1.1 The Business
Au Fait Property Management Concourse, owned by Jnexty Oloingoru, will be a property management business based in Beverly Hills, California. The business will be aimed at administrating our client’s property and finding suitable tenants for them after doing necessary background checks. It also includes taking measures to update the property and making essential repairs from time to time.
If you are looking for rental property management business plans to get a know-how of how to start this business you can take help from here. In this sample property management business plans template you can learn the entire working and financial plans of the startup, Au Fait Property Management Concourse.
Market and Competitors Research
An essential step to be taken before starting any business is to research on what your competitors are doing. According to a report by IBISWorld more than 275k property management businesses are running in the United States and they all were successful enough to collectively generate a revenue of $75 billion in the year 2019.
The stats though also report an annual growth rate of 0.5%, are still concerning because they also indicate that you need to come up with extraordinary features to stand out in the tough competition.
2.1 Additional Features You Can Add to Your Property Management Services
Generally, such businesses look after the real estate of those who have their assets in various cities and can’t manage all on their own and also of those who don’t want to just handle unreasonable tenants and ask them for rent. So in order to be ahead of your competitors, you must have to add some additional features to your business so that you can become a valuable choice for your customers.
Here are some measures suggested by Au Fait Property Management Concourse to have a lead upon all of its competitors:
- Be detail-oriented and pursue excellence in every deal no matter how small it is
- Connect to estate owners personally to retain long-term relationships
- Find great communicators who can efficiently interact with others
- Buy or seek software services of a property management software so that the owners can be constantly updated through digital records of transactions, scripts, documents, images, and videos. Through which tenants can also be able to record their complaints and issues and they can be reminded about their dues through notifications
Identify your Clients
If you are thinking about opening a real estate business you must know with whom you are going to deal with. Generally, there are three groups of people with whom you’ll have to interact.
3.1 Landlords: Many owners don’t want to keep their property vacant but also want to be free from the laborious task of finding tenants and handling them if they are troublesome. Therefore, the first group that can approach your property management business is comprised of the landlords who either have their assets in several cities or who have their assets in the same city where they live but find it hard to maintain all of them and manage tenants.
3.2 Renters: The second group comprises of the tenants themselves who want a good space to live in but need someone as a middleman to connect them with the owners. People who are in need of renting a house usually contact property management companies because such companies can provide them with several authentic, safe and reasonable choices.
3.3 Contractors: The third category includes those contractors who also have to find tenants for someone else’s real estate but want the task to be done by more efficient and experienced people of this domain.
The base of every startup is to first have a clear knowledge about where you are standing and where you are going to serve. To analyze your position with respect to the already established competitors and to explore the market from every aspect you must carry out a detailed marketing analysis.
Marketing analysis if done effectively, reveals the actual dynamics of a market. It gathers information and estimates the possible economical shifts and shifts in customer’s expenditure trend in near future by manipulating past variations in the economy, trends, and competitors in the market.
Another aspect of effective marketing analysis is that it investigates the strengths and weaknesses of a startup as compared to others and examine the possible opportunities and threats that can come in the way.
4.1 Long-term Benefits
Property management market analysis can affect your startup in the long run as it can impact major decisions. Other aspects of a business that are affected by the market are given as:
- Deciding what should be the promotional activities and property management marketing strategies for business plan
- Coming up with features that can influence owners so they ask you for managing their property
- Acquiring necessary legal documentation to avoid any hurdles
Thus, it’s certain that a startup can’t survive if decisions are not taken wisely – which again is dependent on how well you have explored your target market. So, if you are going to start a property management business, you must hire an experienced marketing analyst to devise a market analysis plan for you. In other cases, if you have a know-how of the marketplace you can do it yourself by studying examples and samples available on the web.
Before you finalize your property management business staff you must look into property management business plans to get a clear idea of which personnel will be needed.
5.1 Company Staff
Jnexty will manage all the staff himself, however, the list of persons he has decided to hire after reading several samples of how to start property management business plans is given here with job descriptions.
- Oversee client’s property
- Identify overhead costs
- Settle rental rates according to market and local rates
- Manage market depreciation costs
- Manage tenant referral program
Property Maintenance Manager:
- Supervise repairing works
- Oversee maintenance and repairing staff
- Upgrade commercial and residential properties by landscaping and modern means to make them look pleasant
Property Management Service Representative:
- Interact with owners and tenants and explaining to them, the company’s strategies
- Publicize vacant properties and locations to attract tenants
- Represent the company on various platforms through presentation and seminars
- Announce job vacancies and hire suitable persons
- Train and assess the performance of the company’s staff
- Monitor overall work division and employees’ hierarchy
- Manage and operate property management software
- Ensure information security for both clients and company
- Manage to assign login IDs and passwords to tenants and respective owners
Company’s Accountant & Financial Advisor:
- Record transactions, receipts of owners and tenants
- Keep a record of the company’s budget and expenses
- Plan discount strategy by analyzing financial stats
Sales & Marketing Officer:
- Advertise company in local newspapers, and on social media
- Discover ventures to reach out more customer groups
- Collaborate with property management services representative to promote the company
Front Desk Officer:
- Receive and guide customers
- Handle phone calls and letters
- Acquire and complete legal documentation
- Advise clients on relevant legal issues
- Provide legal assistance and guidance on all activities
Repairmen & General Staff:
- Work under property maintenance manager to keep up client’s property
- Handle emergencies regarding property and construction
To select potential individuals from a bundle of available resumes Jnexty will be holding some tests and interviews while collaborating with HR Manager. Persons will be employed after making sure that will not prove a threat to the company’s reputation and will not lead to customer dissatisfaction.
5.2 Modern Tools & Inventory
The company will purchase computers, office furniture, transport car, repairing stuff, and other required items two weeks before launch.
5.3 Average Salary of Employees
The company will be paying employees more than its competitors to get top-notch service and output.
|Year 1||Year 2||Year 3|
|Property Manager||$85 000||$90 000||$100 000|
|Property Maintenance Manager||$70 000||$74 000||$80 000|
|Property Management Service Representative||$50 000||$55 000||$60 000|
|HR Manager||$50 000||$54 000||$60 000|
|Software Engineer||$45 000||$50 000||$55 000|
|Accountant & Financial Advisor||$40 000||$42 000||$45 000|
|Sales & Marketing Officer||$40 000||$41 000||$42 000|
|Front Desk Officer||$28 000||$32 000||$35 000|
|Legal Advisor||$34 000||$38 000||$42 000|
|Repairmen & General Staff||$50 000||$60 000||$65 000|
|Total Salaries||$323 000||$348 000||$377 000|
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