Investing in real estate is one of the best decisions that you can make for your family and future generations. However, having properties is one thing, and it is yet another thing to have them properly managed. Without proper management, you may not be able to get maximum returns from the properties.
Thousands of real estate investors are in dire need for a property management firm that has the skills and ability to manage their properties. If you have these skills, become independent and make money doing what you love by starting your property management agency. However, before you even get your feet wet into this industry, you need to spend time writing a property management business plan.
How to Write a Rental Property Business Plan
Table of Content
Can you imagine reading a book that does addresses different topics but does not indicate the specific pages that the various subjects are discussed? Wouldn’t it be cumbersome perusing all the pages when looking for a particular topic? The same applies to writing a property business plan; you need to have a table of content to let the target audience know the specific pages that a particular subject has being covered. The table of content should be strategically placed at the start of the business plan. It should be accurate, and so, it is recommended to create it after completing all the other sections of the plan.
When writing a property preservation business plan, it is important to include an executive summary. As the name suggests, this is an overview of the company that you intend to start. Here, indicate the mission, objectives, and the vision that you have for your business. Just like the table of content, it should be placed at the start of the plan. Make sure that each fact in this section is accurate to paint a positive image to the investors. If the goals are unrealistic, you may not get financing from the bank or individual investor.
Three questions that you need to ask yourself when writing this section of your business plan is:
- What do you want to achieve?
- Which property management services do you intend to offer?
- Do you have the skills and capabilities required to run the business?
The market analysis will help you to understand the real estate industry better and position your property management agency well. When carrying out the analysis, you will be able to identify the various challenges, opportunities, trends, and expectations of the target audience. With this information at hand, you will be able to come up with management services that suit your clientele as well as management operations that are in line with their expectations and preferences.
For example, when writing a commercial property business plan, you need to put into consideration the services that are offered by existing firms to identify gaps and opportunities that you can capitalize on to get clients. Note that, without enough clients; you will not be able to support the daily operations of your company.
This is closely related to market analysis, in that it is more comprehensive. It focuses on identifying the strengths, weaknesses, opportunities, and threats to your business that you should be aware of when starting the business. Once it is up and running, you need to carry out the analysis regularly to know if your property management firm is moving in the right direction. During the analysis, you may find out that some of your personnel are not qualified and need to undertake a training course.
When writing the plan, you need to include results of the SWOT analysis to help investors know if your business idea is viable. The trick is making sure that you provide solutions and remedies to the threats and weakness that you identify. Note that most of the investors are well informed about the real estate industry, and so it is important to make sure that the solutions and remedies are accurate and implementable.
Financial projection is a report of the total amount of capital that is needed to register, start, and run a property management agency. For instance, if you are creating a property maintenance business plan, you need to indicate the total amount of money that you will need to offer and market your property maintenance services. The investors will rely on this information when deciding the amount of money that they are going to pump into your business. Hence, it is imperative to make sure that the details are correct.
Just like any other business, you need to reach out to the target audience. Therefore, you need to come up with a plan on how you are going to be marketing your property management services. Nowadays, there are superior marketing platforms and strategies such as social media that property management companies can use to sell their services without spending a fortune. Be sure to include such strategies in your property development business plan to give it an upper hand during the pitching session.
OGS Capital has a team of writers who can write a winning investment property business plan. We do not use templates; instead, we write each business plan from scratch, and this greatly helps to guide our clients to success in the world of business. Fill the quick contact us form to get in touch with our support team.
Illustrative business plan samples
OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.