a business plan on property management

• 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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Property Management Business Plan Template & PDF Example

• August 26, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful property management business. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your property management business’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a property management business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the real estate industry, this guide, complete with a business plan example, lays the groundwork for turning your property management business concept into reality. Let’s dive in!

Our property management business plan is designed to cover all essential aspects needed for a comprehensive strategy. It outlines the property management operations, marketing strategy, market environment, competitors, management team, and financial forecasts.

• Executive Summary : Offers an overview of the property management business concept, market analysis , management, and financial strategy.
• Services & Fees: Details the range of property management services offered, including tenant placement, maintenance coordination, and financial administration, along with a clear breakdown of the fee structure for each service.
• Key Stats: Shares industry size , growth trends, and relevant statistics for the property management market.
• Key Trends: Highlights recent trends affecting the property management sector, such as technological advancements and urbanization.
• Key Competitors: Analyzes main competitors in the area and how the business differentiates from them in terms of service quality and technological innovation.
• SWOT: Strengths, weaknesses, opportunities, and threats analysis.
• Marketing Plan : Strategies for promoting the property management services to attract and retain property owners and investors.
• Timeline : Key milestones and objectives from start-up through the first year of operation.
• Management: Information on who manages the property management business and their roles.
• Financial Plan: Projects the business’s financial performance, including revenue, profits, and expected expenses.

Property Management Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces your property management business plan, providing a succinct overview of your company and its services. It should detail your market positioning, the range of property management services you offer, including residential, commercial, or specialized properties you manage, its location, size, and an outline of day-to-day operations.

This section should also discuss how your property management business will integrate into the local real estate market, including the number of direct competitors within the area, identifying who they are, along with your company’s unique selling points that differentiate it from these competitors. This could include specialized services, exceptional customer service, innovative technology use, or strong community ties.

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the company’s success. Experience in real estate, business management, or specific property management skills could be highlighted here.

Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your company’s financial plan. This may include growth strategies, potential market expansion, and plans for scaling operations to meet market demands.

Property Management Business Plan Executive Summary Example

Business Overview

The  business overview  of Prime Property Managers should detail the company’s operational structure, including the range of property management services offered and the number of agents. It’s important to emphasize the diverse revenue streams and how the company caters to the needs of its  target market  in the Austin area.

Example: Prime Property Managers, headquartered in Austin, Texas, boasts a team of 5 certified property management agents. The company offers comprehensive services like tenant screening, maintenance, and legal compliance. Its revenue streams include management fees and various service charges, catering to urban residential and commercial properties in Travis County.

Market Overview

A  market analysis  for the property management industry should include an evaluation of the industry’s size, growth trajectory, and emerging trends. This analysis positions your business within the broader industry and identifies key areas where you can capitalize on current market demands and shifts.

Example: Prime Property Managers is part of a U.S. property management market valued at $99.5 billion. With 326,000 companies managing properties nationwide, the market offers  opportunities  for differentiation through quality service and technological advancements. The company’s focus on tech-enabled services and eco-friendly solutions aligns with current industry trends.

Management Team

This section should outline the background and expertise of the management team, highlighting how their experience in real estate and operational management contributes to the strategic direction and operational success of Prime Property Managers.

Example: The CEO, with 15 years in real estate management, leads the company’s strategic initiatives and client relations. The COO, experienced in operational management and technology, oversees the integration of innovative solutions to enhance service efficiency.

Financial Plan

The financial plan overview should include revenue targets and profit margin goals. This section provides a clear picture of the financial aspirations of Prime Property Managers and its projected financial health and growth.

Example: Prime Property Managers aims to achieve $2.4 million in annual revenue with a 16%  EBITDA  margin by 2028. This ambitious yet achievable target is underpinned by a strategic approach to market positioning, operational efficiency, and a focus on leveraging technology in property management.

Services & Fees

Detail the range of property management services offered, from tenant screening and leasing to maintenance, repairs, and financial reporting. Outline your pricing strategy , ensuring it reflects the quality and comprehensiveness of services provided and aligns with the market you’re targeting.

Highlight any value-added services, such as 24/7 emergency response, online tenant and owner portals, or energy efficiency programs, that differentiate your business from competitors, encouraging long-term contracts and client loyalty.

Industry size & growth

In the Market Overview of your property management business plan, start by examining the size of the property management industry and its growth potential.

This analysis is crucial for understanding the market’s scope and identifying expansion opportunities, such as emerging real estate markets, shifts in residential and commercial property ownership, and the increasing demand for professional property management services due to the complexity of managing properties.

Key market trends

Proceed to discuss recent market trends , such as the growing importance of technology in property management, including the use of property management software for efficiency, the rise of smart home technology in residential properties, and the emphasis on sustainable and green building practices.

For example, highlight the demand for services that cater to energy-efficient buildings, the integration of smart home devices in property management, and the increasing expectation for online tenant services and communications.

Competitive Landscape

A  competitive analysis  is not just a tool for gauging the position of your property management service in the market and its key competitors; it’s also a fundamental component of your business plan.

This analysis helps in identifying your property management service’s unique selling points, essential for differentiating your business in a competitive market.

In addition, competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.

Identifying Your Competitors in Property Management

The initial phase of a competitive analysis involves identifying and comprehending the landscape of your competitors in the property management sector. Begin by delineating local property management firms, real estate agencies, and freelance property managers operating within your targeted areas.

For instance, if your service specializes in residential property management, your direct competitors might include established property management companies known for their expertise in maintaining residential properties. However, don’t disregard indirect competitors like real estate agencies that offer property management services as part of their comprehensive real estate solutions.

Online resources like industry directories, property management association listings, and real estate platforms can aid in mapping out the competition. Additionally, platforms such as Yelp or Google Reviews might offer valuable insights through client feedback, highlighting competitors’  strengths , like prompt maintenance services or exceptional tenant relations.

Property Management Competitors’ Strategies

Examining the strategies employed by competitors involves a multifaceted approach:

• Service Offerings:  Scrutinize the array of services provided by competitors. For instance, if a rival company, “Efficient Property Management,” is gaining traction due to its integrated smart home solutions, it signifies a trend towards technology-driven property management services.
• Management Approach:  Consider the management style adopted by competitors. A firm like “Community Care Properties,” known for its personalized approach and community engagement, might attract a different clientele compared to a larger-scale company focused on efficient and scalable operations.
• Pricing Structure :  Compare pricing models offered by competitors. Assess whether your service aligns with budget-friendly options akin to “Value Estate Management” or caters to premium clientele similar to “Elite Property Services.”
• Marketing Strategies :  Analyze competitors’ marketing tactics. Are they leveraging digital marketing extensively or relying more on traditional advertising methods? Understanding their  marketing channels  helps shape your promotional strategies.
• Client Experience:  Evaluate the customer experience provided by competitors. Perhaps “Reliable Rentals Management” excels in tenant satisfaction through quick issue resolution, while “Eco Living Properties” prioritizes eco-friendly practices, appealing to environmentally conscious landlords and tenants.
• Operational Efficiency:  Observe if competitors are leveraging technology for streamlined property maintenance and client communication, such as “Tech-Savvy Estates,” utilizing advanced property management software.

What’s Your Property Management Service’s Value Proposition?

Delve into your property management service’s  unique value proposition . It could be your specialization in managing luxury properties, a focus on sustainable property maintenance practices, or an emphasis on fostering strong landlord-tenant relationships.

Identify market gaps through tenant and landlord feedback, industry trends, and unmet demands. For instance, the rising interest in eco-friendly properties could represent an opportunity if competitors have not tapped into this niche.

Consider your  target market  and location. Tailor your property management services to suit the specific needs of landlords and tenants in your area, whether it’s catering to upscale neighborhoods with personalized services or catering to student housing areas with cost-effective solutions.

First, conduct a SWOT analysis for the property management business, highlighting Strengths (such as experienced management team and comprehensive property management solutions), Weaknesses (including potential scalability issues or limited market presence), Opportunities (for example, expanding real estate markets and increasing demand for rental properties), and Threats (such as regulatory changes affecting property management or economic factors impacting real estate investments).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain property owners and investors through targeted advertising, competitive service offerings, an engaging online presence, and involvement in local real estate communities. Focus on demonstrating your company’s value proposition , such as reducing property owners’ operational burdens, maximizing rental income, and maintaining high tenant satisfaction levels.

Marketing Channels

Utilize various marketing channels to establish brand awareness, engage with property owners, and attract new clients.

Digital Marketing

• Website and SEO:  Develop a user-friendly website showcasing your services, client testimonials, and educational content about property management. Optimize it for local SEO to rank higher in search engine results.
• Content Marketing:  Produce informative blog posts, guides, or videos addressing property management challenges, investment tips, and  market trends  to position your business as an industry authority.
• Email Marketing:  Build an email list and send newsletters with updates on the real estate market, new property listings, and management strategies.

Local Advertising

• Networking and Events:  Attend local real estate meetups, industry conferences, and property investment seminars to network with potential clients and establish credibility.
• Sponsorships and Partnerships:  Collaborate with real estate agencies, home improvement businesses, or local chambers of commerce to sponsor events or offer joint promotional deals.

Promotional Activities

• Free Consultations:  Offering complimentary property management consultations allows prospective clients to experience the quality of your services firsthand. These consultations are an opportunity to showcase your expertise, address their concerns, and propose tailored solutions, thereby increasing the likelihood of acquiring new clients.
• Referral Programs:  Implementing referral programs incentivizes existing clients to refer your services to other property owners. Rewards, such as discounts on management fees or additional services, motivate clients to advocate for your business within their networks, driving referrals and expanding your client base.

Sales Channels

Implement effective sales strategies to convert leads into clients and maximize revenue streams.

Consultative Sales

• Personalized Proposals:  Tailoring personalized proposals addressing the unique needs of property owners demonstrates your understanding of their concerns. Offering solutions that align with their property management requirements strengthens your position as a trusted partner.
• Client Education:  Client education is key; providing valuable information on regulatory updates, rental market trends, and how your management services can optimize their property’s performance adds value and enhances the client’s understanding of the benefits your services offer.

Online Booking and Sales

• Client Portals:  User-friendly client portals offering comprehensive access to property-related information, financial reports, maintenance updates, and tenant information streamline communication and foster transparency. This convenience enhances the client’s experience and facilitates effective decision-making.
• E-Signatures and Contracts:  E-signatures and digital contracts simplify the process of onboarding new clients. Implementing secure online platforms for contract signing minimizes administrative hurdles, expediting the client acquisition process.

Subscription-Based Services

• Tiered Service Packages:  Offering tiered service packages allows property owners to choose services that align with their needs. Options ranging from basic maintenance to comprehensive tenant management cater to diverse client preferences, increasing the appeal of your services.
• Retainer Agreements:  Long-term retainer agreements with discounted rates for bundled services incentivize property owners to commit to your services for an extended period, ensuring stable revenue streams and fostering long-term relationships.

Strategy Timeline

Finally, create a detailed timeline that outlines critical milestones for the property management business’s establishment, marketing initiatives, client portfolio growth, and service expansion objectives. This timeline should ensure the business progresses with clear direction and purpose, setting achievable goals for short-term wins and long-term growth.

The Management section focuses on the property management business’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the property management business towards its financial and operational goals.

For your property management business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your property management business’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your property management business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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Privacy Overview

Property Management Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Start Your Property Management Plan Here

Property Management Business Plan

You’ve come to the right place to create your property management company business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their property management companies.

Sample Property Management Business Plan

Below are links to an example of each section of your property management business plan template:

• Executive Summary – In the Executive Summary, you will provide a brief overview of your business plan including your target market, business model, business goals, and how you plan to make your business successful.
• Company Overview – The Company Overview section will provide a business overview, company history, legal business structure (Limited Liability Company, C Corporation, etc.), property management services, and any other specialized services offered.
• Industry Analysis – The Industry Analysis will include an overview of the property management market, key trends in the local real estate market, and issues expected in the residential and commercial property management industry.
• Customer Analysis – The Customer Analysis is where you will outline your target market. This includes information on demographics, psychographics, and behaviors of property owners who may be in need of property management services.
• Competitive Analysis – The Competitive Analysis includes an overview of your direct and indirect competitors, their market share, your competitive advantage, and how you plan to compete against them.
• Marketing Plan – The Marketing Plan will describe your marketing strategies, fee structure and pricing strategy, and promotional activities such as paid advertising, social media marketing, print advertising, and more.
• Operations Plan – This section describes your day-to-day operations including communication with property owners and potential clients, managing properties, rent collection, property inspections, tenant screening, and maintenance requests. This section should also include any property management software solutions or automated tools used in your own property management business.
• Management Team – The Management Team section will provide information on the members of your management team including property managers and their experience, education, and skills.
• Financial Plan – In the Financial Plan, you will provide the financial model and financial statements for your business. This includes your profit and loss statement, balance sheet, and cash flow statement.

Next Section: Executive Summary >

Property Management Business Plan FAQs

What is a property management business plan.

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

What Are the Main Sources of Revenues and Expenses for a Property Management Company?

The main source of revenue for property management companies are management fees and maintenance markups. Revenue is also generated from commissions, lease-ups , and upcharges.

The key expenses are payroll and contractor fees, rent, supplies, and utilities.

How Do You Get Funding for Your Property Management Business?

Property management companies typically secure funding through small business loans, personal savings and credit card financing.

Where Can I Get Property Management Business Plan PDF?

You can download our free property management business plan template PDF . This is a property management business plan template you can use in PDF format.

How to Write a Property Management Business Plan (Free Template)

If you’re looking to start a property management business, you’ve come to the right place. The success of property management companies—or any companies, for that matter—absolutely depends on first creating a well-researched and thorough business plan .

Luckily, this guide aims to help you do just that. First, we’ll explain what a property management business plan encompasses, why you need one, and tips for going about it the right way. Then, we’ll walk you through the recommended business plan outline step-by-step and share details of what to include in each section.

Finally, we’ll send you off with a free template you can download and update with your business’s own information. Creating a business plan was never so easy!

Let’s dive in.

Don’t see the form to download our free property management business plan template? Click here .

What is a property management business plan?

A property management business plan is a document that summarizes your property management business: its current operations, goals for the future, strategies for achieving those goals, and other supporting details.

While you’ll want to create your business plan before launching your businesses, it’s not a one-and-done document. Instead, you should update it yearly and after major company and industry changes.

Why do you need a property management company business plan?

Whether you’re looking to start a new property management company or grow your existing one, you’re probably eager to get started. But while it can feel productive to hit the ground running, a business plan is crucial to drive your strategy and decision-making . It will serve as a roadmap you can refer back to as you get started and grow your business.

Moreover, business plans are also crucial as tools to help sell your property management agency to potential partners, investors, and banks . There’s no point in asking for their support if you can’t show you know what you’re doing, and business plans are one of the best ways to do that.

Finally, beyond mere financial gains, a thorough property management business plan enables you to measure your success accurately and pinpoint areas for improvement . It empowers you to zero in on critical indicators like your budget, local market insights, and expansion opportunities.

How do you write a property management business plan?

Do your research first.

It’s easy to spot the differences between a well-researched business plan and one that was written haphazardly. And those differences will be just as easy to mark in the results your business sees once it’s up and running.

Tailor it to your type of property management business

Chances are, you’re going to start your business plan from a standard template. There’s nothing wrong with that. In fact, it’s recommended, and we provide a free property management business plan template at the end of this article, if you’re still looking for one.

However, as you fill in your information, be sure to tailor your plan to your specific business. For example, what type of properties does your business manage? Common types of property management include:

• Residential rental property management , including both single-family and multifamily residences
• HOA property management , which typically involves working directly with homeowners’ associations
• Commercial property management , including office, retail, and industrial buildings
• Vacation rental property management , involving managing vacation rentals such as Airbnbs for their owners

Remember your goals

You might wonder whether you really need to include this much detail in your business plan, but remember what you’re hoping to achieve. And we don’t just mean a successful property management agency, but the specific things you’ll use your business plan for.

For example, if you’re hoping to find a partner for your business, your prospects will certainly appreciate a high level of detail in your operations plan. Similarly, potential investors will want to see solid financials.

Use a property management business plan template

Finally, don’t make it harder for yourself than you have to! You’re already going to have to do a significant amount of research, calculations, and brainstorming. Make it easier for yourself by starting with a template you can input specifics to, like the one pictured below:

Don’t have a template already? Scroll to the bottom of the article to download ours!

What is the outline of a property management plan?

Business plans, whether for property management or other industries, tend to follow this standard format:

Executive summary

Company overview, market analysis, marketing plan, operations plan, management team, financial plan, growth opportunities.

Keep reading for more information on what to include in each section. Or scroll to the bottom of the page to download our business plan template for property management and get started.

What to include in a business plan for property management

Your business plan should begin with an executive summary. This section serves as an introduction to both your business plan and your business , and should include information such as:

• The type of property management you plan to do
• How far along your business is
• Your target market
• Your strategy for achieving these goals

Depending on how thorough you want to be, you could even include a brief overview of every section of your business plan. Your goal should be to give a snapshot of your business that compels your readers—whether they be potential partners, investors, or banks—to finish reading your plan.

Pro tip: Because your executive summary needs to sum up your overall business plan, it’s often easiest to write it last. That way, you’ll have all the details ironed out and won’t forget to include anything.

In this section, you’ll give an overview and analysis of your property management company itself.

To start, explain how your company got started and which of the property management niches we explained above you fit into. You’ll also want to share your legal business structure (for example, sole proprietorship, LLC, C corporation, or S corporation).

The majority of this section, however, should be devoted to your competitive differentiators. What core competencies are you bringing to the market?

A market analysis isn’t only an important addition to your business plan. It’s also absolutely essential that you understand your market inside and out before you even consider launching a property management agency.

To be as thorough as possible, make sure that your market analysis includes specific analyses of your industry, target customers, and competitors.

Industry analysis

Provide an overview of your specific niche of the property management industry. Include as much detail as you can to help you become an expert in your industry, such as:

• Market size (in dollars)
• History of the industry
• Prospected growth

Customer analysis

Who are your target customers? Start with your property management niche, and then get even more specific:

• Residential rental property management → Will you target single-family or multifamily residences? Apartment buildings or individual homes? Affordable housing or high-end residences?
• HOA property management → Do you have specific HOAs in mind?
• Commercial property management → Will you manage office, retail, or industrial buildings?
• Vacation rental property management → Do you want to work with a specific type of vacation rental property or owner?

Be sure to include your target customers’ specific needs, goals, and any other information you can find to build a robust profile. The more detailed you can be, the easier it will be to target them with your services!

Competitive analysis

This is where you analyze your competitors, both direct and indirect:

• Your direct competitors include other property management companies in the same niche as you. These companies will likely be located nearby as well.
• Your indirect competitors include other options your customers have outside of property management agencies. This might include property owners who decide to manage their properties themselves, in-house managers, and even automated tools that claim to take the place of property managers.

After identifying the competition, you’ll want to provide additional information about your direct competitors. Who are their target customers? What services do they offer, and how much do they charge?

Gather as much information as you can, and then perform a SWOT (strengths, weakness, opportunities, and threats) analysis to identify potential competitive advantages. Your goal is to determine how you’ll outperform your competitors—whether via superior or additional services, lower prices, greater efficiency, or something else.

Remember: If you can’t identify any clear competitive advantages, your customers won’t be able to, either.

So, you have superior property management services at competitive rates. But how do you plan on getting in front of your target customers?

This is where your marketing plan comes in. Think about what marketing channels you’ll use, prioritizing those which will best reach your target customers. Consider both online and offline marketing, including the following options:

• Business cards
• Advertising in local newspapers and relevant magazines
• SEO marketing
• Email marketing
• Social media marketing
• Paid advertising

Creating your business plan has forced you to set some specific goals. How do you plan on meeting them?

This is exactly what your operations plan sets out to cover, with details on both short- and long-term processes.

Your short-term processes will include everything involved in the day-to-day running of your property management business . Again, these tasks will vary drastically depending on your property management niche. However, the following questions are a good starting point:

• Who will be in charge of running the business?
• Do you need to hire any additional staff? If so, how many people and for which roles?
• How will you structure your team?
• What are your service standards?
• Which manuals will you need to develop?
• What property management software will you use?

Once you’ve defined your daily operations, take a step back and think long-term. At any point in your business’s trajectory, do you plan to:

• Hire additional employees?
• Reach a certain sales figure?
• Grow your portfolio?
• Expand to a new location?

Having these long-term goals documented will not only show potential partners and investors that you’re thinking about the future. It will also give you something to refer back to in order to measure your progress.

Your property management business will only be as strong as the team leading it. So, once you’ve assembled the dream team, you’ll want to highlight its strengths in your business plan, paying specific attention to each member’s background, skills, and relevant experience.

If no one on your management team has property management or real estate experience, or your team is lacking in any way, it might be worthwhile to put together an advisory board. This board consists of a handful of mentors who have the experience necessary to guide your business in the right direction (and reassure any potential investors).

And now for everyone’s favorite part: the financial plan.

Specifically, your financial plan should consist of a five-year financial statement. The first year of your financial statement should include monthly and quarterly projections, with the remaining years including annual figures.

What goes in a financial statement? Let’s break it down:

• Profit and loss statement: Also referred to as an income statement, a profit and loss statement subtracts your costs from your revenue to find your profit. As you can imagine, you’re going to be making a lot of calculated assumptions at this point. Try to be as accurate as possible when predicting your costs and revenue. Otherwise, your profit and loss statement won’t paint a very accurate picture.
• Balance sheet: A balance sheet details your business’s assets (what you own) and liabilities (what you owe) in order to provide a snapshot of its finances. Your assets might include office space or software solutions, whereas liabilities would include any loans you’ve taken out to start your business.
• Cash flow statement: A cash flow statement shows how changes in your income and balance sheet affect your cash flow—and your ability to operate in the short- and long-term. Its goal is to show how much money you need to run your business so that you don’t run out of cash.

If you’re just getting started, it may feel too soon to consider growth opportunities. But thinking about your business’s long-term goals and plans is essential to set yourself up for success. After all, you don’t only want to succeed now. You want to make sure you have what’s necessary to succeed for years to come.

On that note, analyze the property management and real estate market in your area to identify growth opportunities for your business over the next five to 10 years, such as:

• Upgrades to your tech stack
• Strategic partnerships
• Expansion plans
• Opportunities to take advantage of new market trends

If you have any supporting documentation that could strengthen your business plan, such as buyer personas for your target customers or more complete financial projections, feel free to attach them in the appendix. That way, the additional information is there for anyone who wants to see it, but it doesn’t clutter up your business plan.

Property management business plan example

Curious about what a business plan for property management looks like? We’re including a property management business plan sample (the company overview, specifically) below to give you an idea:

Want a customizable version? Scroll to the bottom of the article to download our free template!

Download our free property management business plan template

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How to Create Property Management Business Plan [Free Template]

Andrew Smallwood

Chief Customer Officer - Second Nature

What we'll cover

Creating a Property Management Business Plan

What should a property management business plan include?

Beyond the business plan: Focus on retention with the Second Nature RBP

There are as many different perspectives on property management business plans as there are different PM businesses. But one thing holds true – in the classic adage usually attributed to Dwight D. Eisenhower – it’s not the plan that matters so much as the planning . 

Outlining a detailed business plan isn’t just important for defining your own goals, it’s key to communicating those to potential clients and investors. It also requires deep insight into what residents want and are willing to pay for.

Whether you’re new to property management, have been managing properties for years and are ready to start your own business, or own property management business but are looking for greater investment, we’ll cover important topics to address business plan creation.

We’ll explain why business planning can be so important, as well as who to target with your plan. We’ll also share a free template to get you started.

Key Learning Objectives:

• How to identify and find your ideal clients
• How to articulate your value proposition
• What to include in your business plan
• How to outline your business plan
• A free property management business plan template

Meet the Expert: Peter Lohmann , CEO RL Property Management

What to Know before Creating a Property Management Business Plan  

Not to get too deep down the rabbit hole, but the first step to creating a high-quality business plan is – you guessed it – to make a plan for the plan. For entrepreneurs, planning is the key to success.

Going through the following steps first will make the process much easier and more effective in the long run. Here’s what you need to get clear at the outset.

State Laws governing property management business 

As you know, each property management company’s approach is very dependent on regional or state regulations. Before taking any steps to either start or change your business, you need to have a clear understanding of the local laws governing your business venture.

We highly recommend hiring an attorney who can help you navigate those laws and regulations. 

Who are your ideal clients  

Lohmann lays out three critical steps to crystalizing a successful business plan:

• Identify your ideal clients.
• Articulate your unique value proposition for those clients.
• Go out and find leads.

So, first: Who are your ideal new clients? 

“Get really clear on who your ideal customer is,” Lohmann says. “Are you managing associations, office buildings, big apartments, single-family rentals, etc.? The narrower and more specific you can be, the better your life is going to be and the more money you’re going to make.”

In other words, anything outside of this target market is going to be a waste of your time. That’s why this is the first step.

“The more narrow and specific you can be here, the more directly you can speak to your prospects in a way that’s compelling,” Lohmann says. “Everything becomes easier – content strategy, sales conversations, even operations become easier – if you know who you want to manage for and what types of properties you want to manage.”

What type of property management company you are 

The next step is to identify your unique value proposition. There are tons of property management companies out there. Why should your ideal client choose you?

In Lohmann’s words: “Your second step is to ask, ‘Why should anyone care?’ Property management isn’t a new concept; there are tons of property managers. So, identify what your unique value proposition is.”

This is key to figuring out not just who to pitch to but how to pitch to them.

“What are you going to talk about?” Lohmann says. “You can’t just say, ‘Oh, hire us, we’re the best!’ You need clear examples that say, ‘Our company does something a little different.’”

For RL Property Management, that started as a promise that they would never charge a leasing fee. 

“Sure, it’s kind of crazy, and I don’t know anyone else who doesn’t charge that, but it worked,” Lohmann says. “We were trying to figure out why everyone hated their property manager. And we decided that it might be an incentive problem where the property manager’s incentive is to fill the unit as quickly as possible so they can get that big leasing fee, and that was creating bad outcomes for property owners. So we decided that we weren't going to charge a leasing fee, and we've stuck with it ever since.”

How to find your ideal clients 

The third and final step of preparation is to identify where you need to go out and find leads and engage property management marketing .

“Given what you know about how you defined your ideal prospect and your company and what they offer, the next question is where you go and get these leads,” Lohmann says.

“A lot of property managers start with this third step. They just say, ‘How can I get more leads?’ But that’s the wrong question. Why do you deserve those leads? Answer that first. Downstream of that is ‘Where are those people hanging out, and how can I get this to them?’”

Getting this step right involves researching property management and real estate property in your area and getting familiar with industry news, conferences, and listings.

Now, let’s talk about the actual outline of your PM business plan. If you’re starting a new business and aiming to present a business plan to investors, or even business partners, you should outline each section below as a presentation deck. The information presented in this section needs to read like it is designed for investors and should highlight key terms and concepts they care about. 

Here’s a sample property management business plan outline, followed by a detailed explanation:

Executive Summary

Company overview, market analysis (industry, customer, and competitive analysis).

• Marketing Plan & Sales Strategy

Operations Management 

Management team, financial plan .

• Growth Opportunities 

This is a high-level overview of your entire presentation. As such, it should be the last section that you write. You want to be concise but interesting and hook the reader quickly. Outline the following in broad strokes:

• The type of property management company you are operating
• Your target market
• Your objectives
• Your plan for meeting these objectives 

The company overview will dive deeper into your property management niche and business model. Explain what types of properties you manage and how you operate. Options include single-family residential property management (SFR), multi-family property management (MFR) or residential apartments, HOA management, and commercial property management.

Give a brief history of your company and your legal business structure. Other important information might include: 

• Your key competitive differentiators and core competencies
• Your metrics for success
• Your management team
• Financial details
• Mission and vision statements

This section benefits you almost as much as it does your audience. Researching for this section will help you more deeply understand the industry, customers, and competition. 

• Industry analysis should include details on the trajectory of the market, its size, and key trends, along with challenges and opportunities.
• Customer analysis should include details about your target customers, their wants and needs, etc.
• Competitive analysis should outline direct competitors (PMCs in your area) and indirect competitors like in-house managers, automated tools, etc. Explain why your value proposition is unique. Ideally, present a thorough SWOT (strengths, weaknesses, opportunities, threats) analysis.

This section should describe the property management services the company plans to offer, such as leasing, maintenance, and rent collection. Depending on the jurisdiction, legal compliance and documentation services may be relevant as well. This section should also discuss the pricing strategy for these services.

This section should describe the company's marketing plan and sales strategy, including how it plans to attract and retain clients. It should also discuss any advertising or promotional campaigns the company plans to undertake. Promotions could include paid advertising in print and on websites, social media marketing, radio advertising, SEO marketing, and more.

Here, it’s important to document your marketing channels (organic online, targeted online, print advertising, professional networking) as well as ongoing sales and marketing programs.

Outline your short-term processes and long-term business goals, as well as estimate day-to-day operations. What property management software are you using in the business? What bottlenecks slow down work that’s moving through the organization? How will you structure your company and your teams? 

It may also be helpful to include details on critical process workflows, risk mitigation strategies, and technology integrations and updates.

Outline your management structure and the skills and experience of your management team. You’ll particularly want to highlight property management and real estate experience. This is a key moment for you to consider who you have in the company, who is a right fit, and who needs to be looked at as not a great fit.

This is where you give your financial projections and approach. Outline your major cost centers and revenue drivers. What management fees are you going to charge? You should include a profit and loss statement, balance sheets, and a cash flow statement.

Growth Opportunities  

Identify and outline the most targeted growth opportunities for your business right now and over the next five and ten years. Knowing your long-term goals requires you to gain a deep understanding of the real estate and property management market in your area and to understand clearly where you fit in and how you can generate growth and value for years to come. 

Typically, in this section you might include:

• Expansion plans
• Strategic alliances
• Technology upgrades
• Emerging market trends

Property Management Business Plan Free Template

Although you may prefer to draft your own property management business plan from scratch, there are a couple of options for short-cutting the process. 

You can use the checklist below to organize your plan, or else simply download our free PMC business plan template to customize as you see fit. 

• Your property management niche and business model
• How you operate
• Company history 
• Your legal business structure
• Financial overview

Market Analysis 

• Industry assessment
• Customer analysis
• Competitive analysis
• Outline of sales and marketing plans
• Marketing channels
• Ongoing sales and marketing programs
• Long-term business goals
• Current processes
• Critical process workflows
• Risk mitigation strategies
• Technology integrations and updates
• Management structure
• Skills and experience
• Financial projections
• Cost centers and revenue drivers
• P&L statement
• Balance sheet
• Cash flow statement
• Targeted growth opportunities

Get your free PMC business plan template here.

Beyond the business plan: Focus on retention with the Second Nature RBP    

At Second Nature, we work with property managers around the country to develop better resident experiences that will generate more value for their clients and more profit for their companies. 

The product we have found most helpful to property managers at every stage of their company’s growth is a fully managed resident benefits package or RBP. Each product in this package aims to deliver something residents want or need and a service that helps set your PMC apart. We want to help make running your business as easy as second nature.

Related : Property Management Startup Checklist  

Operational Efficiency

Keep learning

Three Property Management Companies that are Winning on Social Media

How would you say your social media marketing is performing? As a constantly changing medium beholden to trends that can peak and die in a heartbeat, it can be a tough area to win. Truthfully though, it's underused in the property management space. Content creation for social media doesn't have to be super intense, and it doesn't have to be super polished. It just has to have intent and understanding of who you're marketing to. If you're looking to develop a more robust social media program for your PMC, you're in the right place. Here we break down three companies with three distinct strategies, all of which are unique in the PM space. These companies are crushing it, and learning from their successes can help you develop a strategy that works for you. Home Ladder Home Ladder’s “Chaos and Disorder” video series is a hit and a great example of creativity that can sometimes be lacking in property management marketing. Co-founders Travis Bohling and Brandon Graham are among the most creative content marketers in the property management space. While they may be relatively new to the content side of things (Chaos and Disorder is less than a year old), they've hit the ground running with a unique video series that's both relevant and genuinely entertaining in addition to leaning hard into Facebook reels. Short video content has been trending up in social media marketing since the rise of TikTok, although it's not heavily used in the SFR property management space. Home Ladder has taken this on with sets of short, straight-to-the-point thought-leadership content. The Chaos and Disorder video series is really fun, though. Home Ladder is starting to spearhead a creative approach to content marketing that the industry could really use more of. The idea here is really to engage the inability of self-managers to be effective tenant screeners, and they've told this story with two destructive characters affably named Chaos and Disorder. A constant battle in professional property management is trying to keep ahead of the self-managing landlord as self-management tech expands their capacity. Home Ladder is keyed in on that messaging here as a play to position their professional services as more reliable and thorough, and they've done it in a way that's genuinely entertaining and relatable to anyone who has ever had a bad tenant, which is anyone who has ever managed a property. RL Property Management RL Property Management CEO Peter Lohmann is crushing it on Twitter. Executives being active in the content creation space can be a big win for companies, and RL Property Management’s Peter Lohmann is a prime example. While this is a popular LinkedIn approach, Lohmann is one of very few who has taken ownership of the property management discussion on Twitter. A tougher nut to crack than Facebook and LinkedIn, Lohmann has found success and amassed over 21,000 followers via a content strategy that seamlessly blends an authentic connection to the property management space with expertise Lohmann has acquired over years in the industry. The word relatability gets thrown around a lot when it comes to any kind of content-based marketing, but being relatable isn’t a goal so much as a strategy. The power of relatability is that it establishes trust, a challenging thing to create in many online spaces. If you can establish a familiarity with what affects the people you’re speaking to on a daily basis, that establishes a trust that helps build interest in what you have to say. Lohmann’s 21K follower count didn’t come purely from expository property management tips. There's a relatability to his content that helps create that trust, which adds value to his thought-leadership content. He’s naturally an authentic person and a master communicator, and while the expertise is valuable, that lies downstream of a personal connection to other industry professionals. Property management in a nutshell: Owners with 40 units: "call me if it burns down" Owners with 1 duplex: "why did you pay $45 to cut grass? My guy only charges $30 please call me asap" — Peter Lohmann (@pslohmann) March 11, 2024 When Lohmann does get into thought-leadership content, he's an open book, which also helps establish trust. Lohmann, like many leading property managers, believes that propelling the whole industry forward is more important than holding any kind of trade secrets. He does not shy away from granular details of his company, including sharing the what and why of his entire tech stack. Cheat code for starting & growing a property management business. This is a complete list of our software stack. This is how the magic happens & how we can calmly and effectively manage ~600 units. pic.twitter.com/aTHYAp9MwH — Peter Lohmann (@pslohmann) December 23, 2021 Grace Property Management Marc Cunningham is the YouTube king. Cunningham has been in property management for over 30 years, and his YouTube strategy is arguably the best in the game. The CEO of Grace Property Management is approaching 5,000 YouTube subscribers. Part of the value of Cunningham's channel is that you know exactly what you're going to get when you go there. His content is built with a very consistent format and length. He has over 100 videos, almost all of which are between five and ten minutes long, and address a very specific issue or question in single-family property management. Cunningham's approach is expert-forward, demonstrating that there is more than one way to win in social media and property management marketing. He provides a combination of content that addresses specific questions and issues in the PM space and offers windows into his own operations and the decisions he's made. His channel's most popular videos, often having thousands of views, cover management topics like how to explain a rent increase to a resident and why you should never charge a pet deposit as well as industry trends like average rent trends and predictions for the coming years. Because YouTube content is indexed by Google, Cunningham's strategy is built more around capturing search engine traffic than the above two strategies. It's self-sustaining to a degree now because of the size of Cunningham's following, but YouTube is an excellent way to capture search traffic, something Cunningham has leveraged well.

What is a Resident Benefits Package?

What is a Resident Benefits Package? A Resident Benefits Package (RBP) is a selection of services provided by property managers to residents of rental properties. Sometimes referred to as a “tenant benefits package,” these benefits are usually included in the lease agreement and are designed to make residents’ lives easier by meeting their wants and needs. Some examples of these services could include filter delivery, credit building, and 24/7 maintenance. At Second Nature, we pioneered the only fully managed resident benefits package. If you’re ready to get started, you can start building your own Resident Benefits Package today! Note: We chose the term “resident” because the “tenant benefit package” sounded too impersonal for the value we’re driving. Continue reading to find out the benefits of a resident benefit package, how it can generate revenue, and how to implement one to give your residents, investors, and business a win. What Are the Benefits of a Resident Benefits Package? The resident benefits package adds value to residents by anticipating their needs and providing them with services that make life easier and better. It adds value to investors by preventing maintenance, vacancy, and delinquency. And, of course, it adds value to property managers because it differentiates them from the competition. Let’s take a deeper look at how the RBP creates a Triple Win – for residents, for investors, and for you, the property manager. 1. Attracting and retaining residents through better experiences Offering a comprehensive benefits package can make a property more appealing to potential residents. By providing desirable perks such as exclusive discounts, concierge services, or access to credit reporting and other financial benefits, the property management company can attract a larger pool of prospective residents and increase occupancy rates. Retaining residents is also crucial for profitability, as turnover costs can be significant. A benefits package can enhance resident satisfaction and loyalty, reducing turnover and associated expenses. 2. Higher rental rates for higher value A well-curated tenant benefit package makes properties more valuable. When residents perceive additional value in the form of amenities, services, or discounts, they are often willing to pay more for their living experience. This allows the property management company to command premium prices for their units, leading to increased revenue and improved profitability. 3. Differentiation and competitive advantage In a crowded real estate market, a distinct resident benefits package can set a property apart from competitors. It becomes a unique selling proposition that highlights the property management company's commitment to providing an exceptional living experience. By offering a package that exceeds what other properties in the area provide, the company gains a competitive advantage and attracts residents who value the added benefits. 4. Ancillary revenue opportunities A tenant benefits package can create opportunities for generating additional revenue streams tied to specific benefits in the package. Resident Benefit Fee: How Much Does a Resident Benefit Package Cost? Most resident benefits packages cost between $20 and $100, which is often included in the lease and added as a monthly fee for the resident. Prices vary depending on a few key factors, chief among them being the mix of benefits selected by the property manager. What Does a Resident Benefits Package Include? Here’s what the Second Nature Resident Benefit Package includes. Filter delivery service Air filter delivery was the first service Second Nature offered to scattered-site and single-family property managers. It is a cornerstone of the RBP, and over 1M residents have shown that a physical, tangible product is key to their ongoing perception of value. One of the most common causes of HVAC maintenance requests is a failure to change the home’s air filters on time. Air filter delivery from Second Nature solves the problem by delivering the correct-sized high-quality HVAC filters directly to each home’s front door on a predetermined schedule. The delivery serves as a reminder for the resident to change the filter, and voila – problem solved. The resident breathes clean air, the PM has fewer HVAC tickets to deal with, and the investor has their asset protected. That’s a triple win. Our message to residents: “Changing filters is as easy as opening the front door.” Phil Owen, founder of OnSight PROS, says of the delivery system: “Last year OnSight PROS performed third-party property condition reports at almost 18k single-family rental properties on behalf of property managers. The number of filters that we have to replace or mark as ‘needs attention’ becomes almost zero when a PM implements the Second Nature program. I cannot imagine how a property manager could justify not protecting their landlords with this program. The difference between those using the program and those who simply hope that their tenants go to the store to purchase and install a new filter is staggering.” Our filter delivery service has proven to reduce total HVAC maintenance requests by 38% and save up to $250 per year per property. $1 million identity protection One in four Americans will be victims of identity theft. In 2021, digital theft incidence surpassed home burglary incidents for the first time – and is rapidly rising. With identity protection as part of your RBP, every adult on the lease automatically gets the peace of mind you can expect from professional-level identity protection. Backed by AIG and monitored through IBM’s Watson, Aura Identity Guard works proactively on behalf of the resident to identify fraudulent use of their identity and alert them. In the event of an actual identity theft case, the resident receives a dedicated case manager and is covered up to $1,000,000 for most resulting damages. This protects the resident's ability to pay rent, which makes it a win for the investor. And it keeps property managers out of the middle of another difficult situation and decision. Credit building With RBP’s credit building service, on-time rental payments improve the credit score of your residents. It may seem crazy that people are building credit by paying for Netflix and other small subscriptions, but not their largest monthly payment... rent! But that's the truth for most residents. We asked, how is it even possible that someone's largest monthly expense is the only one they aren't getting credit or rewards for? This credit reporting program reports positive-impact, on-time rent payments automatically to all three credit bureaus, helping residents build their credit simply for paying their rent on time. Residents also get an immediate boost with 24 months of back reporting included. This service directly impacts rates on credit cards, auto loans, and future mortgages, incentivizing residents to get rent in on time and helping set them up for home buying in the future. The property manager and the investor both reap the benefit of the extra incentive to get rent on time and the resident gets to see their credit score rise as a result of something they have to do anyway. It’s a big-time triple win here. Resident rewards program Rental rewards are a favorite among residents and another powerful and positive incentive for on-time rent payments. Rental rewards programs deliver automatic benefits at move-in. Then, residents can unlock even more rewards by paying rent on the day it's due. At Second Nature, all on-time payment tracking is done through the app. Like other services in your RBP, it’s managed for you. Gifts include: $30 gift card for national and local brands $25 restaurant card $40 rewards cash on rent day each month rent is paid on time And more The value of rewards is covered in the cost of the RBP, so the property manager isn’t seeing any additional liabilities. The PM and investor only see a benefit, which is the increase in on-time rent payments. For the resident, rent day is now rewards day. Another triple win. Move-in concierge Setting up utilities can be a massive headache for a new resident. Residents aren’t sure who to call and who provides utilities and home services like internet and TV for their new address. Moreover, the research for discounts/promotions/coupons available takes more time. Most times, the process is clunky, with lots of friction that gets in the way of it getting 100% done. And it is too easy to overlook fine print in the lease about installing satellite dishes. Move-in Concierge changes all of that for professional property managers. In one phone call, residents find out what their best options are and can even get help simplifying setup. An experienced concierge confidently guides multiple people every day to properly set up their utilities. Renters insurance program Nearly all property managers require a renters insurance policy in their lease agreements. As part of our RBP, Second Nature offers price-competitive insurance coverage options through a Renters Insurance Program that property managers can apply to all their residents locked in with one group rate. Residents who have their own renters insurance can receive a waiver on RBP's insurance program, but the current list of enrolled residents is tracked for you by Second Nature, and any resident who drops off of their own insurance is automatically enrolled. No more hassle for you, quality asset coverage for the investor, and immediate and comprehensive liability coverage for the resident – another triple win you can create with your Resident Benefits Package. Additional benefits At Second Nature, we help property managers deliver all their services to residents. If you’re already offering perks and are ready to level up to a resident benefits package, we can help you bundle the above benefits with other services. We’ve worked with PMs to bundle in their existing property management services, including: 24/7 maintenance coordination: A huge benefit to residents and PMs is a service that provides after-hours support without dragging the property manager out of bed. This type of program makes reporting pesky maintenance issues easy and fast for the resident. It also helps prioritize emergency maintenance. Online portal: With a simplified online resident portal, residents can access all of their documents, messages, and more through an app. Residents can also pay rent and receive reminders to pay rent online. Home buying assistance: For residents who are building up toward home ownership, some PMs offer assistance in building credit and savings. We help them get there. Vetted vendor network: A vetted network ensures that vendors who service your properties are screened to exceed your standards for insurance, licensing, and professionalism on the job. Property managers, residents, and investors can rest easy knowing that they have the best vendors working on their assets. Washer/dryer rental: Some properties may have these appliances installed or the residents come with their own, but we’ve seen the impact on prospective applicants choosing homes due to the convenience of having the washer/dryer available. Security deposit alternatives: Security deposit alternatives come in different packages, but all serve to provide residents ways to be financially liable for damages without having to pay a significant lump sum upfront. Pure insurance, surety bonds, and ACH authorization programs are all versions of deposit alternatives that seek to lower the barriers to rental, which in turn keeps days-on-market low and turnover costs down. Pest control services: Property managers can partner with pest control companies to provide routine or property management pest control services to the homes they manage. Bugs are one of the most common complaints from renters, and having services available to prevent infestation issues is a big win for resident experience. When implementing a full-service, fully managed resident benefits package, you don’t have to lose the benefits you already offer. A great service can integrate all of these benefits together – delivering more impact to residents, investors, and property managers. How Much Revenue Can I Create Per Unit With a Resident Benefits Package? The amount of ROI on a resident benefits package will vary depending on the property class type, market, and number and type of services offered. Generally speaking, resident benefits packages are often in the $25-75/mo range for residents, but could be more or less. It depends primarily on the amount and type of products and services. To go back to our concept of the experience economy: a resident benefits package gives residents the kind of incredible experience that they will pay and stay for. In short, keeping residents happy can reduce turnover and lead to lower costs and higher ROI for you and your investor. According to Eric Wetherington, VP of Strategic Initiatives at PURE Property Management, “Revenue is all about providing a service. The younger generations we’re dealing with in property management – they want convenience, they want experiences, and they want things to be simple, and they’re willing to pay to have things taken care of for them.” A fully managed resident benefits package can generate revenue in two key ways: Increasing services to improve resident retention Decreasing costs by increasing efficiency A resident benefits package can help to accomplish both. Routine filter delivery cuts down on HVAC and maintenance costs. A move-in concierge helps cut down time and cost as residents get settled in their new home. Credit building services keep residents invested in paying on time, sending online payments, and delivering incredible value. The list goes on. A resident benefits program creates a huge win for you as a property manager, and your investor, by driving higher ROI over time. How Can Property Managers Implement a Resident Benefits Package? If a resident benefits package is new to your company, you may wonder how best to implement it. Should you roll out a resident benefits package as part of your base service – ensuring the maximum benefits for your investor – or allow residents to opt in or out? What is legal or not? We do recommend including this as a part of the base package for all residents. Offering optional RBPs creates potential for headache, and the theoretical benefits almost never materialize. According to Second Nature's Head of Sales, Bob Hansen, “You have to look at the value that a resident benefits package brings to the investor and the resident, not just you as the property manager.” At Second Nature, we’ve seen incredibly low pushback from residents when an RBP was introduced. After all, it benefits residents, and most are delighted to have the extra service. How Can Property Managers Reduce Costs With a Resident Benefits package? The answer is: in several ways! Implementing a comprehensive residential benefits package can provide property managers with opportunities to reduce costs and increase operational efficiency. Let’s look at examples from the product above. By including air filter delivery as part of the package, property managers can ensure that residents have regular access to clean air filters, reducing the need for costly maintenance and repairs caused by poor air quality. Offering identity protection and credit-building services can help mitigate the financial risks associated with identity theft and delinquent payments, potentially reducing costs related to collections and legal procedures. They also improve retention and encourage on-time payments. Including a resident rewards program can also incentivize desirable behaviors such as timely rent payments or positive referrals, fostering resident satisfaction and reducing turnover costs. By partnering with a renter's insurance program, property managers can transfer potential liability and property damage expenses to the insurance provider, minimizing their own financial risks. A move-in concierge service can streamline the onboarding process for new residents, reducing administrative costs and improving operational efficiency. By providing these benefits, property managers can enhance resident satisfaction and retention, ultimately reducing expenses associated with turnover, repairs, and legal issues. Common Mistakes Property Managers Make in Implementing Resident Benefits Packages In our experience helping property managers implement RBPs, we’ve heard our share of concerns or even horror stories from PMs who had bad implementations with other products. Here are some of the most common mistakes in RBP implementations – and how to avoid them! 1. Overpromising and underdelivering Property managers may advertise extravagant benefits that they cannot consistently provide or fulfill, leading to disappointment and resident or investor dissatisfaction. Property managers should accurately represent the benefits package, ensuring that the offered perks are realistically achievable and consistently provided to residents. 2. Lack of communication Failing to effectively communicate the details and availability of the benefits package to residents can result in confusion and missed opportunities for using the offered perks. Property managers should effectively communicate the details, availability, and utilization process of the benefits package to residents through multiple channels, such as newsletters and online platforms. 3. Inadequate research and selection Property managers may choose benefits that do not align with the residents' preferences or needs, leading to a lack of interest and underutilization of the package. Property managers should conduct thorough market research and engage with residents to understand their preferences and needs, ensuring that the benefits selected align with their expectations. 4. Failure to evaluate cost-effectiveness Neglecting to assess the costs and benefits of the package can result in offering benefits that are financially unsustainable or fail to provide a satisfactory return on investment. Property managers should regularly assess the costs and benefits of the package, considering factors such as resident utilization, return on investment, and overall financial sustainability to make informed adjustments as needed. 5. Lack of flexibility and adaptability Not regularly reviewing and updating the benefits package based on resident feedback and changing market trends can make it less competitive and less appealing over time. Property managers should actively seek resident feedback, monitor market trends, and periodically review and update the benefits package to ensure it remains competitive and relevant to residents' changing needs. 6. Insufficient staff training Failing to train property management staff on the benefits package and its administration can lead to ineffective communication, missed opportunities, and difficulty addressing resident inquiries or issues. Property managers should provide comprehensive training to their staff on the benefits package, including its features, administration processes, and effective communication strategies, enabling them to effectively support and engage with residents. 7. Neglecting legal and regulatory considerations Property managers must ensure that the benefits package complies with all relevant laws and regulations, such as data protection requirements or fair housing laws, to avoid legal repercussions. Property managers should consult legal experts or advisors to ensure that the benefits package complies with all applicable laws and regulations, protecting both the company and residents. 8. Ineffective marketing and promotion Inadequate marketing efforts to promote the benefits package can result in low resident awareness and limited participation, reducing the overall effectiveness of the package. Property managers should develop a strategic marketing plan that utilizes various channels to promote the benefits package, highlighting its value proposition and actively engaging residents in participating and utilizing the offered perks. 9. Ignoring resident feedback Neglecting to seek and incorporate resident feedback can hinder the improvement and optimization of the benefits package, missing opportunities for enhancing resident satisfaction and retention. Property managers should establish channels for residents to provide feedback on the benefits package, actively listen to their suggestions and concerns, and make necessary adjustments to enhance resident satisfaction. 10. Lack of coordination with vendors Failing to establish clear communication and expectations with vendors offering benefits can lead to subpar service delivery, difficulty resolving issues, or missed opportunities for cost savings. Property managers should establish clear expectations, contracts, and regular communication channels with vendors offering benefits, ensuring a seamless and satisfactory service delivery process for residents and promptly resolving any issues that may arise. This is A LOT to keep in mind, and avoiding these mistakes might feel like it will cost too much or simply take too much work. But that’s why opting for a fully managed RBP is a solution so many PMCs are turning to. You can rely on a partner to manage all aspects of your RBP, and ensure it's delivering on its promises to your residents. More on that in the next section. How 1,000+ Property Managers Are Creating Triple Wins With a Resident Benefits Package Rolling out a resident benefits package is a powerful way for property managers to create a Triple Win – for residents, investors, and themselves. An RBP like Second Nature’s is designed to be simple to use and easy to implement. All the services included within it are managed externally by Second Nature, meaning there is no day-to-day upkeep required from the manager. You plug it in and Second Nature keeps it running. The value creation an RBP generates – with such little work required from the PM – is an incredibly easy way to grow your business and create great experiences that residents will pay and stay for. Don't get left behind in the evolving world of resident experience. Learn more about our fully-managed Resident Benefits Package and how we can build ease for you, your investors, and your residents. Learn More About RBP from Second Nature

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Here is a free business plan sample for a property management company.

Embarking on a journey to establish a property management company can be both exciting and daunting.

In the following paragraphs, we will present to you a comprehensive business plan template tailored for a property management company.

As an aspiring entrepreneur in the real estate sector, you're likely aware that a meticulously formulated business plan is crucial for laying a solid foundation for your venture. It serves as a roadmap, guiding you through setting objectives, developing strategies, and managing operations effectively.

To streamline your planning process and ensure you cover all critical aspects, feel free to utilize our property management business plan template. Additionally, our team of experts is available to review and refine your plan at no extra cost.

How to draft a great business plan for your property management company?

A good business plan for a property management company must be tailored to the unique aspects of the real estate and rental market.

To start, it's crucial to provide a comprehensive overview of the property management industry. This includes current statistics and identifying emerging trends, as illustrated in our property management business plan template .

Your business plan should articulate your vision clearly. Define your target market (such as residential landlords, commercial property owners, or real estate investment trusts) and your company's unique value proposition (like exceptional tenant relations, technology-driven management solutions, or specialized services for high-end properties).

Market analysis is a key component. You need to have a thorough understanding of the local property market, competitors, and the needs and expectations of property owners and tenants.

For a property management company, it's important to detail the services you will offer. This could include tenant screening, maintenance and repairs, rent collection, and financial reporting. Explain how these services will benefit your clients and enhance the value of their properties.

The operational plan should outline the logistics of your business. Discuss the location of your office, the technology you will use to manage properties efficiently, your team structure, and the processes for handling routine and emergency property issues.

Quality of service is paramount in property management. Highlight your commitment to maintaining properties, ensuring tenant satisfaction, and adhering to all relevant laws and regulations.

Address your marketing and sales strategy. How will you attract new clients and retain existing ones? Consider your approach to networking, advertising, and building a strong online presence.

Today's digital strategies, such as a professional website, online property listings, and social media engagement, are vital for reaching potential clients and tenants.

The financial plan is another critical element. It should include your startup costs, revenue projections, operating expenses, and the point at which you expect to break even.

In property management, understanding cash flow is essential, as there may be periods of vacancy or unexpected repairs. For this, you can refer to our financial forecast for a property management company .

Compared to other business plans, a property management plan must focus on the nuances of real estate cycles, tenant law, and property maintenance requirements.

A comprehensive business plan will not only help you clarify your strategy and operations but also serve as a tool to attract investors or secure loans.

Lenders and investors are looking for a solid market analysis, realistic financial projections, and a clear plan for managing properties effectively.

By presenting a detailed and substantiated plan, you show your credibility and dedication to building a successful property management company.

To achieve these goals while saving time, you can fill out our property management business plan template .

A free example of business plan for a property management company

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for a property management company .

Here, we will follow the same structure as in our business plan template.

Market Opportunity

Market data and figures.

The property management industry is a robust and essential part of the real estate sector.

Recent estimates value the global property management market at over 15 billion dollars, with expectations for continued growth as the real estate market expands and diversifies.

In the United States alone, there are over 200,000 property management companies, contributing to an annual revenue of approximately 88 billion dollars. This underscores the critical role property management plays in maintaining and enhancing the value of real estate assets.

These figures highlight the significant impact of property management on the overall economy and its importance in the real estate industry.

The property management industry is experiencing several key trends that are shaping its future.

Technology adoption is on the rise, with property management software becoming increasingly sophisticated, offering features like online rent payments, electronic lease signing, and automated maintenance requests.

There is also a growing emphasis on sustainable property management practices, as both residential and commercial tenants seek energy-efficient and environmentally friendly living and working spaces.

Additionally, the rise of remote work has led to changes in tenant preferences, with a higher demand for flexible spaces and amenities that cater to work-from-home needs.

Smart home technology integration is becoming more prevalent, enhancing security and convenience for tenants while providing property managers with better monitoring tools.

Lastly, the importance of strong tenant relations and community building is increasingly recognized as a way to reduce turnover and maintain high occupancy rates.

These trends indicate a dynamic industry that is adapting to the evolving needs of tenants and property owners alike.

Success Factors

Several factors contribute to the success of a property management company.

Efficient operations are paramount, with effective systems in place for handling tenant inquiries, maintenance issues, and financial management.

Strong communication skills are essential, as property managers must effectively liaise between tenants and property owners, ensuring all parties are satisfied.

Expertise in local real estate markets enables property managers to provide valuable insights and advice to property owners, helping to maximize their investment returns.

Adaptability to regulatory changes and market conditions is also crucial for maintaining compliance and staying competitive.

Lastly, a focus on customer service excellence can set a property management company apart, fostering loyalty and referrals from both tenants and property owners.

By prioritizing these success factors, a property management company can thrive and grow in the ever-changing landscape of real estate.

The Project

Project presentation.

Our property management company project is designed to address the needs of property owners and investors seeking professional and reliable management of their real estate assets. Strategically located to serve urban and suburban areas with high rental demand, our company will offer comprehensive property management services, including tenant screening, lease management, maintenance coordination, and financial reporting, all executed with the utmost attention to detail and legal compliance.

We aim to ensure property preservation, maximize rental income, and minimize vacancies by leveraging our market expertise and customer service excellence.

Our property management company is poised to become a trusted partner for property owners, delivering peace of mind and enhancing the value of their investment properties.

Value Proposition

The value proposition of our property management company is centered on delivering exceptional service and results that exceed the expectations of property owners and tenants alike.

Our commitment to proactive management, transparent communication, and efficient operations ensures that properties are well-maintained and profitable. We offer a seamless experience for owners and tenants, reducing the complexities of property management while optimizing asset performance.

We are dedicated to fostering positive relationships with tenants to ensure long-term occupancy and satisfaction, and we are committed to continuous improvement and innovation in the field of property management.

Our company aspires to set a new standard in property management, offering a comprehensive suite of services that empower property owners to realize the full potential of their real estate investments.

Project Owner

The project owner is a seasoned real estate professional with a wealth of experience in property management and a keen understanding of the real estate market's dynamics.

With a background in real estate investment and a track record of successful property management, he is well-equipped to lead a company that prioritizes client satisfaction and asset performance. His expertise in tenant relations, maintenance coordination, and financial oversight positions him as an industry leader.

Driven by a vision of integrity and excellence, he is committed to establishing a property management company that stands out for its dedication to clients and its contribution to the enhancement of property values.

His passion for real estate and his commitment to service excellence are the cornerstones of this project, aiming to deliver top-tier property management solutions to a diverse clientele.

The Market Study

Market segments.

The market segments for this property management company are diverse and cater to various needs within the real estate sector.

Firstly, there are individual property owners who require management services for their rental properties to ensure efficient operation and tenant satisfaction.

Secondly, real estate investors with multiple properties seek professional management to maximize their investment returns and minimize the hassles of day-to-day operations.

Additionally, the market includes residential complexes and homeowners' associations (HOAs) looking for comprehensive management solutions for their communities.

Lastly, commercial property owners form a significant segment, requiring specialized management to handle the unique needs of commercial tenants and maintenance of their properties.

SWOT Analysis

A SWOT analysis of this property management company highlights several key factors.

Strengths include a strong understanding of the local real estate market, a professional team with expertise in property law and tenant relations, and robust technology systems for property maintenance and management.

Weaknesses may involve the challenge of scaling operations to manage a growing portfolio and the need to stay updated with ever-changing real estate regulations.

Opportunities can be found in the increasing demand for rental properties and the potential to offer value-added services such as property renovations and energy efficiency upgrades.

Threats might include the emergence of new competitors with disruptive technology or business models and economic downturns affecting the real estate market.

Competitor Analysis

Competitor analysis in the property management industry indicates a competitive landscape.

Direct competitors include other local and national property management firms that offer similar services to property owners and investors.

These competitors strive to provide exceptional service to maintain client satisfaction and loyalty.

Potential competitive advantages for our company include personalized customer service, a strong local market presence, advanced technology for property management, and a comprehensive suite of services.

Understanding the strengths and weaknesses of competitors is crucial for carving out a niche in the market and ensuring client retention.

Competitive Advantages

Our property management company's competitive edge lies in our dedication to client satisfaction and property care.

We offer a full range of services, from tenant screening and leasing to maintenance and financial reporting, all tailored to meet the specific needs of each property owner.

Our proactive approach to property management helps prevent issues before they arise, ensuring a smooth operation for our clients.

We also pride ourselves on our use of cutting-edge property management software, which provides transparency and ease of access to property information for owners and tenants alike.

You can also read our articles about: - the customer segments of a property management company - the competition study for a property management company

The Strategy

Development plan.

Our three-year development plan for the property management company is designed to establish a strong foothold in the local real estate market.

In the first year, we will concentrate on building a robust portfolio of properties, focusing on exceptional service and client satisfaction to foster a reputation for reliability and professionalism.

The second year will be geared towards optimizing our operational processes and expanding our services to include additional property types, such as commercial and industrial spaces.

In the third year, we aim to leverage technology to enhance property management efficiency and explore strategic partnerships with real estate developers and investors to further expand our market reach.

Throughout this period, we will prioritize customer service, operational excellence, and innovative solutions to stay ahead of market trends and exceed client expectations.

Business Model Canvas

The Business Model Canvas for our property management company focuses on property owners and investors as our primary customer segments.

Our value proposition is centered on providing hassle-free property management, maximizing rental income, and maintaining property value through professional upkeep and tenant relations.

We offer our services through direct engagement with property owners and online platforms, utilizing key resources such as our experienced management team and state-of-the-art property management software.

Key activities include property maintenance, tenant screening, lease management, and financial reporting.

Our revenue streams are generated from property management fees, while our costs are associated with staff salaries, marketing, and technology investments.

Access a comprehensive and editable real Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy is built on establishing trust and demonstrating expertise in the property management field.

We aim to educate property owners on the benefits of professional management services and showcase our track record of maintaining high occupancy rates and tenant satisfaction. Our approach includes targeted online advertising, informative webinars, and networking events within the real estate community.

We will also develop partnerships with real estate agencies and local businesses to extend our reach.

Additionally, we plan to leverage social media and content marketing to share success stories and industry insights, positioning ourselves as thought leaders in property management.

Risk Policy

The risk policy for our property management company is designed to mitigate risks associated with property maintenance, tenant relations, and market fluctuations.

We implement rigorous screening processes for tenants, regular property inspections, and proactive maintenance schedules to prevent property degradation and ensure compliance with housing regulations.

We maintain a conservative financial strategy to manage cash flow effectively and ensure we can navigate economic downturns without compromising service quality.

Furthermore, we carry comprehensive insurance coverage to protect against liability and property damage claims. Our priority is to safeguard the investments of our clients while delivering consistent, high-quality property management services.

Why Our Project is Viable

We are committed to establishing a property management company that addresses the needs of property owners and investors seeking professional, reliable, and efficient management services.

With our focus on customer service, operational efficiency, and market expertise, we are confident in our ability to thrive in the competitive real estate landscape.

We are enthusiastic about the opportunity to enhance property value for our clients and build a successful, sustainable business.

We remain adaptable to market changes and client feedback, and we are optimistic about the future prospects of our property management company.

You can also read our articles about: - the Business Model Canvas of a property management company - the marketing strategy for a property management company

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for a property management company and our financial plan for a property management company .

Initial expenses for our property management company include securing a professional office space, investing in property management software, obtaining necessary business licenses and insurance, training staff on the latest real estate regulations and customer service excellence, as well as costs related to brand development and executing strategic marketing initiatives to attract property owners and tenants.

Our revenue assumptions are based on a comprehensive analysis of the local real estate market, considering factors such as the number of rental properties, average rental rates, and the demand for professional property management services.

We anticipate a steady growth in clientele, starting with a conservative number of properties under management and expanding as our reputation for reliable and efficient service strengthens.

The projected income statement outlines expected revenues from management fees, leasing commissions, and other property-related services, against the costs of operations (staff salaries, office maintenance, technology subscriptions), and general business expenses (utilities, marketing, insurance, etc.).

This results in a forecasted net profit that is essential for assessing the long-term viability of our property management company.

The projected balance sheet presents assets unique to our business, such as office equipment, software, and potential receivables from clients, alongside liabilities that may include business loans and accounts payable.

It provides a snapshot of the company's financial standing at the end of each fiscal period.

Our projected cash flow statement details the inflows and outflows of cash, enabling us to predict our financial needs. This is crucial for maintaining a healthy cash reserve to cover operational costs and unexpected expenses.

The projected financing plan identifies the sources of capital we intend to tap into for covering our initial costs, such as bank loans, investor funds, or personal investments.

The working capital requirement for our property management company will be diligently tracked to ensure we have sufficient funds to manage day-to-day activities, including office expenses, staff salaries, and vendor payments.

The break-even analysis for our venture will calculate the number of properties we need to manage to cover all our costs and begin generating profits.

It will signal the point at which our business becomes financially sustainable.

Key performance indicators we will monitor include the average occupancy rate of managed properties, the client retention rate, the profit margin on our services, the current ratio to evaluate our liquidity, and the return on equity to measure the profitability of the shareholders' investment.

These metrics will assist us in gauging the financial health and success of our property management company.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for a property management company .

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Property Management Business Plan Template

If you want to start a property management business or expand your current one, you need a business plan.

Over the past 20+ years, we have helped over 7,000 entrepreneurs and business owners create business plans to start and grow their property management companies.

Below are links to each section of your property management business plan template:

Next Section: Executive Summary >

Property Management Business Plan FAQs

What is the easiest way to complete my property management business plan, what is a property management business plan, why do you need a business plan for a property management company, what are the sources of funding for a property management business.

With regards to funding, the main sources of funding for a property management business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a property management business is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan.

Where can I download a Property Management Business Plan PDF?

PROPERTY MANAGEMENT BUSINESS PLAN OUTLINE

• Property Mgmt Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan
• 10. Appendix
• Property Mgmt Business Plan Summary

Other Helpful Business Plan Articles & Templates

How To Write a Winning Property Management Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for property management businesses that want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every property management business owner should include in their business plan.

Download the Ultimate Property Management Business Plan Template

What is a Property Management Business Plan?

A property management business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Property Management Business Plan?

A property management business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Property Management Business Plan

The following are the key components of a successful property management business plan:

Executive Summary

The executive summary of a property management business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your property management company
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your property management business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your property management firm, mention this.

You will also include information about your chosen property management business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a property management business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the property management industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a property management business’ customers may include:

• Commercial property owners/managers

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or property management services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or you may promote your property management business via word-of-mouth marketing.

Operations Plan

This part of your property management business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a property management business include reaching $X in sales. Other examples include increasing the number of customers by X% each year, or expanding to a new market.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific property management industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Property Management Company

Balance Sheet

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Property Management Company

Cash Flow Statement

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup property management business.

Sample Cash Flow Statement for a Startup Property Management Company

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your property management company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

Our guide will help you organize your thoughts and make sure you haven’t missed anything important. Once you have a good outline, flesh out each section with more detail.  

Finish Your Property Management Business Plan in 1 Day!

Wish there was a faster, easier way to finish your Property Management business plan?

With our Ultimate Property Management Business Plan Template you can finish your plan in just 8 hours or less!

Home > Business > Business Startup

A Step-by-Step Guide on How to Start a Property Management Company

We are committed to sharing unbiased reviews. Some of the links on our site are from our partners who compensate us. Read our editorial guidelines and advertising disclosure .

Are you passionate about real estate and have a knack for organization and customer service?

If so, starting a property management company might be the perfect business venture for you. Property management companies are responsible for overseeing the daily operations of rental properties on behalf of property owners, ensuring that everything runs smoothly and tenants are happy.

If you're ready to dive into this unique industry, this in-depth guide on how to start a property management company will walk you through the process.

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How to start a property management company in 6 steps

Starting a property management company shares many similarities with starting any other business. You’ll need to choose a legal structure and create a business plan — essential steps for any budding entrepreneur.

However, there are unique aspects of starting a property management business, too. You’ll need to draft tenant agreements, maintain strong relationships with owners and collect rent payments.

There’s a lot to cover, so let’s get started.

Step 1: Research and plan your property management business

This isn’t the sort of business you can delve into without much real estate management experience or prior knowledge.

To successfully start a property management company, you’ll need a solid understanding of the real estate industry.

Study the local real estate market to identify areas with high rental demand and a potential shortage of property management services.

Explore rental prices, vacancy rates, and tenant preferences to gauge the profit potential of your venture.

Finally, decide what types of properties you want to manage, such as residential, commercial, or vacation rentals.

Define your business model

Determine the type of property management services you want to offer. Will you specialize in a particular niche, such as small office buildings, coworking spaces, or manufactured homes?

Consider whether you'll manage properties on behalf of individual owners, real estate investors or homeowner associations. Some companies even own the properties they manage, and slowly add to their real estate holdings over time.

Create a property management business plan

A comprehensive business plan will guide your company's growth and operations.

Include sections on your target market, marketing strategies, organizational structure, financial projections and growth plans.

SCORE, a nonprofit organization focused on small business growth, offers free business plan templates you can use. We can walk you through writing your business plan .

Step 2: Setting up your property management business

Once you’ve established a clear plan for your property management company and conducted your research, it’s time to lay the groundwork for your new business.

Pick a legal structure

You’ll need to determine the legal entity for your property management company , such as a limited liability company (LLC) or a corporation.

• LLC: An LLC provides you with the flexibility of a partnership or sole proprietorship while offering limited liability protection like a corporation. This protects your personal assets from business debts and liabilities. An LLC also offers simplified management with fewer formalities and less paperwork than a corporation.
• S Corporation: An S corp combines the benefits of limited liability protection with pass-through taxation. This means that business profits and losses pass through to individual shareholders, avoiding double taxation at the corporate level.
• C Corporation: A C corp might be a good fit if you have plans for substantial growth, attracting investors or going public. C corps are separate legal entities and provide limited liability protection. They offer the ability to issue different classes of stock, making it easier to raise capital. However, C corps are subject to corporate income tax. If dividends are distributed to shareholders, they may face individual income tax as well.

To make the best decision for your own property management company, consult with a real estate attorney or business accountant. They can provide guidance based on your specific circumstances and long-term goals.

Figure out your taxes

As a business owner, you’ll need to pay a host of new taxes, including federal taxes, sales taxes and payroll taxes .

Consulting with an accountant is a smart move. A tax professional can advise you on how to structure your property management company to minimize your tax bill and help you file your tax returns.

You’ll also need an employer identification number (EIN) , a unique identifier assigned by the Internal Revenue Service. You can apply for an EIN on the IRS website for free.

Get licensed

Before diving in, make sure you have the necessary up-to-date licensing to operate legally in your state.

One of the main licenses to consider is a real estate broker's license. It demonstrates your expertise in areas like insurance, taxes, and contracts. To get a real estate broker’s license, you’ll need to complete specific courses and pass a comprehensive exam.

Some states may also require a property manager’s license. This too requires coursework and an exam.

Step 3: Accounting and financial management

Next, it’s time to set up a bookkeeping and accounting system to monitor cash flow and maintain accurate financial records.

There are many accounting software programs to choose from, including Freshbooks , Zoho and Xero . They all have tools to help you keep track of income and monitor expenses.

It’s also vital to set up a streamlined rent collection process — including online payment options.

On a tight budget? Check out our top picks for the best free accounting software for small businesses .

Research property management software

Investing in property management software and automation tools can help streamline your operations.

Buildium and Yardi are two popular options. Both offer a suite of integrated services including accounting, marketing, and lease execution.

Using these programs can also make renting easier for tenants because it allows them to make payments, sign leases, request support, and manage their accounts online.

Property management software usually offers different pricing tiers, and services can be customized to fit your needs. Buildium, for example, offers three package options, ranging from $52 to $479 a month.

Open a business bank account

You may be required by law to open a separate business bank account for tax purposes, depending on which state you live in. Either way, it’s a good idea to have dedicated accounts in your business’ name. Many banks and credit unions offer business checking and savings accounts .

You may want to consider opening a small business credit card , too. It can help you rack up points and cash back on business expenses, while keeping your personal and business finances separate.

Top banks for small businesses

Data effective 4/20/23. At publishing time, rates, fees, and requirements are current but are subject to change. Offers may not be available in all areas.

Create a pricing structure

Figuring out how much to charge owners is vital to operating a successful property management company.

First, consider the type of fee structure you want to implement. There are several options to choose from.

• Flat fee model: This simple and transparent pricing structure charges a fixed fee per property or unit, regardless of its rental value or size. Flat fees are often appealing to clients because they’re predictable. Ensure that the flat fee adequately covers your costs and allows for a decent profit margin.
• Percentage of rent: Another popular pricing model is charging a percentage of the monthly rent collected from each property. Most property management companies charge anywhere from 8% to 12% of the monthly rent.
• Hybrid model: If you want to offer flexibility and cater to different client needs, consider a hybrid pricing structure. This approach combines elements of both the flat fee and percentage of rent models. For example, you could charge a lower flat fee along with a small percentage of the collected rent.
• Value-based pricing: As your property management company grows and establishes a strong reputation, you may consider adopting a value-based pricing strategy. With this approach, you charge a premium fee based on the unique value you bring to your clients. This model is best suited for companies that offer specialized services or cater to high-end properties.

To figure out how much to charge property owners, pay attention to what other property management companies in your area charge. This helps you benchmark your prices.

You should also consider the type and size of properties you'll manage. A single-family home requires different services and effort than a multifamily apartment building, so adjust your prices accordingly.

Step 4: Create property management contracts and hire staff

There are numerous laws and regulations surrounding real estate and rental properties. Requirements vary by state, but here’s an overview of the essentials.

Lease agreements and contracts

Developing comprehensive lease agreements and management contracts will help protect both your clients' interests and your own.

Consult with a real estate attorney to ensure these documents comply with local laws and regulations governing rental agreements.

Fair housing laws

It’s important to familiarize yourself with the Fair Housing Act to ensure you treat all prospective tenants equally and avoid any form of discrimination.

Be aware of federal, state, and local fair housing laws and stay up to date with any changes.

Tenant screening and eviction procedures

Establish a screening process that adheres to fair housing regulations and effectively assesses prospective tenants. You might decide to conduct credit checks or criminal background checks as part of the process.

Software programs like Rent Spree can help you with the tenant screening and rental application process.

Work with an attorney to develop clear eviction procedures in compliance with local laws so that you follow proper legal protocols when removing tenants who violate their lease agreements.

Hiring staff for maintenance and repairs

Establishing a system for handling maintenance requests promptly is key.

You might be able to handle some basic repairs yourself, assuming you’re as handy with a toolbox as you are with a spreadsheet.

Still, as your property management company grows, you’ll need to develop relationships with trusted contractors and vendors. Build a reliable maintenance crew of plumbers, electricians, septic companies, waste companies, and landscapers.

Negotiate favorable rates so you can resolve maintenance issues in a timely manner.

And make sure to calculate how much revenue you need to hire an employee .

Step 5: Market your property management business and find clients

You’ve got the skills and laid the foundation for a successful property management company.

Now that your business is up and running, it’s time to start finding clients.

But adding new properties to your portfolio is only part of the process. You’ll need to keep and retain them, too.

Create a professional brand

Develop a visually appealing logo, website, and marketing materials to establish credibility and attract potential clients.

You’ll also need to pick a business name for your property management company if you haven’t done so already.

Your secretary of state’s website should have an online database where you can find out if your proposed business name is already taken.

PRO TIP: Need help picking out a name? Here are some tips on how to come up with a business name .

Establish an online presence

A lot of business happens online, so make sure to create a user-friendly website and active social media profiles. (Hint: Wix is a great option for websites.)

Attract more potential clients by following search engine optimization (SEO) best practices and utilize keywords relevant to your services.

You should also advertise your available properties on reputable listing sites like Zillow and Apartments.com. Ensure your listings are detailed and include high-quality photos.

Social media is another great way to connect with potential clients. Check out these ways to engage customers with social media marketing .

Explore local advertising and partnerships

Consider advertising in local newspapers, magazines, and websites frequented by your target audience.

Partner with local real estate agencies, property investment groups, or homeowners' associations to tap into their networks and gain referrals.

Great customer service goes a long way

Word-of-mouth referrals are essential for property management companies, so offer referral incentives to current clients who refer new business to you.

Keep clients informed about their properties by providing regular updates, financial statements, and property performance reports. Proactive communication fosters transparency and shows your dedication.

To keep business flowing in, focus on delivering outstanding customer service. Happy tenants and satisfied property owners are much more likely to recommend your services.

Tenant communication and retention

As a property manager, maintaining communication with tenants is essential. Respond promptly to questions and concerns to foster positive tenant relationships.

Consider implementing tenant retention strategies, such as renewal incentives or discounts on lease renewal fees.

Step 6: Expand your property management company

As your business grows, you may need to hire additional staff, including administrative personnel, maintenance workers, and other property managers.

Implement an efficient hiring process so you can recruit qualified employees without wasting time digging through dead-end resumes.

You should also consider outsourcing certain tasks, such as bookkeeping or marketing, to third-party providers.

Market research and adaptation

To stay at the top, you’ll need to continuously monitor the local real estate market and rental trends.

Regularly evaluate your service offerings and make necessary changes to stay ahead of other property managers.

Stay current in the property management industry

To grow your business, never stop learning.

Attend industry conferences, seminars, and workshops to stay updated on real estate industry trends, best practices and regulatory changes.

Networking with other property managers can also provide valuable insights and keep you ahead of the game.

Consider obtaining professional certifications, such as certified property manager (CPM) or residential management professional (RMP) to enhance your credentials.

Browse hundreds of loan options, custom-tailored to your business and budget needs, from a single, simple platform.

Final thoughts

Knowing how to start a property management company can be challenging, but with the right approach, it can be a profitable and fulfilling business.

By implementing the strategies and tips outlined in this guide, you'll be well on your way to building a successful property management empire.

Rachel Christian is a Certified Educator in Personal Finance and a senior writer at The Penny Hoarder. She focuses on small businesses, retirement, taxes and investing.

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• How To Start A Property Management Company In 8 Steps
• Property Maintenance & Management

by Stephen Michael White

May 8, 2024

Property management is an essential business for many in the rental industry. Landlords and tenants work with property managers on both sides, making their role necessary. If you’re ready to learn how to start a property management company and get involved in this thriving market, today’s your day to know more.

Running a property management business challenges even experienced entrepreneurs. There are lots of moving parts to track. It takes time and detailed planning to get things right.

Follow along with our guide on how to open a property management company. Work through these eight steps to have your business structured in no time.

Table Of Contents On Starting A Property Management Company

Where do you begin when starting a company? Like all businesses, property management companies need to be built on a solid plan. Here’s how to start yours:

Property Manager Responsibilities

The cost of starting a property management company, step 1: research the job, area, and competitors, step 2: brand up and create a business plan.

• Step 3: Set Up Financials, Insurance, Licensing, And Registered Business Names
• Step 4: Find Locations Online And On-The-Ground

Step 5: Plan Payment Structures And Contacts

Step 6: accounting & management software, step 7: keep learning, is property management a good business to get into, do property managers have to be licensed in my state, how do you build a successful property management company, why do property managers quit, ready to start a property management company, what is property management.

Property management is the process of overseeing residential or commercial rental properties. Depending on the type of housing available, it may also include student housing or community associations.

Property managers can also be the owners of the property, or they can be separate individuals. A property management company, however, runs the properties for rentals when the owner doesn’t have the time or skillset to do so. Instead, a property management company is hired to handle the necessary responsibilities.

What do those responsibilities include?

A property manager’s main goal is to take care of rental buildings and properties for their clients, the owners. They connect tenants to the owner by managing day-to-day activities, applications and leases, rent payments, and more, to ensure that everything runs smoothly throughout and between tenancy periods.

A property management company’s responsibilities may include the following:

• Marketing rental units
• Running open houses and property tours
• Collecting and reviewing tenant applications
• Signing leases
• Collecting rent
• Managing on-site maintenance
• Managing on-site landscaping and common area cleaning
• Conducting inspections
• Ensuring move-in/move-out dates
• Sending notices to tenants as needed
• … and so much more!

If you’ve worked as a landlord, you already know the wide variety of things that can pop up when managing rental properties. From burst pipes to tenants consistently late on rent, many problems must be solved.

When moving into property management, you’ll want to consider the financial backing needed to support an entire company. Even if you start working independently, you can expect startup costs to be at least $2,000. This amount will cover insurance, licensing, equipment, and other essential expenses necessary to run the business.

As you grow your business, you can expect initial startup costs to maintain a property management company to range from $10,000 to $20,000, depending on the size of your starting operation.

How To Start A Property Management Company?

Setting up a property management company has a lot of overlap with starting any other company. From establishing a legal business entity to creating business plans, there are steps that every business owner needs to take. Beyond those basics, there are systematic steps that property managers can take to ensure their company is set up for success.

It’s important to get to know your local industry before you get too far into starting your company. If you’ve worked as a real estate agent or a landlord in the area, you’re likely already familiar with the rental companies and property management companies working nearby.

Still, in-depth research into how businesses function and succeed near you is a great idea. Start with the following:

• Who is hiring property managers
• What each property management company offers
• What type of pricing schedules are used

These factors will help you gain perspective on what to do, what to expect, and how to fill open niches in your local market.

Start with your branding. Think about a name that leaves a good impression without being too complicated, and build strong branding around that name. Register it with your state to ensure the name is available before moving forward.

Create a business plan for your company. Solid plans guide success, and you can set goals more appropriately when you know what the future may look like. Include your business structure, short- and long-term goals, and resources on hand in this document. Consider your business plan a living document that you will keep growing over time.

Step 3: Set Up Financials, Insurance, Licensing, And Registered Business Name

If you haven’t registered your business yet, it’s time to do so. Whether you set up a sole proprietorship, partnership, LLC , or corporation, you’ll need to complete the appropriate forms and registrations in your state and municipality before beginning to do business.

Set up a bank account for your business. Choose a bank that offers the most needed features, like a business credit card or separate accounts for security deposits.

Find out if you need to be licensed as a property manager in your state. Real estate licenses or broker licenses are often required. Ensure you are permitted before taking on any clients, to avoid legal troubles and fees.

Step 4: Find Locations Online And On The Ground

Find out where you will host your business online and on the ground. Find a location for your office or a shared workspace where you can operate from. Online, ensure you get the URLs and web hosting needed to advertise your business , connect with clients, and otherwise manage your company.

Work out your payment schedule.

How much money needs to come in to cover the cost of running your business? What are fair prices for your services, and how do your estimates compare with other property management companies in the area?

There are several fees to consider as you implement your business payment plan:

• Management fees: monthly fees charged to clients for management services; can be a flat rate or percentage-based
• Lease renewal fees: how much it will cost to renew tenancies
• Additional costs for advertising, special marketing deals, maintenance requests, and other services, which should also have specific pricing if they aren’t included in general management

Can you ensure these costs balance out in a profitable way? Your revenue depends on a blend of competitive pricing and profitable management. Run through scenarios, and remember that these can be adjusted.

Investing in accounting and property management software, such as tenant screening options and rent collection management systems, will help your business function more effectively and efficiently. Don’t waste time doing everything by hand or recreating existing software.

The property management industry is booming, with many software options to try out. Consider where support will be helpful and utilize those services. Try maintenance portals and rent collection software as your starting tools.

To avoid combining too many systems, looking for an all-in-one solution may be a good choice.

Now that your business is ready to launch, it’s time to settle into the learning phase of running a property management business.

As a landlord or property manager, success in the rental market relies heavily on your ability to keep learning. Learning the latest trends, the best software, and the most valuable documents to have on hand will make your work more efficient.

Here at RentPrep, we know just how important this is. That’s why we’ve created a blog full of resources, including a complete bundle of template forms for property managers like you. Check it out today – and keep learning.

Property Management Business FAQs

Even after you’ve reviewed how to start a property management company or started your own, you will have questions. Here are the answers to the most commonly asked questions about property management.

Property management is a rapidly growing industry, and projections show that it will continue on this path for years to come . This means that getting into the business now is still a great move in the rental business. Even if local players already in the field have been there for years, there’s constant growth and more than enough business to go around.

Take this opportunity to get involved in a new market. Landlords with experience managing properties but ready to have less property ownership, in particular, can find success in this area. You already have the skills needed to get started in property management . Try it out, see how it goes, and move forward with this great career chance.

States require different types of licensure to work as a property manager. Here is the key breakdown of those requirements as of the time of writing.

• Massachusetts
• Kansas (residential only)
• District of Columbia
• Oregon (property management OR broker’s license required)
• South Carolina
• South Dakota
• Connecticut
• Mississippi
• New Hampshire
• North Carolina
• North Dakota
• Pennsylvania
• Rhode Island
• West Virginia

Thankfully, there are many programs available in the United States, both in person and online, where you can learn the foundations of being a property manager. These courses will cover critical topics including compliance and legal considerations.

Building a successful property management company primarily revolves around setting up the right foundations, which means you need to be a skilled property manager to succeed. There are specific skills that you must have or cultivate to find and guide success:

• Be proactive
• Stay involved
• Keep current on the latest industry knowledge
• Listen and communicate effectively
• Be resourceful

In addition to having these characteristics, you also need to be able to guide your team to hold the same standards. With talented individuals working on your side, it will be easier to create a successful property management company. Ideally, your staff (both full-time and contracted) will consist of the following individuals:

• Real estate attorney
• Contractors (HVAC, landscaping, locksmiths, etc.)

Depending on the size of your operation, you may also bring in more property managers, on-site security and staff, and others. When you’re first starting, however, your focus should be on building relationships with these three types of specialists, to ensure you have the support system needed to generate profit.

Another key point of success lies in the tools you have at your disposal. Software, in particular, can make or break your business. Think carefully about your needs as you develop your plan and invest in the following software if it will make your processes more efficient:

• Marketing tools
• Tenant screening tools
• Rent trackers
• Record-keeping tools
• Financial tools
• Maintenance request management tools

Burnout is the biggest reason property managers decide to get out of the field.

Property managers are often under immense amounts of stress. There are many moving parts to handle, and you can expect to be on call at nearly all hours of the day. This is particularly true when you start the business and rely primarily on your own abilities to succeed.

As your team grows, you may have more free time, but there will still be stress associated with your job. Problems are to be expected, and you must always be ready to handle them.

Regardless of the stress, many property managers who have been in the field for decades find the constant movement of the job engaging and exciting. If you enjoy learning new tasks, delegating work, and finding ways to solve problems on the fly, this is a great profession to pursue.

Building your property management company with the right tools will set you up to grow successfully as you gain experience. Work through essential steps to ensure you have the best chance at succeeding:

• Check what licensure, fees, insurance, and other documentation are needed to do business as a property management company in your area.
• Utilize staff, third-party services, and software to support your work.
• Create strong relationships with tenants, landlords, and contractors in your area to build your business’s network.

You can succeed in property management, but it will take work. With the information gathered today, you can focus on overcoming obstacles rather than figuring out what to do next. Good luck – you’ll have your first client in no time.

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Home » Sample Business Plans » Real Estate

A Sample Property Management Business Plan Template

Are you about starting a property management & maintenance company? If YES, here’s a complete sample rental property management business plan template you can use for FREE. Okay, so we have considered all the requirements for starting a property management company. We also took it further by analyzing and drafting a sample property management marketing plan template backed up by actionable guerrilla marketing ideas for property management businesses. So let’s proceed to the business planning section.

Why Start a Property Management Business?

It is one thing to own properties, it is yet another to have them properly managed. This is because of the need to adequately put attention on these properties so that in the long run they turn out well and yield profit.

However, that might not be the case all the time as there are times when one wrong decision about a property might cause a decline in profit. Good news is that there folks who are vast in the management of properties. As such property owners can just relax and expect that all goes down really well.

Starting a property management business just like any other trade requires that one draws up a plan that will help with the immediate as well as the future projections of the business. This is where the business plan comes in. Below is a sample property management business plan to help you tweak yours.

1. Industry Overview

Property management 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 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.

In the united states, states such as Texas, New York, and Colorado, make it mandatory for property management companies to be licensed real estate brokers, if they are going to be involved in collecting rent, listing properties for rent or helping negotiate leases and doing inspections as required by their business. Although a property manager may be a licensed real estate salesperson, but generally they must be working under a licensed real estate broker.

A few states, such as Idaho, Maine, and Vermont do not require property managers to have real estate licenses. Other states, such as Montana, Oregon, and South Carolina, allow property managers to work under a property management license rather than a broker’s license. Washington State requires property managers to have a State Real Estate License if they do not own the property.

Landlords who manage their own property are not required by the law to have a real estate license in many states; however, they must at least have a business license to rent out their own home. It’s only landlords who do not live close to the rental property that may be required, by local government, to hire the services of a property management company.

Interestingly, the minimum educational requirement for any one that wants to start his or her own property management business is a High School Diploma and hands on job experience. It is one of the many businesses that an individual can start from his or her home and basically with just a business card.

Since property management business is all about managing property/properties on behalf of your clients, and then you may not need a huge financial base to be able to launch the business except you just want to start pretty big.

As a property manager, your core business responsibility is to liaise with landlords, tenants, and in some case various contractors and for you to effectively conduct your business, you are expected to have a full grasp of the law when it comes to landlord and tenants relationships et al.

As a 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. If you can get that aspect of your job/business right, you will sure enjoy your business.

Property management companies are also involved in 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.

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.

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

2. Executive Summary

Hillary Tyson and Co Property Management Company is a licensed property management company that will be based in Atlanta, Georgia, but will operate in all the states in the United States of America. We are in the business of property 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 or landlords and property owners in the whole of the United States and we look forward to helping a larger percentage of them manage their properties in any part of the US.

Hilary Tyson and Co Property Management Company will ensure that every property that is kept within our care is properly managed, because we are in business to deliver excellent services to both landlords and tenants. We have been able to acquire all the relevant trainings and certifications in the field of property management so as to enable us perform excellently well.

Hilary Tyson and Co Property Management Company will strive to minimize the risk of litigation and the risk of damage to rental units and also we have perfected strategies to maximize profits by simply slashing vacancy rates and repair and maintenance costs of all properties under our care.

Much more than renting our properties out to tenants, we intend to build a loyal customer base and part of the plans that we have put in place to realize this is to offer incentives to law abiding tenants under our care. Part of what we intend doing is to offer lower rent for tenants who agree to enter a long – term lease agreements with us and also to create a system where points will be awarded to loyal tenants – a point-based systems for redeemable rewards.

As a property management company, we are going to be both proactive and reactive when dealing with our issues as it relates to our tenants. We are quite aware that most issues can be cleared up easily if addressed immediately, but when they are left to fester they can result in lawsuits, damaged rental properties, and payment defaults et al.

As a property management company, we are going to abide by the Fair Housing Act, which means not singling out one particular demographic group when sourcing for tenants for our properties. We will leverage on all available means to advertise our vacant properties and will not restrict our properties to any group of tenants but to anyone who is qualified and can afford the rent.

Hilary Tyson and Co Property Management Company is owned by Hilary Tyson and his immediate family members (His Wife and Son). The company is fully financed by Hilary Tyson and his son Robert Tyson is the chief operating officer of the company.

Robert Tyson has a degree in Estate Management and his has over 5 years post degree experience in property management prior to taking the role of Chief Operating Officer of Hilary Tyson and Co Property Management Company.

3. Our Products and Services

Hilary Tyson and Co Property Management Company is a company that looks forward to deliver excellent services in terms of help landlords and property owners effectively manage their properties and also providing conducive apartments and facility to tenants at an affordable rate. Our business offering are listed below;

• Facilitating a Purchase—guiding a buyer through the process.
• Facilitating a Sale — guiding a seller through the selling process.
• FSBO document preparation — preparing necessary paperwork for “For Sale by Owner” sellers.
• Property Maintenance
• Exchanging property.
• Auctioning property for our clients.
• Preparing contracts and leases.
• List the property for sale to the public
• Provide the seller with a real property condition disclosure (if required by law) and other necessary forms.
• Prepare necessary papers describing the property for advertising, pamphlets, open houses, etc.
• Hold an open house to show the property.
• Serve as a contact available to answer any questions about the property and schedule showing appointments.
• Ensure that tenants are pre-screened and financially qualified to rent / lease the property
• Selling of Fully Furnished Properties
• Selling of Landed Properties
• Property Management Consultancy and Advisory Services

4. Our Mission and Vision Statement

• Our Vision is to become the preferred choice of landlords and tenants when it comes to property rentals in the whole of the United States of America.
• We are a company that is established with the aim of helping tenants (people and businesses) get the properties of their choice and to help property owners (landlords and group owners of properties et al) effectively manage and maximize their properties in the United States of America.

Our Business Structure

Hilary Tyson and Co Property Management Company is going to be structured in a way that every employee 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 to 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 Hilary Tyson and Co Property Management Company;

• Chief Operating Officer

Project Manager

• Company’s Lawyer/Secretary

Admin and HR Manager

• Head of Assets Management
• Head of Acquisition and Disposition

Business Developer

• Sales and Marketing Firm
• Front Desk Officer

5. Job Roles and Responsibilities

Chief Operating Officer:

• Responsible for providing direction for the business
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for the day to day running of the business
• Responsible for handling high profile clients and deals
• Responsible for fixing prices and signing business deals
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization at regular interval
• Responsible for the planning, management and coordinating all projects on behalf of the company
• Supervises projects
• 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.

  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
• Consults and handles 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 position on legal issues
• Researches, anticipates and guards company against legal risks
• Represents 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
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• 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
• Oversees the smooth running of the daily 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 evaluates new plans for expanding increase sales
• Documents all customer contact and information.
• Represents the company in strategic meetings
• Helps 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 contracts or accepts 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

• Receives Visitors/clients on behalf of the organization
• Receives parcels/documents for the company
• Handles enquiries via e-mail and phone calls for the organization
• Distribute mails in the organization
• Handles any other duties as assigned my the line manager

6. SWOT Analysis

No doubt, property management business is perhaps one of the easiest and cheapest ways of entering the real estate business. 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 management and the right network and connections.

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 management we hired the services of Mr. Meclee Johnbull a tested and trusted business and HR consultants 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 Hilary Tyson and Co Property Management Company;

Our strength as a property management company lies in the fact that we have a healthy relationship 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 of the qualities that are in high demand in the property management line of business which are trust, honesty and relationship management.

Our weakness could be that we are a new property management business in the United States and it may take us time and extra effort to convince landlords to give us their properties to manage for them.

• Opportunities:

The opportunities that are available in the real estate industry are massive and we are ready to take advantage of any opportunity that comes our way.

Some of the threats that we are likely going to face as a property management company in the United States of America are unfavorable government policies, global economic downturn and unreasonable tenants. There is hardly anything we could do as regards these threats other than to be optimistic that things will continue to work for our good.

7. MARKET ANALYSIS

• Market Trends

The market trends as it involves the property management business are indeed dynamic and at the same time, pretty much easier for a newbie to come in and still make money from the industry. All that is needed for any property management company to do well in the industry is to have good managerial skills and health relationship with landlords (property owners). Every detail we need to excel is contained in our property management marketing plan.

Some of the factors that count positively in this line of business are trust, honesty and relationship management and any property management company that has this will indeed do pretty well in the industry. Landlords and property owners ensure that they put their properties under the care of someone they can trust.

8. Our Target Market

Our target market as a property 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 only 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;

• Families who are interested in renting/leasing or acquiring a property
• Corporate organizations that 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) that 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

Hilary Tyson and Co Property Management Company obviously is a newbie in property 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. 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

Hilary Tyson and Co Property Management Company’s major aim, is to maximize the profits in the real estate industry via delivering quality and affordable property to our highly esteemed clients and effective property management on behalf of our business partners (landlords and property owners). Below are the sources we intend exploring to generate income for Hilary Tyson and Co Property Management Company;

• Developing Properties for our Clients
• Renting of Properties/Leasing of Properties; Leasing for a fee or percentage of the gross lease value.
• Sale of Fully Furnished Properties
• Sale of Landed Properties
• Lease of Bare Land
• Manage Properties and Facility for Clients
• Property Makeover Services
• Real Estate Consultancy and Advisory Services; Hourly Consulting for a fee, based on the client’s needs.
• Home Selling Kits — guides advising how to market and sell a property.

10. Sales Forecast

The fact that 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 management companies will secure business deals. Also as long as tenants are always in search for accommodation, there will always be business for property management companies.

We have perfected our sales and marketing strategies and we are set to hit the ground running and we are quite optimistic that we will meet or even surpass our set target of generating enough income / profits from the first month or operations and grow the business beyond Atlanta, Georgia to other states in the United States of America within record time.

We have been able to critically examine the 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 projections are based on information gathered on the field and some workable assumptions as well;

• Rent/lease a minimum of 30 housing units to clients (flats, duplexes, studio apartment et al) within the first 6 months of operations
• Rent/lease a minimum of 20 office facilities to clients within the first 6 months of operations
• Manage a minimum of 20 properties for clients within the first 6 months of operations
• Sell a minimum of 20 hectares of land within the first 12 months of operation
• Provide advisory and consultancy services for a minimum of 10 client per month
• Handle a minimum of 20 building makeover projects within the first 12 months of operations

N.B: Please note that we could not put a specific amount to the projection because the prices and commissions vary for different properties and for different clients. Part of our business strategy is to work within the budget of our clients to deliver quality property/properties, hence it will be difficult to project what we are likely going to make from such deals.

But the bottom line is that we are definitely going to make reasonable profits from any business deal that we execute since we work based on commissions. The property management market is structured in such a way that property managers will always make profits from any deal they handle as long as they conducted due diligence before signing the deal.

• Marketing Strategy and Sales Strategy

Networking is an effective way to begin building your clients base and we have plans in place to leverage on all our networks. In view of that, we will continue to find local real estate clubs and connect with them and also we will find local business organizations like the Chamber of Commerce and connect with them as well.

We will also network with real estate brokers who are constantly in touch with landlords and properties owners. We are not going to ignore local lending institutions, we are aware that they are also good sources of leads for property management companies.

The truth is that, they may have properties for which they are responsible and also to outsource such properties to property management companies in some cases lenders sometimes find themselves stuck with rental properties, and are not in the business of property management, so they tend to outsource it to property management companies.

We also enter business partnership with local contractors since they also interface with property owners regularly. Lastly, we will leverage on the power of the media by advertising our services using both online and offline platforms.

For instance; the phrase “property management companies ” is searched about 90,500 times monthly in Google in the U.S alone and the phrase “property management firms” is searched about 30,100 times monthly, that is why we will ensure that we run paid search campaign to capture property owners and even potential tenants who are searching on this subjects within the area that we operate.

Over and above, we have perfected strategies to network with people who are likely to refer businesses to the ways of people. Also, check out some non-traditional places and events for networking opportunities. In summary, Hilary Tyson and Co Property Management Company will adopt the following strategies in sourcing for clients for our business;

• Introduce our business by sending introductory letters alongside our brochures to stake holders in the real estate industry and also property owners.
• Promptness in bidding for contracts
• Advertise our business in real estate/properties magazines and websites
• List our business on yellow pages
• Attend 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 quality housing/property to them
• Leverage on the internet to promote our business
• Places a “To Let” sign on the properties under our care with details of what we do et al.

11. Publicity and Advertising Strategy

Any business that wants to grow beyond the corner of the street they are operating should be ready and willing to utilize every available means (conventional and non – conventional means) to advertise and promote the business.

We intend growing our business beyond Atlanta, Georgia which is why we have perfected plans to build our brand via every available means. Below are the platforms Hilary Tyson and Co Property Management Company intend to leverage on to promote and advertise her property management business;

• Place adverts on both print and electronic media platforms
• Place our flexi banners with our company’s logo and contacts in every property we put up for sale or lease.
• Sponsor relevant TV shows
• Maximize our company’s website to promote our business
• 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.
• Install our Bill Boards on strategic locations
• Distribute our fliers and handbills in targeted areas from time to time

Attend landlord and residence association meetings with the aim of networking and introducing our business.

12. Our Pricing Strategy

Part of business strategy is to ensure that we work within the budget of our clients to deliver excellent properties to them. The 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 facility.

• 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 Hilary Tyson and Co Property Management Company 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.

13. Startup Expenditure (Budget)

• The Total Fee for incorporating the Business in New Jersey: $750.
• The budget for Liability insurance, permits and license: $2,500
• The Amount needed to acquire a suitable Office facility with enough space in Atlanta, Georgia for 6 months (Re – Construction of the facility inclusive): $40,000.
• The Cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al): $5,000
• The Cost of Launching our official Website: $600
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al): $2,500

Going by the report from our research and feasibility studies, we will need about $60,000 to set up a property management company in Atlanta, Georgia, US.

Generating Funding/Startup Capital for Hillary Tyson and Co

The Founder Mr. Hilary Tyson is the sole financier of the business and he has been able to generate the start – up capital from his personal savings Please note that as it stands, the start – capital of $60,000 is already available for the business.

14. Sustainability and Expansion Strategy

We are set to take on new business territories in the United States of America; which is why we have hired some of the best hands in the real estate industry to help us lay a solid foundation for growth and expansion of the business.

Part of the sustainability strategy that we have adopted is continuous training of our workforce (both fulltime staff and freelancers working for us) so as to provide them with the capacity to perform effectively in the highly competitive property management business in the United States of America. In other to be in business for a long time, we will not in any way comprise our integrity and trust.

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
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Renting of Office Facility in Atlanta, Georgia: Completed
• Conducting Feasibility Studies: Completed
• Start – up Capital Generation: Completed
• writing of business plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents (Tenancy Agreements, and freelance agreements et al), and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with key players in the industry (networking and membership of relevant real estate bodies): Complete

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How to Start a Property Management Company

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This is a great time to start your own property management company. A study by Fortune Business Insights projects that the property management market will grow from $15.10 billion in 2021 to $28.21 billion in 2028.

What is property management?

Property Management is the daily oversight, operation, control, and maintenance of residential, commercial, community association, student housing, or industrial real estate by a third-party property manager.

Property owners rely on property management companies to keep people in safe, hygienic homes and businesses operating in safe and professional environments. Despite intermittent fluctuations, property management services are consistently in demand.

If you find yourself reading this article, you’ve probably been in the property management game for a while and are ready to build your own company from the ground up. Or, maybe you’re running or employed by a real estate business and want to transition to property management.

Over the past fifteen years, our team has helped hundreds of entrepreneurs and small businesses start property management companies. We’ve mentored dozens of entrepreneurs in building and growing property management and homeowner’s association management companies. This guide shares the actionable insights, tips, best practices, and expertise we’ve developed after helping over one hundred thousand brands.

Navigating the transition between employee and property management entrepreneur can be tricky. If you’re ready to leap, we’re here to share everything you need to know about how to start a property management company.

How to Start a Property Management Company:

Choose your niche, define your services, write a business plan, decide your legal business structure, fill in the business blanks, crunch the numbers, develop your brand identity.

• Choose your property management software

Find the right help

Build an online presence, spread the word.

Starting your own property management company will be much easier to stand out from your competition (especially over the long term) if you specialize .

Think about it. Would you go to a general practitioner or an oncologist specializing in lung cancer if you had lung cancer? You’d see a lung cancer specialist because they offer the best chance to solve your unique problem.

The same is true for clients seeking property management services.

Clients want to feel confident that the people managing their property are doing it right. And knowing that you’re an expert in managing their type of property will boost their confidence in your ability to get the job done right.

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Receive six actionable guides, including a how to start a business checklist, detailed comparisons of LLCs, corporations, sole proprietorships, and partnerships to determine the best fit for your business, plus insights on crafting a compelling pitch deck to attract investors.

• How to Start a Business Checklist
• Starting a Corporation Guide
• Is an LLC Right for You?
• Starting a Sole Proprietorship
• Starting Business Partnerships
• Creating a Powerful Pitch Deck

Here are common niches in the property management industry:

• Residential property management
• Commercial property management
• Home Owners Associations
• Timeshare property management
• Short-term vacation rental property management

Property management companies that are specialists will appear most qualified to help and be most appealing to the clients with those needs.

You may find that your niche is obvious. For example, it may be where you have the most expertise. Or, it may be a property niche that needs to be filled in your local economy. For example, many highly paid professionals become real estate investors and buy rental properties in major cities. They don’t want to manage those properties and often look for capable and respected property managers.

Whatever niche you choose, don’t make the mistake of trying to be the right fit for every client. Marketing directly to the businesses that need your expertise will deliver the best results.

Ensure that the niche you choose provides a meaningful opportunity. Once you assess your total addressable market , you can evaluate whether the opportunity is sufficiently lucrative to be worth your time.

Finally, even experienced real estate brokers and property managers may need special training to deliver the best possible service in a specific property management field. So, take advantage of opportunities to improve your skillset – even if you’re already an expert. For example, tools like a short-term rental calculator can enhance your understanding of pricing dynamics and help you optimize revenue management strategies for vacation rentals.

So, what exactly does a property manager do?

Property managers take care of buildings, inside and out, on behalf of individuals or groups of property owners. Property management services may include:

• overseeing daily maintenance of the interior and exterior of the building
• overseeing daily maintenance of the surrounding landscaping and parking lots
• on-call maintenance for mechanical and weather emergencies
• shopping out bids from vendors (HVAC, plumbing, painting, elevators, electrical, drywall, etc.)
• brokerage services (like advertising, showing, and negotiating terms for vacant units)
• managing new leases and lease renewals
• conducting move-in/move-out inspections
• collecting rent
• overseeing unit renovations
• billing for appropriate maintenance services
• mail/package delivery services
• and appearing in court over rent or billing disputes.

It’s important to decide early which of these services you’ll offer. Potential clients will want clear guidelines of what they can expect of you.

And you’ll need to decide how many employees are needed to manage these services and what tools and supplies you’ll need to own to maintain your properties properly.

Your niche will help you determine if you can reasonably leave any of these tasks off of your list. For instance, residential property managers are more likely to provide mail/package services than commercial property managers.

People often make mistakes when they start a new property management company.

This is because they rush into things before considering their business from all angles.

A property management business plan isn’t mandatory. But, it can help you think many things through – including your services –  and avoid many mistakes.

Studies show that entrepreneurs who take the time to write a business plan when starting a business are 2.5 times more likely to follow through and get their business off the ground.

The work involved in creating a business plan helps new property managers build skills (like analyzing their competition and examining their finances) that will be important to their success.

But don’t get obsessed about getting every detail right in your business plan. You don’t even need to write a traditional 100-page business plan. Instead, do your research and create a one-page business plan .

For insights and free downloadable business plan templates, read this definitive guide on how to write a business plan . And take a look at these business plan tips for more insights.

There are many different types of legal business structures for various business entities. (Note: These legal business structures differ from your business niche.)

For new property management entrepreneurs, choosing the best business entity can feel overwhelming. So don’t rush into registering your business immediately.

For example, while a sole proprietorship or partnership might be quick and inexpensive in the short term, it might expose you to more financial and legal risk, create an unfavorable tax treatment, and lead to problems for you in the long term.

A limited liability company (LLC) is a strong choice for most property management companies. Still, a corporation could make sense for bigger property management companies, especially if you have investors.

So, read about each possible entity your business might fit into.

Then, consider which business structure is most helpful for your business; and how each can help you accomplish your business goals.

Hire an expert to form your company and save time. Our trusted partners can help: Northwest ($39 + state fee) or Bizee ($199 + state fee) . We recommend Northwest. After evaluating the leading registration companies, Northwest stands out as our top choice due to its competitive pricing, exceptional customer support, and commitment to privacy. Pay just $39 + state fees and you'll get a free year of registered agent service, articles of organization, privacy, and client support from local experts.

Remember that most states require you to register your company with the secretary of state or county clerk in the county in which you operate if you operate your business under a different trade name than your legal business name.

This is an easy problem to solve. Just register your actual trade name with your state (and/or local government) by filing a “doing business as” (DBA) certificate.

DBAs are also commonly called “assumed name,” “fictitious business name,” or “trade name.”

Here’s a terrific resource that explains what a DBA is, the DBA state requirements, and how to file a DBA for your property management company in all 50 states and U.S. territories.

While it’s easy to get caught up in the excitement of becoming your own boss, it’s essential to give equal attention to the less glamorous aspect of business ownership – following the rules.

If you don’t operate legally, your new property management business may get shut down before it has a chance to grow. So, let’s talk details.

You must file the necessary paperwork after determining your business’s legal structure.

The U.S. Small Business Administration tells us that some form of license or permit is necessary to operate virtually every business type legally. Their website has all the info you need to determine what sort of license or permit you’ll need to start a property management company in your state.

In addition to any basic business licenses or permits you may need to operate legally in your state, you will also need some licenses specific to the property management industry.

Property management licenses

Many states require specific real estate and property management licenses or paperwork to legally operate a property management business.

So, check out your state’s real estate commission or licensing board website and real estate agent review sites for the details relevant to your business.

But, some requirements are universal. You, and your employees, may be asked to acquire the following licenses:

• Real estate broker’s license : Most states require you to acquire a real estate broker’s license to operate a property management company. This is a comprehensive accreditation. It requires applicants to complete a certain number of hours working in the industry, pass an exam, and possibly pass a background check.
• Property management license : Some states require this specific property management license if you plan to lease and manage rental properties.
• Leasing agent license : Some states require a leasing agent license for individuals who manage residential leases.

For more details on these licenses, read this helpful article .

And this list is not exhaustive. You may need to complete other paperwork as well. For instance, in addition to the licenses required for individual employees (listed above), you may also need to acquire separate licensing in your business’s name.

Finally, check out associations that can help you network and pursue continuing education and certification in property management. A few notable associations include:

• National Association of Realtors (NAR)
• National Association of Residential Property Managers (NARPM)
• Institute of Real Estate Management (IREM)
• National Apartment Association (NAA)

Insurance for property management companies

You may need (or want) to carry many different types of business insurance to protect your property management business.

All businesses should carry general liability insurance to protect them if someone gets hurt (or property gets damaged).

And the law requires businesses with employees to carry worker’s compensation insurance to cover any work-related accidents that occur on the job. But that’s only the tip of the iceberg.

You may also want to consider adding the following:

• Business personal property insurance : This covers any personal property in your office that can be moved. This includes phones, laptops, tablets, and other items traveling with you while on the job.
• Professional liability insurance (aka Errors & Omissions insurance) : This coverage protects you from being personally sued for mistakes or oversights.
• Cyber liability insurance : Property management firms are ripe for cyber-attack by hackers. After all, they store confidential client and tenant data. This insurance helps your business financially recover from digital attacks.
• Automobile insurance : Company vehicles will need to be covered by auto insurance.

Protecting your business by investing in the strongest coverage you can reasonably afford is wise.

Knowing all of the legal and logistical considerations of starting a property management business will create a strong foundation for your company’s successful future.

Property management is a financially complex business.

As with any business, you’ll need to track your revenue. But there’s so much more to think about.

You’ve got to track the billing expenses and rent payments for each tenant in each property you manage, building expenses, and client revenue. But, before you can get there, you’ve got to start at the beginning –  with your start-up costs .

Start-up Costs

Your start-up costs are the one-time expenses you’ll need to pay to get your business operating.

Each business is unique. But many property management companies share similar start-up costs.

Start-up expenses and costs for a property business may include the following:

• brand identity design (logo, business cards, and website)
• license and/or permit fees
• business and vehicle insurance
• deposits and rent for your physical offices
• basic infrastructural costs like landline phone service , wireless phone service, internet service, scheduling, invoicing, property management software , etc.
• marketing and advertising costs (physical signage, digital marketing)
• initial legal services
• maintenance equipment (tools, vehicles, etc.)

Once you’ve outlined your start-up costs, it’s time to consider what your recurring expenses will be.

Recurring costs for a property management business may include:

• office rent
• utilities (phone, internet, electricity, etc.)
• employee wages
• software subscription costs (property management/bookkeeping and maintenance ticketing)
• license and permit renewals
• accounting and legal services
• vehicle maintenance and repair
• annual taxes

Research ahead and run smart calculations to determine  the cost of starting  and running your business. This will allow you to plan for additional financing assistance (if needed) and consider  pricing.

Once you know how much it will cost to start, you’ll want to assess your finances and compare the two.

Assess your existing finances

Assessing your existing finances is crucial.

When starting a property management company, you’ve got to know exactly how much money you have to invest into the project.

Setting up offices, acquiring maintenance tools, paying employee salaries, and making insurance payments all cost money. You have to know if you have enough.

And you may discover that you need help with your business financing. If you do, there are many business financing options for small businesses .

You’ll have difficulty building a sustainable, profitable business if you don’t understand the numbers. Most of your strategic decisions will be impacted by your cash flow.

To help you project your cash flow, you’ll need to outline your prices.

Set your prices

Your pricing strategy is a key factor in the success of every property management business, and it isn’t simple.

There are several factors to keep in mind when setting your prices.

The hard numbers

To create a competitive pricing structure, you must start by knowing how much it costs to run your property management business (your recurring operating costs). While there may always be unexpected expenses, the recurring costs you know should all be considered.

But your operating costs are only a starting point.

Your time has value, and you need to make a living wage.

And it’s essential to bake some profit into your prices as well. Otherwise, it will be challenging to sustain your trucking business over time.

So, make sure your prices are high enough to cover the cost of doing business and deliver some profit.

Your competition

Your potential clients are most likely doing research – and that research includes your competitors, too.

Consciously or not, people gather data about what services like yours should cost and what they’re willing to pay. That means you must also be aware of what your competitors are charging.

You might feel your services are worth more or charge new clients less than your competitors. And that’s okay.

But, if you’re unaware of what your competitors charge and their ongoing management fees or lease renewal fees, you may miss the mark completely – either costing you profit if you charge too little or business if you charge too much.

Perceived value

Perceived value is the amount a client thinks a property management service is worth.

And your competitor’s prices are a part of that perception – but not the whole picture.

The services you offer and the perceived quality of those services play a big role. Clients care about the tangible results your property management company delivers for them and the tenants in their buildings. The more they stand to gain, the higher your perceived value.

And your branding influences how your property management services are perceived. A professional logo and high-end brand positioning will have a higher perceived value than a cheap logo and discount branding. Clients, especially new clients, may be willing to pay more if they trust your brand.

So, when creating your pricing strategy, remember to consider your brand, how you present your services, and your competitors’ pricing.

Building a successful property management business is hard unless you take branding seriously.

Branding provides a reassuring level of professionalism that new property management companies sometimes struggle to establish. So, don’t think you can afford to leave your brand identity to chance.

Clients trust property management companies with hundreds of thousands (sometimes millions) of dollars in real estate. A weak brand identity will undermine clients’ trust and make them reluctant to hire you.

So, before you reach out to your first prospective client, ask yourself these critical questions as you develop your brand strategy :

• What identity/personality do I want my property management brand to project?
• Who will want or need my services?
• What can my clients get from my company that they can’t get from other property management companies?
• What is the most important part of my clients’ experience?
• What is the most important part of my tenants’ experience?
• What values guide the way that I do business?

Your answers to these questions (and others like them) will build your brand’s core.

All of your future branding decisions should expand on these ideas. For example, your company name, logo, and website design should grow from the concepts you laid out here.

So, take the time to think – really think – about your brand from the start.

Real estate is a competitive industry. And it’s the property management companies with clear, authentic brands that survive and thrive.

Important branding elements for a property management company include:

• A unique and distinctive  company logo that can be recognized easily from a distance (so potential clients can recognize your brand from your local signage)
• Custom signage that includes your brand name, logo, and contact info to place on the properties you manage so interested parties can easily reach you
• A custom email address and web domain that matches your business name (because people think less of businesses that use Gmail or Yahoo email addresses)
• A professional-looking website that provides possible clients with all of the information they need to decide if your property management company is the right fit for their needs
• Business cards that can be passed to potential clients and tenants for ease of communication

And if you’ve already started your property management company, but are struggling to grow it, maybe it’s time to consider a rebrand . It’s possible that your existing branding is holding you back more than you realize.

The cost of brand design

Before you decide that you should put off building a strong brand identity because your budget is tight, rethink that plan.

You don’t have to spend thousands of dollars building a strong brand identity.

Here are a few pricing guides that can help you identify the sweet spot for pricing:

• How much should a logo design cost?
• How much do business cards cost?
• How much does website design cost?

The above guides describe free, cheap, affordable, and expensive options. So, regardless of your budget, you’ll find a price point that fits.

Get property management software to manage your business

Property management (commercial or residential) requires you to keep track of a million important details.

Which tenants’ leases are ending soon? When does the elevator inspection certificate expire for Tenant XYZ’s suite? Which tenants pay for their HVAC repairs?

From regular building maintenance to upgrades and renovations to tenant billing and lease details, you need a single source of truth to keep it all straight.

A good property management software will store the unique data from each tenant’s lease contract, automate processes like tenant billing and rent collection reminders, run financial reports, and more.

But, property management software is not one-size-fits-all.

You’ll want to choose software that is designed specifically for your niche. Two options to consider are software from SparkRental and Yardi , an industry leader in commercial real estate software.

Take the time to research several options to find the right property management software for your business. You’ll be living with it and relying on it every single day.

Finding the right help will be key to building a strong property management business.

As you gain clients, you’ll need to hire employees to take tasks off of your plate so that you can focus on managing and growing your business.

But employees must be paid. So, first, you should only hire for positions that will provide the most immediate benefit to your business.

In a property management company, consider the following types of part-time or full-time employees:

• Additional property managers
• Admins or receptionists (or answering service)
• Dedicated maintenance staff or curated contractors and service providers
• Sales representatives and marketing specialists
• Maintenance managers
• Payroll and accounts payable help
• Leasing agents
• Showing coordinators
• Move-in and move-out coordinators
• Field managers
• Service coordinators

After that, consider what aspects of the business pose the most significant challenges.

Does it make sense to hire maintenance professionals rather than relying on outside contractors? What about hiring brokers to show and lease vacant units?

You’ll know what your business needs as it evolves.

Building a robust and well-rounded team will create a stable foundation for your business. You’ll sleep better knowing you’ve got a team you can rely on in the trenches.

The legal stuff

Of course, hiring employees for your commercial or residential property management company means you’ll have to deal with all sorts of legalities and paperwork. This isn’t an area where you should “wing it.”

You should :

Get an Employer Identification Number (EIN) by applying on the IRS website (you’ll get your number immediately after applying!). You’ll need an EIN for many things, including to open a business bank account for your trucking company. Register with your state’s labor department. Fill out paperwork to withhold federal taxes from your employee’s wages. Set up workers’ compensation insurance if it is required in your state.

You’ll also need to decide whether you hire full- or part-time employees. Part-time employees cost less and require less paperwork to get set up. So you may want to start with part-timers. Then, as the business grows and you can afford it, you can expand their hours.

A website is active online, promoting your business 24/7—even when you’re on site doing building inspections or showing vacant units.

So, put this vital business tool to work for your property management business.

Start by ensuring that your website design truly embodies your brand. Visitors should understand who you are and what your company is about when they arrive.

Do you specialize in full-service commercial property management?

Maybe your property management company provides white-glove service for the tenants in your residential properties.

Communicate important brand differentiators (things that set your property management company apart from your competition) like these on your website.

And your website’s visual design and marketing copy should also protect your business’s personality and identity.

Here are some suggestions:

• Use your brand’s colors .
• Prominently feature your company logo.
• Write marketing copy with your target audience (best clients and tenants).

Your business website is an excellent venue for showing off your success stories. It helps people get to know your property management brand, increasing the likelihood that they’ll hire you (now or in the future).

Consider sharing testimonials from past satisfied clients and tenants.

Finally, a strong website design will lend credibility and legitimacy to your business.

And don’t worry that you have a brand new website and business. You can overcome that obstacle too. Mandi Ellefson, CEO of The Hands-Off CEO, told us that:

I could take a brand-new company and spin up a website and a logo and make it look like they’ve been around for 10 years.

Perception is everything.

To learn more about excellent website design, check out Grow Your Small Business With These 7 Website Design Best Practices and 11 Biggest Web Design Trends for 2022 .

Marketing is essential , especially for new businesses. You need to find a way to get in front of potential clients.

Whether you’re managing vacation rentals, commercial buildings, or residential buildings, it’s your job to figure out how to let potential clients know you exist.

So, build a game plan for selling yourself and your property management services.

Your marketing efforts will mean the difference between success and failure. So, opt for tactics you can implement daily without taking too much time from your core business – property management.

Here are three tips to get you started:

Take time to develop and rehearse an “elevator pitch” (explaining exactly what your company does, what it does best, and why it’s the best choice) until you can deliver it comfortably and confidently to anyone, anywhere. This 20-30 second explanation of what you do should be interesting and descriptive. After all, you’re the expert in property management – not your potential client. Check out MindTools’ guide to Crafting an Elevator Pitch .

Practice overcoming objections. No matter how excellent your services are, clients and potential clients will always have reservations – after all, their money is on the line. For example, how do you answer questions about your maintenance track record or vendor contract negotiation skills? So, brainstorm as many possible objections as you can think of.  Then practice putting those concerns to rest.

Develop and execute a list of day-to-day tactics that will keep your sales/marketing efforts moving forward. If you’re not selling your services, then it’s likely that no one is. So, make sure to make marketing a part of your daily tasks.

Here are a few ideas…

• Use your buildings as passive marketing ambassadors. For example, place signage with your business name, logo, web address, and contact info at every property.
• Build a mailing list and stay in touch with your clients and prospective clients. This will keep your business top of mind, so you’re more likely to get a call when your services are needed.
• Build strong relationships with clients (and tenants!). Then ask them to refer you to their friends and colleagues. Word-of-mouth is the most powerful form of marketing there is.
• Keep business cards with you always and hand them out whenever you see an appropriate opportunity. (Be sure to share business cards with any potential clients and tenants. You never know who may connect you to your next client or tenant.)

However, you approach it, plan to seek new business proactively – and then stick with it.

Before you go...

For the brave men and women who dare, starting a property management company may be the most rewarding, life-changing decision ever.

Will you join them and start a property management company of your own?

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A Conversation with Two Experts in Property Management Business Plans

by Marie Liamzon-Tepman | Aug 20, 2020 | Hints and Tips , Interview , Property Management Business Tips , Property Management Growth , Property Management Industry , Property Management Marketing , Running a Property Management Company , Starting a Property Management Company , The Property Management Show Podcast

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What Property Management Business Plan is Best?

Property management business plans and systems are more important than ever, whether you’re trying to grow your company or simply manage the new normal of this pandemic. But which one is best for your business?

On today’s Property Management Show podcast, we’re talking to Deb Newell and Andy Moore about their expertise in both property management and coaching/consulting. We’re discussing property management business plans and systems and how to choose a path to better operations within your own company.

Introducing Deb and Andy

Deb Newell owns a property management company and has also grown her own consulting business. Real-Time Consulting Services is based in St. Paul, Minnesota. She helps her property management clients focus on three core principles established for businesses: People, Process, and Technology. The mission of Deb’s company is to help businesses see the deficits they have and to find ways to fix some of the gaps and miscommunications. Basically, she dives in as a company’s temporary COO to look at the operations and make them more efficient. She works with companies that are just starting out and have been in business for many years.

Andy Moore owns Gulf Coast Property Management in Sarasota, Florida. As a property management business owner, he realized where the operational challenges were coming from in his own company and in the industry, so he became involved in business consulting. Now he works part time with property management companies to reorganize and focus.

Often, Andy has seen professionals in the property management world start off as technicians. Maybe they were property managers or real estate agents or maybe they worked in maintenance, and then they came into the management or ownership of a company without any real idea for how to run the business. In these scenarios, business plans and systems can give people a better idea of how to properly run a business and guide them through key concepts like hiring, firing, and managing. It helps entrepreneurs set expectations and deliver a quality service.

Note: Andy Moore is no longer an EOS Implementer® as of July 6, 2020. For information about the Entrepreneurial Operating System (EOS) or to find an official EOS Implementer®, please visit www.eosworldwide.com .

Six Sigma and Other Management Frameworks

Deb’s approach in consulting is taking elements from various management frameworks like Six Sigma to help her clients. Her focus is on the lean management side and the idea of eliminating the defects within a business.

Her process is to go through the core principles and evaluate the business in such a way that the company can focus on the customer. By understanding how everything really works, looking at processes and how they flow, concentrating on the value of the business, and removing any blocks or defects, the company is brought to a better result.

An important part of the work is also getting buy-in from the team throughout the process. Every effort has to be systematic where a roadmap is presented. You might think one employee is an issue to your company’s success, but you have to dig deeper. Maybe that employee is struggling because of a lack of training or the absence of clear expectations. There’s always a root cause, and to execute any plan in the right manner, those root causes have to be identified and solved efficiently.

Different Management Systems Fit Different Companies

You cannot completely copy one successful model that you see elsewhere. It might not work for you.

Andy says he runs into the same challenge. He has to make an effort not to impose his management style and the way he is structured on the others that he coaches. Every business is nuanced, and the dynamics from company to company always change.

He has learned to put up guardrails to guide other property management entrepreneurs rather than simply telling a them how he himself would solve a problem in his own business.

There is always a temptation to copy what successful property management companies do. But, if you’re in a different market and you don’t understand why the company you want to copy is doing what they’re doing, you may be missing some key insights.

There’s always a new shiny concept or idea that promises to change everything. There are visionaries in the field, but not everyone is going to be able to implement those visions. Find the change agent in your company to drive what you want. If there’s not a person ready to do that, think about how to develop someone who can lead the path towards the larger goals.

How to Choose a Management Framework for Your Property Management Company

There are two things to keep in mind when choosing a management framework for your company:

• Are you big enough in terms of staff, revenue, or doors managed?
• Does your company operate using a portfolio structure rather than a departmental structure?

In Andy’s personal experience, there are systems that tend to not work for a portfolio-based company where one property manager is performing all of the tasks associated with a property. In a portfolio-based company, the doors tend to slam shut when it comes to accountability and communication, which can render some systems ineffective. Meanwhile, being too small of a company could mean you don’t have enough resources and staff to create necessary boundaries critical to the system you are trying to implement.

Simply deciding to adopt a new process, a new plan, or a new system is not going to magically fix your company either. Some property management businesses have larger problems that need to be solved first before turning to any system. Hiring a consultant or implementing a management system will not erase some of the root problems or the lack of foundation that may be holding you back. It’s not a light switch. Management systems require work – hard work – and they also require a commitment. You’ll be working within their framework for years and once you reach your initial goals, it will be time to set new goals, and that will require additional change management.

Problems take time to solve. As a property manager, you likely have new clients calling when they need a tenant evicted. They’re in emergency mode and they just want to hand off their problem and let it be your problem. But, with change management, you have to be invested yourself, and you have to be committed to the process.

For more about standardized systems in property management , check out our two-part series with Dave Gorham.

Portfolio vs Departmental Property Management Systems

The difference in department-based management companies and portfolio-based companies is often regional. And, companies shift. They go back and forth between the two models depending on where they are and where they’re going.

The best system and structure depends on your company.

It depends on how you manage owners and how accountability is measured and respected in your team. If you’re going to move from a portfolio based system to a departmental system, it’s going to involve more than shuffling around boxes on your organizational chart.

While a departmental system may make sense, most owners you work with will prefer to talk to one person. They don’t want to call five different people to get a report on their property.

At Andy’s property management company, things have evolved from portfolio to departmental to a hybrid where he has realized the value of an account manager who serves as that one contact person that owners can go to. They’re in charge of the portfolio, but they’re supported by different departments within the company.

You can only get to a structure like that with experience and systems.

If you own a property management company, you’re probably managing more than properties. You’re managing people. It’s easy to forget that you have to manage people as well as real estate. There’s an owner and a tenant and employees. When you establish a property management company, your job is to manage many people. Not everyone is equipped to do that.

You can get yourself familiar with structuring your organization with our 3-part series on workflows .

Blind Spots When Managing Your Company

The lack of any operational systems will always be a blind spot. There’s training and strategic planning – all blind spots.

Those blind spots impact reputation. It’s hard enough to maintain a positive reputation in property management. This is a difficult profession to be in – property managers are required to be experts in several different things in order to successfully and effectively manage a rental property. There’s little recognition.

A number of tools are now available in the industry that can help companies avoid and manage those blind spots.

But, those tools aren’t free. Property managers aren’t charging enough for the work that they do. This is true. It’s also true that owners think property managers charge too much money.

Deb uses a babysitting analogy. The two most important and valuable assets people have are real estate and their children. Why are the services associated with real estate and children so devalued? No one wants to pay property managers more than $100 a month and no one wants to pay babysitters more than $10 an hour. It doesn’t make sense.

With companies and individuals entering the property management marketplace and offering to do the work for almost nothing, it further devalues the work that real professionals are doing. But, it doesn’t take long for those low-cost management structures to crumble.

Pandemic Property Management: How to Survive

The world has changed, and property management companies have been required to change, too. No one saw this pandemic coming. But, it’s easy to see which companies were prepared to pivot in a way that they had to and which companies are still scrambling to make it work.

Andy says his company hasn’t missed a beat because remote workers, Key Performance Indicators (KPIs), and clear expectations have always been in place. Policies and procedures are not sexy. They’re not fun. But they’re important, especially when it comes to managing staff and properties through this pandemic.

You may have staff members who are working from home, and you’ll have to be flexible. They may be homeschooling their children. They may be balancing work and home, and parenting with spouses or partners who are also working remotely.

Companies will survive if plans are in place. Companies that were struggling with organization and systems before the pandemic are going to find themselves in trouble.

Good things can come out of this, and if you’re interested in talking to Andy or Deb about their coaching and consulting businesses or you want to learn more about how our structured marketing plans can help your business, contact us at Fourandhalf.

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How To Develop A Property Management Business Plan

Get tips on how to use Hostfully to optimize your vacation rental business and make more profit.

What’s in this article?

You’ve already decided to start a property management business . The first thing you’ll need to do is put together a comprehensive property management business plan. Having everything written out will help you run a very focused business. Your property management business plan should contain a detailed proposal in which you address all of the following:

• Setting up your company
• Choosing a business model
• Setting up short-term goals
• Learning local laws and getting certified
• Setting up an organizational structure with potential employees
• Defining base services to clients/owners/tenants/guests
• Defining perks and extra services to clients/owners/tenants/guests
• Setting up a fee structure
• Maintaining properties
• Getting the properties – locations, size, target rent, target tenants
• Marketing to tenants and guests
• Maintaining clients/owners/tenants/guests
• Setting long-term goals

Property management can be a lucrative way to get involved in real estate and become your own boss . Let’s say you enjoy the nuts and bolts of managing properties, from getting the yard work done to communicating with guests.  If this is true, starting your own property management business could be the start of something great.

Property management businesses are always in demand. This is because property owners frequently want to rid themselves of the burden of taking care of a property or two. Especially if those are in another town or state.

So first, you’ll need a plan.

Property management business plan: Before you start

Before starting any business, you should put together a business plan . A property management business plan is specific to your business, market, and ideal customers. Different states have different requirements for property managers, so be sure to check up on yours. And, your property management business plan should reflect those differences.

In your property management business plan, you must indicate who are your clients going to be and how you will get them . Choose a business model and think about your short-term goals, then outline them. According to Moneycrashers , the easy part will be getting set up as an LLC, which you can do online, by yourself, without an attorney. You will then need to set up your office – whether at home or elsewhere – with all the necessary office materials.

Learning your laws and updating your resume

In some states, such as Texas, New York, and Colorado, you must be a licensed real estate broker before you can manage properties. If you are already a licensed broker, or agent working towards becoming a real estate broker, then you should mention this in your property management business plan.

Denise (Deni) Supplee, a property management specialist and the Operations Director of SparkRental , emphasizes the importance of knowing your laws . “Not just the state landlord-tenant laws,” she adds, “but also contact your local housing and zoning offices to be sure that there are no registration or inspections required.” Supplee recommends getting very familiar with the Fair Housing Law .

Your education and certification levels should be reflected in the plan. If your state requires you to be a real estate broker or to work with one, you will need to detail when and how you will get your license. Also detail how you will take your continuing education credits. Your state may only require that you register or get a license as a property manager. If so, make sure you understand which classes you’ll need to take in order to obtain that license or certification. Be aware of the deadlines, as well.

You may plan on going at it alone for a while. But as you expand you’ll need employees. So, start thinking about an organizational structur e right now. Will you have a portfolio or departmental structure? Think about it, and add it to your plan.

Issues your plan needs to address

Your business plan will need to reflect your entire business . From who your clients are, though how you’ll get them, to how you’ll keep them, and everything you need to do for each of those. You should also define your base services vs. that little bit of extra you can offer.

Clients: who are they and how to find them

Your clients are the people who own properties you will be taking care of. Joining real estate networking groups, Facebook groups for rental advertising and other business networks will benefit you either directly or through word of mouth. Just be wonderfully social and friendly .

Also, many people are now renting their properties out to short-term vacationers. Add a section to your property management business plan about vacation or Airbnb properties. Take beautiful pictures and draft well-written narratives about the unit you’re managing. Offer perks like welcome gifts or baskets, and local recommendations about your city and neighbourhood. Everyone will appreciate it.

Keep in mind that the guest experience is constantly changing . Make it your mission to know what people want and need right now. Be the person who always offers a little extra.

Dedicate space in your property management business plan to the tenants and guests . They are the ones who will be living in the property you manage. Think about how to find them, should you post online ads, rely on word of mouth, or put effort into beautifully written vacation listings. It depends on the property you’re managing and the type of guest you want to attract.

Also consider how you will vet them . Supplee suggests the vetting process needs to be rigorous . “Screen those prospective tenants so thoroughly you know what they eat for breakfast. It goes beyond just doing a credit check. Conduct criminal background and eviction histories on all those over 18. Never go by a hunch or a feeling .”

Common property management business plan sections

We already mentioned you’ll need a section on your continued education and how to get it, and a section on who your clients are and how to get them.

The key to creating the property management business plan is to treat the plan as if every one of your potential clients was going to read it . Make sure to put as much information into your property management business plan, in an organized fashion so that you can refer to it later and look things up as needed.

Make sure you clearly define the base services from extra services. The base services are:

• Evaluating properties
• Marketing properties
• Screening tenants
• Collecting rent
• Regular inspections
• Repair and maintenance

All pretty straightforward, right? It’s how you do some of these things that make people see you’re giving them a little extra. Think of a unique way to offer these services, and market those as extras. Creativity pays off.

According to Jeff Miller, the co-founder of AE Home Group , when it comes to property management, “systems take the longest to build.” He adds that beginners should “use an off-the-shelf system like Hostfully to get a head start in the process. As you learn your specific business’ needs, iterate and improve from there.”

Maintenance of the property is something that you should elaborate on in detail. Teris Pantazes, CEO and Founder of EFynch.com, says you should have a clockwork-like system for maintenance. “For your own operations, make sure to have failsafe reminders in place to NEVER forget deadlines. And this includes accounting or annual maintenance that needs to be taken care of.”

He suggests you add secondary reminders to deal with things like “county inspections, license renewals or scheduling tenant closeouts – there is never an excuse for missing these .”

And speaking of repairs and maintenance, there will always be unexpected repairs. While Pantazes advises to “have a good method of getting bids for projects on the home. This would include a plan for both planned and unplanned repairs,” Supplee urges to “make the inspection report mandatory! This protects the landlord should there be damage and the tenant forgets to turn it in.”

Pantazes claims the best advice he can give for developing a business plan is to have “a feature of your service and make sure it is extraordinary . You need to have one feature that you can PUMP in addition to the nuts and bolts of the business.”

Jeff Rohde, author at JScottDigital.com says one of the most important things when developing your property management business plan is the focus on a “specific real estate asset class, and then ‘drill down’ to a specific sub-class.”

A residential example would be to decide if you’re doing for a single or multi-family homes. After that, narrow it down by price range, geographic area, and a number of units. A commercial example would be deciding on multi-tenant retail or office type of property. “After you chose that, focusing on the class of property (A, B or C), and the property size in terms of square footage.”

This is how you’d develop your niche , because, as Rohde puts it, “tenant personalities and issues, wants and needs, will be similar. Owner personalities and investment goals will be similar. And the skill set that the property manager develops will easily transfer to similar properties to manage.”

Consider your property management business plan a living document that you can use and add to as your business grows over the years.

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How to Write a Business Plan as a Landlord

Editor's Note: This post was originally published in April 2020 and has been completely revamped and updated for accuracy and comprehensiveness.

Buying investment properties and renting them out to tenants is a great way to diversify your real estate portfolio and earn passive income. If you are considering becoming a landlord, writing a rental property business plan is vital to make your investment thoughtfully and deliberately. A well-crafted business plan can help you secure financing from lenders. A business plan demonstrates that you clearly understand your business and its potential, making you more attractive to potential lenders. Let's begin! This piece will walk you through what a rental property business plan is, why you should create one, and how to put one together.

What is a rental property business plan?

Most simply, a rental property business plan is a document that describes the following:

• You and your rental business.
• What your intentions and goals are with a property.
• Your plan for executing these goals.

Your rental property business plan will outline the strategies and goals for managing your properties.

Why should you develop a rental business plan?

Here are some reasons why you should create a rental property business plan:

• Provides a clear direction: A business plan outlines the goals and objectives of the rental property business, which helps you stay focused on achieving your vision. It also provides a roadmap for decision-making and ensures all activities align with the overall strategy.
• Helps secure financing: A business plan shows that you understand your business well, making your business more appealing to lenders.
• Identifies potential risks: A business plan identifies potential risks associated with the rental property business and provides strategies to mitigate them. This helps to avoid costly mistakes and ensures that you're well-prepared for any challenges that may arise.
• Enhances property management: A business plan includes a strategy outlining how you will manage your rental properties effectively.
• Enables monitoring and evaluation: A business plan provides performance metrics that will help you to monitor and evaluate your progress. This also allows you to identify areas for improvement and adjust your strategy accordingly.

First things first — set your business plan objectives.

Before creating your business plan, consider your specific objectives for your rental business. By setting your objectives, you're providing yourself with a target to aim for. A SMART goal incorporates all of these criteria to help focus your efforts and increase the chances of achieving your goal. This is a specific, measurable, achievable, relevant, and time-bound goal commonly used in business and project management to set and achieve goals.

The acronym SMART stands for:

• S - Specific: The objective should be clear and well-defined so everyone involved understands what they need to accomplish.
• M - Measurable: The objective should be quantifiable to measure and track progress over time.
• A - Achievable: The objective should be realistic and achievable based on available resources and the timeframe.
• R - Relevant: The objective should be relevant to your business's or project's overall mission or goals.
• T - Time-bound: The objective should have a specific deadline or timeframe for completion so you can monitor progress and make adjustments as needed.

Here are some examples of SMART goals for a rental investment business:

• Own four properties by the end of the year
• Earn $5k in rental revenue per month
• Earn $150k in rental profit by the end of year 5
• Hire a team of 4 business partners and open an office in Nashville, TN, in the next five years
• Find 15 tenants by the end of next year

You may only have one key objective or multiple, but each goal should have strategies and tactics to help achieve it.

Strategies and tactics for your SMART objectives

Let's take the relatively straightforward objective — own four properties by the end of the year. Easier said than done, right? Your strategy will be your rough game plan to achieve this goal. Here are some examples of strategies you may employ:

• Study local housing markets to find undervalued neighborhoods.
• Use hard money lending groups and meetups to help secure capital.
• Specialize in and become a master of a specific housing type (single-family homes, duplexes, apartments, townhouses, etc.)

You can then drill down each strategy into specific tactics. Here's what that looks like:

Study local housing markets to find undervalued neighborhoods:

• Study Zillow and MLS listings to see locations and figures of sales.
• Physical drive-thrus of neighborhoods to see house styles, number of For Sale signs
• Attend foreclosure auctions in different Tennessee counties
• Leverage social media to identify potential properties
• Try creative methods to find undervalued properties beyond the MLS

Use hard money lending groups and meetups to secure affordable and scalable financing:

• Join online hard money communities and see which lenders offer low rates, good terms, etc.
• Go to real estate conferences and network with lenders, wholesalers, etc.

Specialize in and become a master of a specific housing type:

Focus on 3br/2b single-family homes between 1500-2500 sq feet

How to write a rental property business plan

Now that you've thought about precisely why and how you will structure your business and execute your investment, it's time to write it! A rental property business plan should have the following components: The business plan typically includes the following elements:

• Executive Summary
• Business Description
• Market Analysis
• Marketing and Advertising
• Tenant Screening

Property Management

• Financial Projections

Risk Management

• Exit Strategy

Let's go through each of them separately.

Executive summary

The executive summary of a rental property business plan provides an overview of the key points of the plan, highlighting the most critical aspects. Here's an example of an executive summary:

[Your Business Name] is a real estate investment firm focused on acquiring and managing rental properties in [location]. The business aims to provide tenants high-quality rental properties while generating a steady income stream for investors. The rental property portfolio comprises [number] properties, including [type of properties]. These properties are located in [location], a growing market with a high demand for rental properties. The market analysis shows that rental rates in the area are stable, and the demand for rental properties is expected to increase in the coming years. The business's marketing and advertising strategies include online advertising, signage, and word-of-mouth referrals. The tenant screening process is thorough and includes income verification, credit checks, and rental history verification. The property management structure is designed to provide tenants with excellent service and to maintain the properties in excellent condition. The business works with a team of experienced property managers, maintenance staff, and contractors to ensure that the properties are well-maintained and repairs are made promptly. The financial projections for the rental property portfolio are promising, with projected revenue of [revenue] and net income of [net income] over the next [timeframe]. The risks associated with owning and managing rental properties are mitigated through careful screening of tenants, regular maintenance, and appropriate insurance coverage. Overall, [Your Business Name] is well-positioned to succeed in the rental property market in [location], thanks to its experienced team, careful management, and commitment to providing high-quality rental properties to tenants while generating a steady stream of income for investors.

Your executive summary is the Cliff Notes version of the complete business plan. Someone should be able to understand the full scope of the project just by reading this section. When writing your executive summary, assume it is the only part of your plan that someone reads. Aim for a half-page to full-page in length.

Business description

The business description section of a rental property business plan provides an overview of the company, including its mission, history, ownership structure, and management team. Here's an example of a company description section:

[Your Company Name] is a real estate investment company focused on acquiring and managing rental properties in [location]. The company was founded in [year] by [founder's name], who has [number] years of experience in the real estate industry.

Mission: Our mission is to provide high-quality rental properties to tenants while generating a steady income stream for our investors. We aim to be a trusted and reliable partner for tenants, investors, and stakeholders in our communities.

Ownership structure: [Your Company Name] is a privately held company with [number] of shareholders. The majority shareholder is [majority shareholder name], who holds [percentage] of the company's shares.

Management team: The management team of [Your Company Name] includes experienced professionals with a proven track record of success in the real estate industry. The team is led by [CEO/Managing Director's name], who has [number] years of experience in real estate investment and management. The other members of the management team include:

[Name and position]: [Brief description of their experience and role in the company] [Name and position]: [Brief description of their experience and role in the company]

Market analysis

Researching neighborhood trends can help you identify areas poised for long-term growth. This can enable you to make strategic investments that will appreciate over time, providing a stable source of income for years to come. The Market Analysis section of a rental property business plan for landlords should provide a comprehensive overview of the local rental market. Below are some key elements you should include in the Market Analysis section of your rental property business plan.

• Property Value: The value of a rental property is highly dependent on its location. By researching neighborhood trends, landlords can stay updated on changes in property values, both positive and negative. They can make informed decisions about whether to purchase, hold or sell their properties based on changes in the area.
• Rental Rates: Knowing the rental rates in a neighborhood can help landlords determine how much to charge for rent. Understanding how much other landlords charge for similar properties in the area can help a landlord price their property competitively and attract quality tenants.
• Tenant Preferences: Different neighborhoods appeal to different types of tenants. For example, families with children may prefer neighborhoods with good schools and parks, while young professionals may prefer areas with trendy restaurants and nightlife. By understanding neighborhood trends, landlords can cater to the preferences of their target tenants.
• Neighborhood Safety: Safety is a significant concern for tenants, and landlords can be held liable for any harm that befalls their tenants due to unsafe conditions on the property. Competitive landscape: There are several steps that landlords can take to research the competitive landscape of a rental market. These include identifying competitors, analyzing rental rates, researching amenities offered by competitors, and checking their online reviews.
• Growth potential: Consider external factors that may affect the rental market, such as population growth, job growth, or changes in zoning laws. This can help landlords identify potential growth opportunities in the market.

Marketing strategy

The marketing strategy section of your rental property business plan outlines how you will promote and advertise your rental properties to potential tenants. Below are some key elements to include in this section.

• Target Market: Identify the target market for rental properties, such as young professionals, families, or retirees. Describe their demographics, interests, and needs, and explain how the rental properties cater to these groups.
• Unique Selling Proposition: Identify the unique selling proposition of the rental properties, such as location, amenities, or affordability. Explain how these factors differentiate the properties from competitors in the market.
• Advertising Channels: Describe the advertising channels you'll use to promote the rental properties, such as online rental listings, social media, or local newspapers. Explain how you'll use these channels to reach the target market.
• Promotion Strategy: Describe the promotion strategy to attract tenants to the rental properties, such as discounts, referral bonuses, or move-in incentives. Explain how you'll communicate promotions to potential tenants and how they will be tracked and measured for effectiveness.
• Branding: Develop a branding strategy for the rental properties, including a logo, website, and promotional materials. Explain how the branding will reflect the unique selling proposition of the properties and how it will be used consistently across all marketing channels.
• Budget: Develop a marketing budget outlining each advertising channel's expected costs and promotion strategy. Explain how you'll track and adjust the budget as needed to ensure maximum return on investment.

Tenant screening

This section should outline the steps you or your property manager will take to evaluate potential tenants and ensure they fit your rental property well. This can ensure that your company has a thorough and fair process for evaluating potential tenants and selecting the best fit for their rental property. B elow are some critical components to include in this section.

• Criteria for Screening: Define the criteria you will use to evaluate potential tenants. This includes credit score, income, employment, criminal, and rental history.
• Application Process: Detail the application process that potential tenants will go through. This may include the application form, application fee, and required documentation such as pay stubs, rental history, and references.
• Background Checks: Describe the background checks you'll conduct on potential tenants. This may include a credit check, criminal background check, and reference checks with previous landlords.
• Approval Process: Outline the process for approving or denying a tenant application. This may include a review of the applicant's qualifications, background check results, and a decision based on the landlord's discretion.
• Fair Housing Compliance: Include a statement about compliance with fair housing laws. Landlords and property managers must ensure they do not discriminate against applicants based on protected classes such as race, color, religion, sex, national origin, disability, or familial status.

This section should outline the steps you or the property manager you have hired will take to manage the rental property effectively and ensure a positive experience for tenants. Below are some key components to include in the property management section of a rental property business plan.

• Maintenance and Repairs: Outline the process for addressing maintenance and repair issues. This may include a description of how tenants can report problems, the timeline for responding to requests, and the types of repairs that are the landlord's responsibility versus the tenant's responsibility.
• Rent Collection: Detail the process for collecting rent from tenants. This may include the due date for rent payments, late fees, and consequences for non-payment.
• Lease Agreement: Describe the lease agreement that tenants will sign. This may include the length of the lease, rent amount, security deposit, and rules and regulations for the property.
• Tenant Communications: Outline your approach to communicating with tenants. This may include regular newsletters or updates on property maintenance, a process for addressing tenant concerns, and emergency contact information.
• Compliance and Risk Management: Include a statement about compliance with regulations and risk management. This may include descriptions of insurance coverage, safety protocols, and any regulatory requirements the business must follow.

The financials section of your rental property business plan is crucial for demonstrating the business's financial feasibility and potential profitability of the investment. Let's take a look at what you can include.

• Income projections: Start by estimating the expected rental income from the property. This should be based on market rates for similar properties in the area, considering location, size, amenities, and condition. Consider any potential income streams beyond rent, such as laundry facilities or parking fees.
• Expense projections: Next, estimate the ongoing expenses associated with owning and managing the property, including mortgage payments, property taxes, insurance, utilities, maintenance and repairs, and property management fees, if applicable. Be sure to factor in seasonal or irregular expenses, such as snow removal or landscaping.
• Cash flow projections: Based on the income and expense projections, calculate the expected net cash flow for the property monthly and annually. This will give you a sense of how much income the property will likely generate after paying expenses.
• Financing plan: If you plan to finance the purchase of the property, outline your financing plan, including the loan amount, interest rate, and repayment terms. Be sure to calculate the impact of financing on your cash flow projections.
• Return on investment: Calculate the property's expected ROI based on the initial investment and projected cash flows over a specified time (e.g., five years). This will give you a sense of whether the investment will likely be profitable in the long term.
• Sensitivity analysis: Conduct sensitivity analysis to assess the potential impact of changes in key assumptions (e.g., vacancy rate, rental income, expenses) on your cash flow projections and ROI. This will help you identify potential risks and make informed decisions about the investment.

As a landlord, you must include a risk management section in your rental property business plan to address potential risks and establish strategies for mitigating them. Below are some key steps you can take to create a risk management section for your business plan.

• Identify potential risks: Identify risks associated with your rental property business. This may include risks related to property damage, tenant safety, liability, financial loss, and legal compliance.
• Assess the likelihood and impact of each risk: Once you have identified potential risks, assess the likelihood and potential impact of each risk on your rental property business. This will help you prioritize which risks to address first and determine the resources you must allocate to manage each risk.
• Establish risk management strategies: Develop a plan for managing each identified risk. This may include measures to prevent the risk from occurring, as well as steps to mitigate the impact of the risk if it does happen. For example, you may establish a routine property inspection program to identify and address maintenance issues before they become significant problems. You may also require tenants to carry renters' insurance to mitigate financial loss if they cause damage to the property.
• Review and update your risk management plan regularly: Risks can change over time, so it's essential to review and update your plan regularly. This will help you ensure that your strategies are still effective and that you are prepared to manage new risks as they arise.
• Seek professional advice: Consider seeking professional advice from a lawyer, insurance agent, or another expert to help you identify potential risks and develop effective risk management strategies. This can help you ensure your business is well-protected and minimize risk exposure.

By including a comprehensive risk management section in your rental property business plan, you can demonstrate to potential investors, lenders, and tenants that you are committed to running a safe and sustainable rental property business.

Exit strategy

An exit strategy is integral to any rental property business plan as it helps you plan for the future and maximize your ROI. You most likely plan on renting out your property for a long or indefinite time. If you have a shorter or more definite timeline, like renting it out for ten years and then selling it, mention it here. Should your property go vacant for a long time, or economic circumstances, cause rent prices to fall dramatically, maintaining your property may no longer be sustainable. You should have a plan, or at least a framework, to decide what to do if this happens. Otherwise, your exit strategy should be your backup plan if things don't go as planned.

Final thoughts

Creating a comprehensive rental property business plan provides you with a clear direction for your business, helps secure financing, identifies potential risks, enhances property management, and enables monitoring and evaluation of performance. A business plan is valuable for landlords who want to run a successful rental property business.

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How to Create an Intellectual Property Risk Assessment Plan

To create an intellectual property risk assessment plan, identify and map IP assets, categorizing and prioritizing them based on value, risk, and relevance to business objectives. Determine the scope and criteria of the risk assessment, pinpointing specific IP assets and business operations that require evaluation. Identify and prioritize risks, systematically reviewing IP assets to uncover potential vulnerabilities. Develop targeted mitigation strategies and implement risk management controls, such as access restrictions and encryption. Regularly update and review the risk assessment to guarantee ongoing effectiveness. By following these steps, organizations can proactively minimize IP-related risks and safeguard their competitive advantage – and a thorough plan can reveal even more opportunities for protection.

Table of Contents

Identify IP Assets and Risks

A thorough intellectual property (IP) risk assessment begins with a meticulous identification of an organization's IP assets, which can include patents, trademarks, copyrights, trade secrets, and other intangible assets that provide a competitive advantage. This process involves creating an exhaustive IP landscape that captures the organization's entire IP portfolio, including registered and unregistered rights. Asset mapping is a vital step in this process, as it helps to identify, categorize, and prioritize IP assets based on their value, risk, and relevance to the organization's business objectives.

A detailed IP asset map provides a visual representation of the organization's IP landscape, highlighting areas of strength, weakness, and potential risk. It enables organizations to identify potential vulnerabilities, such as unprotected trade secrets or underutilized patents, and prioritize resources to mitigate these risks. By conducting a thorough IP asset identification and mapping exercise, organizations can gain a deeper understanding of their IP landscape, inform their risk assessment scope, and develop targeted strategies to protect and leverage their IP assets. This foundational step sets the stage for an all-encompassing IP risk assessment that can help organizations make informed decisions and drive business growth.

Determine IP Risk Assessment Scope

To determine the scope of an IP risk assessment, it is crucial to identify the specific IP assets that require evaluation, as well as the business operations that may impact or be impacted by these assets. This involves pinpointing the intellectual property that is vital to the organization's success, such as patents, trademarks, copyrights, and trade secrets. By doing so, the assessment can focus on the areas of highest risk and prioritize resources accordingly.

Identify IP Assets

The organization's intellectual property (IP) assets, including patents, trademarks, copyrights, and trade secrets, form the foundation of its competitive advantage and require careful identification to determine the scope of the IP risk assessment. To accurately identify IP assets, it is vital to conduct an IP landscape analysis, which involves a thorough review of the organization's IP portfolio. This analysis should include an assessment of the IP assets' value, relevance, and potential risks. Asset mapping is a key step in this process, as it involves creating a visual representation of the IP assets and their relationships. This enables the organization to identify potential vulnerabilities and prioritize its IP assets based on their level of risk. By mapping the IP assets, the organization can identify areas where IP protection is necessary, such as trade secrets or confidential information . A thorough identification of IP assets is vital to determine the scope of the IP risk assessment and guarantee that all relevant assets are included in the assessment.

Assess Business Operations

Identifying IP assets is only the first step; now, it's necessary to assess business operations to determine the scope of the IP risk assessment and understand how these assets are used, stored, and transmitted across the organization.

To assess business operations, consider the following factors that may impact IP risk:

Establish IP Risk Criteria

Five essential factors must be considered when establishing IP risk criteria to guarantee a thorough and effective risk assessment. These factors include the type of IP assets, industry standards, regulatory requirements, business objectives, and risk tolerance. By considering these factors, organizations can develop exhaustive risk criteria that accurately identify and prioritize IP risks.

Criteria development involves setting Risk Thresholds that define the level of risk tolerance for each IP asset. This includes determining the probability and impact of potential risks, as well as the likelihood of occurrence. By establishing clear Risk Thresholds, organizations can focus on the most critical IP risks and allocate resources accordingly. Effective criteria development also involves identifying key performance indicators (KPIs) to measure and monitor IP risks. This enables organizations to track changes in risk levels over time and adjust their risk mitigation strategies accordingly. By establishing robust IP risk criteria, organizations can confirm a proactive and responsive approach to managing IP risks.

Identify and Prioritize IP Risks

Organizations must systematically review their IP assets to uncover potential vulnerabilities, thereby pinpointing risks that could compromise their competitive advantage or result in financial loss. This review should involve a thorough examination of the IP risk landscape, identifying potential threats to patents, trademarks, copyrights, and trade secrets. To prioritize IP risks, organizations should consider the likelihood and potential impact of each threat.

The following IP risks should be carefully evaluated:

• Infringement risks : Unauthorized use or imitation of IP assets by competitors or third parties.
• Validity risks : Challenges to the validity of IP rights, potentially rendering them unenforceable.
• Enforcement risks : Difficulty in detecting and enforcing IP rights, allowing infringement to go unchecked.
• Licensing risks : Exposure to IP risks through licensing agreements, such as inadequate indemnification or termination clauses.

Develop IP Risk Mitigation Strategies

To effectively mitigate IP risks, companies must develop and implement targeted strategies that address specific threats, leveraging a combination of legal, technical, and procedural measures to safeguard their intellectual property assets. An exhaustive risk mapping exercise can help identify vulnerabilities and prioritize mitigation efforts. This involves creating a strategy framework that categorizes IP risks into distinct groups, such as patent infringement, trade secret misappropriation, and copyright violations.

Within this framework, companies can develop tailored mitigation strategies for each risk category. For example, legal measures may include patent filings, trademark registrations, and confidentiality agreements. Technical measures may involve implementing encryption, access controls, and digital rights management systems. Procedural measures might include employee training programs, incident response plans, and regular IP audits.

Implement IP Risk Management Controls

Effective implementation of IP risk management controls involves integrating mitigation strategies into daily operations, thereby embedding a culture of intellectual property protection within the organization. This requires a structured approach to manage and monitor IP risks, ensuring that risk mitigation strategies are aligned with the organization's overall risk governance framework.

To achieve this, organizations should establish a Control Framework that outlines the policies, procedures, and controls necessary to mitigate IP risks. This framework should be integrated into daily operations, ensuring that IP risk management is a core aspect of business processes.

Key components of an effective IP risk management control framework include:

• Access controls : Implementing strict access controls to restrict access to sensitive IP information.
• Encryption : Encrypting IP data to prevent unauthorized access or theft.
• Auditing and logging : Regularly auditing and logging IP-related activities to detect potential risks.
• Training and awareness : Providing regular training and awareness programs to educate employees on IP risks and mitigation strategies.

Monitor and Review IP Risk Assessment

To maintain the ongoing effectiveness of an intellectual property risk assessment, regular monitoring and review are vital. This involves establishing IP risk audit schedules to identify potential vulnerabilities and areas for improvement. Additionally, regular IP risk updates are necessary to stay abreast of changes in the business environment, industry trends, and emerging threats.

IP Risk Audit Schedules

Regularly scheduled IP risk audits guarantee that intellectual property portfolios remain aligned with business objectives and adapt to emerging threats and opportunities. To ensure a comprehensive IP risk assessment, it is essential to establish a structured audit schedule. This schedule should be tailored to the organization's specific needs, taking into account factors such as audit frequency, scope, and resources.

When developing an IP risk audit schedule, consider the following key elements:

• Audit Frequency : Determine the optimal frequency for conducting IP risk audits, whether quarterly, bi-annually, or annually, based on the organization's risk profile and industry dynamics.
• Schedule Templates : Create standardized templates to guide the audit process, ensuring consistency and efficiency across multiple audits.
• Stakeholder Involvement : Identify key stakeholders to be involved in the audit process, including IP owners, legal teams, and business unit representatives.
• Risk Prioritization : Prioritize IP risks based on their potential impact and likelihood, focusing on high-risk areas that require immediate attention.

Regular IP Risk Updates

As intellectual property portfolios evolve and new risks emerge, ongoing monitoring and review of IP risk assessments are critical to ensuring that risk mitigation strategies remain relevant and effective. This necessitates a structured approach to regular IP risk updates, which involves periodic reviews of IP risk assessments to identify changes in the risk landscape.

To achieve this, organizations should establish a Risk Cadence, which outlines the frequency and scope of IP risk updates. This cadence should be tailored to the organization's specific needs, taking into account factors such as the pace of innovation, market dynamics, and regulatory changes. A regular IP Refresh is essential to ensure that risk mitigation strategies are aligned with the evolving IP risk profile. During the refresh process, IP risk assessments should be reviewed, and updates made to reflect changes in the risk landscape. This enables organizations to adapt their risk mitigation strategies proactively, minimizing the risk of IP infringement, misappropriation, and other IP-related risks. By integrating regular IP risk updates into their IP risk assessment plan, organizations can ensure that their IP portfolios remain protected and aligned with business objectives.

Frequently Asked Questions

How often should ip risk assessments be reviewed and updated?.

To maintain IP risk assessments' effectiveness, it is vital to establish a regular review cycle. Assessment frequency should be determined based on business needs, with recommended review cycles every 6-12 months or following significant changes to IP portfolios or market conditions.

Can IP Risk Assessments Be Used for Compliance With Regulations?

IP risk assessments can facilitate compliance with regulations by identifying potential vulnerabilities within an organization's intellectual property portfolio, thereby ensuring alignment with the prevailing regulatory landscape and integrating into a thorough compliance framework.

Are IP Risk Assessments Only for Large Corporations?

Contrary to industry misconceptions, IP risk assessments are not exclusive to large corporations; small startups can also benefit from identifying and mitigating IP-related risks to protect their innovative assets and competitive advantages.

Can IP Risk Assessments Help With Insurance Policy Decisions?

Conducting IP risk assessments can substantially inform insurance policy decisions, as they help identify potential risks and prioritize mitigation strategies, ultimately influencing premium costs and informing policy exclusions to provide thorough coverage.

Are IP Risk Assessments a One-Time or Ongoing Process?

IP risk assessments are an ongoing process, as intellectual property is inherently dynamic and subject to IP evolution, necessitating a continuous risk mindset to facilitate timely identification and mitigation of emerging threats and opportunities.

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How to Create a Risk Management Plan for Consultants

Table of contents, why is it important for consultants to have a risk management plan, what kinds of risks do consultants face, 1. risk identification, 2. risk analysis, 3. risk evaluation and ranking, 4. risk response, 5. risk monitoring, insurance for consultants.

There’s a relatively common notion that independent consultants spend a lot of their time traveling abroad and doing their work poolside (probably with a pina colada in hand). Sounds like a dream, right? It’s a dream for consultants, too, because it’s far from reality for most.

While that may not reflect the real world for many consultants, there are still plenty of perks to consultancy work. Think: flexible work hours, variety, networking, and, yes, the ability to travel. 

But being a consultant also comes with some unique risks that many other professionals don’t encounter. A consultant’s livelihood relies heavily on their client relationships, which could mean financial ruin if those relationships get jeopardized. That’s why every consultant needs to have a risk management plan in place, to successfully tackle the inevitable challenges while also making the most of opportunities for growth and innovation.

With that in mind, we’ve put together this guide with everything you need to create a risk management plan for your consultancy business.

You may be thinking, “Risk management plans are just for large corporations.”

Think again.

Every business has risks and independent consultants are no exception. Whether you provide consulting services in marketing, IT , HR, financial services, graphic design, or even risk management, there are risks that could compromise your success and reputation. That’s why it’s crucial to be proactive and use all the resources at your disposal to minimize and control the impact of potential and real threats.

Because simply ignoring business risks won’t make them go away.

Consultants are brought in as experts in their field, which means that their clients typically have high expectations for their work. What’s more, competition can be fierce for consultants. In fact, the global management consulting services market is expected to grow from $976.3 billion in 2022 to $1,184 billion in 2027 . Having an effective risk management plan goes a long way in helping consultants manage client expectations and stand out from the competition.

No matter what stage your consulting business is at, it’s essential to know the challenges you may face. While threats can vary based on your specific area of work, there are several risks that all consultants, regardless of their industry, must be ready to tackle.

Unhappy Clients: No one can please everyone all the time, and there are plenty of reasons for unhappy clients in the consultancy world. Think: missed deadlines, cost overruns, failure to meet expectations, misrepresentation, and miscommunication. Even with detailed contracts and clear communication, unhappy clients are inevitable. That’s why this risk should be top of mind for all consultants.

Data Breaches: Most consultants store client data on their computers, meaning a data breach could have devastating financial and PR consequences. Considering that the global average cost of a data breach in 2023 was $4.45 million , a 15% increase from three years prior, it’s easy to see why so many businesses don’t survive a data breach or cybercrime. This isn’t a threat any consulting business can afford to overlook. 

Unpredictable Markets and Unstable Income: If there’s one thing that’s certain in consulting work, it’s uncertainty. Most consultants are familiar with the feast or famine cycle . It’s easy to get caught up in that cycle, where all of your attention goes to a current client, followed by a period of no work — and no income . The delicate balance of paying attention to existing clients while finding new ones isn’t easy, but it is necessary. 

Scope Creep: You know when a client asks for extra work beyond what’s been agreed upon and included in the contract? That’s known as scope creep, and it can be a tricky situation for consultants to deal with. Those just starting their consulting career may be tempted to complete extra requests as a favor to a client. While you may think this is one way to keep them happy and coming back to you, it can lead to problems like missed deadlines, subpar work, and setting an expectation that is hard to maintain.

How to Start a Risk Management Plan for Consultants

Now that you know some of the risks your consulting business may encounter, what can you do about them? Having a risk management plan will help you stay on top of issues that could threaten your business — it may also help you spot opportunities for growth.  

Below are the key steps for creating a risk management plan for your consulting business:

Knowing about a risk means you can plan for it. That’s why the first step to take when preparing a risk management plan is to identify all potential threats to your consulting business. Be sure to look at all aspects of your business. Some threats are obvious, while others may take a bit of research to discover.

At this stage, you may find it worthwhile to start a risk register , where you can document information for all identified risks.

Once you’ve identified risks, you can analyze them and determine the potential quantitative and qualitative impact each could have on your business. That means figuring out the likelihood of a risk occurring versus the effect it could have.

This stage is where you ask, “How likely is it that this risk will happen, and what will it take to recover if and when it does happen?” Ranking risks is a vital step as it helps you understand how to prioritize resources to mitigate specific threats. A risk assessment matrix can help you visualize each risk’s likelihood and impact.

Once you’ve ranked the risks, the next step is determining how to respond to each one. This could involve mitigation tactics, such as limiting who has access to sensitive information or transferring the risk to a third party with insurance. For example, if you’re concerned about a data breach, you can transfer the associated risk to your insurance provider with cyber liability insurance .

There is no such thing as “one and done” with risk management. While new risks are inevitable, eliminating one risk could result in another threat popping up. A risk management plan is a living document that needs to be reviewed regularly and updated as required. You don’t want the plan to end up outdated and irrelevant when you need it. 

Want more tips on preparing a risk management plan? For a complete breakdown of how to put together an effective risk management plan, check out our detailed guide .

Risk is simply a part of doing business. You can’t have one without the other.

And risks will inevitably change over time; new concerns will emerge as your business grows or a project progresses. So, to successfully grow your consulting business, you have to keep on top of threats that could jeopardize your practice.

One of the most effective ways for consultants to manage risk is by transferring it to a third party, such as your business insurance provider. With coverage like professional liability insurance , your consulting business will be protected from allegations of errors and omissions, while cyber liability insurance will help your firm withstand a data breach.

To learn more about coverage for consultants , read our recent blog post that outlines everything about the insurance policies consultants need .

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Asana pricing in 2024: Is it worth the cost?

Teresa Bitler

Sierra Campbell

“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.

Published 7:42 a.m. UTC Aug. 29, 2024

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Project managers juggle many responsibilities. In addition to planning projects, they assign tasks, monitor team progress and meet deadlines. A cloud-based project management software like Asana can simplify workflow by putting all the details and tasks related to a project in one place.

Asana is one of the most popular project management solutions on the market, boasting 85% of Fortune 100 companies as clients. It has five plans, including a free version and options for large organizations. In this guide, we’ll explain Asana’s plans, what they cost and how they stack up, value-wise, against the competition. 

Featured project management software offers

Via Monday.com’s site

Monthly fee

$10 per user, with a minimum of three users

Free version

Yes, for two users

24/7 customer support

Yes, with paid plans

Via HubSpot’s website

Free version available

Via ClickUp’s website

$10 per user

Yes, for unlimited members

Who is Asana best for?

Asana is designed to meet the needs of any size company, from a one-person startup to a large enterprise. While its free plan is best for individuals and small teams on a budget, its paid plans allow growing companies and large organizations to accommodate more team members and projects.

Asana pricing overview

Two factors will influence the cost of Asana’s five plans: the plan you choose and the number of users. There’s a discount for paying annually instead of monthly on the standard plans.

Personal plan

Asana’s free Personal plan is designed to help individuals and project managers with teams of up to 10 manage their time and resources. While the entry-level plan can assign tasks, track time and monitor progress, it has limited features. For more features or more than 10 users, you do need to upgrade.

Starter plan

Best for expanding small businesses, the Starter plan builds on the Personal plan by allowing up to 500 users and unlimited guest access to Asana. It also adds features that the free option doesn’t have, including Gantt view, Asana AI, project dashboards and automated processes. The Starter plan costs $13.49 per month per user. 

Advanced plan

Like the Starter plan, the Advanced plan features up to 500 users and unlimited guest access to projects; however, it’s geared toward mature companies that need advanced reporting and tasks like balancing employee workloads. At $30.49 per month per user, it’s quite a bit more expensive than the Starter tier but allows companies to handle more projects. 

Enterprise plan

Asana offers two options for larger businesses and corporations: Enterprise and Enterprise+. Enterprise works best for companies that need to share tasks and project information across several departments, and it can integrate with Salesforce, Tableau and Power BI. Because Enterprise can be tailored to your business needs, pricing is only available through direct contact with the sales department.

Enterprise+ plan

Enterprise+ contains all the features of the lower tier packages — including the Enterprise plan’s ability to work across multiple departments — plus it has HIPAA compliance. Additional protections such as SIEM integration support and a custom password offer the type of security that makes Asana popular with Fortune 100 companies. 

Asana value vs. alternatives

For those on a budget, Asana’s Personal and Starter plans offer a lot of value, but its upper-tier plans rank among the most expensive out there. 

Asana and Monday both provide a free version and multiple paid tiers. However, Asana’s free option gives you up to 10 seats, while Monday.com only gives you two. Monday.com also limits you to three boards and eight columns compared to Asana’s unlimited tasks, projects and messages.

When it comes to tiered plans, Monday is the cheaper option, with plans ranging from $12 to $24 per month per user, but you get less for your money. For example, Asana’s mid-tier plans can accommodate up to 500 users, while Monday significantly limits that number. 

Trello gives Asana a run for its money when it comes to pricing and value. It offers a free plan and three paid plans, including its plan for corporations that need extra security features. Prices for Trello start at $6.00 per user per month and continue to $17.50 per user for up to 50 users. Although Asana throws in a few extra features at each level, it may not be worth the extra cost for smaller businesses that have fewer projects. 

Like Asana, Notion has a free base plan plus several tiers that make it adaptable to any size business. It’s also the cheaper of the two, with priced plans from $12 per seat per month for Plus to $18 for Business.

That said, Asana offers you more value at every level. Its free plan includes a long list of features, while Notion’s plan gives you basic collaborative capabilities. At the next level, Asana adds AI capabilities and unlimited guests; Notion doesn’t include AI and limits guests to 100.

Bottom line: Is Asana worth it?

Although more expensive, Asana generally offers more features than other project management solutions at every tier. This includes its free plan, which comes with unlimited tasks, unlimited projects, unlimited messages and more. At higher tiers, you’ll need to weigh whether you need the extra features Asana provides for the additional cost. 

Frequently asked questions (FAQs)

The cost of an Asana plan for your business will depend on two components: the plan itself and the number of users. On the Personal plan, up to 10 people can use Asana’s basic work management tools for free.

The Starter and Advanced plans both allow for up to 500 seats and cost $13.49 or $30.49, respectively, per month per user. Because Enterprise and Enterprise+ plans are designed for larger businesses, the cost for each of these plans varies depending on their needs and you will need to contact the company directly for a quote.

Asana’s Personal plan provides the basics for free for individuals or small teams of up to 10 members. With the plan, users get a lot of solid features like unlimited tasks, time tracking and over 100 free integrations, but they miss out on what makes Asana such a powerful tool, like the project dashboards and Gantt view that come with Starter, the next tier up.

You also need to upgrade to Starter to take advantage of any of Asana AI’s capabilities.

Asana Personal is the free, basic plan intended for individual use and for small teams of up to 10, while the Advanced plan can handle teams of up to 500 and offers features like Asana AI, project dashboards and tools to help align your company’s goals. For the Advanced plan’s additional features, you’ll pay $30.49 per month per user. The Starter plan bridges these two plans, delivering some of the Advanced perks for considerably less — $13.49 per month per user.

Asana helps teams efficiently collaborate on projects by allowing project managers to assign tasks, monitor progress and keep everyone on track. At each plan level up, Asana provides more tools to help automate project management. Its AI feature, which is available beginning with the Starter plan, can even make suggestions and identify roadblocks. 

The cloud-based work management platform’s goal is to save project managers time and keep teams working toward and meeting company goals.

Although Asana is a powerful project management tool, it has two main disadvantages: its cost and learning curve. First, if you need features that Asana’s free plan doesn’t offer, the cost of the paid plans can add up quickly. Just 10 users on the Starter plan costs $134.90 per month.

Second, the learning curve can be significant, especially with the extra features of upper-tier plans. Asana does provide help getting started through videos, courses and live training.

Asana only offers a HIPAA-compliant option with Enterprise+, and subscribers have to pay extra for it as part of the plan’s customized pricing. Once HIPAA is enabled, it will protect health-related information from being disclosed with consent, but it may affect certain features, including AI, notifications and login experiences. 

All integrations should remain in place, though, and goals will not be changed unless they contain personal health information.

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy . The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.

Teresa Bitler has over 10 years of experience writing about personal finance and real estate as well as consumer and business product reviews. Her work has appeared at CreditCards, The Penny Hoarder, Yahoo, MSN, HuffPost, U.S. News & World Report, Moving, and Personal Real Estate Investor.

Sierra Campbell is a small business editor for USA Today Blueprint. She specializes in writing, editing and fact-checking content centered around helping businesses. She has worked as a digital content and show producer for several local TV stations, an editor for U.S. News & World Report and a freelance writer and editor for many companies. Sierra prides herself in delivering accurate and up-to-date information to readers. Her expertise includes credit card processing companies, e-commerce platforms, payroll software, accounting software and virtual private networks (VPNs). She also owns Editing by Sierra, where she offers editing services to writers of all backgrounds, including self-published and traditionally published authors.

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Garden centre operator Dobbies digs up plan for rent cuts

Dobbies, which is owned by the US investor Ares Management, is working with FTI Partners on proposals which will pave the way for store closures and rent reductions, Sky News learns.

City editor @MarkKleinmanSky

Thursday 29 August 2024 12:41, UK

One of Britain's biggest garden centre operators is plotting a far-reaching financial overhaul which could pave the way for store closures and steep rent cuts.

Sky News has learnt that Dobbies Garden Centres, which is controlled by the major American investor Ares Management, is working with advisers on a restructuring plan - a contentious mechanism which enables its sponsor to impose financial haircuts on its creditors.

City sources said FTI Consulting had been drafted in to work on the restructuring.

A formal court process such as a restructuring plan is typically used by retailers as a way to close underperforming stores and impose rent haircuts on landlords.

It was unclear on Thursday how many of its 77 sites Dobbies planned to close or the potential impact on its 3,700-strong workforce.

If the proposals are not approved by creditors, an insolvency process of some kind is likely.

Keep up with all the latest news from the UK and around the world by following Sky News

The preparation of a restructuring plan comes 18 months after Ares took control through a separate reorganisation of its debt.

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Dobbies had previously been owned by Midlothian Capital Partners, a private equity investor.

Prior to that, it spent almost a decade under the ownership of Tesco, Britain's biggest retailer.

The company was founded by James Dobbie in 1865.

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Dobbies did not respond to a request for comment, while Ares has been contacted for comment and FTI declined to comment.

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What We Know About Kamala Harris’s $5 Trillion Tax Plan So Far

The vice president supports the tax increases proposed by the Biden White House, according to her campaign.

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By Andrew Duehren

Reporting from Washington

In a campaign otherwise light on policy specifics, Vice President Kamala Harris this week quietly rolled out her most detailed, far-ranging proposal yet: nearly $5 trillion in tax increases over a decade.

That’s how much more revenue the federal government would raise if it adopted a number of tax increases that President Biden proposed in the spring . Ms. Harris’s campaign said this week that she supported those tax hikes, which were thoroughly laid out in the most recent federal budget plan prepared by the Biden administration.

No one making less than $400,000 a year would see their taxes go up under the plan. Instead, Ms. Harris is seeking to significantly raise taxes on the wealthiest Americans and large corporations. Congress has previously rejected many of these tax ideas, even when Democrats controlled both chambers.

While tax policy is right now a subplot in a turbulent presidential campaign, it will be a primary policy issue in Washington next year. The next president will have to work with Congress to address the tax cuts Donald J. Trump signed into law in 2017. Many of those tax cuts expire after 2025, meaning millions of Americans will see their taxes go up if lawmakers don’t reach a deal next year.

Here’s an overview of what we now know — and still don’t know — about the Democratic nominee’s views on taxes.

Higher taxes on corporations

The most recent White House budget includes several proposals that would raise taxes on large corporations . Chief among them is raising the corporate tax rate to 28 percent from 21 percent, a step that the Treasury Department estimated could bring in $1.3 trillion in revenue over the next 10 years.

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Red Lobster taps former P.F. Chang's head as CEO in bankruptcy exit plan

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Nippon Steel, peers urge Tokyo to curb steel imports from China, executive says

Nippon Steel and other Japanese steelmakers are urging Tokyo to consider curbing cheap steel imports coming from China, the world's biggest steel producer, to protect the local market, Vice Chairman Takahiro Mori said in an interview.

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• Area: 43 m²
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Hello, we are the owners, Irina and Oleg. We sell a bright, comfortable and very beautiful flat, designed in a Scandinavian style. The flat created "for himself", but forced to sell due to moving to Moscow. ( We bought and renovated this flat for us but we have time sell it due to ...) The flat is located in a picturesque location near the Uktus mountains. The residential complex Stony Brook. In the flat: - All necessary equipment. (Dishwasher, washing machine, oven, refrigerator, range hood, stove, TV, microwave, coffee machine) - 2 wardrobes - Ennobled balcony where you can enjoy beautiful views of the forest and mountains, and dream about the most valuable. - Cable TV, wireless internet. - Increased size of window openings make the flat extremely bright. - All items and accessories are in the flat. In building: - High-speed elevator otis, which descends directly into the underground parking. - Concierge. - Courtyard complex located on the podium, which is located at 3 floors. House territory developed according to modern requirements - as a sport, and a playground with a safe finish. - On the first floor there is a trading gallery with a large grocery store, pharmacy, children's and sports goods, cafés and restaurants. The complex has a fitness club. Area: - In walking distance from the complex there is a shopping center "Globus" Waterpark "Limpopo", sports complex, "Planet IGRIK" (children's entertainment center), ICE (fitness center), the ski slopes and ski resorts, subway Botanica. - 8 km to the center. - 100 m bus stop

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YEKATERINBURG: FACTORIES, URAL SIGHTS, YELTSIN AND THE WHERE NICHOLAS II WAS KILLED

Sverdlovsk oblast.

Sverdlovsk Oblast is the largest region in the Urals; it lies in the foothills of mountains and contains a monument indicating the border between Europe and Asia. The region covers 194,800 square kilometers (75,200 square miles), is home to about 4.3 million people and has a population density of 22 people per square kilometer. About 83 percent of the population live in urban areas. Yekaterinburg is the capital and largest city, with 1.5 million people. For Russians, the Ural Mountains are closely associated with Pavel Bazhov's tales and known for folk crafts such as Kasli iron sculpture, Tagil painting, and copper embossing. Yekaterinburg is the birthplace of Russia’s iron and steel industry, taking advantage of the large iron deposits in the Ural mountains. The popular Silver Ring of the Urals tourist route starts here.

In the summer you can follow in the tracks of Yermak, climb relatively low Ural mountain peaks and look for boulders seemingly with human faces on them. You can head to the Gemstone Belt of the Ural mountains, which used to house emerald, amethyst and topaz mines. In the winter you can go ice fishing, ski and cross-country ski.

Sverdlovsk Oblast and Yekaterinburg are located near the center of Russia, at the crossroads between Europe and Asia and also the southern and northern parts of Russia. Winters are longer and colder than in western section of European Russia. Snowfalls can be heavy. Winter temperatures occasionally drop as low as - 40 degrees C (-40 degrees F) and the first snow usually falls in October. A heavy winter coat, long underwear and good boots are essential. Snow and ice make the sidewalks very slippery, so footwear with a good grip is important. Since the climate is very dry during the winter months, skin moisturizer plus lip balm are recommended. Be alert for mud on street surfaces when snow cover is melting (April-May). Patches of mud create slippery road conditions.

Yekaterinburg

Yekaterinburg (kilometer 1818 on the Trans-Siberian Railway) is the fourth largest city in Russia, with of 1.5 million and growth rate of about 12 percent, high for Russia. Located in the southern Ural mountains, it was founded by Peter the Great and named after his wife Catherine, it was used by the tsars as a summer retreat and is where tsar Nicholas II and his family were executed and President Boris Yeltsin lived most of his life and began his political career. The city is near the border between Europe and Asia.

Yekaterinburg (also spelled Ekaterinburg) is located on the eastern slope of the Ural Mountains in the headwaters of the Iset and Pyshma Rivers. The Iset runs through the city center. Three ponds — Verkh-Isetsky, Gorodskoy and Nizhne-Isetsky — were created on it. Yekaterinburg has traditionally been a city of mining and was once the center of the mining industry of the Urals and Siberia. Yekaterinburg remains a major center of the Russian armaments industry and is sometimes called the "Pittsburgh of Russia.". A few ornate, pastel mansions and wide boulevards are reminders of the tsarist era. The city is large enough that it has its own Metro system but is characterized mostly by blocky Soviet-era apartment buildings. The city has advanced under President Vladimir Putin and is now one of the fastest growing places in Russia, a country otherwise characterized by population declines

Yekaterinburg is technically an Asian city as it lies 32 kilometers east of the continental divide between Europe and Asia. The unofficial capital of the Urals, a key region in the Russian heartland, it is second only to Moscow in terms of industrial production and capital of Sverdlovsk oblast. Among the important industries are ferrous and non-ferrous metallurgy, machine building and metalworking, chemical and petrochemicals, construction materials and medical, light and food industries. On top of being home of numerous heavy industries and mining concerns, Yekaterinburg is also a major center for industrial research and development and power engineering as well as home to numerous institutes of higher education, technical training, and scientific research. In addition, Yekaterinburg is the largest railway junction in Russia: the Trans-Siberian Railway passes through it, the southern, northern, western and eastern routes merge in the city.

Accommodation: There are two good and affordable hotels — the 3-star Emerald and Parus hotels — located close to the city's most popular landmarks and main transport interchanges in the center of Yekaterinburg. Room prices start at RUB 1,800 per night.

History of Yekaterinburg

Yekaterinburg was founded in 1723 by Peter the Great and named after his wife Catherine I. It was used by the tsars as a summer retreat but was mainly developed as metalworking and manufacturing center to take advantage of the large deposits of iron and other minerals in the Ural mountains. It is best known to Americans as the place where the last Tsar and his family were murdered by the Bolsheviks in 1918 and near where American U-2 spy plane, piloted by Gary Powers, was shot down in 1960.

Peter the Great recognized the importance of the iron and copper-rich Urals region for Imperial Russia's industrial and military development. In November 1723, he ordered the construction of a fortress factory and an ironworks in the Iset River Valley, which required a dam for its operation. In its early years Yekaterinburg grew rich from gold and other minerals and later coal. The Yekaterinburg gold rush of 1745 created such a huge amount of wealth that one rich baron of that time hosted a wedding party that lasted a year. By the mid-18th century, metallurgical plants had sprung up across the Urals to cast cannons, swords, guns and other weapons to arm Russia’s expansionist ambitions. The Yekaterinburg mint produced most of Russia's coins. Explorations of the Trans-Baikal and Altai regions began here in the 18th century.

Iron, cast iron and copper were the main products. Even though Iron from the region went into the Eiffel Tower, the main plant in Yekaterinburg itself was shut down in 1808. The city still kept going through a mountain factory control system of the Urals. The first railway in the Urals was built here: in 1878, the Yekaterinburg-Perm railway branch connected the province's capital with the factories of the Middle Urals.

In the Soviet era the city was called Sverdlovsk (named after Yakov Sverdlov, the man who organized Nicholas II's execution). During the first five-year plans the city became industrial — old plants were reconstructed, new ones were built. The center of Yekaterinburg was formed to conform to the historical general plan of 1829 but was the layout was adjusted around plants and factories. In the Stalin era the city was a major gulag transhipment center. In World War II, many defense-related industries were moved here. It and the surrounding area were a center of the Soviet Union's military industrial complex. Soviet tanks, missiles and aircraft engines were made in the Urals. During the Cold War era, Yekaterinburg was a center of weapons-grade uranium enrichment and processing, warhead assembly and dismantlement. In 1979, 64 people died when anthrax leaked from a biological weapons facility. Yekaterinburg was a “Closed City” for 40 years during the Cold Soviet era and was not open to foreigners until 1991

In the early post-Soviet era, much like Pittsburgh in the 1970s, Yekaterinburg had a hard struggle d to cope with dramatic economic changes that have made its heavy industries uncompetitive on the world market. Huge defense plants struggled to survive and the city was notorious as an organized crime center in the 1990s, when its hometown boy Boris Yeltsin was President of Russia. By the 2000s, Yekaterinburg’s retail and service was taking off, the defense industry was reviving and it was attracting tech industries and investments related to the Urals’ natural resources. By the 2010s it was vying to host a world exhibition in 2020 (it lost, Dubai won) and it had McDonald’s, Subway, sushi restaurants, and Gucci, Chanel and Armani. There were Bentley and Ferrari dealerships but they closed down

Transportation in Yekaterinburg

Getting There: By Plane: Yekaterinburg is a three-hour flight from Moscow with prices starting at RUB 8,000, or a 3-hour flight from Saint Petersburg starting from RUB 9,422 (direct round-trip flight tickets for one adult passenger). There are also flights from Frankfurt, Istanbul, China and major cities in the former Soviet Union.

By Train: Yekaterinburg is a major stop on the Trans-Siberian Railway. Daily train service is available to Moscow and many other Russian cities.Yekaterinburg is a 32-hour train ride from Moscow (tickets RUB 8,380 and above) or a 36-hour train ride from Saint Petersburg (RUB 10,300 and above). The ticket prices are round trip for a berth in a sleeper compartment for one adult passenger). By Car: a car trip from Moscow to Yekateringburg is 1,787 kilometers long and takes about 18 hours. The road from Saint Petersburg is 2,294 kilometers and takes about 28 hours.

Regional Transport: The region's public transport includes buses and suburban electric trains. Regional trains provide transport to larger cities in the Ural region. Buses depart from Yekaterinburg’s two bus stations: the Southern Bus Station and the Northern Bus Station.

Regional Transport: According the to Association for Safe International Road Travel (ASIRT): “Public transportation is well developed. Overcrowding is common. Fares are low. Service is efficient. Buses are the main form of public transport. Tram network is extensive. Fares are reasonable; service is regular. Trams are heavily used by residents, overcrowding is common. Purchase ticket after boarding. Metro runs from city center to Uralmash, an industrial area south of the city. Metro ends near the main railway station. Fares are inexpensive.

“Traffic is congested in city center. Getting around by car can be difficult. Route taxis (minivans) provide the fastest transport. They generally run on specific routes, but do not have specific stops. Drivers stop where passengers request. Route taxis can be hailed. Travel by bus or trolleybuses may be slow in rush hour. Trams are less affected by traffic jams. Trolley buses (electric buses) cannot run when temperatures drop below freezing.”

Entertainment, Sports and Recreation in Yekaterinburg

The performing arts in Yekaterinburg are first rate. The city has an excellent symphony orchestra, opera and ballet theater, and many other performing arts venues. Tickets are inexpensive. The Yekaterinburg Opera and Ballet Theater is lavishly designed and richly decorated building in the city center of Yekaterinburg. The theater was established in 1912 and building was designed by architect Vladimir Semyonov and inspired by the Vienna Opera House and the Theater of Opera and Ballet in Odessa.

Vaynera Street is a pedestrian only shopping street in city center with restaurants, cafes and some bars. But otherwise Yekaterinburg's nightlife options are limited. There are a handful of expensive Western-style restaurants and bars, none of them that great. Nightclubs serve the city's nouveau riche clientele. Its casinos have closed down. Some of them had links with organized crime. New dance clubs have sprung up that are popular with Yekaterinburg's more affluent youth.

Yekaterinburg's most popular spectator sports are hockey, basketball, and soccer. There are stadiums and arenas that host all three that have fairly cheap tickets. There is an indoor water park and lots of parks and green spaces. The Urals have many lakes, forests and mountains are great for hiking, boating, berry and mushroom hunting, swimming and fishing. Winter sports include cross-country skiing and ice skating. Winter lasts about six months and there’s usually plenty of snow. The nearby Ural Mountains however are not very high and the downhill skiing opportunities are limited..

Sights in Yekaterinburg

Sights in Yekaterinburg include the Museum of City Architecture and Ural Industry, with an old water tower and mineral collection with emeralds. malachite, tourmaline, jasper and other precious stone; Geological Alley, a small park with labeled samples of minerals found in the Urals region; the Ural Geology Museum, which houses an extensive collection of stones, gold and gems from the Urals; a monument marking the border between Europe and Asia; a memorial for gulag victims; and a graveyard with outlandish memorials for slain mafia members.

The Military History Museum houses the remains of the U-2 spy plane shot down in 1960 and locally made tanks and rocket launchers. The fine arts museum contains paintings by some of Russia's 19th-century masters. Also worth a look are the History an Local Studies Museum; the Political History and Youth Museum; and the University and Arboretum. Old wooden houses can be seen around Zatoutstovsya ulitsa and ulitsa Belinskogo. Around the city are wooded parks, lakes and quarries used to harvest a variety of minerals. Weiner Street is the main street of Yekaterinburg. Along it are lovely sculptures and 19th century architecture. Take a walk around the unique Literary Quarter

Plotinka is a local meeting spot, where you will often find street musicians performing. Plotinka can be described as the center of the city's center. This is where Yekaterinburg holds its biggest events: festivals, seasonal fairs, regional holiday celebrations, carnivals and musical fountain shows. There are many museums and open-air exhibitions on Plotinka. Plotinka is named after an actual dam of the city pond located nearby (“plotinka” means “a small dam” in Russian).In November 1723, Peter the Great ordered the construction of an ironworks in the Iset River Valley, which required a dam for its operation. “Iset” can be translated from Finnish as “abundant with fish”. This name was given to the river by the Mansi — the Finno-Ugric people dwelling on the eastern slope of the Northern Urals.

Vysotsky and Iset are skyscrapers that are 188.3 meters and 209 meters high, respectively. Fifty-story-high Iset has been described by locals as the world’s northernmost skyscraper. Before the construction of Iset, Vysotsky was the tallest building of Yekaterinburg and Russia (excluding Moscow). A popular vote has decided to name the skyscraper after the famous Soviet songwriter, singer and actor Vladimir Vysotsky. and the building was opened on November 25, 2011. There is a lookout at the top of the building, and the Vysotsky museum on its second floor. The annual “Vysotsky climb” (1137 steps) is held there, with a prize of RUB 100,000. While Vysotsky serves as an office building, Iset, owned by the Ural Mining and Metallurgical Company, houses 225 premium residential apartments ranging from 80 to 490 square meters in size.

Boris Yeltsin Presidential Center

The Boris Yeltsin Presidential Center (in the city center: ul. Yeltsina, 3) is a non-governmental organization named after the first president of the Russian Federation. The Museum of the First President of Russia as well as his archives are located in the Center. There is also a library, educational and children's centers, and exposition halls. Yeltsin lived most of his life and began his political career in Yekaterinburg. He was born in Butka about 200 kilometers east of Yekaterinburg.

The core of the Center is the Museum. Modern multimedia technologies help animate the documents, photos from the archives, and artifacts. The Yeltsin Museum holds collections of: propaganda posters, leaflets, and photos of the first years of the Soviet regime; portraits and portrait sculptures of members of Politburo of the Central Committee of the Communist Party of various years; U.S.S.R. government bonds and other items of the Soviet era; a copy of “One Day in the Life of Ivan Denisovich” by Alexander Solzhenitsyn, published in the “Novy Mir” magazine (#11, 1962); perestroika-era editions of books by Alexander Solzhenitsyn, Vasily Grossman, and other authors; theater, concert, and cinema posters, programs, and tickets — in short, all of the artifacts of the perestroika era.

The Yeltsin Center opened in 2012. Inside you will also find an art gallery, a bookstore, a gift shop, a food court, concert stages and a theater. There are regular screenings of unique films that you will not find anywhere else. Also operating inside the center, is a scientific exploritorium for children. The center was designed by Boris Bernaskoni. Almost from the its very opening, the Yeltsin Center has been accused by members of different political entities of various ideological crimes. The museum is open Tuesday to Sunday, from 10:00am to 9:00pm.

Where Nicholas II was Executed

On July, 17, 1918, during this reign of terror of the Russian Civil War, former-tsar Nicholas II, his wife, five children (the 13-year-old Alexis, 22-year-old Olga, 19-year-old Maria and 17-year-old Anastasia)the family physician, the cook, maid, and valet were shot to death by a Red Army firing squad in the cellar of the house they were staying at in Yekaterinburg.

Ipatiev House (near Church on the Blood, Ulitsa Libknekhta) was a merchant's house where Nicholas II and his family were executed. The house was demolished in 1977, on the orders of an up and coming communist politician named Boris Yeltsin. Yeltsin later said that the destruction of the house was an "act of barbarism" and he had no choice because he had been ordered to do it by the Politburo,

The site is marked with s cross with the photos of the family members and cross bearing their names. A small wooden church was built at the site. It contains paintings of the family. For a while there were seven traditional wooden churches. Mass is given ay noon everyday in an open-air museum. The Church on the Blood — constructed to honor Nicholas II and his family — was built on the part of the site in 1991 and is now a major place of pilgrimage.

Nicholas and his family where killed during the Russian civil war. It is thought the Bolsheviks figured that Nicholas and his family gave the Whites figureheads to rally around and they were better of dead. Even though the death orders were signed Yakov Sverdlov, the assassination was personally ordered by Lenin, who wanted to get them out of sight and out of mind. Trotsky suggested a trial. Lenin nixed the idea, deciding something had to be done about the Romanovs before White troops approached Yekaterinburg. Trotsky later wrote: "The decision was not only expedient but necessary. The severity of he punishment showed everyone that we would continue to fight on mercilessly, stopping at nothing."

Ian Frazier wrote in The New Yorker: “Having read a lot about the end of Tsar Nicholas II and his family and servants, I wanted to see the place in Yekaterinburg where that event occurred. The gloomy quality of this quest depressed Sergei’s spirits, but he drove all over Yekaterinburg searching for the site nonetheless. Whenever he stopped and asked a pedestrian how to get to the house where Nicholas II was murdered, the reaction was a wince. Several people simply walked away. But eventually, after a lot of asking, Sergei found the location. It was on a low ridge near the edge of town, above railroad tracks and the Iset River. The house, known as the Ipatiev House, was no longer standing, and the basement where the actual killings happened had been filled in. I found the blankness of the place sinister and dizzying. It reminded me of an erasure done so determinedly that it had worn a hole through the page. [Source: Ian Frazier, The New Yorker, August 3, 2009, Frazier is author of “Travels in Siberia” (2010)]

“The street next to the site is called Karl Liebknecht Street. A building near where the house used to be had a large green advertisement that said, in English, “LG—Digitally Yours.” On an adjoining lot, a small chapel kept the memory of the Tsar and his family; beneath a pedestal holding an Orthodox cross, peonies and pansies grew. The inscription on the pedestal read, “We go down on our knees, Russia, at the foot of the tsarist cross.”

Books: The Romanovs: The Final Chapter by Robert K. Massie (Random House, 1995); The Fall of the Romanovs by Mark D. Steinberg and Vladimir Khrustalëv (Yale, 1995);

See Separate Article END OF NICHOLAS II factsanddetails.com

Execution of Nicholas II

According to Robert Massie K. Massie, author of Nicholas and Alexandra, Nicholas II and his family were awakened from their bedrooms around midnight and taken to the basement. They were told they were to going to take some photographs of them and were told to stand behind a row of chairs.

Suddenly, a group of 11 Russians and Latvians, each with a revolver, burst into the room with orders to kill a specific person. Yakob Yurovsky, a member of the Soviet executive committee, reportedly shouted "your relatives are continuing to attack the Soviet Union.” After firing, bullets bouncing off gemstones hidden in the corsets of Alexandra and her daughters ricocheted around the room like "a shower of hail," the soldiers said. Those that were still breathing were killed with point black shots to the head.

The three sisters and the maid survived the first round thanks to their gems. They were pressed up against a wall and killed with a second round of bullets. The maid was the only one that survived. She was pursued by the executioners who stabbed her more than 30 times with their bayonets. The still writhing body of Alexis was made still by a kick to the head and two bullets in the ear delivered by Yurovsky himself.

Yurovsky wrote: "When the party entered I told the Romanovs that in view of the fact their relatives continued their offensive against Soviet Russia, the Executive Committee of the Urals Soviet had decided to shoot them. Nicholas turned his back to the detachment and faced his family. Then, as if collecting himself, he turned around, asking, 'What? What?'"

"[I] ordered the detachment to prepare. Its members had been previously instructed whom to shoot and to am directly at the heart to avoid much blood and to end more quickly. Nicholas said no more. he turned again to his family. The others shouted some incoherent exclamations. All this lasted a few seconds. Then commenced the shooting, which went on for two or three minutes. [I] killed Nicholas on the spot."

Nicholas II’s Initial Burial Site in Yekaterinburg

Ganina Yama Monastery (near the village of Koptyaki, 15 kilometers northwest of Yekaterinburg) stands near the three-meter-deep pit where some the remains of Nicholas II and his family were initially buried. The second burial site — where most of the remains were — is in a field known as Porosyonkov (56.9113628°N 60.4954326°E), seven kilometers from Ganina Yama.

On visiting Ganina Yama Monastery, one person posted in Trip Advisor: “We visited this set of churches in a pretty park with Konstantin from Ekaterinburg Guide Centre. He really brought it to life with his extensive knowledge of the history of the events surrounding their terrible end. The story is so moving so unless you speak Russian, it is best to come here with a guide or else you will have no idea of what is what.”

In 1991, the acid-burned remains of Nicholas II and his family were exhumed from a shallow roadside mass grave in a swampy area 12 miles northwest of Yekaterinburg. The remains had been found in 1979 by geologist and amateur archeologist Alexander Avdonin, who kept the location secret out of fear that they would be destroyed by Soviet authorities. The location was disclosed to a magazine by one his fellow discovers.

The original plan was to throw the Romanovs down a mine shaft and disposes of their remains with acid. They were thrown in a mine with some grenades but the mine didn't collapse. They were then carried by horse cart. The vats of acid fell off and broke. When the carriage carrying the bodies broke down it was decided the bury the bodies then and there. The remaining acid was poured on the bones, but most of it was soaked up the ground and the bones largely survived.

After this their pulses were then checked, their faces were crushed to make them unrecognizable and the bodies were wrapped in bed sheets loaded onto a truck. The "whole procedure," Yurovsky said took 20 minutes. One soldiers later bragged than he could "die in peace because he had squeezed the Empress's -------."

The bodies were taken to a forest and stripped, burned with acid and gasoline, and thrown into abandoned mine shafts and buried under railroad ties near a country road near the village of Koptyaki. "The bodies were put in the hole," Yurovsky wrote, "and the faces and all the bodies, generally doused with sulfuric acid, both so they couldn't be recognized and prevent a stink from them rotting...We scattered it with branches and lime, put boards on top and drove over it several times—no traces of the hole remained.

Shortly afterwards, the government in Moscow announced that Nicholas II had been shot because of "a counterrevolutionary conspiracy." There was no immediate word on the other members of the family which gave rise to rumors that other members of the family had escaped. Yekaterinburg was renamed Sverdlov in honor of the man who signed the death orders.

For seven years the remains of Nicholas II, Alexandra, three of their daughters and four servants were stored in polyethylene bags on shelves in the old criminal morgue in Yekaterunburg. On July 17, 1998, Nicholas II and his family and servants who were murdered with him were buried Peter and Paul Fortress in St. Petersburg along with the other Romanov tsars, who have been buried there starting with Peter the Great. Nicholas II had a side chapel built for himself at the fortress in 1913 but was buried in a new crypt.

Near Yekaterinburg

Factory-Museum of Iron and Steel Metallurgy (in Niznhy Tagil 80 kilometers north of Yekaterinburg) a museum with old mining equipment made at the site of huge abandoned iron and steel factory. Officially known as the Factory-Museum of the History of the Development of Iron and Steel Metallurgy, it covers an area of 30 hectares and contains a factory founded by the Demidov family in 1725 that specialized mainly in the production of high-quality cast iron and steel. Later, the foundry was renamed after Valerian Kuybyshev, a prominent figure of the Communist Party.

The first Russian factory museum, the unusual museum demonstrates all stages of metallurgy and metal working. There is even a blast furnace and an open-hearth furnace. The display of factory equipment includes bridge crane from 1892) and rolling stock equipment from the 19th-20th centuries. In Niznhy Tagil contains some huge blocks of malachite and

Nizhnyaya Sinyachikha (180 kilometers east-northeast of Yekaterinburg) has an open air architecture museum with log buildings, a stone church and other pre-revolutionary architecture. The village is the creation of Ivan Samoilov, a local activist who loved his village so much he dedicated 40 years of his life to recreating it as the open-air museum of wooden architecture.

The stone Savior Church, a good example of Siberian baroque architecture. The interior and exterior of the church are exhibition spaces of design. The houses are very colorful. In tsarist times, rich villagers hired serfs to paint the walls of their wooden izbas (houses) bright colors. Old neglected buildings from the 17th to 19th centuries have been brought to Nizhnyaya Sinyachikha from all over the Urals. You will see the interior design of the houses and hear stories about traditions and customs of the Ural farmers.

Verkhoturye (330 kilometers road from Yekaterinburg) is the home a 400-year-old monastery that served as 16th century capital of the Urals. Verkhoturye is a small town on the Tura River knows as the Jerusalem of the Urals for its many holy places, churches and monasteries. The town's main landmark is its Kremlin — the smallest in Russia. Pilgrims visit the St. Nicholas Monastery to see the remains of St. Simeon of Verkhoturye, the patron saint of fishermen.

Ural Mountains

Ural Mountains are the traditional dividing line between Europe and Asia and have been a crossroads of Russian history. Stretching from Kazakhstan to the fringes of the Arctic Kara Sea, the Urals lie almost exactly along the 60 degree meridian of longitude and extend for about 2,000 kilometers (1,300 miles) from north to south and varies in width from about 50 kilometers (30 miles) in the north and 160 kilometers (100 miles) the south. At kilometers 1777 on the Trans-Siberian Railway there is white obelisk with "Europe" carved in Russian on one side and "Asia" carved on the other.

The eastern side of the Urals contains a lot of granite and igneous rock. The western side is primarily sandstone and limestones. A number of precious stones can be found in the southern part of the Urals, including emeralds. malachite, tourmaline, jasper and aquamarines. The highest peaks are in the north. Mount Narodnaya is the highest of all but is only 1884 meters (6,184 feet) high. The northern Urals are covered in thick forests and home to relatively few people.

Like the Appalachian Mountains in the eastern United States, the Urals are very old mountains — with rocks and sediments that are hundreds of millions years old — that were one much taller than they are now and have been steadily eroded down over millions of years by weather and other natural processes to their current size. According to Encyclopedia Britannica: “The rock composition helps shape the topography: the high ranges and low, broad-topped ridges consist of quartzites, schists, and gabbro, all weather-resistant. Buttes are frequent, and there are north–south troughs of limestone, nearly all containing river valleys. Karst topography is highly developed on the western slopes of the Urals, with many caves, basins, and underground streams. The eastern slopes, on the other hand, have fewer karst formations; instead, rocky outliers rise above the flattened surfaces. Broad foothills, reduced to peneplain, adjoin the Central and Southern Urals on the east.

“The Urals date from the structural upheavals of the Hercynian orogeny (about 250 million years ago). About 280 million years ago there arose a high mountainous region, which was eroded to a peneplain. Alpine folding resulted in new mountains, the most marked upheaval being that of the Nether-Polar Urals...The western slope of the Urals is composed of middle Paleozoic sedimentary rocks (sandstones and limestones) that are about 350 million years old. In many places it descends in terraces to the Cis-Ural depression (west of the Urals), to which much of the eroded matter was carried during the late Paleozoic (about 300 million years ago). Found there are widespread karst (a starkly eroded limestone region) and gypsum, with large caverns and subterranean streams. On the eastern slope, volcanic layers alternate with sedimentary strata, all dating from middle Paleozoic times.”

Southern Urals

The southern Urals are characterized by grassy slopes and fertile valleys. The middle Urals are a rolling platform that barely rises above 300 meters (1,000 feet). This region is rich in minerals and has been heavily industrialized. This is where you can find Yekaterinburg (formally Sverdlovsk), the largest city in the Urals.

Most of the Southern Urals are is covered with forests, with 50 percent of that pine-woods, 44 percent birch woods, and the rest are deciduous aspen and alder forests. In the north, typical taiga forests are the norm. There are patches of herbal-poaceous steppes, northem sphagnous marshes and bushy steppes, light birch forests and shady riparian forests, tall-grass mountainous meadows, lowland ling marshes and stony placers with lichen stains. In some places there are no large areas of homogeneous forests, rather they are forests with numerous glades and meadows of different size.

In the Ilmensky Mountains Reserve in the Southern Urals, scientists counted 927 vascular plants (50 relicts, 23 endemic species), about 140 moss species, 483 algae species and 566 mushroom species. Among the species included into the Red Book of Russia are feather grass, downy-leaved feather grass, Zalessky feather grass, moccasin flower, ladies'-slipper, neottianthe cucullata, Baltic orchis, fen orchis, helmeted orchis, dark-winged orchis, Gelma sandwart, Krasheninnikov sandwart, Clare astragalus.

The fauna of the vertebrate animals in the Reserve includes 19 fish, 5 amphibian and 5 reptile. Among the 48 mammal species are elks, roe deer, boars, foxes, wolves, lynxes, badgers, common weasels, least weasels, forest ferrets, Siberian striped weasel, common marten, American mink. Squirrels, beavers, muskrats, hares, dibblers, moles, hedgehogs, voles are quite common, as well as chiropterans: pond bat, water bat, Brandt's bat, whiskered bat, northern bat, long-eared bat, parti-coloured bat, Nathusius' pipistrelle. The 174 bird bird species include white-tailed eagles, honey hawks, boreal owls, gnome owls, hawk owls, tawny owls, common scoters, cuckoos, wookcocks, common grouses, wood grouses, hazel grouses, common partridges, shrikes, goldenmountain thrushes, black- throated loons and others.

Activities and Places in the Ural Mountains

The Urals possess beautiful natural scenery that can be accessed from Yekaterinburg with a rent-a-car, hired taxi and tour. Travel agencies arrange rafting, kayaking and hiking trips. Hikes are available in the taiga forest and the Urals. Trips often include walks through the taiga to small lakes and hikes into the mountains and excursions to collect mushrooms and berries and climb in underground caves. Mellow rafting is offered in a relatively calm six kilometer section of the River Serga. In the winter visitor can enjoy cross-mountains skiing, downhill skiing, ice fishing, dog sledding, snow-shoeing and winter hiking through the forest to a cave covered with ice crystals.

Lake Shartash (10 kilometers from Yekaterinburg) is where the first Ural gold was found, setting in motion the Yekaterinburg gold rush of 1745, which created so much wealth one rich baron of that time hosted a wedding party that lasted a year. The area around Shartash Lake is a favorite picnic and barbecue spot of the locals. Getting There: by bus route No. 50, 054 or 54, with a transfer to suburban commuter bus route No. 112, 120 or 121 (the whole trip takes about an hour), or by car (10 kilometers drive from the city center, 40 minutes).

Revun Rapids (90 kilometers road from Yekaterinburg near Beklenishcheva village) is a popular white water rafting places On the nearby cliffs you can see the remains of a mysterious petroglyph from the Paleolithic period. Along the steep banks, you may notice the dark entrance of Smolinskaya Cave. There are legends of a sorceress who lived in there. The rocks at the riverside are suited for competitive rock climbers and beginners. Climbing hooks and rings are hammered into rocks. The most fun rafting is generally in May and June.

Olenii Ruchii National Park (100 kilometers west of Yekaterinburg) is the most popular nature park in Sverdlovsk Oblast and popular weekend getaway for Yekaterinburg residents. Visitors are attracted by the beautiful forests, the crystal clear Serga River and picturesque rocks caves. There are some easy hiking routes: the six-kilometer Lesser Ring and the 15-kilometer Greater Ring. Another route extends for 18 km and passes by the Mitkinsky Mine, which operated in the 18th-19th centuries. It's a kind of an open-air museum — you can still view mining an enrichment equipment here. There is also a genuine beaver dam nearby.

Among the other attractions at Olenii Ruchii are Druzhba (Friendship) Cave, with passages that extend for about 500 meters; Dyrovaty Kamen (Holed Stone), created over time by water of Serga River eroding rock; and Utoplennik (Drowned Man), where you can see “The Angel of Sole Hope”., created by the Swedish artist Lehna Edwall, who has placed seven angels figures in different parts of the world to “embrace the planet, protecting it from fear, despair, and disasters.”

Image Sources: Wikimedia Commons

Text Sources: Federal Agency for Tourism of the Russian Federation (official Russia tourism website russiatourism.ru ), Russian government websites, UNESCO, Wikipedia, Lonely Planet guides, New York Times, Washington Post, Los Angeles Times, National Geographic, The New Yorker, Bloomberg, Reuters, Associated Press, AFP, Yomiuri Shimbun and various books and other publications.

Updated in September 2020

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