes to real estate, location is the most important. The area in which a rental property owner chooses to invest is possibly the most important aspect in determining their success”.

If for nothing else, investors need to know their renters just as much as the area they are investing in. Picking a niche, not unlike focusing on college housing or single-family homes, is the easiest way to target a specific audience. Therefore, at this time, rental property investors should decide who they will serve; only then will they be able to tailor their rental property business plan to see their audience’s needs.

3. Figure Out Financing

Securing financing is probably the biggest hurdle rental property investors face. However, financing a real estate deal isn’t nearly as hard as many new investors make it out to be. As it turns out, there are countless lenders just waiting for an opportunity to give savvy investors the money they need to invest in real estate. Like institutionalized banks, today’s real estate investors have access to more funding sources outside of traditional sources than ever before. Private money lenders and hard money lenders, in particular, have become synonymous with the best ways to secure funding and are as willing to work with investors as investors are eager to work with lenders.

These “alternative” sources tend to coincide with higher interest payments (often three to four times higher than traditional banks), but the added cost is well worth it. In exchange for their higher rates, investors not only receive the money they need to complete a deal, but they also receive it a lot faster than they would if they went through a bank. Whereas banks can take upwards of a few months to distribute funds, alternative lenders can have the money in investors’ hands in as little as a few days—if not hours.

It is also important to note that securing financing should be done before even looking for a home. That way, the investor will know exactly how much home they can afford and which investments are worth pursuing further.

4. Conduct Research & Hire A Property Manager

Becoming a landlord means investors will be responsible for maintaining the appearance and function of the rental property. However, whether or not the investor is a handyman is a moot point, as hiring a property manager is highly recommended. While it helps to know everything about a subject property, enlisting a third-party property manager’s services is an essential step in a rental property business plan. Through their help, investors may expand their portfolio without adding on countless hours of work. If for nothing else, a property manager will take care of everything. From finding tenants to collecting rent, property managers will see to it that everything is covered. Meanwhile, the investor is free to add more assets to their portfolio and increase their passive income cash flow.

5. Systemize

There are many rental plan options for landlords, such as specializing in low-income neighborhoods or university towns. Alternatively, they can choose to specialize in higher-income, urban neighborhoods. Different strategies require different skill sets, so landlords may find better success if they pick a niche in which they specialize. However, landlords will need to set up a system for running applications, credit, and background checks regardless of the niche. Adding proven systems to a rental property business plan is the surest way to make success habitual. Therefore, investors will need to create a system for every single process associated with rental property investing. That way, there will always be an appropriate course of action, regardless of the situation. Property managers, for that matter, make it a lot easier to implement systems.

6. Manage The Properties

Managing a rental property is about far more than just hiring a property manager; it’s about figuring out exactly what systems will be put in place to keep the properties in good shape and the cash flowing in. This means answering queries like:

Are you going to be a landlord? (Or will you hire a property manager?)

Who will find and select tenants?

Will you perform repairs to maintain the property? (Or hire a contractor?)

Who will perform yard maintenance and other duties?

Your answers will depend on your budget and available time. The key is to use your rental property business plan to map out all management systems beforehand and ensure no last-minute surprises.

Why Write A Business Plan

A well-crafted business plan will help in more ways than one as you learn to navigate the real estate industry. You can establish a clear framework of your goals and overall mission by writing a business plan. It should also include the reason why you want to start investing. This will ensure you remain focused as you make investment decisions and eventually grow your business. Think of a business plan as a roadmap for your future.

A business plan is also highly useful when speaking to potential lenders, designing marketing campaigns, and hiring new employees. These tasks will be made easier if you have a clear outline of what your business does (and how). For example, when you begin raising funds for your first deal, you will likely need to present your business goals to potential investors. A business plan can help take the pressure off — as the information will already be written down. If you are even slightly considering opening a rental real estate business, learning how to write a business plan is a great first step.

How To Write A Rental Property Business Plan

Starting a rental property business is one thing, but learning how to write a rental property business plan is entirely different. While the two sound similar, the latter is critical to making the former even stronger. At the very least, knowing how to start a rental property business must come before actually starting one. As a result, investors will need to familiarize themselves with the most important steps first:

Determine a vision and write a mission statement

Set passive income and business goals

Build a team structure that is conducive to success

Gain a high-level overview perspective of the company as a whole

Develop marketing systems and funnels tailored to a specific audience

1. Vision & Mission

A truly great rental property business plan must emphasize one thing above everything else: the investor’s vision or mission. What an investor hopes to achieve by investing in real estate may simultaneously serve as motivation and a guide when times are less than ideal. Therefore, investors must take a minute to think about why they are investing. Is it to retire comfortably? Is it to spend more time with family and friends? Is it both of these things? Knowing their “why” will help investors build out a sound business strategy, one that gets them closer to their goals with every investment. Consequently, those without a mission won’t know what direction to head, which doesn’t bode well for any rental property business.

2. Passive Income Goals

While closely related to one’s own vision or mission, passive income goals identify how much cash flow will be necessary to satiate investors’ appetites. That said, passive income goals should help investors meet their own mission statement. Likewise, if an investor wants to retire comfortably, they will need to set their passive income goals high enough to facilitate their desired retirement. While everyone’s passive income goals will be different, a general rule of thumb accounts for how much cash flow will be necessary to maintain their preferred lifestyle.

Remember, goals should be realistic and directly related to the reason someone wants to invest. Seeing overly ambitious goals can deter many investors from progressing, so the goals must be achievable. The sense of accomplishment developed from realizing a goal is, oftentimes, a powerful motivator.

Determining passive income goals will also help answer the most important question of them all: what type of rental property will I focus on? Residential? Commercial? Multi-family? Start from the end and work backward for better results; it’s the best and most efficient way to build a business.

3. Structure

Starting a rental property business may lead many investors to hire a team. After all, it’s true what they say: many hands make light work. The more qualified individuals investors have worked towards a common goal, the more likely they are to realize success. Not only that but hiring a competent real estate team is simply one more step towards investors removing themselves from the equation and earning more passive income. That said, it’s not enough to hire just anyone; the employees need to bring something new to the table. Investors need to hire a team that complements their skills—not that replicates them. That way, the team structure is more well-rounded and capable of accomplishing more tasks.

4. High-Level Overview

Investors need to look beyond the prospects of a single investment property and towards the potential of an entire portfolio. While a single home can produce encouraging cash flow levels, an entire portfolio can help investors realize financial freedom. Therefore, it’s important not to forget the “bigger picture.” Sure, start with a single home, but plans should inherently be scalable. When writing a rental property business plan, see that everything can be expanded to include future growth.

5. Marketing

Buying a rental property is just the first step on a passive income investing journey. At some point, investors need to figure out how to find tenants to bring in cash flow. More often than not, investors will rely on their property managers to fill vacancies. However, in the event an investor neglects to hire a property manager, there are various ways to find tenants, not the least of which include:

Rental websites

Social media

Print media/newspaper

Local bulletin boards

Local Realtors

Word-of-mouth marketing

Direct mail campaigns

Previous renters

Is A Rental Property Business A Good Investment?

Investors will know if a rental property is a good investment if their net cash flow remains consistently positive. Seasoned real estate investors know that to have a solid rental plan and business, they must first mind their due diligence and ensure that a rental property is indeed a good investment. There are several measurements available to help investors get an idea of the profit-making potential for a property. Make use of 10 real estate calculators that are helpful for any type of real estate investor.

Features of Successful Rental Properties

You don’t have to reinvent the wheel to be successful. Many successful rental properties can serve as a model for your business. Here are some distinct features of profitable rental properties:

Location: Real estate is always about location. The location of your rental property will be a major determinant of the type of tenants you will attract. For example, if you purchase a rental property at the edge of a university, you’ll naturally get applications from many college students. Consider the neighborhood and how it could influence your tenant profile, behavior, income, and vacancies.

Taxes: The location will also influence the property taxes that you end up paying. High property taxes may be well-worth it if your property is located in a great area that attracts high-paying tenants. However, property taxes could be a burden if your financials don’t make sense. Find out your property tax rate by contacting the local assessor’s office.

Schools: The ratings of local schools will help indicate what type of tenants you’ll attract. Rental properties near distinguished school systems will help draw in families willing to pay higher rental rates.

Safety: No one wants to walk home while constantly checking over their shoulder, or living in fear that their car will get broken into. Check local crime statistics and pay attention to trends. A reg flag could be a stead increase in criminal activity, even if it’s in a neighborhood that was known to be safe in the past.

Employment: A hot job market can help draw in larger groups of tenants, thus creating a healthy demand for your property. This could bring in benefits such as higher rental rates and lower vacancy rates. Growing employment opportunities can also boost your local economy and local amenities.

Local amenities: Tenants are constantly looking to balance rental rates with quality and easy of life. If your rental property is located near public transit systems, shopping, restaurants, gyms, and entertainment, you may find yourself having to field competitive offers from many tenants.

Economy: The local economy and horizon of industrial developments can also be a good indicator of rental property performance in a given area. The resulting improvement of local infrastructure could vastly improve the neighborhood and tenant pool. However, watch out for noisy construction that could hurt rental rates temporarily, plus new housing developments that could put a strain in competition.

Rental rates: Be sure to research a local neighborhoods average rental rate. This number can help you conduct a financial analysis to determine whether owning a rental property in the area would be feasible. Be sure to factor in costs such as property taxes, maintenance, repairs, and mortgage payments.

Vacancy rates: If you notice that the neighborhood has an abnormally high number of listings, it could signal that demand is low and vacancy rates are up. You may not want to invest in an area that is on the decline.

How To Determine Rent

Rent can typically be determined by analyzing other properties in the area. Start by reviewing the average rental rates, and then look at similar units to see what they go for. Pay attention to properties with the same number of bedrooms, bathrooms, and amenities. This will give the best idea of what you can charge.

Another approach is to take your monthly loan repayment as a baseline, and raise the rate to cover maintenance and repairs. Maintenance costs can vary significantly, so again pay attention to the typical market. If your rental property is in a college town, you may want extra room for maintenance. However, if you already know you are renting to a tenant you know you may be able to leave less room for repairs.

The final number should stay in the range of other properties in the area. However, they may be some wiggle room to decide exactly where to land for your own property. Just remember: charge too much and you risk vacancies, charge too little and you lose out on valuable income. If you want to learn more about determining rent , be sure to read our guide.

Confidence isn’t simply a positive mood based on affirmations and “feel-good” mantras. Confidence, according to Webster’s Dictionary, is the “state of feeling certain about something.” As you learn how to start a rental property business , there may be no greater confidence-booster than a business plan that comes to fruition. By mapping out your precise goals—and the systems you’ll employ to achieve them—you’ll find wealth-building objectives more attainable than you ever thought possible.

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Guide to Portfolio Building

Starting and growing a real estate portfolio the right way, how to start a real estate business in 10 steps [updated 2024], investor's guide to the real estate contingency contract.

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.

Rental Properties Business Plan Template

Written by Dave Lavinsky

Rental Property Business Plan

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their rental property business. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a rental property business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Rental Properties Business Plan?

A business plan provides a snapshot of your rental property 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 You Need a Business Plan for a Rental Properties Business

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

Sources of Funding for Rental Property Companies

With regards to funding, the main sources of funding for rental properties are personal savings, credit cards, mortgages, 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 rental property 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. Venture capitalists will not fund a rental property company. They might consider funding a rental property company with a national presence, but never an individual location. This is because most venture capitalists are looking for millions of dollars in return when they make an investment, and an individual location could never achieve such results.

Finish Your Business Plan Today!

How to write a business plan for a rental property company.

Your business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of rental property you are operating and the status; for example, are you a startup, or do you have a portfolio of existing rental properties that you would like to add to?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the rental properties industry. Discuss the type of rental property you are offering. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of rental properties you are offering.

For example, you might offer the following options:

• Single family homes – This type of rental property is often owned by a single individual, rather than a company, who acts as both landlord and property manager.
• Multi-family properties – These types of properties can be subcategorized by the number of units per site. Buildings with 2 – 4 units are the most common (17.5%), while multistory apartment complexes with more than 50 units represent the next-largest, at 12.6% of the industry.
• Short-Term Rental properties – These are fully furnished properties that are rented for a short period of time – usually on a weekly basis for vacation purposes.

In addition to explaining the type of rental property you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include occupancy goals you’ve reached, number of property acquisitions, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the rental properties industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the rental property industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your rental property business plan:

• How big is the rental properties industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your rental property. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population or tourist arrivals.

Customer Analysis

The customer analysis section of your rental property business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: households, tourists, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of rental property you offer. Clearly, vacationers would want different amenities and services, and would respond to different marketing promotions than long-term tenants.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.  

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other rental property companies.

Indirect competitors are other options customers may use that aren’t direct competitors. This includes the housing market, or hotels. You need to mention such competition to show you understand that not everyone who needs housing or accommodation will seek out a rental property.

With regards to direct competition, you want to detail the other rental properties with which you compete. Most likely, your direct competitors will be rental properties in the vicinity.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What lease lengths or amenities do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior properties?
• Will you provide services that your competitors don’t offer?
• Will you make it easier or faster for customers to book the property or submit a lease application?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a rental property business plan, your marketing plan should include the following:

Product : in the product section you should reiterate the type of rental property business that you documented in your Company Analysis. Then, detail the specific options you will be offering. For example, in addition to long-term tenancy, are you offering month-to-month, or short-term rental?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the properties and term options you offer and their prices.

Place : Place refers to the location of your rental property. Document your location and mention how the location will impact your success. For example, is your rental property located in a tourist destination, or in an urban area, etc. Discuss how your location might draw customer interest.

Promotions : the final part of your rental property marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your rental property business, such as customer service, maintenance, processing applications, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect 100% occupancy, or when you hope to reach $X in sales. It could also be when you expect to acquire a new property.  

Management Team

To demonstrate your rental property business’ ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in rental property management. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in real estate, and/or successfully running small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you have 1 rental unit or 10? And will revenue grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $200,000 on purchasing and renovating your rental property, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $200,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a rental property business:

• Location build-out including design fees, construction, etc.
• Cost of equipment like computers, software, etc.
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your property blueprint or map.  

Putting together a business plan for your rental properties company is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the rental property industry, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful rental properties business.

Rental Properties Business Plan FAQs

What is the easiest way to complete my rental properties business plan.

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

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of rental property business you are operating and the status; for example, are you a startup, do you have a rental properties business that you would like to grow, or are you operating multiple rental property businesses.

Don’t you wish there was a faster, easier way to finish your Rental Properties business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.  

Click here to see how Growthink’s professional business plan consulting services can create your business plan for you.

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• A Step-by-Step Guide to Writing a Rental Property Business Plan

If you’re planning on buying rental property, you’re going to need a business plan.

While this, admittedly, sounds incredibly dull and complex, creating a business plan can often separate the best real estate investors from the rest.

Although it may be tempting to dive right in and start earning your (hopeful) millions right away, a rental property business plan can massively increase your chances of success and help you make the right decisions.

And the best part? It doesn’t have to be complicated. By reading this article, you can find out how to build the perfect rental property business plan in just six simple steps.

Topics on this page include:

• Buy to let business plan example
• How to write a rental property business plan
• How to pick the right area for an investment

We’ve also created a downloadable (and completely free) property business plan template. All you need to do is fill out your details in the sign-up form below for instant access!

Without further ado, let’s find out how to write a plan to start building a rental property business.

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• What Is a Property Business Plan and What Does it Consist of?

Before you make any decisions, let’s quickly explain what a property investment business plan consists of, and why you should spend the time making one.

Simply put, a rental property business plan outlines what you hope to achieve with your venture.

It doesn’t have to be a 30-minute PowerPoint presentation or a 1,000-word essay. In fact, the most effective business plans are simple, concise, and easy to commit to memory.

To make an effective one, there are three central aspects to make an ideal rental business plan.

You’ll need to think about:

• Where you are now – this includes your available finances and how much money you’re willing to spend.
• Your goals – think about where you want to get to, which can include an accurate financial goal to help you achieve specific dreams.
• Your chosen strategy – by picking the right strategy that aligns with your goals, you’ll be able to bridge the gap between your current situation and your dream after real estate investing.

We’ll discuss each of these, plus two effective tips, in the following five sections.

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• Step 1: Assess Your Starting Point 

Every journey has a start point, and knowing yours will help determine exactly what sort of rental property investment you’re aiming for.

To complete this step, there are a few questions you need to honestly ask yourself.

• How much money do you have to invest?
• How much time do you have available to manage your property?
• Do you have the needed skills and knowledge to be an effective landlord?

The first point is likely the most important: Can you afford this investment?

This includes assessing your available funds, thinking about how much you’re willing to spend, and working out how you will pay for your investment.

The reality is property can be expensive, surpassing over £285k in March 2023, which was £11,000 higher than in 2022.

In our blog post,  how much money do you need to invest in property , we calculated that you’ll need about £30k as a minimum to buy a property worth £100k, which is on the lower end of the spectrum.

That’s not to mention the ongoing costs you’ll likely need to contend with, including potential ground rent, property management costs, maintenance costs, and mortgage payments.

Be sure to speak to a mortgage broker to determine what sort of finances you have available, and ensure you set some money aside (six months’ wages is recommended) in an emergency fund to help you enter your first property investment with a better sense of financial security.

With a clear view of your finances in order, you can start accurately assessing opportunities on the property market and start fleshing out your rental property business plan.

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• Step 2: Think About Your Goals 

Once you know what you’re starting with as an investor in terms of budget and knowledge base, the next step of your property business plan should look at your goals.

Setting goals is an essential part of any property journey as it allows you to outline the reasons why you’re investing and paint a clear picture of what you hope to achieve.

It goes without saying that the main reason that a lot of people invest is to make money, but it’s important to look a little deeper than that for your investment property business plan.

When creating a property business plan, the most common investment goals are as follows:

• Saving an attractive retirement fund.
• Saving money for life events.
• Increasing disposable income and passive income for financial freedom.

But while having these goals in mind is important, the best way to develop your rental property business plan is to put actual numbers behind each goal.

Instead of saying, “I want to have more money each month to fund my lifestyle” you should assess deeper and put a number behind this – let’s say £5k a month.

By doing this, you can accurately assess your local housing market and start building your property portfolio to see what real estate will effectively contribute to this figure.

You also should think about when you want to achieve your goals, which can have a huge impact on the type of property you choose.

Let’s go over two example properties.

• A purpose-built student apartment in the city centre that is generating 10% annual returns through rental income but won’t grow too much in value.
• A family home on the outskirts of a city that generates a 5% NET positive cash flow and has huge potential for further capital growth.

In these scenarios, someone hoping to increase their monthly rental income over the next three years would be more suited to the first.

However, those real estate investing for retirement funds would likely want to take the risk and wait for a long period to enjoy a huge cash payout on the family home.

Aside from the money you will have generated, think about your personal goals.

Do you want to be a skilled property professional who manages their rentals with a hands-on strategy and takes on landlord duties on a number of properties? Or do you want to own a portfolio of properties with a hands-off strategy, working with a rental/letting management company that takes care of all of the day-to-day duties?

If you have another career that you think will dominate a lot of your time and attention in the foreseeable future, your personal goals may be more fitted to an investment property business plan that allows you to juggle both your career and your investments.

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• Step 3: Create Your Strategy 

Step three of your property venture journey is likely going to be your most important and is often the main factor that separates the most successful investors from the biggest failures.

For most people’s goals, one property simply won’t be enough, with the average UK rental income valued at £1,199 per calendar month according to the HomeLet rental index.

This is why it’s a smart idea to come up with a strategy to fulfil your long-term ambitions to flesh out your property portfolio.

You can do this in several ways.

• You can save up your rent and reinvest the profit into a new real estate venture.
• You can buy properties with lower property prices, at auction or off-plan, to increase your purchasing power.
• You can flip houses, which means buying properties at a lower market value, adding value, and then quickly re-selling to boost your available cash.

By having a clear vision like this, you will avoid getting stuck in an investment that doesn’t further your goals and can instead focus your time and money on making a good investment.

Choosing a strategy can also involve specifically deciding what type of property you want to invest in.

When it comes to real estate and creating a buy-to-let business plan, there are several different strategies you can consider in your investment decisions – each being differently suited to your skillset and investment goals.

These can include:

• Residential buy-to-let – the most standard form of buy-to-let that involves buying a flat or house and renting to a tenant. This type of property usually offers the best blend of cash flow and capital growth potential.
• Purpose-built student accommodation – Another popular type of investment property that consists of buying a property and renting solely to student tenants. PBSA offers lower property prices and comparatively higher rent prices than traditional buy-to-let but has less capital growth potential.
• HMOs – a house of multiple occupancies is rented out to multiple tenants, increasing potential cash flow and ROI. However, HMOs can be complex, with a tonne of legislation in place that beginner investors may find intimidating.
• Commercial buy to let – involves the purchasing of an office block or retail space and renting to a company. Commercial properties have longer lease lengths than traditional buy-to-let, but it can be much harder for investors looking to secure financing from buy-to-let mortgages.

If you want to learn more about your options for choosing a rental property, be sure to check out our top 10 list of the best property investment strategies in 2024.

Along with the investment strategy itself, you should also think about your exit strategy.

An exit strategy outlines how and when you plan to exit your investment, which, with a property business plan, will mean selling the property.

Again, your investment goals will play a part in this decision. If you hope to generate as much money as possible for retirement, your exit strategy should look at selling the property sometime before you retire.

Spend some time researching exit strategies to better incorporate this into your buy-to-sell or buy-to-let business plan.

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• Step 4: Action Your Buy to Let Business Plan With a To-Do List 

Now that you’ve got a business model in place and have nailed the planning process, it’s time to action your business plan.

But where to start? While it might seem daunting for many investors to action their solid plan, the best tip possible is to break down your goals into small actionable individual tasks.

Although your overall goal may be to, say, earn £5,000 a month, you’ll need a series of achievable sub-goals in place before you can reach your golden number.

These sub-goals could be anywhere from securing your first property within three months from now, finding tenants, or simply securing a mortgage broker.

By setting out these goals, you’ll have a much clearer financial plan and vision for your rental property business.

The best way to achieve these goals is to create a to-do list of every task you need to do, both one-off and recurring tasks. You should break some of these tasks into even smaller tasks so you constantly feel like you’re making progress.

For instance, let’s say you decide that you want to buy a city centre apartment for your first investment.

You should first allocate the amount of time you want to do this each day and break down your time into individual websites.

As an example, your tasks could be:

• Search Rightmove for 20 minutes
• Search Zoopla for 20 minutes
• Search RWinvest for 20 minutes
• Bookmark/favourite any properties that catch your eye.
• Contact the estate agents/ sales agents to learn more about the properties.

With this, you’ve got a clear pathway, know exactly what you’re going to do, and can tick off each task as it’s completed. Soon enough, you will find the perfect rental property for you, and it will be well underway to create the dream property business.

It’s also important to address that not every task needs to be completed by you. In fact, while you could certainly achieve every aspect of property investment as an individual, if you don’t have the skillset, it would be a mistake not to outsource or reach out to others for help.

For example, if you have a full-time job or don’t have the necessary skills to fulfil your landlord responsibilities, you could hire a property manager. By doing this, a property manager will handle all day-to-day duties and can find tenants on your behalf.

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• Step 5: Choose the Right Location for Your Target Tenant 

The next step in creating an ideal real estate investment group business plan is to decide on what location you’re investing in.

While many landlords fall into the trap of buying a property that’s close to where they live, this could be a mistake, with the UK rental market notorious for having huge regional variations.

These regional variations can impact every aspect of a property venture, with variations in the rent price you can charge, the purchase price of the property, rental demand, and capital growth.

You’ll want to target the best area possible and consider rental properties with the highest chance of attracting your target tenants.

For starters, let’s discuss how to evaluate if an area is worth an investment. You can do this in a few ways.

• Research the average property price in the area – You can do this using sites like Zoopla, Rightmove, or the UK House Price Index.
• Research the average rent in an area – This will be a good indicator of how much you can expect to charge, and you can find this on sites like Zoopla and the HomeLet rental index.
• Look at past house price growth as an indicator of future growth potential – You can find this on the UK House Price Index, which shows average house prices every month, all the way back to 1968.
• Think of tenant demand – This is a harder measure to find, but a good indicator is looking at how many rental properties there are in an area and the population, with lots of young people a good indicator of a strong rental market.
• Familiarise yourself with future capital growth potential – You can achieve this by looking at the latest market predictions from experts like Savills or JLL.

Based on these criteria, the current best locations for rental property include Liverpool, Manchester, Birmingham, Leeds, and Luton. You can learn more by checking out our top 10 list of the  best places to invest in property.

If you live away from any of these areas but still want the benefits involved with starting a rental business there, you can always hire a property management company to fulfil all your landlord responsibilities.

Here at RWinvest, we have helped a huge amount of foreign investors who are looking to invest in areas like Liverpool and Manchester.

Remember, though, that you should avoid buying too many similar properties in one area, no matter how attractive it seems. This is because if a local property market tanks, you don’t want all your eggs in one basket.

To avoid this, it’s a smart idea to diversify your portfolio. You can do this by buying a mixture of student properties and residential properties, and buying them in different areas like Liverpool or Manchester.

Thinking of Your Tenant

While picking the right location is an important step in your rental property business plan, it’s not enough to guarantee a successful investment. For this, you’ll need to think about what your tenant wants from their home and pick a property that aligns with these wishes.

This is true whether you’re buying single-family homes or a city centre apartment targeting young professionals.

Covid-19 and the resulting lockdowns have changed a lot of tenant priorities, with research from Benham and Reeves finding that high-speed WiFi, outside space, and proximity to outside green space is now the top three demands from tenants.

This is significantly different to previous rankings, which saw nearby transport links, fast broadband, and onsite security as the top three.

While it’s a good idea to have a property that offers all tenant priorities, it’s essential you provide the top three desires to maximise your success potential.

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• Step 6: Consider Forming a Limited Company 

The final step in your rental business plan is to decide if you’re going to form a limited company.

Forming a buy-to-let company has become incredibly popular over the last few years, with 2021 and 2022 breaking the record for the number of new companies set up by buy-to-let landlords.

This is for a good reason, too, with limited companies allowing some investors to save thousands on taxes by paying corporation tax instead of income tax and having access to more mortgage interest relief.

However, there are several downsides to starting a limited company, which include being taxed for taking money out of the company, no capital gains tax allowance, and difficulties securing a buy-to-let mortgage.

While forming limited companies isn’t usually beneficial for those only owning a single property, investors looking to build a property empire could see far higher profits from forming one.

You can learn more about this by reading our full guide on  buying property through a limited company.

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• Conclusion 

We hope you’ve enjoyed this article about how to write a rental property business plan.

In summary, an effective plan is simple, has a clear intent, and is broken down into smaller tasks.

You can create a property business plan in just six steps.

• Assess your starting point 
• Think about your goals 
• Create your strategy 
• Action your buy to let business plan with a to-do list 
• Choose the right location for your target tenant 
• Consider forming a limited company  

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• Take the Next Steps With RWinvest in 2024

Once you’ve created a detailed and considered property business plan, you should think about getting started with your investment and putting your business plan for buy to let into action.

The first step in actioning your investment is normally to find a property to invest in, and it’s important to focus on finding an opportunity that’s likely to bring you the highest returns possible.

That’s where RWinvest can help.

Here at RWinvest, we have a range of great investment properties in lucrative UK property investment hotspots, Liverpool and Manchester.

Offering assured yields of up to 7% and prices starting at £154,950, browsing our range of investment opportunities is a great way to put your business plan for buy to let into action.

Get in touch today for a free chat with one of our property consultants and get started with your property investment journey.

For more informative content and guides, take a look at the following suggestions:

• The Best Way to Invest £100k 
• The Best Places to Retire in the UK
• Top Tips for Getting Started in Property Investment

Reece Pape is a property writer at RWinvest. Reece is passionate about keeping property investors updated on must-have information and housing market news, utilising the latest property market statistics and data.

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Moscow-City – The Moscow International Business Center

• 3 years ago

Moscow-City is an iconic location for life and work in Russia’s capital. Enormous skyscrapers, business centers, the best restaurants and retail spaces – all this is concentrated in one place. The ultramodern Moscow-City towers are truly striking in their outward appearance, and the layout of the apartments inside and the fantastic views that can be seen from the higher floors are nothing short of impressive.

This skyscraper compound, often referred to as Moskva-City, is the Russian take on Manhattan, where businessmen strike multi-million dollar deals daily while ordinary life goes on next door. Its state of the art spaces offer the ultimate convenience. The infrastructure of this business district is so well-developed that anyone can find something interesting for themselves here: from residential apartments to boutiques, clubs, exhibitions and more.

When the foundations for the Moscow-City skyscrapers were laid, a special kind of concrete was used, the properties of which are amplified by many times compared to standard concrete. Even in the event of a plane crashing into one of the buildings, the structural integrity of the towers will be preserved.

The architects of the Moscow-City Business Center have created a unique locality that has integrated into itself the hub of the capital’s business life and a whole ensemble of historical monuments. Anyone can admire the beauty of these skyscrapers from within or without the compound. There are also a number of apartments for sale or rent available in the MIBC itself. But first, let’s have a look at some more interesting facts about the financial core of Russia’s capital.

How It All Began

The history of Moscow-City goes all the way back to 1992. The government of Moscow at the time wanted to bring into existence its own skyscrapers like the ones in London or New York. And the idea caught on. In 1992 the project for the construction of the huge “Moscow-City” MIBC compound was enthusiastically approved, kick-starting the painstaking preparatory works. The original intention was that the skyscrapers would only house office space. However, as time went on, the towers began to welcome in ordinary residents who wanted to live on the territory of this business and finance hub.

Moscow-City is undoubtedly a city within a city. Its grandeur is mind-boggling. It is perfect in every way: from location to infrastructure. And today, anyone can get a feel of the atmosphere of the “capital city” of Russia’s business world – many of the apartments in Moscow-City are available for rent. Any citizen of Russia and even nationals of other countries can make use of these offers.

What It’s Like in 2021

Today Moscow-City is not just a magnificent and fascinating sight, but also a real hub for the work, life and leisure of thousands. Its infrastructure is organized in such a way that there is no need to leave the territory of the “city within a city” at all. This business district contains everything one may need for work and recreation. And if one does decide to venture out into the larger metropolis, the MIBC’s three subway stations make this remarkably simple to do.

Moscow-City stands on the Presnenskaya Embankment . Each of the buildings in the district has a name, which simplifies its identification. Some of the buildings form complexes that are united under one name, such as the Neva Towers and the Naberezhnaya Tower complex of two skyscrapers and one high rise. There are a total of 16 towers in the MIBC, of which the most popular are:

• Moscow-City Central Core;
• Tower 2000;
• Evolution Tower;
• Imperia Tower;
• City of Capitals (Moscow Tower and St. Petersburg Tower);
• Steel Peak Tower;
• Federation Tower;
• Mercury City Tower;
• OKO Tower Complex.
• 1 Moscow-City Central Core
• 2 Tower 2000
• 3 Evolution Tower
• 4 Imperia Tower
• 5 Moscow Tower and St. Petersburg Tower
• 6 Steel Peak Tower
• 7 Federation Tower
• 8 Mercury City Tower
• 9 OKO Tower Complex
• 10 Afimall City Shopping Center
• 11 Bagration Bridge
• 12 Expocentre Fairgrounds

Moscow-City Central Core

This is the most complex building within the MIBC compound. Its total floor area is a whopping 1 476 378 sqft (450 000 m²). It consists of two massive parts, each of which boasts a truly impressive infrastructure. The underground part includes 3 Moscow Metro stations, a parking lot for automobiles and a shopping mall. The aboveground part houses a concert hall and a hotel.

Tower 2000 is a skyscraper having 34 stories. Its total floor area is 200 318 sqft (61 057 m²), most of which is office space. The key feature of this skyscraper is its direct connection to the Bagration Bridge, which has its own shopping arcade. The tower has everything one may need while working here, including a large parking lot and several restaurants.

Evolution Tower

This elegant structure is 836 feet (255 m) high – that’s a whole 54 stories! The total floor area here is 554 462 sqft (169 000 m²). The Evolution Tower’s key feature is that it has its own Wedding Hall. This skyscraper houses large office spaces, a parking lot and several restaurants.

Imperia Tower

MIBC’s Imperia Tower is the undeniable focal point of the MIBC’s business life. Its height is 784 feet (239 m), which means one can hold conferences and resolve key business matters on the 59 th floor! And that really is amazing! The tower has everything: offices, hotels, restaurants and parking lots. But if you want a truly unforgettable experience, visit the viewing platform! It is situated on the 58 th floor and a simply astounding view of Moscow can be seen from it.

Moscow Tower and St. Petersburg Tower

The Moscow and St. Petersburg Towers are the chief representatives of the MIBC. The Moscow Tower has 76 stories and is 990 feet (302 m) high, while the St. Petersburg Tower has 65 stories and stands 843 feet (257 m) tall. Both towers offer fantastic views of the capital city.

Most of the floors of these two skyscrapers are taken up by luxurious sky apartments. There are also several recreational and entertainment centers, office spaces, restaurants, etc.

Steel Peak Tower

Also known as the Eurasia Tower of Moscow-City, this supertall skyscraper has a total of 680 912 sqft (207 542 m²) of floor space. Most of this is taken up by offices, and the rest – by residential quarters (around 65 616 sqft or 20 000 m²). The tower also houses a number of the greatest restaurants, studios and shopping centers.

Federation Tower

The Federation Tower is a complex of two skyscrapers, known as Tower East and Tower West. Tower East is the second highest building in Europe (the first is a skyscraper recently erected in the city of St. Petersburg). Its height is a colossal 1 223 feet (373 m) and that makes 95 stories! Tower West, on the other hand, is noticeably shorter at 794 feet (242 m).

The Federation Tower is a multifunctional complex.

Mercury City Tower

The Mercury City Tower skyscraper is widely known as one of the tallest buildings in Europe. Its height is 1 112 feet (339 m) and it has 75 stories. It is multifunctional by concept, holding within its walls shopping centers, offices and all kinds of other spaces. It is also possible to rent apartments here.

OKO Tower Complex

The OKO Tower Complex consists of two towers – the North Tower (49 stories and 803 ft or 245 m in height) and the South Tower (85 stories and 1 155 ft or 352 m in height).

Each of the MIBC’s tower complexes has its own recreational and entertainment areas, restaurants and parking lots. The top floors of most of these buildings contain luxurious fully-furnished apartments. At night, the towers shine with bright lights, while inside them the panoramic windows reveal astounding views of Moscow. This breathtaking view of the capital of Russia is why visiting Moscow-City is a must!

What Not to Miss

There are many interesting landmarks within the Moscow-City compound, but three of them are truly deserving of special attention:

• The Afimall City Shopping Center;
• The Bagration Bridge with two galleries and a shopping arcade;
• The Expocentre Fairgrounds.

Afimall City Shopping Center

The Afimall City Shopping and Entertainment Center is located in Moscow-City’s Central Core. It is divided into 4 zones, each with its own theme – one for every season of the year. The shopping center houses the biggest indoor fountain found worldwide. The height of this watery wonder is 118 feet or 36 meters.

The shopping and entertainment center contains everything one might expect from one of the largest centers of its kind:

• Retail brand stores;
• Exhibitions;
• Game rooms;
• and Restaurants.

The main recreational space is roofed with a giant transparent dome, which is an impressive sight to behold.

Bagration Bridge

Bagration Bridge with its upper and lower galleries has a shopping center all of its own and was the first structure to be built as part of the Moscow-City business district. Its lower gallery is a shopping arcade and its upper gallery is an open-air viewing platform with a spectacular view of the MIBC and the Moskva River. The hall of the bridge houses the 23 foot tall sculpture called “Tree of Life”. Having gone through the bridge via either one of its two galleries, a pedestrian would find themselves standing right on the Kutuzovsky Prospekt.

Expocentre Fairgrounds

The Expocentre Fairgrounds exhibition venue is located at the very heart of the capital. The first exhibition held at the Expocentre happened all the way back in 1959, much earlier than the MIBC was erected. Today it is the venue of many interesting events.

Exhibitions with very diverse themes are regularly held at this complex. An up-to-date schedule can be found on the official webpage of the Expocentre. The events can be free or fixed-price entry, depending on their type.

Renting and Buying Real Estate in Moscow-City

Moscow-City is not only a work and business hub, but also a residential neighborhood. Any citizen of Russia can rent or buy apartments or elite sky lounges here. The variety of residential real estate available inside the skyscrapers is impressive, including options for any pocket. The following buildings in the MIBC contain residential blocks:

This skyscraper has a mirror glass façade which reflects the passing clouds. Just imagine how beautiful that looks! Anyone can buy an apartment in the Federation Tower. Such properties are not only a good investment, but also a mark of prestige. The average price of residential real estate here is 45 million rubles for an apartment with a total floor area of 334 sqft (102 m²). The average price of a square meter (3.28 square feet) is in the range of 650 to 700 thousand rubles. There are two- and three-room apartments available in the Federation Tower, each with its own loggia. As for rent, the minimum price of one month’s stay in a three-room apartment in this skyscraper is 300 000 rubles per month.

The Mercury City Tower skyscraper welcomes citizens from all parts of Russia. This building is no less tall than the world-famous Dubai skyscrapers. Living in its apartments is a delight. The minimum cost of an apartment in the Mercury City Tower is 75 million rubles. The average price of a square meter (3.28 square feet) is 800 thousand rubles. And for those looking for a lower price point, some of the properties are also available for rent – in this case you will pay a minimum of 250 thousand rubles per month.

The Imperia Tower is a key cluster of interesting offers. The best options for buying and renting apartments within the MIBC can all be found in this skyscraper. The lowest price of a residential apartment here is 40 million rubles. A square meter (3.28 square feet) in a luxurious apartment in the Imperia Tower currently costs 600 thousand rubles, while the price range of the listings available for rent in this skyscraper is from 350 thousand all the way up to 1 million rubles per month.

This complex, standing on a faceted or “crystal” base, is an architectural engineering project boasting spectacular design. Behind its impressive façades is an abundance of penthouses and apartments having floor areas in the range of 262 sqft (80 m²) to 984 sqft (300 m²). The minimum price of an apartment in the OKO Tower Complex is 40 million rubles (the price of a square meter (3.28 square feet) is 500 thousand rubles). You can rent an apartment here starting from 400 thousand rubles per month.

City of Capitals

The City of Capitals is an exemplary architectural complex. Its sum appearance gives the impression of a huge city. Inside its walls are spacious apartments available for purchase and rent. This complex is considered to be especially prestigious. The prices of apartments here start from 50 million rubles, while the minimum cost of renting is 400 thousand rubles per month.

Please note! The price of real estate available for purchase or rent depends on: the tower, the floor, the total floor area, the furnishings and/or interior design, and other factors.

The key advantages of buying/purchasing real estate in Moscow-City are:

• Favorable location;
• Convenient transportation links;
• Well-developed infrastructure;
• High safety level;
• Efficient architecture;
• Panoramic windows.

Buying real estate in Moscow-City is very much a rational decision, most appealing to those who value the ultimate level of comfort. The residential apartments here boast impressive interior design solutions executed in the contemporary style.

Related posts

Property tax in russia, the best international schools in moscow.

Our Rating of the Best Districts of Moscow for Living In

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Microsoft's going to keep spending big as AI continues to boom

• Microsoft plans to boost spending on artificial intelligence and cloud services as demand rises.
• The company made $26.7 billion in revenue this quarter from cloud products, including Azure.
• Microsoft's spending commitment follows leaked plans to acquire 1.8 million AI chips this year.

Microsoft isn't slowing down its artificial-intelligence spending spree anytime soon.

In its third-quarter earnings call on Thursday, the tech giant said it would continue to invest in AI and cloud services because of growing demand and a rise in average spending on its cloud platform, Azure.

Amy Hood, Microsoft's chief financial officer, said on the call that capital expenditure — what a company spends on buying or maintaining assets — would increase "materially."

Related stories

"Currently, near-term AI demand is a bit higher than our available capacity," Hood said.

The company spent nearly $11 billion on property and equipment in the third quarter — 66% more than it spent in the same period a year ago.

Microsoft booked $26.7 billion in revenue in the third quarter from its cloud products, including Azure , according to the earnings statement.

The AI assistant Copilot grew its paid subscribers by 35% this quarter to 1.8 million, CEO Satya Nadella said on the call.

Microsoft's better-than-expected earnings sent stock up 4% in after-hours trading. Both revenue and earnings per share beat Wall Street estimates.

The company's plans to spend more come on the heels of other big commitments to developing AI. Last week, BI reported on leaked documents showing the company planned to obtain 1.8 million AI chips by the end of the year and ramp up its data-center capacity .

The explosive interest in generative AI and foundation models is fueling a need for more data centers , including from the Microsoft partner OpenAI , the startup behind ChatGPT and GPT-4 .

AI models need to be trained on mountains of data, which requires thousands of graphics processing units produced by companies such as Nvidia. Microsoft is designing its own chips to reduce its reliance on Nvidia.

Watch: How tech layoffs could affect the economy

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South Carolina Senate wants accelerated income tax cut while House looks at property tax rebate

South Carolina Senate Finance Committee Chairman Harvey Peeler, R-Gaffney, talks about the Senate’s budget plan on Thursday, April 18, 2024, in Columbia, S.C. (AP Photo/Jeffrey Collins)

South Carolina Senate Finance Committee Chairman Harvey Peeler, R-Gaffney, right, talks to Quentin Hawkins on the committee about the Senate’s budget plan on Tuesday, April 23, 2024, in Columbia, S.C. (AP Photo/Jeffrey Collins)

South Carolina Sen. Mike Fanning, D-Great Falls, prays before the start of the Senate session on Tuesday, April 23, 2024, in Columbia, S.C. (AP Photo/Jeffrey Collins)

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COLUMBIA, S.C. (AP) — The South Carolina Senate started debating a budget Tuesday that accelerates a planned income tax cut instead of the House plan to use $500 million to give homeowners a one-time property tax rebate.

Once the spending plan passes the Senate, a group of three House members and three senators — likely including the leaders of each chamber’s budget committee — is going to have to sort out the differences over the next month or so with the tax break and other items in South Carolina’s $15.4 billion spending plan for next budget year.

Republican Senate Finance Committee Chairman Harvey Peeler has called the competing tax breaks a wonderful problem to have in the 2024-25 fiscal year budget, which again left lawmakers with a substantial pot of additional money to spend.

But Peeler has left little doubt he thinks spending $100 million to knock the income tax rate most people pay in the state from 6.3% to 6.2% is the right move, saying it lasts forever compared to a one-year drop in property tax. The state is in the middle of a five-year effort to cut its top income tax rate from 7% to 6%.

The money involved comes from an account meant to provide property tax relief. Sales tax goes into the fund, and a boom in spending during and after the COVID-19 pandemic has left the account flush with cash.

The House budget suggested giving the money back as a property tax rebate. But county officials worry property tax bills will snap back next year and homeowners will be angry at them.

Along with $100 million in income tax cuts, the Senate plan spends the $500 million on roads and bridges, local water and sewer system repairs, and other items.

Another item the budget conference committee will have to resolve is how much of a raise state employees get. The Senate plan would give state employees making less than $50,000 a raise of $1,375 a year. Workers making more than that would get a 2.75% boost in pay. The House plan gives a $1,000 raise to workers making less than $66,667 and a 1.5% raise to those who make more.

Last year, there was a monthlong showdown over the differences in the budget about how much money should be given to start work on a new veterinary school at Clemson University. It led to a tense meeting and accusations of who cared about people and education more before a compromise was reached in early June.

One point both chambers agreed on is raising teacher pay. Both spending plans set aside about $200 million. Every teacher would get a raise and the minimum salary for a starting teacher would be increased to $47,000 a year. The budget also would allow teachers to get a yearly raise for each of their first 28 years instead of their first 23.

Other items in the Senate plan include $36 million to the Department of Juvenile Justice for security and prison improvements, as well as $11 million to put technology to find unauthorized cellphones in maximum security prisons and have providers block those numbers likely being used by inmates.

There is $175 million to finish work on the new school for veterinary medicine at Clemson University and $100 million for a new medical school at the University of South Carolina.

Senators set aside nearly $5 million for a forensic audit and other help to determine where $1.8 billion in a state Treasurer’s Office account came from and where it was supposed to go.

There is $11.5 million to protect the integrity of the 2024 election and $12.5 million to upgrade election systems.

The Senate budget is “balanced not only in arithmetic; it’s balanced on the needs of the state of South Carolina,” Peeler said. “First tax relief, second public education and third infrastructure.”