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How To Create A Rock Solid Property Management Business Plan

It’s a tired cliché, but it happens to be true. If you fail to plan, you’re planning to fail. Running your business is difficult. You’re being pulled in many directions and there aren’t enough hours in the day to get it all done. Unfortunately, that doesn’t let you off the hook when it comes to planning. You need to have a documented property management business plan if you want to be successful.

Hearing the words “documented business plan” can sound intimidating. It needn’t be. The value of a business plan doesn’t reside in a fancy binder with charts, power point slides, or extensive spreadsheets. The benefits of a solid business plan result from the actions you take and the decisions you make while implementing your plan. Don’t focus on the presentation. Concentrate on the core principles. Be specific and action-oriented.

Here’s an outline of a simple, high-level business plan that will get you started:

1. Overview

  • Profile of the company’s ownership
  • Summary of the current state of your business
  • Stated goals of where you want your business to be in 1, 3 and 5 years (revenue, clients, properties, etc.)

2. Your Company

  • Define why you are in business
  • Detail short and long term goals
  • Outline type of ownership
  • Describe your business model
  • Perform basic SWOT analysis of your company (Strengths, Weaknesses, Opportunities, Threats)

3. Operations

  • Operations structure/organization chart
  • Base services you offer your clients/owners/tenants
  • Value added services you can offer clients/owners/tenants
  • Partnering and subcontracting
  • Fee structure
  • Equipment inventory
  • Maintenance plan

4. Marketing Plan

  • Market you’re targeting (location, property size, rent parameters, target tenants)
  • Competition (services, fees, rents, amenities, special differentiators)
  • Your market positioning
  •  Your Unique Selling Proposition (USP) – What makes you different as a property management firm?
  • Marketing budget
  • Prospecting plan to attract new owners/tenants
  • Website
  • Social media plan
  • Email marketing plan
  • Direct mail plan
  • Networking plan (associations and affiliations)
  • Advertising plan (online, offline, yellow pages, local newspapers)

5. Budget and Financials

  • P&L covering the most recent fiscal year (revenue, material costs, personnel costs, profit)
  • Projected P&L for the next fiscal year by month
  • Balance sheet (equity, accounts receivable, accounts payable)
  • Capital equipment planned expenditures
  • Process for monthly monitoring of P&L actual-to-budget

Going through the process of writing your business plan can be time consuming. It’s the time you spend developing your plan that will ultimately provide value to your business. When you’re finished, you’ll have a comprehensive roadmap to successfully run your property management business.