| As I write this article in November 2009, I must say | | | | perform on a monthly basis for your property |
| that there is no better time to start a property | | | | owners? What will be your monthly fee structure? |
| management business than right now. The real estate | | | | What additional services will you offer such as |
| crisis has caused a number of effects on this industry: | | | | evictions, project management, maintenance and what |
| 1. Houses are not selling, therefore homeowners that | | | | will your fee structure and profit center look like? |
| need to move and/or investors are forced to rent their | | | | Much of your service offering will be developed by |
| units out; thus increasing the rental property supply | | | | performing a complete competitive analysis. Your |
| chain. | | | | offering needs to be correctly place in the |
| 2. Houses are foreclosing by homeowners and being | | | | marketplace to make yourself unique. You should |
| bought by investors that in turn rent the property out. | | | | know your competitions monthly fee structure, how |
| This increases the amount of supply as well. | | | | many properties they manage, number of managers, |
| 3. The homeowners that were foreclosed upon will | | | | etc. |
| now be renters. Thus increasing the rental pool and | | | | 4. Marketing Plan - Bottom line: Your plan for how to |
| increasing demand. | | | | attract clients. How will you get your company and |
| The above items create a perfect storm for the | | | | offer in front of your prospective property owners. |
| Property Management Business Industry. The purpose | | | | How will you utilize the following: (website, seo (search |
| of my article is to present and discuss the 6 | | | | engine optimization) plan, online marketing, signs, |
| categories that are paramount in developing your | | | | advertisements, associations, relationships, networking, |
| property management business plan: | | | | direct mail campaigns, signs, yellow pages, calling for |
| 1. Executive Summary | | | | rent by owners, etc.) |
| 2. General Company Description | | | | By the way, there are methods that are much more |
| 3. Description of Services | | | | effective than others for a start up real estate |
| 4. Marketing Plan | | | | management company. Be sure to do your proper |
| 5. Operational Plan | | | | research before you unnecessarily spend money. |
| 6. Budget | | | | 5. Operational Plan - Explain the daily operation of your |
| 1. Executive Summary - Include everything that you | | | | business; (its location, equipment, people, processes, |
| would cover in a five-minute interview. Who are the | | | | and surrounding environment.) If you are starting out |
| owners, what is their experience in this industry? | | | | opening your own prop mgt business, you will want to |
| Explain the fundamentals of your business. What do | | | | spend the majority of your free time in marketing |
| you think the future holds for your business and your | | | | techniques. |
| industry? Make it enthusiastic, professional, complete, | | | | 6. Budget and Financials - Includes your start up |
| and concise. | | | | expenses, capital expenses and expected monthly |
| 2. General Company Description - This includes your | | | | recurring expenses. If you are starting out a your |
| mission, vision and company commitments, Who is | | | | business with 0 properties as I did, you will want to |
| your target market (higher/lower end residential, | | | | start with a minimal budget in mind. Keep your costs |
| multi-family, commercial), what price range of | | | | as low as possible. What is your expected income |
| properties will you target, what area(s) will you target, | | | | based on your predicted growth rate? |
| who are the prospective tenants and what's the future | | | | Conclusion: Properly developing your property |
| of your industry? Form of ownership, what factors will | | | | management business plan is the key to your success. |
| make the company succeed? What strengths do you | | | | Starting a property management business can be very |
| personally bring to the business? Long term: What are | | | | rewarding, however not having the right direction and |
| your plans for the future of your business? Growth? If | | | | foresight from the beginning can blind you and your |
| so, at what rate and how will you achieve it? | | | | business. Remember; "Failing to properly plan is |
| 3. Description of Services - Describe in depth your | | | | properly planning to fail. |
| property management service structure. What will you | | | | |