property sourcing business plan

5 Steps To Setting Up Your Property Sourcing Business Legally and Properly

Setting up your property sourcing business to be compliant can be a lot of work. Read our Ultimate Guide to Property Sourcing & Deal Packaging first so you can avoid the unnecessary expense of going the compliant route.

If you’re thinking about setting up a property sourcing business, one of your biggest concerns should be how to set up your business legally and properly. If you don’t get this right, there could be consequences to your business and to you individually as the business owner. So before you start doing any business, make sure that you’ve gone through the appropriate legal steps.

To help you, I’ve listed the 5 most important factors in ensuring your property deal sourcing business is set up correctly:

1. Setting up as a property sourcing business

The first thing to think about is whether your business is in fact, a property sourcing business. If you’re purely sourcing properties for yourself, rather than packaging and selling on for a fee, you don’t have to set up a sourcing business. If you’re going to be a property sourcing business, you will need to have all of the relevant legal checks in place.

2. Registering with HMRC and Regulators

The property industry is highly regulated to protect all parties that are involved in property transactions. Property deal sourcing comes under the same category as estate agents in terms of governance, so we have to work by the same rules.

You must register your business with HMRC in the correct way, so select the relevant set up such as limited company, sole trader or limited liability partnership.

The property industry is governed by three separate ombudsman schemes, which offer independent bodies for customers to raise complaints through. This would happen if the customer wasn’t happy with the way that you dealt with their complaint, so the ombudsman is the next stage of escalation.

The three property ombudsman schemes are: Ombudsman Services, The Property Ombudsman (TPO) and the Property Redress Scheme (PRS). Property deal sourcers must be members of one of these schemes. Goliath Property Solutions are members of the PRS, which costs around £95 plus VAT each year.

3. Register for Anti Money Laundering Legislation

Criminals often use the property industry to launder money. If you’re not familiar with the term, money laundering basically means that they try to hide the money that they gained through criminal activity by using what looks to be legitimate methods.

Property sourcing businesses must be registered with HMRC for the Anti Money Laundering Legislation. This means that any suspicions of such activities must be reported and you can be subjected to fines if you are deemed to have not taken appropriate action.

4. Taking out Insurances

Setting up the correct types of insurance will protect you from potential issues such as being sued. In the property industry, where large sums of money are involved, this is more common than you might think. For example, you may find yourself in a situation where investors try to sue you for what they perceive to be giving incorrect information on a deal. If you take out the correct types of insurances, you will protect yourself from this.

The two types of insurances we have as brokers, are professional indemnity insurance and public liability insurance. It is really important that you get these set up, ours costs around £500 per year for the combined policy.

5. Register under Data Protection Act

We also have huge responsibilities in regards to data protection. We are holding lots of personal information about buyers, sellers, landlords etc. and we are responsible for protecting that information. Property sourcing businesses must register under the Data Protection Act with the Information Commission Officer. This only costs £35 per year and is really important.

We’re not trying to scare people but property is an industry where you must comply with all the regulations and register and set up correctly. Missing anything out could lead to huge consequences; look at what happened with PPI/miss-selling etc. You really do need to ensure that you dot all of the i’s and cross all the t’s when it comes to setting up a property sourcing business.

Ensure you’re set up correctly by downloading our free ‘Property Deal Sourcing Business Setup Checklist’ below.

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Home > Business Plan Templates > 9-Step Real Estate Business Plan Template With Examples

9-Step Real Estate Business Plan Template With Examples

Apr 25, 2024 | Business Plan Templates

Our comprehensive Real Estate business plan template acts as an ideal guide to structuring your own detailed and efficient business plan. With its easy-to-follow sections, it requires you to think critically about all aspects of your real estate business, from the Executive Summary to Market Analysis and Financial Projections.

Each section of this template is designed to clearly present your business’s crucial elements to potential investors, lenders, and other interested parties and can be effortlessly tailored to suit your specific business characteristics.

By following these nine steps, you can create a solid business plan that will impress!

Table of Contents

1. Executive Summary

The executive summary is a concise introduction to your real estate business. It should provide an overview to investors and other readers. Although it’s the first section, you might find it helpful to complete it after all other sections have been detailed.

Introduction

Start by introducing your real estate business. What is its name? What exactly does your company do? Are you a residential, commercial, or investment property firm?

Example: XYZ Properties is a real estate company specialising in acquiring, refurbishing, and renting residential properties in Greater Dublin.

Business Overview

Give a high-level review of your real estate business. Explain your business’s core activities and the properties you deal with.

Example: Our primary business revolves around purchasing underperforming or outdated residential properties, revitalising them, and then marketing them for rent to young professionals and small families.

Mission and Vision Statement

Describe your real estate company’s mission statement and vision statement. This should define your business’s purpose, long-term goals, and strategies.

Example: Our full mission statement is to enhance the local residential market by transforming neglected homes into quality rental properties. Our vision is to contribute to community development and provide affordable, high-quality homes for the local populace.

Geographic Reach

Explain where your real estate business operates, your target areas, and your influence on the local real estate market in these regions.

Example: XYZ Properties currently focuses on the Greater Dublin area, specifically markets that show high rental demand yet lack updated, affordable housing options.

Service Type

Describe the type of property services you offer – buying, selling, renting, renovation, etc.

Example: We primarily purchase, renovate, and rent residential properties. We provide end-to-end property management services for our tenants.

Major Goals and Objectives

Outline your business’s short-term and long-term goals. These very smart goals should be SMART (Specific, Measurable, Achievable, Realistic, and Time-bound) goals.

Example: Our short-term goal is to acquire and refurbish five additional properties within the next fiscal year. In the long term, we aim to expand our operations to cover additional geographical areas within the next five years.

2. Business Description and Value Proposition

This section provides an in-depth understanding of your real estate business, including its structure, operating principles, and how it stands out from the competition.

Nature of the Business

Describe in detail the makeup of your successful real estate business and its key operations. From property sourcing to renovation, leasing, maintenance, and eventual sale, explain your real estate business’s overall process and stages.

Example: XYZ Properties is a full-service real estate investment and property management company. We identify undervalued properties, purchase and renovate them, find suitable tenants and manage the property to provide high-quality living while ensuring a steady return on the investments.

Customer Problems and Solutions

Identify the major challenges that your potential customers face and how your business solves those problems.

Example: Many younger professionals and families struggle to find well-maintained, affordable rental homes in good neighbourhoods. We bridge this gap by providing fully renovated, comfortable homes at a budget-friendly price in appealing locations.

Uniqueness and Competitive Edge

Describe what differentiates your real estate business from competitors. This could be your business model, unmatched customer service, proprietary technology, strategic partnerships, etc.

Example: XYZ Properties distinguishes itself by offering an entirely hassle-free rental experience. Our dedicated property management team handles any maintenance issues promptly, and our online portal lets tenants pay rent, submit service requests, and communicate with our team with just a few clicks.

3. Market Analysis

This part helps to understand the environment in which your real estate business operates. It includes an analysis of the overall industry, target market, and competition.

Industry Description and Outlook

Give an overview of the real estate industry in the area you serve. Discuss aspects like growth trends, factors affecting the industry, opportunities, and challenges.

Example: The Dublin residential rental market has grown steadily over the past few years, with a growing population and demand for quality housing. With limited new constructions and current housing stock ageing, property refurbishment presents a favourable opportunity.

Target Market Analysis

Define your next target client or market in terms of demographics, geographic location, socioeconomic status, etc., and explain why this segment is ideal for your business.

Example: Our primary target market is young professionals and small families from middle-income brackets looking for rental homes. This group values quality living spaces in convenient locations and is willing to pay a premium for renovated well-maintained homes.

Competitive Analysis

Identify your main competitors in your area. Analyse their strategies, strengths, and weaknesses. Show how you’ll position your business to stand out.

Example: While several property management firms and individual landlords operate in our region, their primary focus seems to be maintaining the status quo rather than upgrading properties to cater to tenants’ rising expectations. XYZ Properties stands out by focusing on delivering quality, updated accommodation that appeals to our target market.

4. Business Structure and Management

This section discusses the legal and organisational structure that your real estate business adheres to and presents information about the management team.

Legal Description and Ownership Structure

Provide the legal structure of your real estate business. Are you a sole proprietor, partnership, or corporation? Clarify this and explain why such a structure was chosen.

Example: XYZ Properties is a Private Limited Company (PLC). This structure allows us to operate as an independent legal entity, which attracts investors, limits personal liability, and enhances business credibility.

Management Team

Present details about your key management team members, roles, industry experience, and qualifications.

Example: Our management team includes a CEO with a background in property management, a CFO with extensive financing experience, and a Property Manager who brings years of maintenance expertise. Their collective knowledge provides a comprehensive skill set to manage all aspects of our real estate business effectively.

5. Marketing and Sales Strategy

This part of your business plan needs to articulate how the real estate business anticipates marketing efforts attracting its target market.

Marketing Plan

Describe your real estate marketing strategy. Are you going to use real estate listing websites, social media, local advertising, network events, or perhaps a combination of the above? Explain each channel and its importance.

Example: We use a mix of online and offline marketing strategies. Our properties are listed on major real estate websites, and we leverage social media to showcase our refurbished units. We also have property listings and actively network with local businesses and community events to promote our quality rental homes.

Sales Strategy

Explain your sales strategy. This would include how you negotiate contracts, pricing strategy, sales forecast, etc.

Example: Our sales strategy is to price our rental units competitively, offering top-of-the-market amenities to justify the pricing. We leverage property viewings to highlight the benefits of our homes, focusing on the quality of refurbishments, location, and our dedicated property management services.

Growth Strategy

Discuss any plans to expand your real estate business – for instance, moving to new locations, adding new property types, or scaling your business model.

Example: In the long term, we aim to expand our portfolio to include commercial property and possibly venture into real estate development. In the medium term, our growth strategy involves expanding to newer suburbs in the Dublin region.

6. Operations

This part outlines the operational aspects of your real estate business, including location, facilities, equipment, and technology needs.

Geographic Location

Provide details on where your own real estate agent or business is based and where it operates. Discuss why these locations have been chosen.

Example: XYZ Properties is headquartered in downtown Dublin and operates across the Greater Dublin area. This region has been strategically chosen for its high rental demand and robust transportation network.

Facilities and Equipment

If applicable, describe the facilities needed to support your business, including office space, renovation equipment, etc.

Example: Our business operates from a compact office in downtown Dublin, where our administrative functions originate. All property renovation is performed with high-quality equipment and materials to ensure the delivery of superior residential properties.

Technology Needs

Describe the technology your real estate business uses. This could include software for property management, digital marketing tools, and customer relationship management (CRM) software.

Example: XYZ Properties uses cutting-edge property management software that streamlines most functions, such as rent collection, tenant communication, and maintenance requests. We also employ digital marketing tools to promote our business and properties.

7. Implementation Strategy

In this section, outline how your real estate business plan will implement your business strategies and define milestones and timelines based on your objectives and goals.

Role and Responsibilities of Team Members

Detail the roles and responsibilities of each team member. This should relate to the operational strategies you outlined earlier.

Example: Our CEO oversees strategic decision-making and investment sourcing. Our CFO is responsible for financial management and budgeting. The Property Manager handles all operational aspects related to properties, from overseeing renovations to interacting with tenants and addressing their needs.

Milestones and Timelines

Outline your business plan into a series of measurable and achievable milestones. Provide a timeline for when each milestone will be achieved. This gives your team a roadmap to follow and helps investors understand your approach.

Example: The immediate milestone is acquiring and refurbishing three additional properties within six months. We aim to lease those properties within a subsequent three-month period. Our longer-term milestones are focused on portfolio expansion and diversification, measured by adding an average of six new properties per year for the next five years.

8. Financial Plan and Projections

This section outlines your financial goals, sources of revenue, and detailed financial projections.

Start-up/Financial Summary

Describe the financial overview of your company. If it’s an existing business, provide your actual financial data, including revenue, costs, a cash flow statement, etc. For start-ups, describe the initial capital involved and how expenses would be financed.

Example: XYZ Properties, being a well-established company, operates on its steady revenues generated through rentals. Our revenues cover property acquisition, renovation costs, and operating expenses. A reserve fund is maintained for unexpected contingencies.

Revenue and Pricing Model

Discuss your source of revenue and your pricing strategy. In real estate, this typically involves property rent or sale prices, management or service fees, etc.

Example: Our primary revenue stream is rental income derived from our properties. We set rent prices based on the quality of the property, location, and market conditions while ensuring a healthy return on our investments.

Forecasted Profit and Loss

Provide a profit and loss statement forecast. This should include your average sales price forecast, expected expenses, and profits for at least three years into the future.

Example: Based on our current property portfolio and expansion plans, we project an annual rental income growth of 7% for the next three years. After accounting for all operating expenses and necessary investments in new properties, we expect a net profit margin of about 15% consistently over this time frame.

Projected Cash Flow

Offer your cash flow projection. This shows that your business is solvent and can successfully pay its debts and operational expenses.

Example: Our cash flow projections display the influx of income from rentals and the outlay for property acquisitions, renovations, maintenance, and administrative costs. We foresee a consistent positive cash flow, keeping our business financially healthy.

Project Financial Assumptions

Detail any assumptions made while creating your financial outlook.

Example: Our projections presume a steady rental demand and property market stability. We’ve also assumed steady cost escalations of around 3% per annum for property upkeep and other variable expenses. Our major capital expenses are assumed to be funded through internal accruals and bank loans.

9. Appendices

This section should include any additional documents or support for your business plan.

Organisational Chart

Attach a chart showing your real estate business’s organisational structure. This will help investors understand the hierarchy and functions within your company.

Example: Our organisational chart clearly represents the hierarchical construction of XYZ Properties. It indicates the roles of the CEO, CFO, Property Manager, and support staff, providing our investors with a clear view of our company structure.

Resume of Key Team Members

Attach the resumes of your key team members to give investors a better understanding of their skills, experience, and how they contribute to the success of your business.

Example: Attached are the profiles of our CEO, who has over 15 years of real estate investment and management experience, and our CFO and Property Manager, who have combined experience of 20 years in their respective fields.

Detailed Budget

Include a detailed account of your budget, showing everything from initial investment to projected income versus expenses.

Example: Attached is a detailed budget document that outlines our projected revenues and expenses for the next fiscal year, including acquisition costs, renovation expenses, operational costs, and anticipated rental income.

Market Research

Provide some market research to validate your business assumptions.

Example: Enclosed is a recent real estate market report for the Greater Dublin area. It highlights key trends in the rental market. It demonstrates the significant demand for quality rental homes among the young professionals and family demographic.

Which Real Estate Business Is Most Profitable?

The profitability of a real estate business largely depends on factors such as location, market conditions, investment strategies, and operational proficiency. That being said, Real Estate Investment Trusts (REITs) are often highly profitable, primarily because they allow investors to buy shares in commercial real estate portfolios that generate income. Rental property businesses, especially in high-demand areas, can offer consistent cash flow as well.

Flipping properties – buying homes, renovating them, and quickly reselling them for a profit – can be lucrative, too. However, it involves higher risk and depends on market trends. Commercial real estate, dealing with properties like offices, retail space, or warehouses , often fetches substantial returns but requires significant capital.

Ultimately, the key lies in understanding the market, assessing risk effectively, and managing investments wisely to ensure profitability in any real estate business.

Get Started In Real Estate

Remember that a high-quality, well-researched real estate business plan could be instrumental in your real estate business’s success and growth. It will guide your decisions, attract investors, and help keep your real estate business on the right track towards achieving its goals.

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Property Sourcing: What Is It & How to Get Started

For those looking to earn a living in the property industry, but who don’t want to deal with renovations and tenants, becoming a property sourcer is an appealing option. It’s not as common as being an investor, but the barrier to entry is a lot lower.

A property sourcer is an intermediary between a property buyer and seller. They find off-market or below market value (BMV) properties for their clients, who are usually investors looking to purchase homes at a discount in order to renovate and sell them on at a profit. Property sourcing agents work by building relationships with estate agents, developers, auction houses and other potential sellers of below market value properties. By doing this they gain access to information about upcoming sales which their clients would not be able to obtain themselves and can quickly find suitable properties for investors.

They are also heavily reliant on digital advertising to attract potential sellers before they hit the traditional route of appointing an estate agent. Most importantly, property sourcers must have an in-depth understanding of the local housing market so that they can identify areas where there is high demand but low supply – thereby increasing the chances of their clients getting a good deal on a purchase.

How does property sourcing work?

A property sourcer helps investors find good property deals. They use their knowledge of the market and their network of contacts to find sites that meet the investor’s criteria.

They are often paid a commission by the investor, but they can also work for a real estate company or be self-employed.

Sourcing generally involves three main steps:

• Attracting investors ready to make a purchase;
• finding properties that fit the investor’s criteria, and
• negotiating a purchase price with the seller.

The first step often requires advertising, brand building and networking. The second step requires research and networking, while the final step usually relies on negotiation skills.

Attracting investors ready to make a purchase

Investors are always looking for new, quality properties to invest in. By targeting investors who are already interested in purchasing property, you can amplify your efforts and increase the chances of a successful sale. Consider conducting market research to identify potential investors who fit your target demographic. By understanding what interests these individuals, you can create targeted marketing campaigns that appeal to them.

Additionally, be sure to create detailed sales presentations that showcase the property’s features and highlights.

Finally, provide thorough documentation throughout the process so that buyers feel confident about their investment decision.

There are some who turn this into a full-time property business; to do so you’ll need to invest in a website and pipeline management system; our recommendation is propertypipeline.pro .

Finding properties that fit the investor’s criteria

The first step in finding properties that fit the investor’s criteria is to develop a list of factors to consider when looking at potential investments.

These factors can include: location, size, layout, age and condition of the property, and current market conditions.

Once the list has been compiled, it can be narrowed down further by focusing on specific types of properties or areas within a city or region.

Additionally, the investor should keep in mind their investment goals and make sure any property they invest in aligns with those goals.

One of the tools in any property sources arsenal is a ‘motivated seller site’. This is a special website that has one job only: getting contact details of people looking to sell a property.

You might be worried that having two websites is going to cost a lot of money, but don’t worry, one of the reasons I recommend propertypipeline.pro is because they provide you with BOTH types of website and a way to manage all the contacts you collect.

Negotiating a purchase price with the seller

When negotiating a purchase price with the seller, it is important to remember that they are usually trying to sell the property quickly, without paying for estate agents.

Some tips for negotiating a purchase price with the seller include:

• Be prepared to offer a significantly lower initial offer than what you are initially thinking of, this will give you a chance to be negotiated up, if the seller decides to negotiate in earnest.
• Be prepared to walk away from the deal if the seller does not agree to your proposed purchase price – this will send a clear message that you are not willing or able to overpay for the property.
• Do your research before meeting with the seller – know exactly what type of property you are looking for and have any questions about it completely answered by either visiting or speaking with them formally (in person, by phone, etc.). This will help minimise any misunderstandings during negotiations and increase chances of coming up with an agreement you can both be happy with.

If you do end up walking away from a deal, it’s important to have a system in place that will automatically follow up with them after a period of time (you guessed it, propertypipeline.pro does this). It’s amazing how much better your offer will look to a seller if they’ve still not sold their property after a couple of months!

The benefits of being a property sourcer

If you’re a potential property sourcer one of the main questions you’ll have will be about the benefits of the job. 

You’ll enjoy a number of benefits, among them is the ability to control your own income. As an independent contractor, you can set your own hours and rates.

This flexibility makes property sourcing an attractive option for those looking to supplement their income or earn a full-time living.

In addition, they have the potential to earn a significant amount of money through commissions and bonuses.

And because you work with other people looking to invest money, you don’t require a large amount of cash to get started.

So, if you’re interested in becoming your own boss and earning good money while doing it, then learning how to become a poperty sourcer may be the right choice for you.

Benefits of using a property sourcer

Why do people use property sourcing over visiting local estate agents?

Access to more deals : By working with a property sourcer, you will have access to more deals than you would if you were searching on your own. This is because they have access to off-market listings and can often negotiate better prices on properties.

Save time : Searching for investment properties can be a time-consuming process. By working with a sourcer, you can save time as they will do the legwork for you.

Get expert advice : A good property sourcer will be able to offer expert advice and guidance on finding and acquiring investment properties. This can be invaluable for anyone new to investing in real estate.

Find the right property at the right price. Finding the perfect property at the right price is an ongoing challenge for property investors. There are a number of factors to consider, including location, size, and amenities. It can be difficult to determine which properties will fit your needs and meet your budget, so why not let someone else do it for you?

How to become a property sourcer

There is no set path to becoming a property sourcer.  However, many people who are successful in this field have a background in real estate or property investment.

A good place to start is to read up on the compliance elements of this role, I recommend picking up the book Property Sourcing Compliance .

Next, you’ll need to create a pipeline system for investors and potential sellers. Although it can be done using lots of different systems, I highly recommend propertypipeline.pro as it’s an all-in-one system created by a team heavily involved in the property market.

Not only can they get you up and running in around 14 days, they can also give you help and advice in areas such as marketing, which is a must if you want to find buyers and sellers.

This has the potential to turn into a successful small business, so you should also check out this article: How do you build a successful property sourcing business?

Finally, you’ll want to prepare an investment pack, which will help explain to property investors who you are, what you can do for them and why they should use you.

Final Thoughts

As a property investor, you have to start looking for opportunities and that is where property sourcing comes in. It can be a very lucrative business when done well.

Of course, it’s not a path you should take without any experience or access to expert guidance to be truly successful; remember that there is no sure thing as a guaranteed money making new business, so be sure to do your research first before committing time and money to this opportunity.

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Property Development Business Plan Template

Written by Dave Lavinsky

Property Development Business Plan

You’ve come to the right place to create your Property Development business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their property development companies.

Below is a template to help you create each section of your Property Development business plan.

Executive Summary

Business overview.

Redstone Development is a new property development company located in Salt Lake City, Utah. We focus on residential property development for single-family and multi-family homes. We handle all steps of the process, from sourcing the land to selling the finished property. Redstone Development aims to be the most trusted source of affordable housing in the Salt Lake City metro area.

Redstone Development is owned and operated by Jack Grant, a real estate development industry veteran who is well-versed in the entire property development process. Jack has over 30 years of experience developing residential properties and holds a Master’s in Real Estate Development. His education, experience, and industry connections will ensure that Redstone Development becomes one of the area’s most successful property development businesses.

Product Offering

Redstone Development will handle the entire development process, including sourcing land, securing all necessary approvals and permits, construction, and sale of the finished property.

The company focuses on building single-family homes and multi-family apartment complexes in the heart of Salt Lake City. All projects are designed to make these homes aesthetically appealing and luxurious. However, they will also be affordable to ensure that anyone in the Salt Lake City area can afford to live in our properties.

Customer Focus

Redstone Development will serve home buyers and real estate investors who live and work in Salt Lake City, Utah, or the surrounding area. Salt Lake City is a growing city in need of additional housing. More people come to this beautiful city every year, which reduces the number of available homes and apartment units. Therefore, we will target buyers who are struggling to find affordable housing.

Furthermore, there are thousands of first-time home buyers in the area. These buyers are an ideal target market for the company.

Management Team

Redstone Development will be owned and operated by Jack Grant. He recruited his former administrative assistant, Sheila Johnson, to be his Office Manager and help manage the office and operations.

Jack has over 30 years of experience developing residential properties and worked for several of our competitors. He also holds a Master’s in Real Estate Development from the University of Utah. His education, experience, and industry connections will ensure that Redstone Development becomes one of the area’s most successful real estate development businesses.

Sheila Johnson has been Jack Grant’s loyal administrative assistant for over ten years at a former property development firm. Jack relies strongly on Sheila’s diligence, attention to detail, and focus when organizing his clients, schedule, and files. Sheila has worked in the property development industry for so long that she understands all aspects required to run a successful property development company.

Jack will also employ several other full-time and part-time staff to assist with all aspects of running a real estate development business.

Success Factors

Redstone Development will be able to achieve success by offering the following competitive advantages:

• Location: Redstone Development’s office is near the center of town, in the shopping district of the city. It is visible from the street, where many residents shop for both day-to-day and luxury items.
• Client-oriented service: Redstone Development will have a full-time assistant with property development experience to keep in contact with clients and answer their everyday questions. Jack realizes the importance of accessibility and will further keep in touch with his clients through monthly newsletters.
• Management: Jack has been highly successful working in the property development sector. His unique qualifications will serve customers in a much more sophisticated manner than many of Redstone Development’s competitors.
• Relationships: Having worked and lived in the community his whole life, Jack knows many local leaders, real estate agents, and other influencers in the local property development industry.

Financial Highlights

Redstone Development is seeking $1,000,000 in debt financing to launch its property development business. The funding will be dedicated to purchasing our first property, construction costs, securing the office space, and purchasing office equipment and supplies. Funding will also be dedicated toward six months of overhead costs, including payroll, rent, and marketing costs. The breakout of the funding is below:

• Office space build-out: $50,000
• Office equipment, supplies, and materials: $20,000
• Land purchase and construction expenses: $530,000
• Six months of overhead expenses (payroll, rent, utilities): $250,000
• Marketing costs: $50,000
• Working capital: $100,000

The following graph below outlines the pro forma financial projections for Redstone Development.

Company Overview

Who is redstone development.

Redstone Development is a new property development company located in Salt Lake City, Utah. We focus on residential property development for single-family and multi-family homes. We handle all steps of the property development process, from sourcing the land to selling the finished property. Redstone Development aims to be the most trusted source of affordable housing in the Salt Lake City metro area.

Redstone Development is owned and operated by Jack Grant, who is a real estate development industry veteran and well-versed in the entire property development process. Jack has over 30 years of experience developing residential properties and holds a Master’s in Real Estate Development. His education, experience, and industry connections will ensure that Redstone Development becomes one of the area’s most successful property development businesses.

Redstone Development’s History

After 30 years of working in the property development industry, Jack Grant began researching what it would take to create his own property development company. This included a thorough analysis of the costs, market, demographics, and competition. Jack has compiled enough information to develop his business plan and approach investors.

Once his market analysis was complete, Jack began surveying the local office spaces available and located an ideal location for the property development headquarters. Jack incorporated Redstone Development as a Limited Liability Corporation on October 1st, 2022.

Once the lease is finalized on the office space, renovations can be completed to make the office a welcoming environment to meet with clients.

Since incorporation, Redstone Development has achieved the following milestones:

• Located available office space for rent that is ideal for meeting with clients
• Identified the first property to develop
• Developed the company’s name, logo, and website
• Hired an interior designer for the decor and furniture layout
• Determined equipment and fixture requirements
• Began recruiting key employees

Redstone Development’s Services

Redstone Development will handle the entire property development process, including sourcing land, securing all necessary approvals and permits, construction, and sale of the finished property.

Industry Analysis

The real estate and property development industries have been strong over the past few years. As of 2021, the real estate industry was valued at $3.69 trillion and is expected to grow at a compound annual growth rate of 5.2% from now until 2030.

This growth will be driven by increasing demand for personal housing. Millennials and Gen-Z are beginning to rent their first apartments or buy their first homes. After years of living with family or roommates, they are ready to have a space to call their own. This trend is leading to a substantial demand for housing that many cities are struggling to supply.

The main challenge to the property development industry is the decrease in market size in the land development industry. Over the past five years, the industry saw an average annual decline of 0.7%. However, we believe that the pandemic was a considerable factor in this decline. Currently, the land development market is valued at $12 billion USD, and we expect it to grow substantially due to the growth of similar industries and the increasing demand for housing, as mentioned above.

Customer Analysis

Demographic profile of target market.

Redstone Development will serve home buyers and real estate investors in Salt Lake City, Utah, and its surrounding areas.

The community of Salt Lake City has thousands of first-time home buyers, residential real estate investment firms, and people looking for affordable housing options in the area. The company will also target millennials specifically since the majority of first-time home buyers are in this age group.

The precise demographics for Salt Lake City, Utah are:

Customer Segmentation

Redstone Development will primarily target the following customer profiles:

• Home buyers
• Real estate investors
• Millennials
• Apartment/Condominium management companies

Competitive Analysis

Direct and indirect competitors.

Redstone Development will face competition from other companies with similar business profiles. A description of each competitor company is below.

Upscale Property Developers, Inc.

Upscale Property Developers, Inc. is a property development company in Salt Lake City. In business for over 40 years, Upscale Property Developers, Inc. provides oversight for the entire property development process for new single-family and multi-family residences, commercial offices, and government buildings across the area. Upscale Property Developers, Inc also offers a variety of property renovation, demolition, and revitalization services for existing buildings.

Although Upscale Property Developers, Inc. provides homes with a luxury aesthetic, they are also the most expensive property developments on the market, thus resulting in many first-time home buyers being priced out of the market.

Premium Property Development Solutions

Established in 1990, Premium Property Development Solutions is a property developer of new commercial and residential properties in Salt Lake City. The company specializes in eco-friendly building materials and upscale design options for individual and corporate clients. Clients can customize their building design or choose from a variety of standard design options. The company employs experienced property developers and designers who are well-versed in green building design.

Premium Property Development Solutions is more affordable than Upscale Property Developers Inc. but is still out of most first-time home buyers’ price ranges.

Salt Lake Residential

Salt Lake Residential is also a local property development company that manages the complete property development process from sourcing and permitting to construction and sale. They are mostly known for their unique apartment complex designs but are equipped to take on a variety of different builds. The company has been in business for about ten years and has developed a reputation for building quality homes for affordable prices.

Although Salt Lake Residential has a similar value proposition of luxury homes at affordable prices, this company lacks the green building and eco-efficiency component to their business model, thus losing out on business from eco-conscious home buyers.

Competitive Advantage

Redstone Development enjoys several advantages over its competitors. Those advantages include:

• Location: Redstone Development’s office is near the center of town, in the city’s shopping district. It is visible from the street, where many residents shop for both day-to-day and luxury items.

Marketing Plan

Brand & value proposition.

Redstone Development will offer the following unique value proposition to its clientele:

• Service built on long-term relationships and personal attention
• Big-firm expertise in a small-firm environment
• Client-focused property development, where the company’s interests are aligned with the client
• Effective project management
• Affordable pricing

Promotions Strategy

The promotions strategy for Redstone Development is as follows:

Website/SEO

Redstone Development will invest heavily in developing a professional website that displays all of the features and benefits of the property development company. It will also invest heavily in SEO so the brand’s website will appear at the top of search engine results.

Social Media

Redstone Development will invest heavily in a social media advertising campaign. The marketing manager will create the company’s social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographics.

Print Advertising

The company will invest in professionally designed advertisements to be printed in real estate publications. Redstone Development will also list its properties for sale in key local publications, including newspapers, area magazines, and its own newsletter.

Community Events/Organizations

The company will promote itself by distributing marketing materials and participating in local community events, such as local festivals, business networking, or sporting events.

Redstone Development’s pricing will be moderate so consumers feel they receive great value when purchasing properties from the company.

Operations Plan

The following will be the operations plan for Redstone Development.

Operation Functions:

• Jack Grant will be the Owner and President of the company. He will oversee all staff and manage client relations. He will also oversee all major aspects of the development projects. Jack has spent the past year recruiting the following staff:
• Sheila Johnson – Office Manager who will manage the office administration, client files, and accounts payable.
• Kenneth Bohannon – Staff Accountant will provide all client accounting, tax payments, and monthly financial reporting.
• Beth Martinez – Marketing Manager who will provide all marketing for Redstone Development and each property it manages.
• Jack will also hire a team of architects, engineers, interior designers, and contractors to design and build the properties.

Milestones:

The following are a series of steps that lead to our vision of long-term success. Redstone Development expects to achieve the following milestones in the following six months:

1/1/202X         Finalize lease agreement

2/1/202X         Design and build out Redstone Development

3/1/202X         Hire and train initial staff

4/1/202X         Purchase first property for development

5/1/202X         Kickoff of promotional campaign

6/1/202X         Find second property for development

Jack has over 30 years of experience developing residential properties and worked for several of our competitors. He also holds a Master’s in Real Estate Development from the University of Utah. His education, experience, and industry connections will ensure that Redstone Development becomes one of the area’s most successful property development businesses.

Jack will also employ several other full-time and part-time staff to assist with all aspects of running a real estate development business as outlined in the Operations Plan.

Financial Plan

Key revenue & costs.

Redstone Development’s revenues will come primarily from the sale of completed properties. The company will sell new single-family homes, multi-family townhomes, and apartment complexes/condominium properties to individual buyers and investors.

The cost drivers will be the overhead costs required to staff a property development office. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required to achieve the revenue and cost numbers in the financials and to pay off the startup business loan.

• Average monthly payroll expenses: $50,000
• Office lease per year: $100,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Property Development Business Plan FAQs

What is a property development business plan.

A property development business plan is a plan to start and/or grow your property development 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 Development business plan using our Property Development Business Plan Template here .

What are the Main Types of Property Development Businesses?

There are a number of different kinds of property development businesses , some examples include: Single-family detached housing, Multifamily housing, Developing and Subdividing Lots, and Commercial buildings.

How Do You Get Funding for Your Real Estate Development Business Plan?

Property Development businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding. This is true for a real estate developer business plan and a real estate investment business plan template.

What are the Steps To Start a Property Development Business?

Starting a property development business 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. Write A Property Development Business Plan - The first step in starting a business is to create a detailed real estate development company business plan that outlines all aspects of the venture. This should include market research on the real estate market and potential target market size, information the services you will offer, marketing strategies, pricing details and a solid financial plan.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your property development 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 property development business is in compliance with local laws.

3. Register Your Property Development Business - Once you have chosen a legal structure, the next step is to register your property development 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 property development 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 Development Equipment & Supplies - In order to start your property development 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 property development 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.

• Sample Business Plans
• Real Estate & Rentals

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.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

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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About the Author

Upmetrics Team

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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• Making a property investment business plan
• Rental yield calculations
• Property investment strategies
• How to quit your job and invest in property

Setting investment goals

• Are property training courses worth the money?
• Do you need a property mentor?
• The process of buying an investment property
• How to evaluate a property investment
• Property assessment checklist
• The 4 types of property deal I look for (and why)
• How to find a property sourcer
• Deciding where to invest
• How to flip a house: the ultimate guide
• Rent-To-Rent: The ultimate guide
• Lease Options explained
• Lending against property
• Lessons from running a letting agency
• How to get started with limited funds
• Mortgages: The ultimate guide
• Mortgages for limited companies
• New mortgage rules: rental cover and portfolio landlords
• Interest-only vs repayment mortgages
• Bridging finance: the ultimate guide
• Property joint venture agreements – The ultimate guide
• Recycling your cash
• Self-manage or use a letting agent?
• Landlord insurance guide
• How to find tenants
• Writing a tenancy agreement
• What does self-managing a property involve?
• Rent guarantee insurance
• The 18-year property cycle
• Will London house prices crash?
• Avoiding Inheritance Tax
• Exit strategies
• Mortgage interest relief
• Buying through a company

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

The Property Sourcing Company

PROPERTY SOURCING, DEAL PACKAGING & MORE – COMPLETE GUIDE!

Jordane Thompson

February 22nd, 2022

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What exactly is property sourcing?

What does deal packaging mean?

Is there a difference between the two?

How do property sourcing companies find deals?

What does it take to get into property sourcing?

Are there any fees involved?

Start your property portfolio today!

approached companies such as ourselves for investment opportunities, but what exactly does it all mean?

What’s the difference between the two?

Not to worry, in this guide, we’ll touch on everything that you need to know about property sourcing which will be useful if you are looking to invest or even if you’re interested in becoming a property sourcer yourself.

WHAT EXACTLY IS PROPERTY SOURCING?

It’s what we do in our day to day jobs! Property Sourcing is the activity of finding property deals, negotiating with the seller and packaging the deal up in a presentable way with all the figures on information to investors – which takes all the leg work out of trawling through Rightmove for the investor.

How is this different from what an estate agent does? It’s a more skilled and knowledgeable role as it’s more about finding the potential in a property, looking into it’s growth and what potential yields you can expect. In order to get a full picture of the property and present it to their investors list a property sourcer researches information like:

• Area demographics, crime rates and population type.
• Growth of house prices in the area over the past few years.
• Potential tenants in the area and the rent you can attract.
• What type of investor it might be suitable for, private tenant, HMO, serviced apartment etc.

WHAT DOES DEAL PACKAGING MEAN?

It’s essentially the service that we provide, and in a nutshell, it’s packaging up the deal to ensure everything is done for you as an investor. We provide all the information stated above, presenting the investor with all the information they need to make the investment and taking any stress, hassle or time out of finding the deals themselves.

Usually, for doing this there is a fee that the investor will pay.

It’s an appealing prospect for investors that want to be completely hands-off in the process, as it’s a lot less time consuming and the deal that a property sourcing company will find is often better than an investor will be able to.

IS THERE A DIFFERENCE BETWEEN THE TWO?

Some articles will state there is a difference between the “sourcer” & “packager” – the way it’s often described is the sourcing agent is responsible for finding a suitable property deal, the deal packaging agent is required to find out everything about the property and the local area to provide a full overview and information about the property.

But we think it goes hand in hand.

How can you be expected to spot a deal as a property sourcing agent, without having the full insight and knowledge of the local area? Our property sourcing agents are also the ones who package the deals and send them out to our investors, we’re an all-rounded bunch!

As the UK’s leading property sourcing company, we can help you find investment properties across England and Wales. Join us today!

We just have a few additional questions to help us provide the correct service

HOW DO PROPERTY SOURCING COMPANIES FIND DEALS?

We’re actually a little bit different, the deals come directly to us. We’re part of a group of companies that includes a cash property buyer, and they get hundreds of people every month looking to sell their properties and often below market value. We are able to handpick the properties that we feel will package up as a great deal for our investor database, or if we know a property will meet one of our investor’s criteria.

If you’re not as lucky as us in terms of having a source of leads readily available, there are a few things that you can do to get going. Firstly, your task is to find motivated sellers, the way many choose to do this is using social media, Facebook, LinkedIn, Twitter and Instagram to network with potential investors and property sellers. It’s the toughest and most time-consuming part, but you need to build up a reputation for yourself, joining groups and the correct conversations to find the best opportunities.

WHAT DOES IT TAKE TO GET INTO PROPERTY SOURCING?

Interested in getting into property sourcing? Not to worry, we welcome the competition! But what does it take, what skills do you need to have in order to be successful in the industry? We go through everything here:

An understanding of what investors want

This is key to the process, as you might imagine. You need to put yourself in the investor’s shoes when you’re looking at sourcing properties, understanding their ideal locations, expectations and demands.

Then it’s up to you to display your expertise of finding a property that fits your investor’s requirements and match up the two. You should know the current market trends, the pros and cons of certain areas and be able to help and influence the investors to try and get them the best deal.

Strong skills in networking

This is integral to your success, you need to be able to network and build connections with anyone associated with real estate, from individuals to large companies, the more connections you have in your network the more beneficial it will be.

Your network will make your job so much easier, it helps you with the hunting for deals and also building a database of investors that might be interested in them.

Keeping all the records and information

A LOT of the role is admin. You need to keep notes and information on each of the potential investors you have to know what they might be interested in, as well as on the other side, keeping notes on properties and what the sellers wanted to achieve so you can easily match up the two.

It’s easy enough when you only have a couple of interested parties, but as your network grows it can become really hard to manage so you need to ensure you keep all the records and information you possibly can.

Great communication

Another piece of the puzzle is the communication aspect, you need to constantly keep everyone up to date. You also need to be confident in your ability and knowledge to be able to help and guide investors towards deals that you have available.

Time management and flexibility

Remember that the key aspect of this, the way your make money is by making it easier and less time consuming for investors. In essence, you’re sacrificing your time to find them great deals – so time management is key in order to maximise your profit potential.

An eye for a good deal!

This should go without saying, but you need to be able to spot a good property deal when you see it. Knowledge of an area, the idea of rental prices and market trends will really put you ahead of the competition. Having this eye and knack for a deal buys you precious time allowing you to get the property in front of investors quicker than anyone else.

Certifications and licences

If you are sourcing property, there also might be some legal requirements that you have to abide by which are detailed in the Estate Agent Act 1997 which is The Property Ombudsman. You might also want to look into joining the Residential Landlord Association or National Landlord Association and Professional Indemnity Insurance just to make you look more credible and professional.

ARE THERE ANY FEES INVOLVED?

General with property sourcing there is a fee involved, and they range quite significantly. The majority of sourcing fees are between £1,000 and £5,000 thousand pounds, and it’s also often referred to as a “finders fee”. The fee usually reflects how good the deal is, and how much work has ultimately been put into finding the property.

As for deciding how much you should charge for your fee if you are a property sourcer, what is your time worth and how much value are you providing? What we’re really saying is it’s completely up to you what you charge, investors just need to be willing to pay it.

 As the UK’s leading property sourcing company, we can help you find investment properties across England and Wales. Join us today!

Large discounts on property

Completely transparent

Tailored investment opportunities

We’ll handle everything for you

Looking for hassle free property?

We’ve got you! Whatever your motivations as a landlord or property owner are, we can help source and match property with you.

When the foundations of your company are built upon industry knowledge and experience, you can’t help but be a self-confident company.

Here at The Property Sourcing Company, we are led by a roster of industry experts who have over 50 years of combined experience in doing BMV property deals, as well as packaging them up for investors.

Quality sits at the heart of our team, who go the extra mile to tailor our service to you. We pride ourselves in our ability to source you a wide variety of high-yield property investments.

Get in touch and we’ll establish what type of property you’re searching for, before talking you through our current investment opportunities. We’ll also keep you posted as we acquire new deals.

When you buy your investment property through us and we’ll take care of solicitors, surveys – everything – all to ensure you have a stress-free property purchase. It’s just one of the ways we make investment work for you.

Why invest with us?

Simply put, we’ll get you the best possible deal. Our sister company, The Property Buying Company, have been in the property buying industry for years & we have access to all their stock which is at a price point that is ready for investors to buy and make a great return on.

No middlemen, no stress & no hassle. We make investing in property and growing your portfolio as easy as it possibly can be.

Related Posts

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What Is Serviced Accommodation & How Can Investors Profit?

How To Get Into The Property Business with No Money

What Is Rent To Rent? – Complete Guide

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Property Preservation Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Real Estate Sector

Are you about starting a property preservation business? If YES, here’s a complete sample property preservation business plan template & feasibility report you can use for FREE to raise money .

As a property preservation expert or property manager, it is your responsibility to create efficient and effective protocols that will make you relate well with your clients (landlords, tenants and contractors). For example, you are going to be responsible for the full and proper screening or testing of an applicant’s credit, criminal history, rental history and ability to pay his or her rent when due.

Interestingly, the minimum educational requirement for any one that wants to start his or her own property preservation and management business is a High School Diploma and hands on the job experience.

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A Sample Property Preservation Business Plan Template

1. industry overview.

Property preservation line of business which is a subset of the real estate industry is perhaps one of the easiest and affordable real estate businesses to start; it is basically about, property preservation cum management, lease contracting or accepting rent using legal documents approved for the area in which the property is located.

In a nutshell, property management companies are responsible for taking care of and managing buildings and other real estate properties for individuals (landlords) or for groups of owners.

Basically, companies in the property preservation or property management industry help to keep vacant properties secure, safe and well-maintained inside and out and also manage residential and nonresidential real estate for property owners.

Property preservation or property management organizations’ responsibilities relate to the overall operation of a property, which include general maintenance, rent collection, trash removal, security and other renovation and preservation activities ( lawn management, landscaping and painting et al ).

Some well – equipped property preservation cum property management companies go as far as helping their client manage their property’s accounting and related services.

Property preservation cum property management companies are also involved in mitigation and remediation regarding any maintenance and preservation issues, generally within a budget, with prior or conveyed consent via a Limited Power of Attorney legally agreed to by the property owner.

In fact, there are numerous aspect of the profession and some of them include helping their clients in managing the accounts and finances of the real estate properties, and participating in or initiating litigation with tenants, contractors and insurance agencies.

Property Preservation or Property Management Industry is indeed a very large industry and pretty much thriving in all parts of the world especially in developed countries such as United States of America, Canada, United Kingdom, Germany, Australia and Italy et al.

Statistics has it that in the united states of America alone, there are about 231,051 licensed and registered property preservation companies responsible for employing about 774.021 employees and the industry rakes in a whooping sum of $75billion annually with an annual growth rate projected at 4.8 percent. It is important to state that there is no establishment with a lion share of the available market in this industry.

Research shows that the industry operating conditions for the Property Preservation cum Property Management industry are expected to remain positive in the coming years, though this will eventually slow. Going forward, the value of residential construction is expected to expand rapidly due to improved consumer confidence and low interest rates, causing an increase in the housing stock.

As a result, the US home ownership rate is projected to increase, and fewer consumers will therefore require property preservation or property management services. To combat this, firms are expected to offer more services such as long-term maintenance contracts to attract renters and also other related real estate services.

No doubt, if an aspiring entrepreneur who intends starting his or her own property preservation or property management business has the right connections, networks, managerial skills, and takes delight in preserving and managing real estate for clients, then he or she is going to find property preservation cum property management business very rewarding and lucrative.

2. Executive Summary

JC Jones & Co Property Preservation Company, LLP is a licensed property preservation cum property Management Company that will be based in Santiago – California but will operate in all the states in the United States of America.

We are in the business of property preservation and management to be able to help our clients meet their needs and achieve their goals with little or no stress on their part because our role is to take the stress off them and deliver to them what they want.

We have been able to build a robust list of insurance companies, real estate investors, landlords and property owners in the whole of the United States and we look forward to help a larger percentage of them effectively and efficiently preserve and manage their properties in any part of the US.

JC Jones & Co Property Preservation Company, LLP will ensure that every property that is kept within our care are properly preserved and managed because we are in business to deliver excellent services for both landlords and tenants.

We have been able to acquire all the relevant trainings and certifications in the field of property preservation and management so as to enable us perform excellently well in this industry. JC Jones & Co Property Preservation Company, LLP will strive towards minimizing the risk of litigation and the risk of damage to rental units.

3. Our Products and Services

JC Jones & Co Property Preservation Company, LLP is a company that look forward to consistently delivering excellent services in terms of help landlords and property owners effectively preserve and manage their properties and also providing conducive apartments and facility to tenants at an affordable rate.

We are in the property preservation and management industry to compete favorably and to make profits and we are going to do all that is permitted by the law of the United States to achieve our corporate goals, aim and ambition of setting up JC Jones & Co Property Preservation Company, LLP

Our business offering are listed below;

• Preserving and Managing facilities maintenance services
• Managing security of facilities
• Managing trash and recycling collection
• Property accounting services
• Legally representing property owners
• Finding and screening tenancy applicants
• Collecting rents
• Coordinating repair and maintenance contractors
• Residential property preservation and management services
• Nonresidential property preservation and management services
• Land preservation and management services
• Real estate brokerage services
• Construction services
• Property Preservation and Management Consultancy and Advisory Services

4. Our Mission and Vision Statement

• Our Vision is to become the preferred choice of landlords and property owners when it comes to property preservation and management services in Santiago – California and of course in the whole of the United States of America.
• Our mission is to build a property preservation and property management company that can favorably compete with other leading property preservation and property management companies not just in Santiago – California, but also throughout the United States of America and the world.

Our Business Structure

JC Jones & Co Property Preservation Company, LLP is a property preservation cum property Management Company that intend starting small in Santiago – California, but hope to grow big in order to compete favorably with leading property preservation and property management companies in the industry both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operations.

JC Jones & Co Property Preservation Company, LLP is going to be structured in a way that every employees will be actively involved in the growth of the organization and employees who have worked for a period of time for the company will part owner of the company.

We intend starting the business with a handful of full time employees and some of the available roles fill be handled by contractors but strictly under the supervision of our staff. Adequate provision and competitive packages has been prepared for all our employees. Below is the business structure (Operations) of JC Jones & Co Property Preservation Company, LLP;

• Chief Operating Officer

Project Manager

• Company’s Lawyer/Secretary
• Admin and HR Manager
• Head of Assets Management

Business Developer

• Sales and Marketing Firm
• Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for the planning, management and coordinating all projects on behalf of the company
• Responsible for supervising projects and handling activities such as coordinating repair and maintenance contractors, residential property preservation and management services, nonresidential property preservation and management services, land preservation and management services, real estate brokerage services, and construction services et al
• Ensures compliance during project executions
• Provides advice on the management of projects
• Responsible for carrying out risk assessment
• Uses IT systems and software to keep track of people and progress of ongoing projects
• Responsible for overseeing the accounting, costing and billing of every project
• Represents the organization’s interest at various stakeholders meetings
• Ensures that project desired result is achieved, the most efficient resources are utilized and different interests involved are satisfied.
• Handles Property Preservation and Management Consultancy and Advisory Services.

Company’s Lawyer/Secretary/Legal Counsel

• Handles mitigation and remediation regarding any maintenance issues, generally within a budget, with prior or conveyed consent via a Limited Power of Attorney legally agreed to by the property owner.
• Responsible for drawing up contracts and other legal documents for the company
• Consult and handle all corporate legal processes (e.g. intellectual property, mergers & acquisitions, financial / securities offerings, compliance issues, transactions, agreements, lawsuits and patents et al)
• Develops company policy and positions
•  on legal issues
• Researches, anticipates and guards company against legal risks
• Represent company in legal proceedings (administrative boards, court trials et al)
• Plays a part in business deals negotiation and take minutes of meetings
• Responsible for analyzing legal documents on behalf of the company
• Prepares annual reports for the company

Human Resources and Admin Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Designs job descriptions with KPI to drive performance management for clients
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Oversees the smooth running of the daily back office activities.

Head of Asset Management

• Oversees the company’s portfolio of real estate assets (which are owned and managed) through acquisitions, dispositions, and day‐to‐day operations, including management of revenue and expense items; works to maximize the portfolio’s performance.
• Provides strategic oversight of existing and potential real estate assets within a designated geographic area.
• Manages business plans and budgets for properties.
• Reviews the condition and maintenance of assigned properties; manages their bookkeeping and cash flow accounting; handles rent reconciliation; prepares property financial reports and annual budget forecasts.
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Finds and qualifies properties for rent/lease based on company’s property requirements; maintains a property search database; initiates discussions with property owners about the possible management of their property
• Develops, executes and evaluate new plans for expanding increase sales
• Documents all customer contact and information.
• Represents the company in strategic meetings
• Helps to  increase sales and growth for the company

Sales and Marketing Officer

• Lists the property for rent/lease to the public
• Markets space; finds tenants; participates in lease negotiations.
• Provides property owners with a real property condition disclosure (if required by law) and other necessary forms.
• Prepares necessary papers describing the property for advertising, pamphlets, open houses, etc.
• Holds an open house to show the property.
• Serves as a contact available to answer any questions about the property and schedule showing appointments.
• Ensures that tenants are pre-screened and financially qualified to rent / lease the property.
• Negotiates price on behalf of the property owners (Our Clients).
• Acts as a fiduciary for the landlord, which may include preparing a standard real estate rental contract.
• Leases contracting or accepting rent using legal documents approved for the area in which the property is located.
• Responsible for the full and proper screening or testing of an applicant’s credit, criminal history, rental history and ability to pay his or her rent when due
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managers with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Front Desk/Customer’s Service Officer

• Welcomes clients and potential clients by greeting them in person, online or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the creative director in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc to ensure accurate and helpful information is supplied to clients when they make enquiries.

6. SWOT Analysis

No doubt, property preservation and property management business is perhaps one of the easiest and cheapest way of entering the real estate industry. As a matter of fact, all that is required to do pretty well in this line of business is a high school diploma, experience in property preservation and property management and the right network and connections.

So as such, there are loads of entrepreneurs who are in the industry. But in order to compete favorably in this line of business as a property preservation and management company we hired the service of a tested and trusted business and HR consultant with bias in start – ups to help us conduct critical SWOT analysis for us.

As a company, we look forward to maximizing our strength and opportunities and also to work around our weaknesses and threats. Here is a summary from the result of the SWOT analysis that was conducted on behalf of JC Jones & Co Property Preservation Company, LLP;

Aside from the fact that we are well positioned in the heart of Santiago – California, our strength as a property preservation and management company lies in the fact that we have healthy relationships with loads of property owners (landlords) in the United States and we have some of the best hands in the industry working both as full time employees and consultants for us.

We can confidently boast that we have some the qualities that are in high demand in the property preservation and management line of business which are trust, honesty and relationship management.

Our weakness could be that we are a new property preservation and management company in Santiago – California and it may take us time and extra effort to convince landlords to give us their properties to preserve and manage for them. So also we may not have the extra financial muscle to package and promote our business the way we would love to do.

• Opportunities:

The opportunities that is available in the property preservation and management industry cum real estate industry is massive and we are well – positioned, equipped and ready to take advantage of any opportunity that comes our way.

Aside from unfavorable government policies, just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a property preservation and management company in same location where our target market exist and who may want to adopt same Business model like us.

7. MARKET ANALYSIS

• Market Trends

Recent research conducted shows that the industry operating conditions for the Property Preservation cum Property Management industry are expected to remain positive in the coming years, though this will eventually slow. Going forward, the value of residential construction is expected to expand rapidly due to improved consumer confidence and low interest rates, causing an increase in the housing stock.

From a general perspective, the market trends as it involves the property preservation and management business is indeed dynamic and at the same pretty much easier for a newbies to come in and still make money from the industry.

All that is needed for any property preservation and management company to do well in the industry is to have good maintenance skills, good managerial skills and health relationship with real estate investors and landlords (property owners).

Lastly, some of the key factors that count positively in this line of business are trust, honesty and relationship management and any property preservation and management company that have this will indeed do pretty well in the industry. Landlords and property owners ensure that they put their properties under the care of someone with good judgment, good maintenance and preservation culture and over and above, someone they can trust.

8. Our Target Market

Our target market as a property preservation and management company cuts across people of different class and people from all walks of life.

We are coming into the industry with a business concept that will enable us work with the highly placed people in the country and at the same with the lowly placed people who are either interested in entrusting their properties under the care of a company that can help them effectively and efficiently preserve and manage them, and also those interested in putting a roof under their head at an affordable fee that won’t be so much of a stress to raise.

Although finding tenants is relatively easy, but the truth is that, finding qualified and law abiding tenants can be somewhat challenging.

It is important to note that the target market for those who are into property management business goes beyond those who make use of the internet (Craigslist to search for properties; some of them only rely on the print media (local daily or weekly newspaper both in English and in Spanish for the Spanish community in the US), some on word of mouth adverts and others on street to street search.

The bottom line is that, the market trend for property management business is indeed a dynamic one. In other words, our target market is the whole of the United States of America and below is a list of the people and organizations that we have plans to do business with;

• Property owners and landlords who are looking for competent company to help them preserve and manage their properties
• Families who are interested in renting/leasing or acquiring a property
• Corporate organizations who are interested in renting/leasing or acquiring their own property / properties
• Land Owners and landlords who are interested in renting/leasing out their properties
• Corporate organizations (real estate agencies, property development companies et al) who are interested in renting/leasing out their properties
• Foreign investors who are interested in owning properties or leasing properties in the United States of America
• Managers of public facilities

Our Competitive Advantage

JC Jones & Co Property Preservation Company, LLP obviously is a new entrant in property preservation and management business, but one thing is certain; we have done our homework and we have been able to highlight some factors that will give us competitive advantage in the marketplace; some of the factors are trust, honesty, good network and excellent relationship management.

Another competitive advantage that we are bringing to the industry is the fact that we have designed our business in such a way that we can comfortably work with both the highly placed clients and the lowly placed clients. We have healthy relationships with loads of property owners (landlords) in the United States and we have some of the best hands in the industry working both as full time employees and consultants for us.

Lastly, our employees will be well taken care of, and their welfare package is amongst the best in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

JC Jones & Co Property Preservation Company, LLP is well positioned, trained and equipped to take advantage of the property preservation and property management industry. We know that despite the fact that we are new in the industry, it won’t be too long before we break even in the industry if we fully execute our plans.

Below are the sources we intend exploring to generate income for JC Jones & Co Property Preservation Company, LLP;

10. Sales Forecast

The fact that there the property market is indeed a booming market means that investors are always going to be attracted to the industry. No doubt it is difficult to see multi-millionaires who don’t have interest in investing in properties; real estate investment is one business portfolio that is common to all multi – millionaires in the world.

In essence, the more people acquire properties, the high the chances of property preservation and management companies will secure business deals. Also as long as tenants are always in search for accommodation, there will always be business for property preservation management companies.

We have perfected or sales and

We have been able to critically examine the property preservation and management industry cum real estate market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.

The sales projection is based on information gathered on the field and some workable assumptions as well; Below are the sales projection for JC Jones & Co Property Preservation Company, LLP, it is based on the location of our business and of course the kind of services we want to offer and our target market;

• First Fiscal Year-: $250,000
• Second Fiscal Year-: $700,000
• Third Fiscal Year-: $1.5 million

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are mindful of the fact that there are stiffer competition in the property preservation and management industry; hence we have been able to hire some of the best marketing experts to handle our sales and marketing concerns.

Our sales and marketing team will be recruited based on their vast experience of the property preservation and management industry cum real estate industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of Good Life® Network Marketing, Inc.

Our corporate goal is to grow JC Jones & Co Property Preservation Company, LLP to become one of the leading property preservation and management brands not just in Santiago – California, but in the United States of America and the world at large which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in the United States of America but also in other parts of the world.

JC Jones & Co Property Preservation Company, LLP is set to make use of the following marketing and sales strategies to attract network marketers;

• Introduce our property preservation and management company by sending introductory letters alongside our brochure to landlords, real estate investors, property owners, households, and key stake holders.
• Advertise our business in relevant real estate and business magazines, newspapers, and other media platforms.
• List our business on yellow pages ads (local directories)
• Attend relevant international and local real estate expos, seminars, and business fairs et al
• Create different packages for different category of clients in order to work with their budgets and still deliver excellent services
• Leverage on the internet to promote our business
• Engage in direct marketing approach

Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

Any business that wants to grow beyond the corner of the street they are operating from must be ready and willing to utilize every available means (both conventional and non – conventional means) to advertise and promote the business. We intend growing our business beyond Santiago – California which is why we have perfected plans to build our brand via every available means.

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for both corporate clients and individual clients in the whole of Santiago – California and beyond which is why we have made provisions for effective publicity and advertisement of our company.

Below are the platforms JC Jones & Co Property Preservation Company, LLP intend to leverage on to promote and advertise her property preservation and management business;

• Distribute our fliers and handbills in targeted areas from time to time
• Install our Bill Boards on strategic locations
• Leverage on the internet and social media platforms like; Instagram, Facebook ,Twitter, LinkedIn,  Badoo, Google+  and other platforms (real estate online forums) to promote our business and list our properties for sale and for lease.
• Maximize our company’s website to promote our business
• Sponsor relevant TV shows
• Place our flexi banners with our company’s logo and contacts in every property we put up for sale or lease.
• Place adverts on both print and electronic media platforms
• List our company in local directories / yellow pages
• Attend landlord and residence association meetings with the aim of networking and introducing our business.
• Advertise our company in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo et al.

12. Our Pricing Strategy

Part of business strategy is to ensure that we work within the budget of our clients to deliver excellent properties preservation and management services to them. The property preservation and management line of business cum real estate industry is based on commissions and properties are valued by professionals based on the area the facility is located, the type of facility and other factors.

Since we are not directly in control of the pricing system in the real estate industry we can only abide by what is obtainable when it comes to pricing structure. Part of what we intended doing that will help us cut cost is to reduce to barest minimum all maintenance cost by renting / leasing any property under our care to responsible tenants who won’t cause damage to our facilities.

• Payment Options

Our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them but at the same time, we will not accept payment by cash because of the volume of cash that will be involved in most of our transactions. Real estate deals usually involves huge amount of money.

Here are the payment options that JC Jones & Co Property Preservation Company, LLP will make available to her clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our tenants pay their rents and bills without any difficulty. Our bank account numbers will be made available to tenants who may want to deposit cash. Our bank account numbers will be made available on our website and promotional materials to network marketers / clients who may want to deposit cash or make online transfer for services rendered

13. Startup Expenditure (Budget)

• Financial Costing

This is what it would cost us to set JC Jones & Co Property Preservation Company, LLP in the United of America;

• Business incorporating fees in the United States of America will cost – $750.
• The budget for Liability insurance, permits and license will cost – $3,500
• Acquiring an office space that will accommodate the number of employees for at least 6 months (Re – Construction of the facility inclusive) will cost – $100,000.
• Equipping the office (computers, printers, projectors, markers, servers / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $10,000
• Amount required to purchase the needed software applications to run our business – $3,500
• Launching an official Website will cost – $500
• Amount need to pay bills and staff members for at least 2 to 3 months – $70,000
• Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $1,000

Going by the report from the market research and feasibility studies conducted, we will need about two hundred thousand ( 200,000 ) U.S. dollars to successfully set – up a medium scale but standard property preservation and management company in the United States of America.

Generating Funding/Startup Capital for JC Jones & Co Property Preservation Company, LLP

JC Jones & Co Property Preservation Company, LLP is a family business that will be owned and managed by JC Jones and his immediate family members. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sale of his stocks
• Generate part of the start – up capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $100,000 (Personal savings $70,000 and soft loan from family members $30,000) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factor are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting JC Jones & Co Property Preservation Company, LLP is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

JC Jones & Co Property Preservation Company, LLP will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check:>Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Securing a standard office facility, renovation and equipping of the facility inclusive: Completed
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the start – up capital from the founders: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of Logo for the business: Completed
• Purchase of repair and installation tools and equipment: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, office equipment, software applications, electronic appliances and facility facelift: In Progress
• Creating Official Website for the business: In Progress
• Creating Awareness for the business: In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in the construction and real estate industries: In Progress

Property Deal Sourcing and Deal Packaging for Beginners

Whether you want more cash in your life, to completely replace your income or to build a six-figure property business, one of the best ways to do this is through deal sourcing and deal packaging .

What are property deal sourcing and deal packaging?

Deal sourcing is searching for a property deal and negotiating the price investors are willing to spend on it. A good deal source can get up to 25% BMV (below market value) on these sorts of deals. 

Deal packaging is taking that deal and packaging it for investors to purchase from you for a lucrative fee. Deal Packaging is the fastest cash flow strategy you can learn in property. 

It is also about learning to package to the investor. This means that they can buy your deals but also fund your deals so that you can keep 100% of the deal .

Deal packaging is the strategy that compliments every other property strategy so no matter what strategy you’re thinking about doing in property, deal packaging is the skill set you NEED to acquire.

Deal packaging is low risk, can generate HUGE amounts of cash and gets you paid upfront.

How does deal sourcing work?

Sourcing the property involves finding the ideal location, checking the current property market and prices, potential refurbishment opportunities and how much value can be added to the property.

Why would investors use deal sourcing and deal packaging?

Simple – they’re time-poor.

Investors have a lot of different plates spinning at the same time. So if a reliable, credible deal sourcing and packager come along with a below-market value deal where they will make a good ROI (return on investment) then they are going to snap up that opportunity.

Is deal sourcing legal?

Yes, but in order to stay within the legal guidelines it’s important to become compliant. The property industry is highly regulated to protect everyone involved in property transactions.

Property deal sourcing is under the same category as Estate Agents in terms of governance and has to work to the same rules.

To be compliant you need to:

• Register with HMRC and Regulators
• Register for Anti-Money Laundering Legislation
• Take out the correct insurance
• Register under Data Protection Act

How do I find property deals?

The best way to find property deals is without a doubt networking. You want the best below-market value property deals that aren’t available to the public yet. Therefore you need to get them before they go on sites such as Rightmove or Zoopla.

To make sure you’re in the know you need to network at different events and make good contacts with people such as estate agents, investors, planning officials, local solicitors and conveyancers.

Another good way to find out about property deals is through other deal sourcers and packagers. Sometimes even though deals are great value, deal sourcers don’t have time to follow up on the lead or it’s too far out of their goldmine area. Therefore, it’s beneficial to know others in this field.

What is a sourcing fee?

This is the fee you charge your investors for finding and packaging their deal. This fee can vary from £3,000-£5,000 and in London, you can charge up to £10,000 for one deal.

It usually only takes one deal per month to replace someone’s income so that they can quit their job and start their property business full-time.

How do I start deal sourcing and deal packaging?

This isn’t a property strategy that you should go out and try to figure out on your own. It’s easy to make costly, timely mistakes that you definitely want to avoid.

You want to learn from the property experts who have been there, done that, made the mistakes and learned the valuable lesson so that you don’t have to.

Visit Progressive Property to learn more

Learn from Progressive Property’s Katy Wilson , our amazing Deal Packaging expert . Before property, Katy worked in the IT industry as a Project Manager for some pretty BIG clients (one of them being The Royal Family).

She was working Monday-Friday, living in Nottingham but working in London, so therefore, staying in hotels all week and living out of a suitcase. It wore thin quite quickly, so she quit.

Katy was interested in getting into property, but after reading all the books, listening to all the podcasts and trying to absorb as much information as possible, she still wasn’t any further forward.

Until she discovered Progressive Property , then everything changed. Progressive Property introduced her to the property strategy where she could raise cash quickly and replace her income – deal packaging .

Katy was able to make a profit from property without needing any money herself to start. It was perfect. Within a year she had done 15 deals and made over £50,000.

In year 2, she continued to grow and DOUBLED that – making £100,000. In 2022 she is forecast to make an unbelievable £320,000 from deal packaging !

Katy has also built a £1.5 million pound property portfolio in under 4 years. So, not only does she have thousands of pounds in cash flow from deal packaging every month, but she has also managed to take that money to buy assets with a property portfolio of over a million pounds!

If Katy can do this, there’s no doubt that you can too.

Register here for your complimentary space at Katy’s upcoming Deal Packaging Discovery Day .

Create quicker cash flow selling on deals you don’t want, don’t have to buy, or simply to raise cash and replace your income. Learn strategies that don’t require mortgages, loans or debt at all. Bad credit? No problem with deal packaging .

Why should you attend our Deal Packaging Discovery Day?

It doesn’t matter whether you are experienced or whether you are brand new to property. You can start today. All you need is a mobile phone and a computer to start packaging and selling deals.

You will get a one-day introduction to:

• Monetise almost every deal from 30% Below Market Value to negative equity, and where to find the right investor for the right deal
• Simple step-by-step system to package and sell any of your deals for CASH fast
• Create more immediate cashflow in addition to your longer-term asset-building strategy
• The most effective start-up techniques for sourcing great property deals and finding investors who are hungry to buy them
• How you could make £3,000 to £8,000 cashflow per month as a property “Deal Packager”
• The fastest way to turn your time spent on property into cash in the bank!

Want to learn how to do property deal packaging properly?

Spaces are limited and fill up fast so make sure you reserve your spot today !

Have a question or wish to find out more? Join our community here.

Learn how to find the best below-market-value deals:

More From Forbes

Working with the 2024 property management trends.

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Cofounder at UpperKey . Passionate about property management, real estate investments, proptech and driving international business growth.

With ever-advancing evolutions in technology and innovation, changes in client and tenant demographics and the state of the real estate industry in general, there’s a great deal going on in property management that industry leaders need to keep ahead of.

Many construction projects are back in full flow, although, in some locations, living space expectations have impacted the types of new properties getting built since the pandemic started.

I've noticed that key tourism and business hubs—country capitals and high-profile cities such as Paris, London and Dubai —continue to show favorable signs of lucrative returns for property owners operating in or breaking into rental markets.

With the journey through the pandemic creating vast shifts in how we operate and the current market's problematic financial issues, what can property managers expect from the coming year, and how can we plan to make the most of the opportunities offered?

Luxury Vs. Affordable Housing: How Building Anything Helps Everything

Inside a serene new york city penthouse on sale for $9.5 million, larry ellison’s newest bauble: a palm beach resort 7 miles from mar-a-lago, prioritize strategizing for growth..

Property management companies strive for growth. It's what boosts the bottom line. And learning from the issues faced during Covid-19, many of us have seen firsthand the benefits of the integration of new technology.

We've also seen a decline in real estate opportunities and a rise in rental demand . So, where do we concentrate our efforts for growth?

Property management companies grow by expanding their portfolios. So focus on recruiting new clients, encouraging existing clients to add new properties, expanding into new markets and regions, and even consider whether it might be a good idea to invest in buildings and developments of your own.

Combat rising costs.

Taxes, insurance, materials, service and labor charges have increased, so using your expertise to streamline your outgoings is more crucial than ever.

Rising costs and cost efficiency are significant factors, given the global financial issues we're experiencing. To maintain profits while offering value, aim to be more efficient with your time and resources, finding ways to earn more without creating more effort. Again, consider leaning into technology to ease your workload while processing more contracts.

Beware of the competition.

With new technologies replacing old-fashioned systems, there's a lot of opportunity for tech-savvy startups to enter the market. Also, I've noticed many realtors and estate agents are diversifying into property management as the number of properties in the market drops.

How do property managers ensure we stay on top? Well, we've got the benefit of our experience on our side. Unlike those building their operations from scratch, building on what you already have should offer tenants more streamlined, personalized, practical solutions and customer service.

Strive for tenant quality and resident retention.

Maintaining occupancy rates requires a steady stream of new tenants and holding on to the quality ones you have already. Tenant screening to ensure they're the type who can afford your higher-rate properties and extended stays is a must.

As a growing market, Gen-Z often needs to spend more on rent, with many still planning to buy property further down the road. How? Well, it's often down to the Baby Boomers (who own a decent percentage of existing properties) freeing up equity. Some Baby Boomers are choosing not to downsize and reap the benefits themselves, but to invest in their children's first steps onto the property ladder.

Finally—and unsurprisingly—continue exploring technology.

1. Machine learning and AI: Machine learning and AI are turning heads in every industry. It's no different in ours and within almost every area of operation. How can we utilize AI more efficiently? How about predicting maintenance operations, asset lifespans and lifecycles, tenant behaviors, market fluctuation, optimizing rental rates and seasonal pricing—all things we can build into our schedules to become more competent and pre-empt problems and emergencies? Predictive maintenance will also play its part in sustainability and energy planning—another critical trend area in our industry.

2. Big data, planning and decision-making: To take the tech a step further, how about using AI to predict potential investment opportunities by analyzing market and consumer trends? Property management software can utilize data to observe property performance, finances and tenant behavior, exploring key performance indicators and weak areas, leading to more data-driven decision-making for enhanced efficiency and profit.

3. Sustainability and lifestyle: Moving toward sustainability and greener opportunities, property managers can optimize energy consumption and waste management, use more renewable resources and provide tenants with added health and wellness, lifestyle quality and living experiences.

4. Smart/intelligent buildings: What were once high-end luxuries and marketing opportunities are now practical implementations for every rental. However, don’t take their integrations for granted. Virtual tours, automated lighting and heating sensors and systems, smart locks and digital check-ins and checkouts don't just make life easier for everyone, they provide a wealth of real-time data for more of that essential data-driven decision-making.

5. Blockchain transparency and security: With smart contracts and digital documents at the heart of new transactions, we can eliminate paper trails and many third-party elements. Blockchain provides transparent and secure historical interactions; and for investment situations, there's every possibility of simplifying processes and transactions.

6. Property management tools: Digital property management tools should be at the heart of every company's administration and function. Remote monitoring and automated services allow for massive improvement of operations. At the same time, the emphasis on mobile tools for users and managers enables us to manage more contracts wherever we are and whenever the need arises.

As these enhanced tools streamline our work, tenant and employee satisfaction rises, allowing both to concentrate on what they'd prefer to be doing with their time, becoming more productive or happier instead of wading through a field of demeaning or tedious manual tasks.

So, how will you attack 2024?

Whether you've got a crystal ball or not, there's much to do to keep pushing operations forward in the current landscape. Doing what you can to try and future-proof your services—or at least stay ahead of the curve—is more than necessary in our ever-evolving market. These trend suggestions are a few sensible choices to help build growth, stay current and strengthen returns.

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Rent to Rent Property: The Complete Guide (2023)

Rent to rent property businesses have been gaining popularity in the UK in recent years as a way for property investors and entrepreneurs to generate income without having to buy their own properties. 

In this complete guide to rent to rent property, we'll take you through everything you need to know to start your own rent to rent business. From finding the right properties, to securing funding, to navigating the legal and regulatory landscape, we'll cover all the key aspects of this business model. 

We'll also examine the pros and cons of rent to rent, the controversies surrounding it, and how it compares to traditional landlord-tenant relationships. 

Whether you're an experienced property investor or just starting out, this guide will provide you with the information you need to help succeed in the rent to rent property game.

Note:  This article is for informational purposes only, and does not constitute and should not be treated as a substitute for legal, financial, or other professional advice.

As useful as this complete guide is, we've also written an updated detailed article on what is rent to rent . This includes new information about the trending R2R strategies, success stories, latest pitfalls, and the best software tools to easily find rent to rent deals.

What is "rent to rent" and how does it work in the UK?

Rent to rent (R2R) is a business model that involves leasing a property from the owner , and then subleasing the property to tenants at a higher rate. The R2R business owner acts as a middleman, collecting the rent from the subtenants and using the difference between the rent paid by the subtenants and the rent paid to the property owner to generate a profit.

In the UK, rent to rent is a relatively new and emerging business model in recent years. It is typically used as a way to generate revenue through the acquisition and management of rental properties, or as a way to capitalise on market trends and opportunities through the acquisition and resale of properties.

Don't mistake rent to rent as passive income

To engage in rent to rent in the UK, an individual or business typically begins by identifying a suitable property and negotiating a lease with the property owner. The individual or business then subleases the property to one or more subtenants and collects the rent from the subtenants. The difference between the rent paid by the subtenants and the rent paid to the property owner is used to generate a profit.

Rent to rent can be a complex and time-consuming business depending on how much support you have. It's not necessarily a hands-off income business...

It's important for investors to carefully assess the potential risks and rewards of this business model. Equally, it's just as key to ensure all legal and regulatory requirements are met, as any rent to rent business model may be subject to additional scrutiny and oversight in the UK.

What's the appeal of operating a rent to rent property business?

The big attraction for prospective property enthusiasts wanting to start a rent to rent property business, is that far less capital is needed to get going. 

This is because you don't need to "buy" any property, and therefore no heavy deposits or big mortgages are necessary. 

You can start with a much smaller amount of funds versus buying a property on a buy-to-let agreement. The initial funds would typically cover:

• The rent you'll pay to the landlord for a few months (including coverage for empty tenancy periods on your side).
• Legal and administrative fees for paperwork and compliance.
• Any minor refurbishment costs to add value (i.e. increase the price) of sub-renting the unit.

With these points in mind, it's a lot faster to start generating cash flow. Of course, that's only if everything is executed carefully and according to plan.

The pros and cons of rent to rent: is it a scalable business model?

There's the good and bad when it comes to the R2R business model. 

The pros of R2R

Some of the stand-out advantages of running a rent to rent business include:

• Generate significant profits by capitalising on the high demand for rental housing in certain UK markets through 2023.
• Enter the real estate market without the need to purchase properties outright – low capital input, high potential cashflow .
• Flexibility to choose the properties to invest in, the terms of the lease agreements, and the rent charged to subtenants. This can allow you to tailor your investments to your specific goals and preferences.
• Diversify the investment portfolio and spread risk by investing in multiple properties or markets.
• If a rent to rent strategy is implemented successfully with a strong team in place, it can provide a source of passive income through the management of rental properties – yes, we did mention earlier that it's not necessarily a passive income business, but it really depends on how well you scale and how well you operate!

The cons of R2R

On the other hand, there are also significant risks and potential downsides to the rent to rent business model. Notable disadvantages could include:

• It's still somewhat controversial in that it has received criticism for potentially exploiting tenants and landlords, and contributing to the high cost of rental housing.
• Legal and regulatory standards are subject to more scrutiny  and could change. The UK government and its property and landlord policy makers are always keeping a close eye on it.
• There could be a high tenant turnover (as is the risk with any traditional rental properties such as buy-to-lets). This can be time-consuming as well as costly to manage.
• Tenant default risks are possible in a rent to rent property, as they are in any type of leased property. Subtenants may not be able to make their payments, and you might need to take legal action which could again be expensive and consume much of your time.
• Maintaining and repairing the property will almost certainly be your responsibility – it's part and parcel of a common R2R property agreement with the landlord (i.e. property owner). Keeping costs reasonable here is critical.
• Depending on your relationship with the property owner, there's potential for conflicts or misunderstandings. These could be challenging to resolve and may result in legal disputes or terminated leases.

Is it a feasible business model?

Ultimately, whether or not rent to rent is a scalable business model will depend on a range of factors, including the specific market conditions, the demand for rental housing, the availability of properties, and the legal and regulatory framework in which the business operates. 

The rewards are there to be seen, but then so are the risks... It's certainly feasible in the sense that you can earn good money and make a good living from operating a property company in this fashion. 

Although, if you're considering getting involved in rent to rent as an investor or business owner, then you need to carefully assess everything and have a well-documented plan of action that gives the best chance of avoiding all of the  cracks and pitfalls .

Rent to rent controversy: exploitation or opportunity?

R2R property businesses have been the subject of controversy in some quarters, with some people arguing that they contribute to the exploitation of tenants and landlords and contribute to the high cost of rental housing. 

Critics of rent to rent argue that it can result in tenants paying significantly higher rents than they would under a traditional landlord-tenant relationship, and that it can undermine the stability of the rental housing market.

Conversely, supporters of rent to rent argue that it can provide an opportunity for investors to enter the real estate market without the need to purchase properties outright, and can provide a source of passive income through the management of rental properties. 

There are some advocates of rent to rent

They also say it's a viable investment strategy that offers significant potential rewards, and may argue that it can help to increase the supply of rental housing in certain high-demand locations throughout the UK.

Ultimately, whether rent to rent is seen as exploitation or opportunity will depend on the perspective of the person in question. As an investor willing put cash into a rent to rent property, you'd likely see it as a way to get a good return on your investment. 

However, the UK government or a strapped-for-cash tenant struggling to find a place to rent, may view it as unethical and contributing to the housing crisis.

A closer look at rent to rent and the UK rental housing market

The state of the UK rental housing market during in 2023 varies depending on a range of factors, including the specific location, the demand for rental housing in those locations, the availability of properties, and the economic conditions.

In general, the UK rental housing market has been characterized by high demand and rising rents in recent years, particularly in urban areas. This will be no different in 2023... 

It's driven by a range of factors, including population growth, rising house prices, and a shortage of affordable housing. As a result, many people in the UK are unable to afford to buy a home and are instead choosing to rent.

High demand brings high rental costs

The high demand for rental housing has led to increased competition for rental properties in cities and nearby towns to those cities. Unsurprisingly the situation has contributed to rising rents. 

It's made it challenging for many people to afford rental housing let alone buying a home – there are ongoing concerns about the affordability and the availability of housing across the UK.

Despite these challenges, the UK rental housing market remains attractive for investors, with the potential for strong returns and profit in certain locations. This is predominantly because of the huge supply and demand gap, in that there isn't enough housing (supply) for tenants (demand) across the board. 

For the most part, occupying your investment properties with tenants, whether they adopt R2R, BTL or HMO strategies, shouldn't be difficult – pending the right things being done well: location, good standard of build and furnishings (if applicable), and competitively priced.

The legal and compliance landscape of UK rent to rent

The regulatory landscape of rent to rent in the UK is complex yet highly regulated. It's similar to typical landlord-tenant regulations but with added scrutiny given there's an additional party involved: you, as the R2R middleman.

Rent to rent is subject to a range of mandatory requirements that vary depending on the specific circumstances of the property and the agreements in place. These requirements may include:

• Licensing : Rent to rent properties may be subject to licensing requirements in certain circumstances, such as if the property is being used as a house of multiple occupation (HMO). HMOs are properties that are occupied by three or more people who are not from the same household, and are this warrants additional licensing and management requirements. Investors in rent to rent properties should be aware of these requirements and ensure that they are properly licensed.
• Insurance : As with any landlord, they should have Landlord insurance. In a rent to rent deal, you could be classed as the landlord from the tenant's perspective, and so this needs exploring further to ensure you're adequately protected. Additionally, other areas of insurance from a business standpoint you should look into purchasing are public liability, professional indemnity, and rental protection.
• Contracts:  There are several contracts that may be necessary to have signed as part of a rent to rent property opportunity. They might include a lease agreement, sublease agreement, property management agreement and guarantee agreement.
• Tenant protection laws : A rent to rent property need to follow tenant protection laws in the UK, which set out the rights and responsibilities of landlords and tenants and provide a framework for the resolution of disputes. This includes the requirement for landlords to protect tenants' deposits and to maintain the property in a safe and wearable condition, and the requirement for tenants to pay rent and to use the property in a responsible manner.
• Health and safety regulations : Keeping rent to rent properties in a healthy and safe condition is paramount. Health and safety regulations in the UK set out the minimum standards that must be met to ensure the safety of tenants – make sure to follow them. These regulations include areas such as fire, electrical and gas safety, among others.
• Property maintenance : There are minimum standards that must be met to ensure the functionality of any leased UK property. They could cover structural integrity, plumbing and heating, pest control, and more.
• Professional and legal advice : Investors in rent to rent properties should seek professional and legal advice before entering into a rent to rent agreement to ensure that they are fully informed of their rights and responsibilities and are operating in compliance with the legal and regulatory requirements that apply to their business.

It's really key that investors in rent to rent properties are familiar with the  legal and regulatory requirements  that apply to their business and to ensure that they are operating in compliance with these requirements. Failing to comply with these requirements can lead to legal action, financial penalties, and reputational dangers!

Rent to rent property business: 10-step checklist

Still keen on venturing into R2R property? Increase your chances of success when starting out by ticking off the following 10 checklist items.

If you can't or don't need to tick off one or more, then at least consider your strategy in or around them to avoid any surprises later on!

• Market research : Conduct thorough research on the local property market and identify areas with high demand for rental properties.
• Business plan : Create a detailed business plan outlining your goals, target market, marketing strategies, financial projections, and operational procedures.
• Legal requirements : Ensure that you comply with all legal and compliance requirements, including obtaining necessary licenses and permits, registering your business, and adhering to landlord and tenant laws.
• Funding : Determine your startup costs and explore financing options such as loans or investment from partners.
• Property sourcing : Identify suitable properties for rent to rent on your own and negotiate with property owners or agents. Or find a  property sourcing agent  or company specialising in R2R sourcing to give an expert hand in the deal finding and deal making process.
• Property management : Develop a system for property management and maintenance, including regular inspections, repairs, and tenant relations – can you do it on your own or is this worth considering outsourcing to a property management company?
• Marketing : Adopt a full marketing strategy to promote your business and attract potential tenants, including online advertising (and offline depending on the target market), social media, and networking.
• Financial management : Implement a robust accounting and financial management system, including budgeting, bookkeeping, and tax compliance.
• Team building : Build a team of professionals, including property managers, accountants, and lawyers, to support your business operations. This doesn't necessarily mean hiring people directly since that's a horrible large cost when starting out. But at least have vendors in place ready to help when necessary.
• Risk management : Develop a plan to manage potential risks, such as property damage, tenant defaults, or legal disputes.

Now, this list can seem a little daunting at first glance... 

It's not to scare you but instead perhaps provide a reality check that there's a lot of things to take into account if you're going to do this properly!

Do what ever you can to avoid shortcuts , and best of all, steer away from any "get rich quick" R2R gurus or schemes. It's a simple business model, but not easy execute – it requires hard work to make it genuinely profitable.

How can I find a great rent to rent property deal?

The quality of your market research and business plan depend heavily on the numbers you've calculated for your revenue and costs on your first R2R property deal.

How much can you realistically make? How much can you realistically lose in the event of several worst-case scenarios?

Most importantly, how on earth can you find that first deal to really get things going and avoid some obvious pitfalls?

This is where the benefits of working with a property deal sourcer come into play...

Property sourcing experts in rent to rent opportunities

They exist, and they can help in more ways than one:

• Time-saving : Property sourcing brokers can save you time by identifying suitable properties that meet your rent to rent criteria. They can take care of the legwork, including searching for properties, viewing them, and negotiating with the landlord or property owners.
• Expertise : they have the expertise to identify properties with high potential for profit and growth. They can help you to avoid making costly mistakes, and can provide advice on areas to invest in, rental yields, and potential demand.
• Access to  off-market property deals : a property sourcer may have access to off-market rent to rent deals that are not advertised publicly. These deals can often be more attractive and profitable than those available on the open market.
• Negotiating power : the R2R deal sourcer will have the experience and knowledge to negotiate with landlords and agents to secure the best possible terms. They can help you to get a better deal on rent, terms of the tenancy agreement, and other conditions.
• Networking : they often have a network of contacts in the industry, including landlords, agents, and other property professionals. This can give you access to a wider range of rent to rent deals and opportunities.
• Professionalism : This is their "business" activity for a reason. A property sourcing agent can provide a professional service, handling all aspects of the process in a timely and efficient manner. They can help to ensure that the deal is completed smoothly and that all legal requirements are met.

If you're not sure where to start looking and how to negotiate a rent to rent property deal, simply get in touch with a property sourcing company first to understand more. Most, if not all, will chat to you free initially and give potentially invaluable advice before you take the plunge! 

You might want to check out the best questions to ask property sourcing agents – these can easily help you assess a property deal sourcer and enable you to act with more confidence if you want take things further.

Here's a case study from a verified property sourcer

Let's take a look at a rent to rent deal that was formulated for an investor by OS Residential Properties , a property sourcing company specialising in London and Cambridge.

It started with a local landlord who is the owner of 2 HMO properties in Streatham, London. They were having problems with tenants and managing everything (including the problems) themselves. A far from ideal situation for any property owner.

The landlord had suffered long void periods, damage to her propertIes, and horrid costs to evict the tenants. 

As a result, the landlord was unable to do the necessary repairs needed to bring their properties to a reasonable standard for any prospective tenants – they were not attractive to live in, and the chance to drum up any tenant interest was quickly turned away by local estate agents.

And so with that, the landlord sought help via a different strategy: rent to rent.

Guaranteeing rent for landlords with property refurbishments

They saw a guaranteed rent advert online posted by OS Residential Properties, a registered property sourcing agency . The landlord contacted them to find out more – they were simply fed up and tired of all the stress and hassle of managing the properties, while at the same time, this guaranteed rent advert seemed like an ideal outcome to alleviate the current pains.

OS Residential Properties and their Director, Nana Sheila were perfectly positioned to help: they acted as the intermediary between the landlord and their strong network of investors who were on the lookout for new rent to rent property opportunities.

With that being said, there was one investor who was interested in taking over the management of both HMO properties in the South London area. OS Residential Properties connected both the investor and landlord through their property sourcing process. 

Who wins – the investor or the landlord?

The answer is the investor and the landlord. This is a win-win situation for both of them! Here's why...

• The investor agreed to pay the landlord rental income for the 2 HMOs – this is guaranteed rent for the landlord over the course of several years.
• The landlord now enjoys a rental income every month free from tenant management and with complete peace of mind.
• The investor spent thousands on a high-quality face-lift to both properties – even though they don't own the properties.
• The properties were rented out to professional tenants – this time, more carefully selected and vetted.
• The investor now receives a higher (premium) rental income than what they pay the landlord, meaning they're left with a positive cashflow without actually owning those properties. This positive cashflow also takes into account the cost of their refurbs, which at the end of the guaranteed rental agreement will leave them with a healthy profit overall.

Rent to rent as part of a UK property portfolio – summary

Investing in a rent to rent property business in the UK can be a lucrative and rewarding experience, but it's not without its challenges. 

It offers the potential for significant income, without the need for a large initial investment, and can provide a flexible and scalable business model. However, it requires a good understanding of the legal and regulatory landscape, as well as the rental housing market, and the ability to manage and maintain properties effectively.

The biggest challenges of the rent to rent model are arguably the need to secure a reliable and consistent stream of tenants and the potential risks of rental arrears, property damage, and legal disputes. It also requires a significant amount of time and effort to source, negotiate, and manage properties, and may require additional investment in marketing and advertising to attract potential tenants.

Making it work what ever the R2R strategy

Whether you're adopting a rent to buy-to-let, rent to serviced accommodation (R2SA) or even rent to HMO model, those with the necessary skills and resources can make it work. 

As with any investment opportunity, it is important to conduct thorough research, seek professional advice where necessary, and develop a sound business plan to minimise risks and maximise potential returns.

Need help getting started with the right rent to rent property investment opportunity? Check out and connect with one or more  verified rent to rent deal sourcers  listed with us.

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California home insurance program accused of selling policies with subpar fire coverage

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A class-action lawsuit against the California FAIR Plan Assn. accuses the state’s insurance program of last resort of unlawfully selling policies with subpar coverage for fire and smoke damage.

The lawsuit was filed Wednesday in Alameda County Superior Court on behalf of four California residents who seek to represent more than 365,000 FAIR Plan policyholders.

Funded by a pool of private insurers who write policies in the state, the FAIR Plan serves as backup insurance for people unable to obtain coverage from private sources, especially those in high-risk areas where companies are reluctant to provide coverage.

Over the last few years, the state insurer has seen a wave of new policyholders amid extreme and destructive wildfires that have caused insurance companies to leave the state or to stop renewing policies.

As of March, the FAIR Plan was exposed to $340 billion in liabilities because of the high number of policies it had issued.

Column: Unaffordable homeowner’s insurance is leaving Californians exposed to the elements

Hundreds of thousands of Californians have been abandoned by their property insurers because they live in risky fire-prone areas.

May 27, 2024

The Department of Insurance requires fire insurance policies to cover “direct physical loss” caused by fire and smoke.

But since 2017, the lawsuit claims, the FAIR Plan began limiting coverage after state officials approved a standard policy that, among other provisions, paid for smoke damage only if it was detectable to the unaided eye or nose of an average person rather than requiring laboratory testing.

Dylan L. Schaffer, the attorney for the plaintiffs, said the changes created a policy that is unlawful and fails to provide mandatory minimum coverage for losses caused by a fire. It also places residents at risk to contaminants that may not be visible to the human eye.

“The illegal policy gives FAIR Plan and its member companies like State Farm and Nationwide license to refuse to properly investigate and pay wildfire smoke damage claims,” Schaffer said.

A spokesman for the California FAIR Plan Assn. said it does not comment on pending litigation.

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Allstate, the sixth largest homeowners’ insurer in California, has filed for an average 34% rate increase that if approved could take effect later this year.

July 11, 2024

Because of those changes, Schaffer said, thousands of wildfire claims have been improperly denied.

But the lawsuit also serves as an attempt to hold the Department of Insurance accountable for failing to enforce its own policies.

The lawsuit claims that the department wrote a letter to the FAIR Plan in January 2021, saying the amended fire insurance policy was unlawful because it failed to provide “the mandatory minimum coverage required by California law.” The letter also told the FAIR Plan that it had obtained approval for its policy based on “misrepresentations” and “concealment of material facts,” according to the lawsuit.

The letter directed the FAIR Plan to reform its policies, the lawsuit says, and review claims it had rejected.

The lawsuit claims that the results of the department’s findings were once again confirmed in a May 2022 report on the FAIR Plan’s handling of wildfire claims.

A spokesperson for the Insurance Department did not immediately respond to a request for comment.

With fires burning again, is California becoming uninsurable?

Gov. Gavin Newsom and Insurance Commissioner Ricardo Lara have floated proposals to lure home insurance companies back as climate change increases wildfire risks.

June 20, 2024

Schaffer, who is also litigating a separate suit on behalf of more than 1,000 homeowners in Los Angeles who say the FAIR Plan wrongly denied their claims, said the FAIR Plan continues to sell the same policies despite the department’s findings.

The lawsuit asks the court to order the association to comply with the law and increase the scope of wildfire coverage in all of its California policies.

“We’re not asking for any money, we’re just asking the California FAIR Plan to come into the light, to come in where all its member carriers are,” Schaffer said. “They all investigate smoke damage, they determine smoke damage and they pay for reasonable amounts for remediation.”

More to Read

L.A. consumer group calls FAIR Plan insurance reforms an industry ‘bailout’

Aug. 1, 2024

Is this the solution to California’s soaring insurance prices due to wildfire risk?

July 26, 2024

State regulators identify wildfire neighborhoods targeted for insurance relief

June 12, 2024

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Ruben Vives is a general assignment reporter for the Los Angeles Times. A native of Guatemala, he got his start in journalism by writing for The Times’ Homicide Report in 2007. He helped uncover the financial corruption in the city of Bell that led to criminal charges against eight city officials. The 2010 investigative series won the Pulitzer Prize for public service and other prestigious awards.

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MoSCoW Prioritization

What is moscow prioritization.

MoSCoW prioritization, also known as the MoSCoW method or MoSCoW analysis, is a popular prioritization technique for managing requirements. 

  The acronym MoSCoW represents four categories of initiatives: must-have, should-have, could-have, and won’t-have, or will not have right now. Some companies also use the “W” in MoSCoW to mean “wish.”

What is the History of the MoSCoW Method?

Software development expert Dai Clegg created the MoSCoW method while working at Oracle. He designed the framework to help his team prioritize tasks during development work on product releases.

You can find a detailed account of using MoSCoW prioritization in the Dynamic System Development Method (DSDM) handbook . But because MoSCoW can prioritize tasks within any time-boxed project, teams have adapted the method for a broad range of uses.

How Does MoSCoW Prioritization Work?

Before running a MoSCoW analysis, a few things need to happen. First, key stakeholders and the product team need to get aligned on objectives and prioritization factors. Then, all participants must agree on which initiatives to prioritize.

At this point, your team should also discuss how they will settle any disagreements in prioritization. If you can establish how to resolve disputes before they come up, you can help prevent those disagreements from holding up progress.

Finally, you’ll also want to reach a consensus on what percentage of resources you’d like to allocate to each category.

With the groundwork complete, you may begin determining which category is most appropriate for each initiative. But, first, let’s further break down each category in the MoSCoW method.

Start prioritizing your roadmap

Moscow prioritization categories.

1. Must-have initiatives

As the name suggests, this category consists of initiatives that are “musts” for your team. They represent non-negotiable needs for the project, product, or release in question. For example, if you’re releasing a healthcare application, a must-have initiative may be security functionalities that help maintain compliance.

The “must-have” category requires the team to complete a mandatory task. If you’re unsure about whether something belongs in this category, ask yourself the following.

If the product won’t work without an initiative, or the release becomes useless without it, the initiative is most likely a “must-have.”

2. Should-have initiatives

Should-have initiatives are just a step below must-haves. They are essential to the product, project, or release, but they are not vital. If left out, the product or project still functions. However, the initiatives may add significant value.

“Should-have” initiatives are different from “must-have” initiatives in that they can get scheduled for a future release without impacting the current one. For example, performance improvements, minor bug fixes, or new functionality may be “should-have” initiatives. Without them, the product still works.

3. Could-have initiatives

Another way of describing “could-have” initiatives is nice-to-haves. “Could-have” initiatives are not necessary to the core function of the product. However, compared with “should-have” initiatives, they have a much smaller impact on the outcome if left out.

So, initiatives placed in the “could-have” category are often the first to be deprioritized if a project in the “should-have” or “must-have” category ends up larger than expected.

4. Will not have (this time)

One benefit of the MoSCoW method is that it places several initiatives in the “will-not-have” category. The category can manage expectations about what the team will not include in a specific release (or another timeframe you’re prioritizing).

Placing initiatives in the “will-not-have” category is one way to help prevent scope creep . If initiatives are in this category, the team knows they are not a priority for this specific time frame. 

Some initiatives in the “will-not-have” group will be prioritized in the future, while others are not likely to happen. Some teams decide to differentiate between those by creating a subcategory within this group.

How Can Development Teams Use MoSCoW?

  Although Dai Clegg developed the approach to help prioritize tasks around his team’s limited time, the MoSCoW method also works when a development team faces limitations other than time. For example: 

Prioritize based on budgetary constraints.

What if a development team’s limiting factor is not a deadline but a tight budget imposed by the company? Working with the product managers, the team can use MoSCoW first to decide on the initiatives that represent must-haves and the should-haves. Then, using the development department’s budget as the guide, the team can figure out which items they can complete. 

Prioritize based on the team’s skillsets.

A cross-functional product team might also find itself constrained by the experience and expertise of its developers. If the product roadmap calls for functionality the team does not have the skills to build, this limiting factor will play into scoring those items in their MoSCoW analysis.

Prioritize based on competing needs at the company.

Cross-functional teams can also find themselves constrained by other company priorities. The team wants to make progress on a new product release, but the executive staff has created tight deadlines for further releases in the same timeframe. In this case, the team can use MoSCoW to determine which aspects of their desired release represent must-haves and temporarily backlog everything else.

What Are the Drawbacks of MoSCoW Prioritization?

  Although many product and development teams have prioritized MoSCoW, the approach has potential pitfalls. Here are a few examples.

1. An inconsistent scoring process can lead to tasks placed in the wrong categories.

  One common criticism against MoSCoW is that it does not include an objective methodology for ranking initiatives against each other. Your team will need to bring this methodology to your analysis. The MoSCoW approach works only to ensure that your team applies a consistent scoring system for all initiatives.

Pro tip: One proven method is weighted scoring, where your team measures each initiative on your backlog against a standard set of cost and benefit criteria. You can use the weighted scoring approach in ProductPlan’s roadmap app .

2. Not including all relevant stakeholders can lead to items placed in the wrong categories.

To know which of your team’s initiatives represent must-haves for your product and which are merely should-haves, you will need as much context as possible.

For example, you might need someone from your sales team to let you know how important (or unimportant) prospective buyers view a proposed new feature.

One pitfall of the MoSCoW method is that you could make poor decisions about where to slot each initiative unless your team receives input from all relevant stakeholders. 

3. Team bias for (or against) initiatives can undermine MoSCoW’s effectiveness.

Because MoSCoW does not include an objective scoring method, your team members can fall victim to their own opinions about certain initiatives. 

One risk of using MoSCoW prioritization is that a team can mistakenly think MoSCoW itself represents an objective way of measuring the items on their list. They discuss an initiative, agree that it is a “should have,” and move on to the next.

But your team will also need an objective and consistent framework for ranking all initiatives. That is the only way to minimize your team’s biases in favor of items or against them.

When Do You Use the MoSCoW Method for Prioritization?

MoSCoW prioritization is effective for teams that want to include representatives from the whole organization in their process. You can capture a broader perspective by involving participants from various functional departments.

Another reason you may want to use MoSCoW prioritization is it allows your team to determine how much effort goes into each category. Therefore, you can ensure you’re delivering a good variety of initiatives in each release.

What Are Best Practices for Using MoSCoW Prioritization?

If you’re considering giving MoSCoW prioritization a try, here are a few steps to keep in mind. Incorporating these into your process will help your team gain more value from the MoSCoW method.

1. Choose an objective ranking or scoring system.

Remember, MoSCoW helps your team group items into the appropriate buckets—from must-have items down to your longer-term wish list. But MoSCoW itself doesn’t help you determine which item belongs in which category.

You will need a separate ranking methodology. You can choose from many, such as:

• Weighted scoring
• Value vs. complexity
• Buy-a-feature
• Opportunity scoring

For help finding the best scoring methodology for your team, check out ProductPlan’s article: 7 strategies to choose the best features for your product .

2. Seek input from all key stakeholders.

To make sure you’re placing each initiative into the right bucket—must-have, should-have, could-have, or won’t-have—your team needs context. 

At the beginning of your MoSCoW method, your team should consider which stakeholders can provide valuable context and insights. Sales? Customer success? The executive staff? Product managers in another area of your business? Include them in your initiative scoring process if you think they can help you see opportunities or threats your team might miss. 

3. Share your MoSCoW process across your organization.

MoSCoW gives your team a tangible way to show your organization prioritizing initiatives for your products or projects. 

The method can help you build company-wide consensus for your work, or at least help you show stakeholders why you made the decisions you did.

Communicating your team’s prioritization strategy also helps you set expectations across the business. When they see your methodology for choosing one initiative over another, stakeholders in other departments will understand that your team has thought through and weighed all decisions you’ve made. 

If any stakeholders have an issue with one of your decisions, they will understand that they can’t simply complain—they’ll need to present you with evidence to alter your course of action.  

Related Terms

2×2 prioritization matrix / Eisenhower matrix / DACI decision-making framework / ICE scoring model / RICE scoring model

Prioritizing your roadmap using our guide

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Schedule a few minutes with us to share more about your product roadmapping goals and we'll tailor a demo to show you how easy it is to build strategic roadmaps, align behind customer needs, prioritize, and measure success.

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Topeka's Barnes & Noble building listed as available property. What we know.

Will Barnes & Noble Booksellers keep its doors open in Topeka?

Local residents were asking that question Sunday on the Topeka Experience Facebook page after seeing an online listing for the building, 6130 S.W. 17th St.

Some were furious at the prospect of losing the bookstore, with one saying, "If this is true, I'm moving out of Topeka - it'll be my final straw."

The Topeka Experience is group dedicated to positive reviews of local businesses, restaurants and events, according to its About page.

We took a visit to Barnes & Noble to see what was going on. Here's what we found.

Will Barnes & Noble close its doors?

Janine Flanigan, vice president store planning and design for Barnes & Noble, said, "We do not have any plans to leave our Topeka location at this time."

Kansas-City based Ferguson Properties highlights the building in its online listing as "35,000 SF Former Barnes and Noble" with more than 18,500 vehicles per day on S.W. Wanamaker Road. It encourages those interested to "join a strong tenant mix."

Crexi.com said the property has been listed since August 2021 and most recently updated the information April 1 of this year. Ferguson properties provides data for its demographics on the property from 2021 as well.

The Capital-Journal reached out to brokers at Ferguson Properties for comment. They didn't respond to repeated inquiries.

More: Why a retired Marine is suing the city of Topeka over its property tax policy

Barnes & Noble is a tenant, not owner of its location

The Barnes & Noble building in Topeka is owned by T-Town Investment Co. LLC, according to Shawnee County property records.

T-Town Investment is a Missouri-based business, according to state of Kansas and Missouri business records.

T-Town Investment is a subsidiary of the Kroenke Group, a real estate developer in Columbia, Missouri. Kroenke Group is owned by billionaire real estate developer Stan Kroenke, who is most famous for owning multiple pro sports teams, including the Los Angeles Rams, the Denver Nuggets, Colorado Avalanche, and Arsenal F.C. and Arsenal W.F.C., English soccer teams.

The Capital-Journal reached out to the Kroenke Group. It didn't respond to repeated inquiries.

More: Salina-based bank holding company is acquiring two banks in Topeka

Keishera Lately is the business reporter for the Topeka Capital-Journal. She can be reached at [email protected]. Follow her on Twitter @Lately_KT.

Capital-Journal reporter Jason Alatidd contributed to this report .