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Property Development Business Plan Template

Written by Dave Lavinsky

Property Development Business Plan

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

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

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

Executive Summary

Business overview.

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

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

Product Offering

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

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

Customer Focus

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

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

Management Team

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

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

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

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

Success Factors

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

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

Financial Highlights

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

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

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

pro forma financial projections for Property Development

Company Overview

Who is redstone development.

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

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

Redstone Development’s History

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

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

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

Since incorporation, Redstone Development has achieved the following milestones:

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

Redstone Development’s Services

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

Industry Analysis

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

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

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

Customer Analysis

Demographic profile of target market.

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

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

The precise demographics for Salt Lake City, Utah are:

Customer Segmentation

Redstone Development will primarily target the following customer profiles:

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

Competitive Analysis

Direct and indirect competitors.

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

Upscale Property Developers, Inc.

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

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

Premium Property Development Solutions

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

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

Salt Lake Residential

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

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

Competitive Advantage

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

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

Marketing Plan

Brand & value proposition.

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

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

Promotions Strategy

The promotions strategy for Redstone Development is as follows:

Website/SEO

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

Social Media

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

Print Advertising

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

Community Events/Organizations

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

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

Operations Plan

The following will be the operations plan for Redstone Development.

Operation Functions:

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

Milestones:

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

1/1/202X         Finalize lease agreement

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

3/1/202X         Hire and train initial staff

4/1/202X         Purchase first property for development

5/1/202X         Kickoff of promotional campaign

6/1/202X         Find second property for development

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

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

Financial Plan

Key revenue & costs.

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

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

Funding Requirements and Use of Funds

Key assumptions.

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

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

Financial Projections

Income statement, balance sheet, cash flow statement, property development business plan faqs, what is a property development business plan.

A property development business plan is a plan to start and/or grow your property development business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Property Development business plan using our Property Development Business Plan Template here .

What are the Main Types of Property Development Businesses?

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

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

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

What are the Steps To Start a Property Development Business?

Starting a property development business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

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

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your property development business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your property development business is in compliance with local laws.

3. Register Your Property Development Business - Once you have chosen a legal structure, the next step is to register your property development business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your property development business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Property Development Equipment & Supplies - In order to start your property development business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your property development business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

how to write a property development business plan

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A Sample Property Development Business Plan Template

A property development company is a company that is involved in buying land, financing real estate, building, or having builders build and develop projects for commercial purposes. Property development companies renovate and re-lease existing buildings, purchase raw land, and sell developed land or parcels to others. They are involved in developing a property from beginning to end.

A report released by the National Association of REALTORS® shows that over 5.64 million existing homes were sold in 2020. Also, according to data from the U.S. Census Bureau, 822,000 newly constructed homes were sold in the same year. In 2019, 64.9 percent of families owned their primary residence, according to the Federal Reserve’s Survey of Consumer Finances.

Steps on How to Write a Property Development Business Plan

1. executive summary.

Vintage Group© Property Development Company, Inc. is an American-based and licensed real estate cum property development company. Our head office will be located in a standard and centrally located facility in the heart of New York City, New York.

We will engage in property development projects for a wide range of clients. We will work towards becoming one of the largest property development companies in New York and the whole of the United States of America. Jason Theodora is the founder and CEO of Vintage Group© Property Development Company, Inc.

Company Profile

A. our products and services.

Vintage Group© Property Development Company, Inc. will be involved in;

  • Houses and housing estate developments
  • Apartments and other residential developments
  • Commercial developments
  • Industrial developments
  • Other developments (Investment Properties)
  • Real estate consultancy and advisory services

b. Nature of the Business

Our property development company will operate the partnership business model. We will work with investors who are willing to partner with us to grow their investment portfolios in the real estate market.

c. The Industry

Vintage Group© Property Development Company, Inc. will operate under the real estate sales and brokerage industry.

d. Mission Statement

Our mission is to be at the forefront of buying property and partnering with landowners, then develop a plan for what to build or rebuild on that property. We will bring in investors and predict how much money the new homes or businesses will bring in.

e. Vision Statement

Our vision of to be listed among the top three property development companies in the whole of New York.

f. Our Tagline (Slogan)

Vintage Group© Property Development Company, Inc. – The Genius of Property Development!

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Vintage Group© Property Development Company, Inc. will be formed as a Limited Liability Partnership (LLP).

h. Our Organizational Structure

  • Chief Executive Officer
  • Project Manager
  • Company’s Lawyer/Secretary
  • Admin and HR Manager
  • Head of Construction and Renovation
  • Business Developer/Sales and Marketing
  • Customer Service Executive/Front Desk Officer

i. Ownership/Shareholder Structure and Board Members

  • Jason Theodora (Owner and Chairman/Chief Executive Officer) 51 Percent Shares
  • Hilary Kings (Board Member) 14 Percent Shares
  • Harrison Williams (Board Member) 10 Percent Shares
  • Rachael Abraham (Board Member) 10 Percent Shares
  • Stella Norman (Board Member and Sectary) 10 Percent Shares.

SWOT Analysis

A. strength.

  • Ideal location for property development (thriving real estate market)
  • Highly experienced and qualified employees and management
  • Access to finance from business partners
  • Robust relations with property owners and properties investment moguls
  • Good returns on investment for investors.

b. Weakness

  • Financial Constraints
  • Our business will be competing with well-established property developers and other home remodeling companies
  • Inability to retain highly experienced and qualified employees longer than we want

c. Opportunities

  • New York is a thriving market for property development companies and the real estate industry.
  • Good support structure for property development companies.

i. How Big is the Industry?

The market size, measured by revenue of the real estate sales and brokerage industry is put at $156.2 billion in 2023 hence it will be safe to safe the industry is amongst the biggest industries in the United States of America.

ii. Is the Industry Growing or Declining?

All available data points to the fact that the real estate and brokerage industry is growing. The market size of the industry is expected to increase 0.4 percent in 2023.

iii. What are the Future Trends in the Industry

The real estate sales and brokerage industry is changing, and players in the industry are improvising. No doubt, technology and climate change (the go green initiative) will change the landscape of the industry going forward.

iv. Are There Existing Niches in the Industry?

No, there are no existing niche ideas when it comes to the property development business. This is because the property development line of business is a subset of the real estate and brokerage industry.

v. Can You Sell a Franchise of your Business in the Future?

Vintage Group© Property Development Company, Inc. has plans to sell franchises in the nearest future and we will target major cities with thriving real estate markets in the United States of America.

  • The arrival of new property development companies within our market space
  • Unfavorable government policy and regulations.
  • Community resistance
  • Liability problems
  • Continuously changing consumer demands especially as it relates to style and design of properties et al.

i. Who are the Major Competitors?

  • New World Development Co. Ltd
  • Wheelock and Company
  • AvalonBay Communities
  • Greystar Real Estate Partners
  • Wood Partners
  • Mill Creek Residential
  • Continental Properties Company, Inc.
  • Trammell Crow Company
  • The JBG Companies
  • Lowe Enterprises
  • Simon Property Group
  • General Growth Properties
  • SITE Centers
  • Kimco Realty Corp
  • Brixmor Property Group
  • Panattoni Development Co.
  • McDonald Development Co.
  • USAA Real Estate Co.
  • LaSalle Investment Management
  • Gibraltar Syndication & Development Company

ii. Is There a Franchise for Property Development Business?

Well, for now, there are no known franchise opportunities in the property development business.

iii. Are There Policies, Regulations, or Zoning Laws Affecting Property Development Business?

Yes, there are county or state regulations and zoning laws for the business. Zoning laws are found in virtually every municipality in the United States, affecting land use, lot size, building heights, density, setbacks, and other aspects of property use.

In addition to that, it is important to state that in the United States, government agencies and departments routinely grant variances to rules and regulations. Often, you only have to fill out a short form. In other cases, your request may have to be publicly heard before your city council, zoning board, or other body. Please check with your zoning or planning department to find out what options are available to you.

Marketing Plan

A. who is your target audience.

i. Age Range

Our target market comprises adults above 18 years old who have the finance to do business with us.

ii. Level of Educational

We don’t have any restriction on the level of education of those we are ready to work with as investors or buyers of the properties we develop.

iii. Income Level

The income level of those we are looking to do business with will be between $70,000 and above $124,000.

iv. Ethnicity

There is no restriction when it comes to the ethnicity of the people we are looking to partner with.

v. Language

There is no restriction when it comes to the language spoken by the people we will partner with.

vi. Geographical Location

Anybody from any geographical location will be welcome to partner with us or do business with our company.

vii. Lifestyle

Vintage Group© Property Development Company, Inc. will not restrict any investor or client from partnering with us or doing business with us based on their lifestyle, culture, or race.

b. Advertising and Promotion Strategies

  • Host Themed Events That Catch Attention.
  • Tap Into Text Marketing.
  • Make Use of Bill Boards.
  • Share Your Events in Local Groups and Pages.
  • Turn Your Social Media Channels into a Resource
  • Develop Your Business Directory Profiles
  • Build Relationships with players in the real estate and brokerage industry.

i. Traditional Marketing Strategies

  • Marketing through Direct Mail.
  • Print Media Marketing – Newspapers & Magazines.
  • Broadcast Marketing -Television & Radio Channels.
  • OOH Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
  • Leverage direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.

ii. Digital Marketing Strategies

  • Social Media Marketing Platforms.
  • Influencer Marketing.
  • Email Marketing.
  • Content Marketing.
  • Search Engine Optimization (SEO) Marketing.
  • Affiliate Marketing
  • Mobile Marketing.

iii. Social Media Marketing Plan

  • Start using chatbots.
  • Create a personalized experience for our customers.
  • Create an efficient content marketing strategy.
  • Create a community for our target market and potential target market.
  • Gear up our profiles with a diverse content strategy.
  • Use brand advocates.
  • Create profiles on the relevant social media channels.
  • Run cross-channel campaigns.

c. Pricing Strategy

When working out our pricing strategy, Vintage Group© Property Development Company, Inc. will make sure it covers profits, insurance, premium, license, and economy or value and full package for each property,

In all our pricing strategy will reflect;

  • Cost-Based Pricing
  • Value-Based Pricing
  • Competition-Based Pricing.

Sales and Distribution Plan

A. sales channels.

Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, strategic alliances in the real estate and brokerage industry, and freelancers to help refer clients to us.

Vintage Group© Property Development Company, Inc. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced and promoted to our customers.

b. Inventory Strategy

The fact that we will need the required building materials means that Vintage Group© Property Development Company, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining, and processing items in our warehouse. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.

c. Payment Options for Customers

Here are the payment options that Vintage Group© Property Development Company, Inc. will make available to her clients;

  • Payment via bank transfer
  • Payment via credit cards
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer
  • Payment via bank draft

d. Return Policy, Incentives, and Guarantees

At Vintage Group© Property Development Company, Inc., we develop properties and the nature of products (properties) we offer does not accommodate return policy, but we will guarantee our investors of good returns on their investment (ROI). Our Operating Margin targets for housebuilders across the economic cycle will be placed at 15-20 percent on Gross Development Value (GDV).

e. Customer Support Strategy

Our customer support strategy will involve seeking customers’ feedback. This will help us provide excellent properties, return on investment (ROI) and customer service to all our clients and investors, it will help us understand their needs, experiences, and pain points. We will work with effective CRM software to be able to achieve this.

Operational Plan

Our operational plan will cover capacity planning, location planning, layout planning, quality planning, and methods planning.

Overall, we plan to expand our revenue by 50 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting grants and fundraising strategies that will enable us to boost our properties and service offerings.

a. What Happens During a Typical Day at a Property Development Business?

  • The office is open for the day
  • Documentation and other administrative works are conducted throughout the day
  • Marketers go out in the field to market our properties and services
  • If there is an ongoing property development project, the required team and machinery are sent to the field to carry out the project.
  • The team and machinery return to base (office) after the day’s job
  • Report for the day is written and submitted to the required authority
  • The office is closed for the day.

b. Production Process (If Any)

There is no production process when it comes to the property development business.

c. Service Procedure (If Any)

No, there are no defined service procedures for a property development business.

d. The Supply Chain

Vintage Group© Property Development Company, Inc. will rely on key players in the real estate and brokerage industry to refer business deals to us. So also, we have been able to establish business relationships with wholesale supplies of building materials.

e. Sources of Income

Vintage Group© Property Development Company, Inc. make money from;

Financial Plan

A. amount needed to start your property development company.

Vintage Group© Property Development Company, Inc. would need an estimate of $4.5 million to successfully set up a property development company in the United States of America. Please note that this amount includes the salaries of all our staff for the first month of operation.

b. What are the Cost Involved?

  • Business Registration Fees – $750.
  • Legal expenses for obtaining licenses and permits – $7,300.
  • Marketing, Branding and Promotions – $5,000.
  • Business Consultant Fee – $2,500.
  • Insurance – $5,400.
  • Rent/Lease – $200,000.
  • Other start-up expenses including, commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
  • Operational Cost (salaries of employees, payments of bills et al) – $100,000
  • Start-up Inventory – $15,000
  • Store Equipment (cash register, security, ventilation, signage) – $4,750
  • Furnishing and Equipping – $80,000
  • Liquid Cash for Execution of Projects: $3.5 million
  • Website: $600
  • Miscellaneous: $2,000

c. Do You Need to Build a Facility? If YES, How Much will it cost?

Vintage Group© Property Development Company, Inc. will not build a new facility; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our facility.

d. What are the Ongoing Expenses for Running a Property Development Company?

  • Transportation cost
  • Cost of building materials and supplies
  • Utility bills (internet, phone bills, signage and sewage et al)
  • Salaries of employees

e. What is the Average Salary of your Staff? List the Job Position and their proposed salary based on industry rate and your startup capital

  • Chief Executive Officer – $85,000 Per Year
  • Project Manager – $72,000 Per Year
  • Head of Construction and Renovation – $70,000 Per Year
  • Company’s Lawyer/Secretary – $68,000 Per Year
  • Admin and HR Manager – $45,000 Per Year
  • Business Developer/Sales and Marketing – $42,000 Per Year
  • Accountant – $40,000 Per Year
  • Customer Service Executive/Front Desk Officer – $30,000 Per Year.

f. How Do You Get Funding to Start a Property Development Company

  • Raising money from personal savings and sale of personal stocks and properties
  • Raising money from investors and business partners
  • Sell shares to interested investors
  • Applying for a loan from your bank/banks
  • Pitching your business idea and applying for business grants and seed funding from, government, donor organizations, and angel investors
  • Source for soft loans from your family members and your friends.

Financial Projection

A. how much should you charge for your service.

At Vintage Group© Property Development Company, Inc. our fee will be based on the location and type of property we want to develop.

b. Sales Forecast?

  • First Fiscal Year (FY1): $3.5 million
  • Second Fiscal Year (FY2): $5 million
  • Third Fiscal Year (FY3): $9 million

c. Estimated Profit You Will Make a Year?

The ideal profit margin we hope to make at Vintage Group© Property Development Company, Inc. will be between 16 and 20 percent on development costs.

d. Profit Margin of a Property Development Company

Vintage Group© Property Development Company, Inc. will collect developer fees that will range from 5 to 10 percent aside from making profits off every property sold.

Please note in planning our property development project, we will make sure that the bottom line shows a suitable return for the money and effort we put into it.

Growth Plan

A. how do you intend to grow and expand .

Vintage Group© Property Development Company, Inc. will grow our property development company by first opening other offices in key cities in the United States of America within the first five years of establishing the business and then will start selling franchises from the sixth year.

b. Where do you intend to expand to and why? (Geographical locations)

Vintage Group© Property Development Company, Inc. plans to expand first to Los Angeles – California, San Francisco – California, Chicago – Illinois, Washington, D.C., Boston – Massachusetts, Miami – Florida, Seattle – Washington, Dallas – Texas, and Philadelphia – Pennsylvania.

The reason we intend to expand to these geographic locations is the fact that available statistics show that the cities listed above have the highest real estate market in the United States. New York has the highest real estate value in the country at $2.8 trillion.

The founder of Vintage Group© Property Development Company, Inc. plans to exit the business via family succession. We have placed structure and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another.

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How to write a business plan for your real estate development venture.

business plan for a real estate development venture

A real estate development venture can be a lucrative and rewarding business.

It offers the opportunity to create value in a tangible asset while also providing a steady stream of income.

But, first thing first, you need to write a business plan.

A business plan is a critical tool for any new project, especially a real estate development venture. It will help you to identify the financial and operational objectives of the project, and provide a clear roadmap for success.

In short, a good business plan will help make sure your real estate development venture is profitable .

What should you consider when writing a business plan for a real estate development venture? What components should be part of the structure? What metrics should be considered for the financial assessment? How can I write a business plan efficiently and effectively?

This article will address and answer all these questions.

Finally, please note that you don't have to start your business plan from scratch.

You can download our business plan for a real estate development venture and adapt it to suit your business needs.

business plan property developer

Building a business plan for a real estate development venture

Should you consider writing a business plan for your real estate development venture.

Yes, you should consider writing a business plan for your real estate development venture.

Developing a robust business plan will enable you to:

  • learn about the real estate development market
  • stay on top of the industry's emerging trends
  • uncover what makes a real estate development venture viable
  • understand the market demands, architectural preferences, and sustainability goals for real estate development projects
  • come up with a unique value proposition for your property construction project
  • evaluate competitive strategies
  • find distinctive competitive edges for your real estate development venture
  • find a business model that will generate positive cash flows
  • formulate an airtight strategy to maximize business growth
  • assess potential risks involved in a real estate development venture, such as financial feasibility, construction delays, and market demand

Our team has created a business plan for a real estate development venture that is designed to make it easier for you to achieve all the elements listed.

How to organize a business plan for a real estate development venture?

Inside a business plan, you'll find many facts, numbers, and indicators. It must be well structured, to make easy to read and digest.

When we made our business plan for a real estate development venture , we made sure it had a proper structure.

You'll see 5 different sections (Opportunity, Project, Market Research, Strategy and Finances).

1. Market Opportunity

The section number one is titled "Market Opportunity."

Explore this section to access comprehensive data and insights related to the real estate development venture, enabling you to understand market trends and pursue profitable real estate projects.

We revamp this section twice a year for up-to-date data.

2. Project Presentation

In the "Project" section, describe your real estate development venture, including the types of properties, innovative design approaches, sustainability initiatives, and highlight the unique value proposition for buyers and investors.

At the end of this section, provide a brief introduction about yourself and your qualifications for real estate development.

Highlight your experience in the industry, your track record of successful projects, and your vision for creating exceptional properties that meet market demands and enhance communities.

We've provided you with wording. You can modify it to fit your idea perfectly.

3. Market Research

After that, comes the "Market Research" section.

In this section, you will find a market segmentation analysis for your real estate development venture.

It includes a study of competing real estate development projects and emphasizes your venture's competitive advantages. A tailored SWOT analysis is also provided.

4. Strategy

Within the "Strategy" section, a detailed plan spanning three years is presented, highlighting the initiatives and actions necessary to make your real estate development venture highly profitable.

In addition, you'll find a marketing strategy, a risk management strategy, and a Business Model Canvas that has been filled in.

5. Finances

Ultimately, the "Finances" section presents a comprehensive view of the financials and estimates for your project.

business plan real estate development venture

How to write an Executive Summary for a real estate development venture?

The Executive Summary serves as an introduction to the business plan for your real estate development venture.

Don't go beyond 2 pages; concentrate on the crucial information.

The aim of this document is to make the reader want to explore your business plan.

In the Executive Summary of your real estate development venture, answer the following questions: what type of real estate development does your venture focus on? who is your target market? who are your competitors in the industry? how do you differentiate from them? what funding do you require?

How to do the market analysis for a real estate development venture?

The market study of your real estate development venture helps you understand external factors such as customer preferences for properties, competition within the real estate market, and emerging trends in property development.

By conducting an extensive market analysis, a real estate development venture can understand market demands, offer innovative real estate projects, optimize pricing strategies, and execute targeted marketing campaigns, ultimately leading to increased property sales, project success, and a prominent position in the real estate industry.

This is what we've outlined in the "Market Research" section of our business plan for a real estate development venture :

  • key insights and trends in real estate development, including property development projects, market demand for housing, and sustainable construction practices
  • a list of potential audiences for a real estate development venture
  • the competitive comparison
  • the competitive advantages to build for a real estate development venture

business plan real estate development venture

The key points of the business plan for a real estate development venture

What's the business model of a real estate development venture, business model of a real estate development venture.

A real estate development venture's business model revolves around acquiring land or properties and developing them into residential, commercial, or mixed-use projects for sale or lease. Revenue is generated through property sales or rental income.

The business model focuses on identifying development opportunities, conducting feasibility studies, effective marketing to target property buyers or tenants, and building strong relationships with architects, contractors, or real estate professionals.

Success depends on property market analysis, project planning and execution, delivering high-quality developments, fostering positive customer experiences and recommendations, and continuously identifying and evaluating profitable real estate development opportunities in the market.

Business model vs Business plan

Please don't mix up the terms "business plan" and "business model."

A business model describes how a company generates income and operates successfully.

In a business plan, you delineate your business model employing a resource called the Business Model Canvas.

Rest assured, there is a Business Model Canvas (already completed) in our business plan for a real estate development venture .

How do you identify the market segments of a real estate development venture?

Market segmentation for your real estate agency involves dividing your potential clients into different groups based on their real estate needs, property types, and preferences.

These categories may include factors such as residential properties, commercial properties, luxury properties, or clients seeking specific real estate services (e.g., buying, selling, renting).

By segmenting your market, you can offer specialized real estate services and expertise that cater to each segment's specific requirements. For example, you might provide comprehensive residential real estate services, including assistance with buying or selling homes, offer commercial real estate services for businesses seeking office spaces or retail properties, specialize in luxury properties and cater to high-end clients looking for premium real estate options, or focus on specific real estate services such as property management or rental assistance.

Market segmentation allows you to effectively target your marketing efforts, showcase your knowledge of specific property types or markets, and provide personalized and professional real estate services that meet the unique needs and preferences of each client segment.

In the business plan for a real estate development venture , you will find a detailed market segmentation that gives you insights into your potential customers.

How to conduct a competitor analysis for a real estate development venture?

It's clear that you won't be the only real estate development venture in the market. There are other developers working on projects to create residential and commercial properties.

To create a successful business plan, it's crucial to thoroughly analyze your competitors. This involves carefully identifying and studying their offer, while also evaluating their strengths and weaknesses.

Be mindful of their weaknesses (such as inadequate project planning, lack of market research, or poor construction quality).

Why is it crucial to address these aspects? Because these weaknesses can impact the success of real estate development ventures.

By focusing on these areas, you can conduct thorough market analysis, offer innovative and desirable properties, and provide exceptional customer service, positioning your real estate development venture as a trusted and sought-after player in the market.

It's what we call competitive advantages—work on developing them for a distinct business identity.

Here are some examples of competitive advantages for a real estate development venture: strategic property selection, innovative and sustainable designs, strong project management, efficient construction and timelines, attention to market demands and trends, comprehensive financial analysis, successful partnerships and investor relationships.

How to draft a SWOT analysis for a property developer?

A SWOT analysis can help identify strengths, weaknesses, opportunities, and threats, and provide valuable insights into the potential success of a real estate development venture.

As you can guess, there is indeed a completed and editable SWOT matrix in our business plan for a real estate development venture

The strengths for a real estate development venture

The "S" in SWOT symbolizes Strengths, indicating the project's internal factors that give it a competitive edge.

For a real estate development venture, potential strengths could include access to capital, a strong team of experienced professionals, expertise in local markets, and an established network of contacts.

The weaknesses for a real estate development venture

When we talk about the "W," we're talking about Weaknesses, which are the weaker parts of the project that need improvement.

For a real estate development venture, potential weaknesses include inadequate capital, lack of industry knowledge, poor market timing, and inadequate resources.

The opportunities for a real estate development venture

The letter "O" denotes Opportunities in SWOT, signifying the potential advantages or favorable external conditions for the project.

In the case of a real estate development venture, potential opportunities could include building a mixed-use complex, constructing an apartment complex, renovating a historic building, and developing a housing subdivision.

The threats for a real estate development venture

The letter "T" denotes Threats in SWOT, signifying the external risks or unfavorable factors that can impact the project's outcomes.

How to elaborate a marketing strategy for a property developer?

A marketing strategy is an important part of a business plan as it outlines how a business will attract customers and drive revenue.

A real estate development venture can attract potential buyers or investors by developing an effective marketing approach that showcases the venture's innovative architectural designs, prime locations, and investment potential.

Investors won't be interested in your property developer business without effective marketing; showcasing your successful projects, innovative designs, and potential for growth is crucial.

Are you utilizing marketing tactics to promote your real estate development venture? Consider creating visually appealing renderings or virtual tours of your properties, attending real estate industry conferences or trade shows, and leveraging online platforms to reach potential investors or homebuyers.

Don't fret if you lack knowledge in marketing and communication – there's no need to worry.

How to build a solid financial plan for a property developer?

A solid business plan must include detailed financial information such as projected income, expenses, cash flow, and balance sheets.

As part of your business planning process, you'll be required to predict the revenue for your real estate development venture.

Of course, this revenue forecast will have to make sense.

Our financial plan for a real estate development venture is easy to use and includes built-in checks to help you identify and correct any assumptions, ensuring you create reliable projections with confidence.

Without a doubt, you will be required to draft a provisional budget for your real estate development venture . Make certain to include all expenses without exception - you can find them all listed in our financial plan!

A key aspect of your financial plan is the break-even analysis, which helps determine whether your real estate development venture will become a profitable company or not.

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Real Estate Development Business Plan

how to write a property development business plan

Real estate industry has grown tremendously over the past few years, and we don’t anticipate any significant shifts any time soon. Incredible profit potential, income diversification, and various tax benefits make it an excellent consideration.

Are you looking to start writing a business plan for your real estate development business? Creating a business plan is essential to starting, growing, and securing funding for your business. So we have prepared a real estate development business plan template to help you start writing yours.

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Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

  • Fill in the blanks – Outline
  • Financial Tables

How to Write a Real Estate Development Business Plan?

Writing a real estate development business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section of the business plan intended to provide an overview of the whole business plan. Generally, it is written after the entire business plan is ready. Here are some components to add to your summary:

Start with a brief introduction:

Market opportunity:, mention your services:, management team:, financial highlights:, call to action:.

Ensure you keep your executive summary concise and clear, use simple language, and avoid jargon.

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2. Business Overview

Depending on what details of your business are important, you’ll need different elements in your business overview. Still, there are some foundational elements like business name, legal structure, location, history, and mission statement that every business overview should include:

About the business:

  • The name and type of your real estate development company: mention whether you are a development company focusing on residential, commercial, resort & hospitality development, or industrial development. Maybe, you offer a mix of some of these services—so mention it.
  • Company structure of your real estate business, whether it is an LLC, partnership firm, or something else.
  • Location of your property development company and why you selected that place.

Mission statement:

Business history:, future goals:.

This section should provide an in-depth understanding of your real estate development business. Also, the business overview section should be engaging and precise.

3. Market Analysis

Market analysis provides a clear understanding of the market in which your real estate development business will run along with the target market, competitors, and growth opportunities. Your market analysis should contain the following essential components:

Target market:

Market size and growth potential:, competitive analysis:, market trends:, regulatory environment:.

Some additional tips for writing the market analysis section of your business plan:

  • Use a variety of sources to gather data, including industry reports, market research studies, and surveys.
  • Be specific and provide detailed information wherever possible.
  • Include charts and graphs to help illustrate your key points.
  • Keep your target audience in mind while writing the business plan

4. Products And Services

The product and services section of a property development business plan should describe the specific services and products that will be offered to customers. To write this section should include the following:

List the services:

  • Create a list of services your development business will offer, including construction and project management, architectural designing and planning, property acquisition, financing services, etc.
  • Describe each service: Provide a detailed description of what it entails, the time required, and the qualifications of the professionals who will provide it. For example, a project manager is responsible for overseeing the day-to-day operations of a project.

Emphasize safety and quality:

Overall, a business plan’s product and services section should be detailed, informative, and customer-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Develop your unique selling proposition (USP):

Determine your pricing strategy:, marketing strategies:, sales strategies:, customer retention:.

Overall, the sales and marketing strategies section of your business plan should outline your plans to attract and retain customers and generate revenue. Be specific, realistic, and data-driven in your approach, and be prepared to adjust your strategies based on feedback and results.

6. Operations Plan

When writing the operations plan section, it’s important to consider the various aspects of your business processes and procedures involved in operating a business. Here are the components to include in an operations plan:

Hiring plan:

Operational process:, equipment and machinery:.

By including these key elements in your operations plan section, you can create a comprehensive plan that outlines how you will run your real estate development business.

7. Management Team

The management team section provides an overview of the individuals responsible for running the real estate development business. This section should provide a detailed description of the experience and qualifications of each manager, as well as their responsibilities and roles.

Key managers:

Organizational structure:, compensation plan:, board of advisors:.

Describe your company’s key personnel and highlight why your business has the fittest team.

8. Financial Plan

When writing the financial plan section of a business plan, it’s important to provide a comprehensive overview of your financial projections for the first few years of your business.

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:, financing needs:.

Remember to be realistic with your financial projections and provide supporting evidence for your estimates.

9. Appendix

When writing the appendix section, you should include any additional information that supports the main content of your plan. This may include financial statements, market research data, legal documents, and other relevant information.

  • Include a table of contents for the appendix section to make it easy for readers to find specific information.
  • Include financial statements such as income statements, balance sheets, and cash flow statements. These should be up-to-date and show your financial projections for at least the first three years of your business.
  • Provide market research data, such as statistics on the size of the real estate development industry, consumer demographics, and trends in the industry.
  • Include any legal documents such as permits, licenses, and contracts.
  • Provide any additional documentation related to your business plans, such as marketing materials, product brochures, and operational procedures.
  • Use clear headings and labels for each section of the appendix so that readers can easily find the information they need.

Remember, the appendix section of your real estate development business should only include relevant and essential information supporting your plan’s main content.

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This real estate development business plan sample will provide an idea for writing a successful real estate development plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready real estate business plan to impress your audience, download our real estate development business plan pdf .

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Frequently asked questions, why do you need a real estate development business plan.

A business plan is an essential tool for anyone looking to start or run a successful real estate development company. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your real estate business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your real estate business.

How to get funding for your real estate development business?

There are several ways to get funding for your real estate business, but one of the most efficient and speedy funding options is self-funding. Other options for funding are:

  • Bank loan – You may apply for a loan in government or private banks.
  • Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
  • Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your development business, usually online.
  • Angel investors – Getting funds from angel investors is one of the most sought options for startups.
  • Venture capital – Venture capitalists will invest in your business in exchange for a percentage of shares, so this funding option is also viable.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your real estate development business?

There are many business plan writers available, but no one knows your business and idea better than you, so we recommend you write your real estate development business plan and outline your vision as you have in your mind.

What is the easiest way to write your real estate development business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any real estate development business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

how to write a property development business plan

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Download Real Estate Development Business Plan

PROPERTY DEVELOPMENT BUSINESS PLAN: 2023 UK Template & Guide

  • by Folakemi Adegbaju
  • August 9, 2023
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  • 8 minute read

PROPERTY DEVELOPMENT BUSINESS PLAN TEMPLATE

Table of Contents Hide

The importance of having a business plan, #1. executive summary, #2. company overview, #3. market research, #4. customer analysis, #5. marketing plan, #6. swot analysis, #7. management team, #8. financial plan, #9. appendix, property development business plan template, how do you start a property development business, is property development profitable, how much money do you need to get into property development, how can i start property development with no money, where do property developers get money, what qualifications do i need to be a property developer, what makes a good property developer, do you wish to finish your property development business plan in 1 day, final thought, what does a property development company do, what does a property developer actually do, why do property developers make so much money.

Do you need a business plan to launch or grow your property development business? A business plan or investor presentation of some sort will likely be required to attract investors. A business plan is a crucial foundation for property development companies because it details the management and operations of the company and seeks to attract investors. We have a ready-to-download property development business plan template to make it easier to write your plan.

What is Property Development Business Plan?

A property development business plan is a written document that details your intended business’s structure and operation. The first fallacy is that a property development business plan cannot be changed. In other words, it’s a living, breathing thing that changes as your ideas develop and you flesh out the finer points of the project. It provides a structure within which you can organize and modify your ideas as necessary.

The property development industry requires a business plan that is similar to the standard business plan but with more emphasis on the specifics of the industry. You’ll also give more consideration to the finer points of the property development sector. Your property development business plan will account for any factors that will have an out-of-the-ordinary effect on your company.

You need a business plan if you want to start a property development business or expand an existing one. You can also increase your chances of success in the property development industry by putting together a thorough business plan that you will use to solicit investments and map out the company’s future expansion. Get in touch with us at Business Yield Writers if you struggle to put together a comprehensive plan in writing. Our team has extensive experience in writing successful business plans for the property development industry, and we can use the data and insights gleaned from our collaboration with you to develop a comprehensive plan for meeting your specific goals.

How to Write a Property Development Business Plan

There’s always that anxiety about starting to write a business plan for your business, but you need to know that it’s important that you know how to write a business plan for your property development business. Download our property development business plan template to help you construct a plan of your own.

Although it serves as an introduction to the rest of your business plan, the executive summary is typically written last because it summarises all of the other major sections.

Your executive summary should quickly interest the reader and get them to read the rest of your work. Also, educate them on the nature and current state of your property development business. 

The nature of your company will be described in your company overview.

You could, for instance, focus on a specific kind of property development company, such as:

  • Single-family detached housing: Developers who specialize in single-family detached homes create properties that are not attached to any other structures.
  • Multifamily housing: Developers specializing in multifamily housing construct apartment complexes, condominiums, and other mixed-use projects.
  • Developing and Subdividing Lots:  Subdividing and developing lots involves the purchase of developed or undeveloped land, it’s subsequent clearing and its subsequent sale to builders.
  • Commercial buildings: Developers specializing in commercial properties construct and manage office and retail complexes.

The company overview should provide context for the business in addition to describing the nature of the property development company you intend to run.

Market research is essential to any industry and it allows you to have a deep understanding of the market you’ll be going into. The best way to do it is to do market research first. Look at overall data within the market, as well as more niche data sets. You can use this method to create a successful plan for expanding your business.

Your property development business plan’s customer analysis needs to include specifics about the types of clients you currently work with and those you intend to attract in the future.

Customers can be broken down into groups such as individuals, families, and local businesses.

You should also segment your potential buyers by their demographic and psychographic characteristics.

Also, a customer’s wants and needs can be described in detail using a psychographic profile. A company’s ability to attract and retain customers depends on its ability to identify and meet these needs.

More and more people are opting out of using an agent entirely, and this means you have a wide variety of options when it comes to selling and advertising your property.  Find out what’s new in marketing, and talk about the social media other approaches you’re thinking about trying.

 If you’re trying to convince banks or investors to give you money, this section is crucial. The four pillars of SWOT are material costs, current market values, projections, and competitors; write down everything you can think of that fits into these categories.

Your property development business would also benefit from a business plan, even if you are not actively seeking investors. Your understanding of the risks increases, and you can adjust the rest of your strategy accordingly.

Do not put a description of the company’s staff in the middle of your business plan; instead, put it either at the beginning or the end. Director names and bios, a list of any outside consultants you can expect to work with on a long-term basis, and a clear depiction of the organizational structure should all be included.

This section lays out your financial forecasts, arguably the most crucial part of your business plan. Projected profit margins should account for profit as a percentage of revenue, profit as a percentage of costs, and return on investment, all three of which can be more easily understood than a single numeric value.

You can also learn more about the methods used to evaluate profitability in property development if you need help determining how to arrive at a number for this.

In addition to an annual financial statement , your 5-year financial plan should also include monthly or quarterly projections for the first year. The three main documents that make up your financial statements are the income statement, the balance sheet, and the cash flow statement.

Include a full set of financial projections and any other supporting documents that will help your plan stand out in the appendix. You can also add a detailed plan for your showcase properties and a rundown of the various construction methods you employ.

A persuasive property development business plan for your company requires not only following the aforementioned steps but also making use of a template checklist. Also, the essence of a checklist is to help you keep track of all the necessary processes you need to achieve while starting your new business.

However, we advise you to download our property development business plan template to make sure you follow the right steps while writing your property development plan. Here is a property development business plan templat e checklist:

  • Join a property development community
  • Narrow down your niche
  • Have a financial plan
  • Get your management team
  • Get a business plan
  • Adopt a marketing technique 
  • Manage the properties

To start a property development business, you’ll need to:

  • Pick a name for your company
  • Register your company with Companies House or a formations agent
  • Register your business address
  • Appoint your directors and a company secretary
  • Allocate shareholders and shares
  • Submit your memorandum and articles of association
  • Register for corporation tax

Yes, it is.  if it’s done right, property development is extremely profitable. Once you understand how things work, you can make careful plans and avoid pitfalls so that you can put all of your energy into making as much money as possible.

The scope and scale of a development project will determine the financial resources required to complete it. Generally speaking, you should have between 25% and 35% of the total estimated cost of development.

You can start a property development business with no money with the following means:

  • Visualise Your Success
  • Learn about the Industry
  • Get Some Hands-on Experience
  • Informal Loans
  • Commercial Finance
  • Commercial Mortgages
  • Buy-To-Let Mortgages
  • Auction Finance

You might be asking about how a property developer gets the money . I want you to know that it’s possible that a property developer gets approved for a loan from a private lender who specializes in property investment. In addition to traditional mortgage lenders, there are countless online and offline resources dedicated to finding investors for new construction projects of all sizes.

To begin a career in property development, formal training is unnecessary. However, furthering your education through coursework is one way to boost your credibility with potential clients and expand your knowledge in areas like planning regulations.

The following makes you a good property developer:

  • Know your exit strategy, know your plan
  • Write a business plan
  • Work out your financing
  • Know your target audience
  • Have a vision

Creating a business plan from scratch is a tough task, especially when it is your first time, but the good news is that you are not alone. However, it’s understandable that you become fixated on a certain aspect of your plan; all you need is some guidance or an already made property development business plan. Here at Businessyield Consult, our experts assist business owners in creating a winning business plan. We’ve assisted numerous companies, and we’re always up for taking on more. Why not get our already made property development business plan today?

Considerations such as the intended audience (whether investors, third parties, or banks) are essential in crafting a successful property development business plan. They need to hear from you directly, and you need to make sure the plan is well-researched and convincing before you approach investors with it.

If you have trouble composing one, you can choose our already-made property development business plan to get your business running.

They make a living erecting new structures and restoring older ones to resell at a profit.

Property developers are responsible for overseeing the entire process of designing, obtaining approval for, building, and selling new properties, including managing architects, builders, real estate agents, and other third parties.

Property developers generate a profit when they sell a piece of land for more than it’s worth. They accomplish this by constructing multiple homes on a single lot and subsequently subdividing them into smaller units.

Property developers generate a profit when they sell a piece of land for more than it's worth. They accomplish this by constructing multiple homes on a single lot and subsequently subdividing them into smaller units.

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A Sample Property Development Business Plan Template

Are you about starting a real estate development company? If YES, here is a complete sample property development business plan template you can use for FREE. Okay, so we have considered all the requirements for starting a property development business.

We also took it further by analyzing and drafting a sample property marketing plan template backed up by actionable guerrilla marketing ideas for property development businesses. So let’s proceed to the business planning section.

Why Start a Property Development?

It is therefore no doubt that housing is one very essential ingredient to life. The moment one is able to find a place of abode, there comes a form of huge relief. It is for that reason that the need for the government of different parts of the world to provide basic shelter for its citizens cannot be over flogged.

Every day there are an avalanche of people who dive into the property development business because they know how lucrative this trade is and how money spinning it becomes when one is able to get a hang of it. This is why those who have scaled through the teething stage of the business know that adequate planning is one of the hurdles that just must be scaled so as to get things right.

1. Industry Overview

The property development industry falls into the real estate category and it is indeed a very large industry that has the potential to make entrepreneurs millionaire within a short period of time. Property development industry is a many-sided business that covers all aspect of activities, ranging from acquiring raw lands, to selling or renting or leasing of fully finished and furnished properties.

In essence, developers are responsible for turning ideas into real properties; i.e. they acquire lands, they finance real estate deals, they engage in building projects and they sell, rent, lease and even manage properties on behalf of their clients.

Beyond every reasonable doubt, one of the most profitable, creative and interesting aspect of the real estate industry is property development. As a matter of fact, developers are major players when it comes to determining the prices of properties. Although this type of business venture can be risky, but in order to make it big in the trade as a property developer, you have got to just take calculated risks.

Just like all other investment vehicles, there are potential down sides that you need to look out for as a property developer. One of the major risks in property development is a sudden down turn in the economy. Property development could take a period of two to three years from conception to completion, depending on the size of the project and the cash flow.

As a matter of fact, some projects could even take much longer than that. Because of the time frame involved in developing properties from start to finish, loads of unanticipated things could crop up and it falls in the thick of property cum economy downturn which is not good for the business considering the investment that has gone into the project.

Another factor that is of major concerns and a threat to property development business generally could be cost increase as a result of inflation, currency devaluation as well as economic challenges.

Unforeseen delays from the part of government agencies, litigation and also delays from contractors could lead to substantial cost increase especially if the project is heavily dependent on bank loans. If perhaps during this period there is a change in the supply and demand dynamics of the property sector, the project could as well be affected negatively.

As a property developer, it is very important to be creative, to be able to use your ideas to meet the rapidly changing needs of the society when it comes to properties; you should be able to convert a slum into a beautiful city, if indeed you want to become a major player in the real estate industry.

Over and above, the property development sector is known to be a major contributor in the economy of many nations of the world and the industry is notable for producing some of the richest men in the world.

2. Executive Summary

Solorio’s® Property Development Company is a property development company that will be based in 530 Madison Avenue New York, NY 10033, USA. Our aim of starting this business is to work in tandem with the government of the united states of America to deliver affordable homes and properties for all classes of people in the United States of America.

Our Head Office will be located in New York City, but we will have our branch offices in major cities in all regions of the United States of America. During the first two years of operation we would have set up our offices in the following locations; Las Vegas, Washington, DC, Dallas, Texas and Boston.

Solorio’s® Property Development Company is going to be a self-administered and a self-managed real estate investment trust (REIT). We will work towards becoming one of the largest owners, managers, and developers of first-class properties (accommodations, public buildings and office properties) in the United States of America.

We are quite aware that property development business requires a huge capital base, which is why we have perfect plans for steady flow of cash from private investors who are interested in working with us. We can confidently say that we have a robust financial standing and we are ready to take on any property development deal that comes our way.

As part of our plans to make our customers our number one priority and to become the leading property development company in New York City, we have perfected plans to work with our clients to deliver projects that can favorably compete with the best in the industry, at an affordable and reasonable price within the stipulated completion date barring any unforeseen circumstance and also to generate great value from any property that we manage (both for our clients and for the company).

Solorio’s® Property Development Company will become a specialist in turning slums into beautiful cities and turning a run –down and dilapidated building into a master piece. And that hopefully will be our brand and signature.

Solorio’s® Property Development Company will be owned majorly by Shannon McKenzie and family. Shannon McKenzie is a property guru that has worked with top Real Estate Companies in the United States of America for many years; prior to starting his own business. Other investors with same investment ideology whose name cannot be mentioned here for obvious reasons are also part owners of the business.

3. Our Products and Services

Solorio’s® Property Development Company will be involved in the core real estate business and because we aspire to become one of the leading property development company in New York City, we have decided to explore every available means of generating money from Property Development. Our business offering can are listed below;

  • Developing Properties for our Clients
  • Leasing of Properties
  • Renting of Properties
  • Selling of Fully Furnished Properties
  • Selling of Landed Properties
  • Leasing of Bare Land
  • Manage Properties and Facility for Clients
  • Property Makeover Services
  • Real Estate Consultancy and Advisory Services

4. Our Mission and Vision Statement

  • To deliver affordable and quality properties to all classes of people in the United States of America.
  • At Solorio’s® Property Development Company, our mission and values is to help people and businesses in the United States of America and throughout the world realize their dreams of owning properties.

Our Business Structure

Solorio’s® Property Development Company is aiming to be amongst the leading property development companies in New York City, and the only way for us to attain this position is to structure the business for growth and to hire the best hands we can get in the industry.

We want to build a team that will work together towards achieving the company’s goal and also a business with standard structure and processes; a business that runs on auto pilot. In view of the above, we have made provisions for the following positions in our organization;

  • Chief Executive Officer

Project Manager

Civil Engineer

  • Structural Engineer
  • Quantity Surveyor

Land Surveyor

Company’s Lawyer/Secretary

Admin and HR Manager

Business Developer

  • Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

  • 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
  • Reports to the board
  • Responsible for the planning, management and coordinating all projects on behalf of the company
  • Supervise projects
  • Ensures compliance during project executions
  • Provides advice on the management of projects
  • Responsible for carrying out risk assessment
  • Using 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.
  • Responsible for preparing bids for tenders, and reporting to clients, public agencies and planning bodies
  • Ensures that sites meet legal guidelines, and health and safety requirements
  • Assesses the environment impact and risks connected to projects
  • Responsible for judging whether projects are workable by assessing materials, costs and time requirements
  • Draws up blueprints, using Computer Aided Design (CAD) packages
  • Discusses requirements with the client and other professionals (e.g. architects and project managers et al)
  • Responsible for managing, directing and monitoring progress during each phase of a project
  • Responsible for creating building designs and highly detailed drawings both by using the hands and by using specialist computer – aided design (CAD) software
  • Working around constraining factors such as town planning legislation, environmental impact and project budget
  • Writes and presents reports, proposals, applications and contracts
  • Adapts plans according to circumstances and resolving any problems that may arise during construction
  • Works with project team and management to achieve a common goal
  • Responsible for applying for planning permission and advice from governmental new building and legal department.
  • Responsible for undertaking land surveys/measurements using a variety of specialist technical equipment such as theodolites, laser alignment devices and satellite positioning systems et al.
  • Responsible for presenting data to clients
  • Responsible for producing and advising about construction plans and drawings
  • Responsible for advising about technical matters and whether the construction plans are viable
  • 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.
  • Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
  • Responsible for supervising implementation, advocate for the customer’s need s, and communicate with clients
  • 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
  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Responsible for financial forecasting and risks analysis.
  • 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
  • Distributes mails in the organization
  • Handles any other duties as assigned my the line manager

6. SWOT Analysis

In as much as property development business is a very lucrative business, there are loads of investors and entrepreneurs who are interested in owning a business portfolio in the industry, so as such the competition for available business deals will be much.

This is why we invested time and resources to prepare a killer property development marketing plan. Prior to setting up Solorio’s® Property Development Company we employed the services of tested and trusted business and HR consultants to help us conduct critical SWOT analysis for us.

We did this so as to know how to maximize our strength and opportunities and also to look for ways to properly manage our weakness and the threat that we may likely face in the property development industry as a newbie. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Solorio’s® Property Development Company;

Solorio’s® Property Development Company prides itself in the fact that the management team are core professionals and experts in their own chosen fields and they are some of the best in New York City. Despite the fact that we a new property development company, we can confidently say that we have a strong financial strength to handle most of the deals that we will have to handle.

Our weakness could not be farfetched; we are a new property development company, and there is the possibility of clients to think twice before awarding us contracts. Most people would prefer to deal with companies that have been in existence for a long period of time , as against dealing with a new company that they are not sure will deliver as planned.

  • Opportunities:

Our business concepts and our mission and vision put us at an advantage in the industry. We are set to not only work with big money bags but also to work with smaller clients whose wish is just to have a roof over their head. Furthermore, we are certain that the location of our business is going to bring multiple business opportunities to us.

Some of the threats that we are likely going to face as a property development company are unfavorable government policies, global economic downturn and other big money bags that are major players in the property development industry. There is hardly anything we could do as it concerns this threats, other than to be optimistic that things will continue to work for our good.

7. MARKET ANALYSIS

  • Market Trends

It is no longer news that property development involves various stakeholders with various contributions and responsibilities. In property development you have a synergy involving the property owner, the financier, the property developer and a team of technical experts. The property owner may be an individual or a group and could also be a corporate body.

Before now, the interest of most owners is to sell the property to any willing buyer and move on with their life. However, because of the profitability of the business, there are land owners now who are willing to use their property as a leverage to have an equity stake in the project.

This is a win-win for all the parties since the developer too will use the extra cash savings to accelerate the completion of the project and also to handle other projects. It is obvious that loads of investors are now very much interested in property development business, because it is one of the quickest means of becoming a millionaire and as a matter of fact, it is rare to see a multi – millionaire who does not have a business portfolio in the real estate industry.

One good thing about the property development industry is that it has room wide enough to accommodate as many investors that wants to dive into the industry. We know that we can achieve our business goals and targets in the property development industry in New York City and the United States, which is why we have mapped out our own marketing and sales strategies.

8. Our Target Market

Our target market cuts across people of different classes 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.

We are in business to make profits at the same we in business to give our customers the opportunities to own their own properties at an affordable price.

Solorio’s® Property Development Company wants to be known as a company that has the interest of the rich, the middle class and the poor in the United States of America. Below is a list of the people and organizations that we have specifically design our products and services for;

  • Families who are interested in renting/leasing or acquiring a property
  • Corporate organizations who are interested in renting/leasing or acquiring their own property/properties
  • Land Owners
  • Properties Owners
  • University Campuses (Private Hostels)
  • Foreign investors who are interested in owning properties in the United States of America
  • The government of the United States of America (Government contracts)
  • Managers of public facilities

Our Competitive Advantage

There are major players who have gotten a grip of the property development business in New York, but that does not deter us from entering the trade to build our business to become one of the top property development businesses in New York City. Solorio’s® Property Development Company has a management team members that are considered experts in their own chosen area of specialization.

Our CEO has a robust experience in the real estate industry and he is bringing the experience to help build Solorio’s® Property Development Company to become a top brand as far as property development business is concern. Of course, we are a new company, but we have been able to build our capital base to be able to handle most of the projects that we will bid for and also to acquire properties for the organization.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Solorio’s® Property Development Company is established with the aim of maximizing the profits in the real estate industry via delivering quality and affordable property to our highly esteemed clients. The property business is wide in scope and there are several means of generating income for the company. Below are the sources we intend exploring to generate income for Solorio’s® Property Development Company;

10. Sales Forecast

Prior to launching Solorio’s® Property Development Company we have serious interest in the industry and we have been able to secure some properties that is still under construction. We are optimistic that the projects / properties will be completed within the next two months and we have concluded plans to put the property for lease.

They are office complexes and it is interesting to know that people are already queuing up to rent / lease the available spaces. We are quite optimistic that we will meet out set target of generating enough income / profits from the first month or operations.

We have critically studied the property market and we have examined our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions;

  • Build/develop at least 2 office complex (3 story building each) within the first 12 months of operation
  • Manage a minimum of 5 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
  • Develop at least one estate within the first 24 months of operations
  • Provide advisory and consultancy services for a minimum of 1 client per month
  • Handle a minimum of 12 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 may differ for different services 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. The property market is structured in such a way that property developers will always make profits from any deal they handle.

  • Marketing Strategy and Sales Strategy

Solorio’s® Property Development Company is aware that there are stiffer competition in the property development market in the United States of America, hence we have been able to hire some of the best business developer to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization.

Our goal is to become one of the leading property development companies in New York City and in every other city where we operate, which is why we have mapped out strategies that will help us take advantage of the available market. Solorio’s® Property Development Company will adopt the following marketing and sales strategies;

  • Introduce our business by sending introductory letters alongside our brochures to all the corporate organizations in New York and other States in the US.
  • 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.

11. Publicity and Advertising Strategy

We have been able to work with our consultants to help us map out publicity and advertising strategies that will help us walk our way into the hearts of our target market. First and foremost, we want our brand to be visible and well communicated, which is why we have decided to work with different classes of people in the society.

All our publicity materials and jingles are done by some of the best hands in the industry. Below are the platforms we intend to leverage on to promote and advertise our property development business;

  • Place adverts on both print and electronic media platforms (real
  • 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+ et al
  • Install our Bill Boards on strategic locations
  • Distribute our fliers and handbills in targeted areas from time to time

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. We are quite aware that there are major players in the property development industry in the United Stated of America who are not interested in small business deals.

Although our prices may not be outrageously lower than what is obtained in the industry, but we are hopeful that whatever price we bill our customer will be amongst the lowest they can get in the industry. The fact that we are going to be billing our clients lower than what is obtainable in the industry does not in any way affect the quality of our properties.

  • Payment Options

Our payment policy is all inclusive because we are quite conscious 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 Here are the payment options that we will make available to our 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 help us achieve our plans without any itches.

13. Startup Expenditure (Budget)

  • The Total Fee for incorporating the Business in New York: $750.
  • The budget for Liability insurance, permits and license: $5,000
  • The Amount needed to acquire a suitable Facility with enough space in New York City (Re – Construction of the facility inclusive): $80,000.
  • The Cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al): $15,000
  • The Cost of Launching a Website: $600
  • Additional Expenditure (Business cards, Signage, Adverts and Promotions et al): $5,000
  • Working capital (investment fund): $3,000,000 (3 Million US Dollar)

Going by the report from our research and feasibility studies, we will need about $3,200,000 (3.2 US Million Dollars) to set up a property development company in New York City. In property development business, the larger your capital base, the greater the opportunities you can access and the more profits you will make.

Despite the fact that we have a working capital of 3 Million US Dollar, we have been able to create a business relationship with our banks so as to easily access loans when the need arises.

Generating Funding/Startup Capital for Property Development Company

  • The CEO Dr. Shavonne McPherson will generate 20 percent of the start – up capital from her personal savings
  • 30% of the capital will be generated from partners and investors
  • 50% of the capital will be sourced from banks

14. Sustainability and Expansion Strategy

Solorio’s® Property Development Company was established with the aim of building a company that will outlive the founders and partners. Part of the vision of the company is to handover the baton of the company from one generation to another generation; hence we have perfected our plans to put the right structures in place that will aid our succession plan.

We are quite aware that the growth of any business depends solely to the business deals or sales they execute per financial year. We will continue to give our marketing team all the supports they would need to continue to deliver and meet all set targets and corporate goals.

Lastly, we will not relent in taking calculated business risks when it comes to investment and taking on new business challenges and new business frontiers.

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 New York City: Completed
  • Conducting Feasibility Studies: Completed
  • Generating capital from the CEO and Business Partners: Completed
  • Applications for Loan from our Bankers: In Progress
  • Writing of business plan : Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents (Tenancy 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 face lift: 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): Completed

More on Real Estate

Financial Model, Business Plan and Dashboard Templates - FinModelsLab

How To Write a Business Plan for Condominium Property Development Business in 9 Steps: Checklist

By alex ryzhkov, resources on real estate condominium development.

  • Financial Model
  • Business Plan
  • Value Proposition
  • One-Page Business Plan
  • SWOT Analysis
  • Business Model
  • Marketing Plan

Welcome to our guide on how to write a business plan for a condominium property development business! In today's ever-growing real estate industry, the demand for residential condominiums continues to rise. According to recent statistics, the global condominium market is projected to reach a value of $905.4 billion by 2027, growing at a CAGR of 6.3% . To ensure your success in this lucrative sector, it is crucial to develop a comprehensive business plan that covers every aspect of your venture. So, let's dive into the nine key steps to help you get started on this exciting journey!

Step 1: Conduct market research. Gain a deep understanding of the current trends, demands, and opportunities in the condominium property market. This will provide valuable insights for your business strategy.

Step 2: Identify your target demographic. Determine the specific market segment you want to cater to. This could include young professionals, families, or retirees, depending on the location and amenities of your condominiums.

Step 3: Analyze your competitors. Study other property developers in your area to identify their strengths, weaknesses, and unique selling points. This analysis will help you differentiate your offerings and stand out in the market.

Step 4: Assess financial feasibility. Conduct a thorough financial analysis to determine the profitability and viability of your project. This includes evaluating costs, potential revenue streams, and return on investment.

Step 5: Develop a marketing and sales strategy. Create a comprehensive plan to promote and sell your condominiums. Consider various marketing channels, pricing strategies, and customer acquisition techniques to attract potential buyers or long-term renters.

Step 6: Establish partnerships with contractors and suppliers. Forming strong relationships with reliable contractors, architects, and suppliers is crucial for timely and high-quality construction and maintenance of your properties.

Step 7: Determine legal and regulatory requirements. Familiarize yourself with the legal and regulatory obligations of developing condominiums in your target region. This ensures compliance with local laws and safeguards your business against potential legal issues.

Step 8: Create a business structure and operating model. Define the organizational structure of your business and establish clear protocols for decision-making, financial management, and overall operations. This structure will enable efficient and effective management of your condominium properties.

Step 9: Outline an organizational and staffing plan. Identify the key roles and responsibilities within your business, ensuring you have the right team in place to support your development projects and property management activities.

By following this nine-step checklist, you'll be well-prepared to write a comprehensive business plan for your condominium property development business. Stay tuned for our in-depth articles on each step, providing valuable insights and practical tips to help turn your vision into a successful reality!

Conduct Market Research

Market research is a crucial step in the process of developing a business plan for a condominium property development business. It helps you understand the current market trends, identify potential customers, and assess the demand for residential condominiums in your target area.

When conducting market research, begin by gathering data on the real estate market in your desired location. Look for information on property prices, rental rates, vacancy rates, and market trends. This data will provide valuable insights into the feasibility of your business idea and help you identify any potential challenges or opportunities in the market.

Next, identify your target demographic . Determine the type of clients you want to attract, such as young professionals, families, or retirees. Understand their needs, preferences, and purchasing power. This information will guide your decision-making process when it comes to pricing, amenities, and design aspects of your condominiums.

Additionally, it's important to analyze your competitors . Study existing residential condominium developments in your target area and assess their strengths, weaknesses, and market share. This analysis will help you differentiate your business and identify unique selling points that will attract customers.

Tips for Conducting Market Research:

  • Utilize online and offline resources to gather market data, such as real estate websites, industry reports, and local government publications.
  • Engage with real estate agents, property managers, and potential customers to gain insights into their preferences and pain points.
  • Consider hiring a professional market research firm to conduct a comprehensive analysis of the market and provide you with valuable data and recommendations.
  • Regularly update your market research to stay informed about changes in market conditions and adjust your business strategies accordingly.

By conducting thorough market research, you will be equipped with the necessary information to make informed decisions and develop a solid business plan for your condominium property development business.

Identify Target Demographic

Identifying the target demographic is a crucial step in developing a successful business plan for a condominium property development business. By understanding the specific needs, preferences, and characteristics of your target audience, you can tailor your offerings and marketing strategies to effectively attract and cater to their demands.

Here are some key steps to help you identify your target demographic:

  • Research the local market: Conduct a comprehensive analysis of the local real estate market to identify trends, demand, and the types of properties that are currently in high demand.
  • Consider location and amenities: Determine the ideal location for your condominium development and analyze the amenities and facilities that potential buyers or renters in that area are looking for.
  • Study buyer profiles: Look into the characteristics and preferences of buyers or renters who are already interested in similar types of condominium properties. This can be done through surveys, interviews, or studying market research reports.
  • Segment your audience: Once you gather enough information, segment your audience based on relevant factors such as age, income level, lifestyle, and preferences. This will help you understand the specific needs and desires of each segment.
  • Consider engaging a market research firm to gather accurate and up-to-date data on your target demographic.
  • Regularly revisit and update your understanding of the target demographic as market conditions and trends can evolve over time.
  • Don't assume that all potential buyers or renters within a specific location have the same preferences. Tailor your offerings to cater to different segments within your target demographic.

By investing time and effort into accurately identifying your target demographic, you can refine your business plan, offerings, and marketing strategies to attract the right customers and achieve long-term success in the competitive condominium property development market.

Analyze Competitors

In order to succeed in the condominium property development business, it is crucial to analyze your competitors thoroughly. By understanding the strengths and weaknesses of your competitors, you can position your business in a unique and competitive way.

Start by identifying your direct competitors, those who offer similar services and target the same demographic as your business. Take note of their pricing, location, amenities, and overall value proposition. Analyze their marketing strategies, customer reviews, and online presence to gain insights into what they are doing well and where they may be falling short.

Important: Identify the unique selling points (USPs) of your competitors and compare them with your own business. This will help you identify areas where you can differentiate your offerings and provide additional value to your target demographic.

Tips for Analyzing Competitors:

  • Visit your competitors' properties to experience their facilities firsthand and assess the quality of their construction and amenities.
  • Monitor their marketing campaigns, including their online presence and social media activities.
  • Read customer reviews and feedback to understand what customers value most and where there may be opportunities for improvement.
  • Stay updated on industry trends and innovations to benchmark your competitors against industry best practices.
  • Network with individuals in the industry to gather information about your competitors' reputation, strengths, and weaknesses.

By thoroughly analyzing your competitors, you will be able to understand the gaps in the market and how you can position your condominium property development business to stand out and attract customers. This analysis will provide valuable insights for developing your marketing and sales strategy, as well as refining your overall business model.

Assess Financial Feasibility

Assessing the financial feasibility of your condominium property development business is crucial to determine if your project is economically viable. By conducting a thorough evaluation of the costs and potential earnings, you can make informed decisions and minimize the risk of financial setbacks. Here are some important steps to consider when assessing the financial feasibility of your business plan:

  • Calculate the total project cost: Begin by estimating all the costs involved in your condominium property development, including land acquisition, construction, marketing, legal fees, permits, and contingency funds. Creating a comprehensive and realistic budget will give you a clear understanding of the financial requirements of your project.
  • Determine the revenue potential: Analyze the projected rental or sale income based on market conditions, location, demand, and pricing strategies. Consider factors such as vacancy rates, rental trends, and market appreciation to estimate the potential return on investment.
  • Conduct a financial analysis: Utilize financial tools such as cash flow projections, net present value, and return on investment calculations to evaluate the financial viability of your project. Assess the financial indicators to ensure that the expected returns meet your investment objectives and align with industry standards.
  • Identify potential risks and mitigation strategies: Identify potential risks that could affect the financial performance of your business, such as economic downturns, changes in market conditions, or construction delays. Develop strategies to mitigate these risks, such as setting aside contingency funds, diversifying your revenue streams, or adjusting your pricing strategies.

Tips for assessing financial feasibility:

  • Seek expert advice: Consult with financial advisors or industry experts who specialize in real estate development to gain valuable insights and guidance throughout the assessment process.
  • Perform sensitivity analysis: Conduct sensitivity analysis by adjusting key variables, such as rental rates or construction costs, to evaluate the impact on your financial projections. This will help you understand the potential risks and uncertainties associated with your project.
  • Regularly review and update your financial projections: As market conditions change, periodically review and update your financial projections to ensure that they remain accurate and reflective of the current economic landscape.

By thoroughly assessing the financial feasibility of your condominium property development business, you can make informed decisions and set realistic expectations. This step is crucial for attracting investors, securing financing, and maximizing the potential return on your investment.

Develop a Marketing and Sales Strategy

Developing a strong marketing and sales strategy is crucial for the success of any business, and a condominium property development business is no exception. This is where you outline the approach you will take to attract potential buyers or long-term renters and convince them to choose your condominiums over competitors in the market.

First and foremost, it is essential to clearly define your target market. Identify who your ideal customers are and understand their needs, preferences, and buying behavior. This information will guide your marketing efforts and help you tailor your messaging to resonate with your target demographic.

  • Focus on branding: Develop a compelling brand identity and communicate it consistently across all marketing channels. This will help differentiate your condominiums from others in the market and build trust and recognition among potential customers.
  • Utilize online marketing: In today's digital age, having a strong online presence is vital. Create a professional website that showcases your condominiums, highlighting their unique features and benefits. Implement search engine optimization (SEO) strategies to improve your website's visibility in online searches. Leverage social media platforms to engage with your target audience and promote your properties.
  • Employ traditional marketing tactics: While online marketing is essential, don't neglect traditional marketing tactics. Consider advertising in local newspapers, magazines, and billboards. Attend industry events and trade shows to network with potential buyers and establish partnerships with key stakeholders in your market.
  • Offer attractive incentives: Incentives can create a sense of urgency and encourage potential customers to take action. Consider offering limited-time promotions, discounts, or added amenities to attract buyers or long-term renters.
  • Build strategic partnerships: Collaborate with real estate agents and brokers who specialize in condominium sales or rentals to broaden your reach. Develop relationships with local businesses, such as relocation companies or property management firms, to generate referrals and expand your customer base.
  • Regularly evaluate and adjust your marketing and sales strategy based on market trends and customer feedback.
  • Utilize data analytics to track the effectiveness of your marketing efforts and make data-driven decisions to optimize your strategy.
  • Stay up-to-date with industry news and advancements to ensure your marketing tactics are in line with current market trends.
  • Consider partnering with local influencers or bloggers who have a strong online presence to promote your condominiums.

Establish Partnerships With Contractors And Suppliers

One of the crucial steps in developing a successful condominium property development business is establishing partnerships with reliable contractors and suppliers. These partnerships play a significant role in ensuring the smooth execution of construction projects and maintaining the quality standards expected by your clientele.

When choosing contractors, it is essential to conduct thorough research and due diligence to find professionals with a proven track record, expertise in condominium development, and a solid reputation in the industry. Look for contractors who have experience working on similar projects and can demonstrate their ability to handle the complexities of condominium construction.

Suppliers, on the other hand, should be selected based on the quality of their materials, competitive pricing, and their ability to meet project timelines. Look for suppliers who offer a wide range of materials and products suitable for your condominium development needs.

Here are some tips for establishing partnerships with contractors and suppliers:

  • Request references and portfolios from contractors to evaluate their previous work and client satisfaction.
  • Obtain multiple bids from contractors to compare pricing and select the most cost-effective option without compromising quality.
  • Establish clear communication channels with contractors and suppliers to ensure effective collaboration throughout the development process.
  • Formalize partnerships through written contracts that clearly outline expectations, project timelines, payment terms, and quality standards.
  • Regularly evaluate the performance of contractors and suppliers to ensure they continue to meet your expectations and maintain the desired level of quality.

By establishing strong partnerships with contractors and suppliers, you can benefit from their expertise, ensure access to high-quality materials, and maintain efficient project timelines. These partnerships will ultimately contribute to the successful development and management of your condominium properties.

Determine Legal And Regulatory Requirements

When starting a condominium property development business, it is crucial to have a thorough understanding of the legal and regulatory requirements that govern the industry. This ensures that your business operates within the boundaries of the law and avoids potential legal issues in the future.

To determine the legal and regulatory requirements for your business, you need to conduct an in-depth analysis of the applicable laws and regulations in the region where you plan to operate. Some key areas to consider include:

  • Zoning and Land Use Regulations: Understand the zoning restrictions and land use regulations in the area where you intend to develop condominiums. Ensure that your plans align with the local zoning requirements and obtain the necessary permits.
  • Building Codes and Safety Regulations: Familiarize yourself with the building codes and safety regulations that pertain to condominium construction. Ensure that your developments meet all the necessary safety standards and obtain the required certifications.
  • Tenant-Landlord Laws: Understand the rights and responsibilities of both tenants and landlords in your jurisdiction. Ensure that your lease agreements and property management practices comply with the applicable tenant-landlord laws.
  • Environmental Regulations: Be aware of any environmental regulations that may affect your condominium property development. Comply with environmental impact assessment requirements and adopt sustainable practices to minimize your environmental footprint.
  • Contracting and Licensing: Familiarize yourself with the contracting and licensing requirements for the construction industry in your jurisdiction. Ensure that your contractors and suppliers are properly licensed and adhere to all legal obligations.

Tips for navigating legal and regulatory requirements:

  • Consult with a real estate attorney or legal expert who is well-versed in condominium property development to ensure compliance and mitigate legal risks.
  • Stay updated with any changes or updates in the laws and regulations that may impact your business operations.
  • Maintain detailed records and documentation to demonstrate your compliance with legal and regulatory requirements.
  • Consider joining industry associations or organizations that can provide guidance and resources on legal and regulatory matters.
  • Establish strong relationships with local authorities and regulators to gain insights and guidance on compliance matters.

By thoroughly understanding and complying with the legal and regulatory requirements applicable to condominium property development, you can ensure that your business operates in a legally sound manner and builds a reputation for trust and integrity.

Create A Business Structure And Operating Model

Creating a solid business structure and operating model is essential for the success of your condominium property development business. This step involves defining the legal and organizational framework that will govern your business operations.

Here are some important considerations:

  • Determine the most suitable legal structure for your business, such as a limited liability company (LLC), partnership, or corporation. Consult with a legal professional to understand the implications and benefits of each option.
  • Define the roles and responsibilities of key stakeholders within your organization, including owners, directors, managers, and employees. This will provide clarity and ensure effective decision-making.
  • Establish clear lines of authority and communication, ensuring that everyone understands their reporting lines and who is responsible for various aspects of the business.
  • Develop an operational plan that outlines the day-to-day activities of your business, including property management procedures, maintenance schedules, and tenant screening processes.
  • Consider implementing a technology infrastructure to support your operations, such as property management software, customer relationship management (CRM) systems, and financial tracking tools.
  • Ensure compliance with all relevant regulations and licensing requirements in your jurisdiction. This may include obtaining the necessary permits, insurance coverage, and certifications.
  • Consider establishing partnerships or joint ventures with other businesses or investors to leverage expertise, resources, and capital.
  • Seek professional advice from lawyers, accountants, and business consultants to ensure your business structure and operating model align with your goals and objectives.
  • Regularly review and update your operating model to adapt to changes in the market, industry trends, and customer preferences.
  • Clearly communicate your business structure and operating model to your stakeholders, including employees, contractors, investors, and potential partners.

By creating a strong business structure and operating model, you position your condominium property development business for long-term success. It provides a foundation for efficient operations, effective decision-making, and scalability as your business grows.

Outline An Organizational And Staffing Plan

An organizational and staffing plan is crucial for the successful implementation and management of a condominium property development business. It outlines the structure of the organization, defines roles and responsibilities, and ensures that the right talents are hired and utilized effectively. Here's how you can create an effective organizational and staffing plan:

1. Define the Organizational Structure: Start by clearly defining the hierarchy and reporting lines within your organization. Determine the key positions and departments that are necessary for running your condominium property development business. This will help establish a clear chain of command and facilitate efficient decision-making and communication.

2. Specify Roles and Responsibilities: Clearly define the roles and responsibilities of each position within your organization. This will ensure that everyone understands their duties and can contribute effectively to the success of the business. Clearly outline the core competencies and skills required for each role.

3. Determine Staffing Requirements: Assess the number of employees needed in each department based on the scale of your condominium property development projects. Consider the various functions such as construction, sales, marketing, finance, and property management. Identify the expertise required for each function and determine whether you will hire full-time employees or outsource certain tasks.

4. Develop a Recruitment Strategy: Create a recruitment strategy to attract and hire the best talent. Define the qualifications, experience, and skills required for each position and develop a plan to source candidates. Consider leveraging online job portals, professional networks, and industry-specific recruitment agencies to find suitable candidates.

5. Training and Development: Provide ongoing training and development programs to enhance the skills and knowledge of your employees. This will help them stay updated with industry trends and best practices, ensuring that they can effectively contribute to the growth and success of your condominium property development business.

Tips for creating an effective organizational and staffing plan:

  • Regularly review and update your organizational structure to adapt to the changing needs of your business.
  • Consider outsourcing certain functions to specialized contractors or service providers to reduce costs and increase efficiency.
  • Clearly define the reporting lines and promote a culture of open communication and collaboration.
  • Regularly assess employee performance and provide feedback to ensure continuous improvement.
  • Develop a succession plan to identify potential future leaders within your organization and groom them accordingly.

An effective organizational and staffing plan sets the foundation for the smooth operation of your condominium property development business. By clearly outlining the structure, roles, and responsibilities within your organization, you can ensure that your business runs efficiently and meets the needs of your clients and stakeholders.

In conclusion, writing a business plan for a condominium property development business is crucial for success. By following the nine steps outlined above – conducting market research, identifying the target demographic, analyzing competitors, assessing financial feasibility, developing a marketing and sales strategy, establishing partnerships, determining legal requirements, creating a business structure and operating model, and outlining an organizational and staffing plan – you can create a solid foundation for your business. With a well-developed business plan in place, you can navigate the complex world of property development and position your condominium business for long-term success.

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Business Plan Writers UK

Are you planning on starting or expanding a property development company and need a business plan ? Investors are likely to request a business plan or investor presentation of some kind. A vital cornerstone for property development companies, business plans give important information about how your business will be run and how it will operate while also working to secure vital funding.

Every company creates something that outlines who they are, what they plan to do and how they plan to do it. How it will be funded, what kind of properties will be acquired, marketing and everything in between, the information gives anyone who reads it a deep look into the ‘nitty gritty’ of the property development company.

Why Do I need A Business Plan For My Property Development Business?

You need one because it’s an essential document providing vital details. The information it gives isn’t just there for investors, and its purpose doesn’t just start once it’s been written.

It’s a Learning Experience

Each individual business plan is exactly that, individual. It’s a daunting thing to undertake, especially not written one before. However, discovering the best way to property development business plan together helps you gain in-depth knowledge of the industry while learning more about your own business.

You’ll also find yourself going back to your business plan frequently and amending it according to new information or new ideas. It becomes an ongoing learning experience that gives you valuable insight into the world of property development

It Ensures You Know The Business Inside And Out

When you’re forced to sit down and actually think about every aspect of your business in painstaking detail, it gives you a detailed and informed plan. People who may opt not to create business plans can have much more scattered ideas about to achieve certain things or run their business to be successful.

Writing your business plan means that not only will you have that super detailed plan, you’ll be able to answer any questions and will have a clear, focused picture of what lies ahead. It means you’ll know your business as well as you know yourself, so you’ll be in sync with it and more adaptable to change.

It Attracts Investors And Funding

The primary goal of your business plan is to attract the interest of investors and secure funding for your business. Property development takes quite a bit of start-up money and it can be a while until you see any profit, so funding and investors can be a necessity.

It also helps you to secure any loans you need, such as bank loans. If you want a business loan, you’ll usually need a business plan complete with financial data and projections so the bank can assess the risk of lending.

What Information Do I Need To Include?

There are a plethora of different things you need to portray in your business plan. There are some sections that all business plans will have, no matter what the industry, and there are some that are unique to property development.

Each business plan will be unique, with some requiring sections that others don’t, but all property development business plans should include the following comprehensive sections:

Acquisition

This includes where you plan to buy property, the price range you wish to purchase in, projected timescales, ideal exit value, construction type and planning permission status. This is a vital part of your business plan and gives you a clear strategy to move forward with.

Funding Strategy

This is the section where you need to outline how you intend to raise the capital you need to purchase properties. Without a solid funding strategy you don’t have a business, so make sure you know exactly how much loan money, personal investment and outside investment you plan on using.

Development Strategy

This is the section where you’ll need to outline exactly how you plan on conducting developments and what kind of properties you’ll be targeting. Will you be doing loft conversions? Extensions? Buying land or existing property? Will planning permission be needed?

Company Structure

This might not seem important, but it is. It should be all ready to write up as you should already know exactly what the structure of the company will be. The easiest option is to set yourself as a limited company, but there are other options available and which one is right for you will depend on your individual business. If you’re unsure or confused about your options, you can always seek professional advice on the matter.

Exit Strategy

You’ll need to think about and outline how you intend to get the money out of the property. You can either sell a developed property or rent it out. It’s an important distinction to make and your investors will want to know. Whether you buy to sell or buy to let will have tax ramifications as well, so make sure you’ve thought it through and have outlined your reasoning.

Arguably the most important aspect of your business, this section outlines your financial projections. Expressed as a percentage and not as a figure, your projected profit margins should cover the amount of profit compared to revenue, the amount of profit compared to cost and your return on investment.

If you’re not sure how to calculate this, you can do some research about how profitability is assessed in property development.

Sales And Marketing

With more and more people going away from the traditional routes of simply using an agent, there are a long list of alternative methods of selling and marketing for you to consider. Do some research about marketing innovations within the industry and discuss any social media, pay per click or any other strategies you have in mind.

SWOT Analysis

SWOT stands for strengths, weaknesses, opportunities and threats. This section is especially important if you want to secure external funding for your business from banks or investors. Make lists of each of the four pillars of SWOT, including costs of materials, current market values, projections, competitors and anything else you can think of that is applicable.

Even if you’re not looking to secure funding for your property development business, it’s still a good idea to do one for your own information. It gives you a bigger picture of the risks involved and you can tailor the rest of your strategy to account for key weaknesses or threats.

Either somewhere near the beginning or end of your business plan, preferably not in the middle, you should outline who will be working for the company. Who the directors are, any consultants you’ll be working with long-term and a diagram of the hierarchy should all be included.

Market Research

Market research is essential to any industry and it allows you to have a deep understanding of the market you’ll be going into. The best way to do it is to do the market research first. Look at overall data within the market, as well as more niche data sets. You can formulate an ironclad development and sales strategy this way.

How Do I Write My Business Plan for Starting a Property Development Company?

The first thing you’ll need to do is research. Each business is different, so each business plan will be different – you shouldn’t just download a template for this. It’s important. It’s personal. It needs to be written from scratch.

Research into the sections you should include, how it should be structured and how to best optimize the way it’s written are good starts. You can download a few templates to give you an idea, but don’t copy them directly.

Once you know what the individual sections of your business plan will be, it’s time to think long and hard about your business.

You’ll need to do some further research into best marketing practices and other areas of your business. Think about what you want to achieve as a company, what you stand for and who you want to be, and translate that into what will work best to help you achieve your goals.

Keep it neat and organized but don’t over-format it. A bunch of different font types, sizes and colours is only going to draw attention away from the content itself – so keep it simple.

Use graphs and visual aids in your document when necessary, and have these professionally created. You can use the help of a graphic designer or, if you have the skills yourself, you can use editing software to create professional-looking graphs. Excel graphs are functional, but they don’t have the same appeal.

Your business plan is important, so don’t cut corners when it comes to putting it together. Do your research, try your best and ask for help from professionals if you need it. Make sure you know exactly what you want to achieve and how before you sit down to get started and you’ll soon have a picture-perfect business plan you can be proud of. If you are serious about making a go of working in this industry, then you should look to invest in a business plan.

If you find it hard to get the right kind of planning and writing down, then you should look to our team here at Business Plan Writers UK . We are experts in property development business plan writing, and can use the information and analysis we do together to help create a clear plan of action to help take your needs further and create a business plan that works.

To find out how we can help with your business plan either call us on  020 8242 1577  or complete the contact form and one of our consultants will get straight back to you.

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How To Write A Real Estate Business Plan

how to write a property development business plan

What is a real estate business plan?

8 must-haves in a business plan

How to write a business plan

Real estate business plan tips

Success in the real estate investing industry won’t happen overnight, and it definitely won’t happen without proper planning or implementation. For entrepreneurs, a  real estate development business plan can serve as a road map to all of your business operations. Simply put, a real estate business plan will serve an essential role in forming your investing career.

Investors will need to strategize several key elements to create a successful business plan. These include future goals, company values, financing strategies, and more. Once complete, a business plan can create the foundation for smooth operations and outline a future with unlimited potential for your investing career. Keep reading to learn how to create a real estate investment business plan today.

What Is A Real Estate Investing Business Plan?

A real estate business plan is a living document that provides the framework for business operations and goals. A business plan will include future goals for the company and organized steps to get there. While business plans can vary from investor to investor, they will typically include planning for one to five years at a time.

Drafting a business plan for real estate investing purposes is, without a doubt, one of the single most important steps a new investor can take. An REI business plan will help you avoid potential obstacles while simultaneously placing you in a position to succeed. It is a blueprint to follow when things are going according to plan and even when they veer off course. If for nothing else, a real estate company’s business plan will ensure that investors know which steps to follow to achieve their goals. In many ways, nothing is more valuable to today’s investors. It is the plan, after all, to follow the most direct path to success.

real estate investing business plan

8 Must-Haves In A Real Estate Business Plan

As a whole, a real estate business plan should address a company’s short and long-term goals. To accurately portray a company’s vision, the right business plan will require more information than a future vision. A strong real estate investing business plan will provide a detailed look at its ins and outs. This can include the organizational structure, financial information, marketing outline, and more.  When done right, it will serve as a comprehensive overview for anyone who interacts with your business, whether internally or externally.

That said, creating an REI business plan will require a persistent attention to detail. For new investors drafting a real estate company business plan may seem like a daunting task, and quite honestly it is. The secret is knowing which ingredients must be added (and when). Below are seven must-haves for a well executed business plan:

Outline the company values and mission statement.

Break down future goals into short and long term.

Strategize the strengths and weaknesses of the company.

Formulate the best investment strategy for each property and your respective goals.

Include potential marketing and branding efforts.

State how the company will be financed (and by whom).

Explain who is working for the business.

Answer any “what ifs” with backup plans and exit strategies.

These components matter the most, and a quality real estate business plan will delve into each category to ensure maximum optimization.

A company vision statement is essentially your mission statement and values. While these may not be the first step in planning your company, a vision will be crucial to the success of your business. Company values will guide you through investment decisions and inspire others to work with your business time and time again. They should align potential employees, lenders, and possible tenants with the motivations behind your company.

Before writing your company vision, think through examples you like both in and out of the real estate industry. Is there a company whose values you identify with? Or, are there mission statements you dislike? Use other companies as a starting point when creating your own set of values. Feel free to reach out to your mentor or other network connections for feedback as you plan. Most importantly, think about the qualities you value and how they can fit into your business plan.

Goals are one of the most important elements in a successful business plan. This is because not only do goals provide an end goal for your company, but they also outline the steps required to get there. It can be helpful to think about goals in two categories: short-term and long-term. Long-term goals will typically outline your plans for the company. These can include ideal investment types, profit numbers, and company size. Short-term goals are the smaller, actionable steps required to get there.

For example, one long-term business goal could be to land four wholesale deals by the end of the year. Short-term goals will make this more achievable by breaking it into smaller steps. A few short-term goals that might help you land those four wholesale deals could be to create a direct mail campaign for your market area, establish a buyers list with 50 contacts, and secure your first property under contract. Breaking down long-term goals is a great way to hold yourself accountable, create deadlines and accomplish what you set out to.

3. SWOT Analysis

SWOT stands for strengths, weaknesses, opportunities, and threats. A SWOT analysis involves thinking through each of these areas as you evaluate your company and potential competitors. This framework allows business owners to better understand what is working for the company and identify potential areas for improvement. SWOT analyses are used across industries as a way to create more actionable solutions to potential issues.

To think through a SWOT analysis for your real estate business plan, first, identify your company’s potential strengths and weaknesses. Do you have high-quality tenants? Are you struggling to raise capital? Be honest with yourself as you write out each category. Then, take a step back and look at your market area and competitors to identify threats and opportunities. A potential threat could be whether or not your rental prices are in line with comparable properties. On the other hand, a potential opportunity could boost your property’s amenities to be more competitive in the area.

4. Investment Strategy

Any good real estate investment business plan requires the ability to implement a sound investment strategy. If for nothing else, there are several exit strategies a business may execute to secure profits: rehabbing, wholesaling, and renting — to name a few. Investors will want to analyze their market and determine which strategy will best suit their goals. Those with long-term retirement goals may want to consider leaning heavily into rental properties. However, those without the funds to build a rental portfolio may want to consider getting started by wholesaling. Whatever the case may be, now is the time to figure out what you want to do with each property you come across. It is important to note, however, that this strategy will change from property to property. Therefore, investors need to determine their exit strategy based on the asset and their current goals. This section needs to be added to a real estate investment business plan because it will come in handy once a prospective deal is found.

5. Marketing Plan

While marketing may seem like the cherry on top of a sound business plan, marketing efforts will actually play an integral role in your business’s foundation. A marketing plan should include your business logo, website, social media outlets, and advertising efforts. Together these elements can build a solid brand for your business, which will help you build a strong business reputation and ultimately build trust with investors, clients, and more.

First, to plan your marketing, think about how your brand can illustrate the company values and mission statement you have created. Consider the ways you can incorporate your vision into your logo or website. Remember, in addition to attracting new clients, marketing efforts can also help maintain relationships with existing connections. For a step by step guide to drafting a real estate marketing plan , be sure to read this guide.

6. Financing Plan

Writing the financial portion of a business plan can be tricky, especially if you are starting your business. As a general rule, a financial plan will include the income statement, cash flow, and balance sheet for a business. A financial plan should also include short and long-term goals regarding the profits and losses of a company. Together, this information will help make business decisions, raise capital, and report on business performance.

Perhaps the most important factor when creating a financial plan is accuracy. While many investors want to report on high profits or low losses, manipulating data will not boost your business performance in any way. Come up with a system of organization that works for you and always ensure your financial statements are authentic. As a whole, a financial plan should help you identify what is and isn’t working for your business.

7. Teams & Small Business Systems

No successful business plan is complete without an outline of the operations and management. Think: how your business is being run and by whom. This information will include the organizational structure, office management (if any), and an outline of any ongoing projects or properties. Investors can even include future goals for team growth and operational changes when planning this information.

Even if you are just starting or have yet to launch your business, it is still necessary to plan your business structure. Start by planning what tasks you will be responsible for, and look for areas you will need help with. If you have a business partner, think through your strengths and weaknesses and look for areas you can best complement each other. For additional guidance, set up a meeting with your real estate mentor. They can provide valuable insights into their own business structure, which can serve as a jumping-off point for your planning.

8. Exit Strategies & Back Up Plans

Believe it or not, every successful company out there has a backup plan. Businesses fail every day, but investors can position themselves to survive even the worst-case scenario by creating a backup plan. That’s why it’s crucial to strategize alternative exit strategies and backup plans for your investment business. These will help you create a plan of action if something goes wrong and help you address any potential problems before they happen.

This section of a business plan should answer all of the “what if” questions a potential lender, employee, or client might have. What if a property remains on the market for longer than expected? What if a seller backs out before closing? What if a property has a higher than average vacancy rate? These questions (and many more) are worth thinking through as you create your business plan.

How To Write A Real Estate Investment Business Plan: Template

The impact of a truly great real estate investment business plan can last for the duration of your entire career, whereas a poor plan can get in the way of your future goals. The truth is: a real estate business plan is of the utmost importance, and as a new investor it deserves your undivided attention. Again, writing a business plan for real estate investing is no simple task, but it can be done correctly. Follow our real estate investment business plan template to ensure you get it right the first time around:

Write an executive summary that provides a birds eye view of the company.

Include a description of company goals and how you plan to achieve them.

Demonstrate your expertise with a thorough market analysis.

Specify who is working at your company and their qualifications.

Summarize what products and services your business has to offer.

Outline the intended marketing strategy for each aspect of your business.

1. Executive Summary

The first step is to define your mission and vision. In a nutshell, your executive summary is a snapshot of your business as a whole, and it will generally include a mission statement, company description, growth data, products and services, financial strategy, and future aspirations. This is the “why” of your business plan, and it should be clearly defined.

2. Company Description

The next step is to examine your business and provide a high-level review of the various elements, including goals and how you intend to achieve them. Investors should describe the nature of their business, as well as their targeted marketplace. Explain how services or products will meet said needs, address specific customers, organizations, or businesses the company will serve, and explain the competitive advantage the business offers.

3. Market Analysis

This section will identify and illustrate your knowledge of the industry. It will generally consist of information about your target market, including distinguishing characteristics, size, market shares, and pricing and gross margin targets. A thorough market outline will also include your SWOT analysis.

4. Organization & Management

This is where you explain who does what in your business. This section should include your company’s organizational structure, details of the ownership, profiles on the management team, and qualifications. While this may seem unnecessary as a real estate investor, the people reading your business plan may want to know who’s in charge. Make sure you leave no stone unturned.

5. Services Or Products

What are you selling? How will it benefit your customers? This is the part of your real estate business plan where you provide information on your product or service, including its benefits over competitors. In essence, it will offer a description of your product/service, details on its life cycle, information on intellectual property, as well as research and development activities, which could include future R&D activities and efforts. Since real estate investment is more of a service, beginner investors must identify why their service is better than others in the industry. It could include experience.

6. Marketing Strategy

A marketing strategy will generally encompass how a business owner intends to market or sell their product and service. This includes a market penetration strategy, a plan for future growth, distribution channels, and a comprehensive communication strategy. When creating a marketing strategy for a real estate business plan, investors should think about how they plan to identify and contact new leads. They should then think about the various communication options: social media, direct mail, a company website, etc. Your business plan’s marketing portion should essentially cover the practical steps of operating and growing your business.

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Additional Real Estate Business Plan Tips

A successful business plan is no impossible to create; however, it will take time to get it right. Here are a few extra tips to keep in mind as you develop a plan for your real estate investing business:

Tailor Your Executive Summary To Different Audiences: An executive summary will open your business plan and introduce the company. Though the bulk of your business plan will remain consistent, the executive summary should be tailored to the specific audience at hand. A business plan is not only for you but potential investors, lenders, and clients. Keep your intended audience in mind when drafting the executive summary and answer any potential questions they may have.

Articulate What You Want: Too often, investors working on their business plan will hide what they are looking for, whether it be funding or a joint venture. Do not bury the lede when trying to get your point across. Be clear about your goals up front in a business plan, and get your point across early.

Prove You Know The Market: When you write the company description, it is crucial to include information about your market area. This could include average sale prices, median income, vacancy rates, and more. If you intend to acquire rental properties, you may even want to go a step further and answer questions about new developments and housing trends. Show that you have your finger on the pulse of a market, and your business plan will be much more compelling for those who read it.

Do Homework On The Competition: Many real estate business plans fail to fully analyze the competition. This may be partly because it can be difficult to see what your competitors are doing, unlike a business with tangible products. While you won’t get a tour of a competitor’s company, you can play prospect and see what they offer. Subscribe to their newsletter, check out their website, or visit their open house. Getting a first-hand look at what others are doing in your market can greatly help create a business plan.

Be Realistic With Your Operations & Management: It can be easy to overestimate your projections when creating a business plan, specifically when it comes to the organization and management section. Some investors will claim they do everything themselves, while others predict hiring a much larger team than they do. It is important to really think through how your business will operate regularly. When writing your business plan, be realistic about what needs to be done and who will be doing it.

Create Example Deals: At this point, investors will want to find a way to illustrate their plans moving forward. Literally or figuratively, illustrate the steps involved in future deals: purchases, cash flow, appreciation, sales, trades, 1031 exchanges, cash-on-cash return, and more. Doing so should give investors a good idea of what their deals will look like in the future. While it’s not guaranteed to happen, envisioning things has a way of making them easier in the future.

Schedule Business Update Sessions: Your real estate business plan is not an ironclad document that you complete and then never look at again. It’s an evolving outline that should continually be reviewed and tweaked. One good technique is to schedule regular review sessions to go over your business plan. Look for ways to improve and streamline your business plan so it’s as clear and persuasive as you want it to be.

Reevauating Your Real Estate Business Plan

A business plan will serve as a guide for every decision you make in your company, which is exactly why it should be reevaluated regularly. It is recommended to reassess your business plan each year to account for growth and changes. This will allow you to update your business goals, accounting books, and organizational structures. While you want to avoid changing things like your logo or branding too frequently, it can be helpful to update department budgets or business procedures each year.

The size of your business is crucial to keep in mind as you reevaluate annually. Not only in terms of employees and management structures but also in terms of marketing plans and business activities. Always incorporate new expenses and income into your business plan to help ensure you make the most of your resources. This will help your business stay on an upward trajectory over time and allow you to stay focused on your end goals.

Above all else, a  real estate development business plan will be inspiring and informative. It should reveal why your business is more than just a dream and include actionable steps to make your vision a reality. No matter where you are with your investing career, a detailed business plan can guide your future in more ways than one. After all, a thorough plan will anticipate the best path to success. Follow the template above as you plan your real estate business, and make sure it’s a good one.

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  • A Step-by-Step Guide to Writing a Rental Property Business Plan

If you’re planning on buying rental property, you’re going to need a business plan.

While this, admittedly, sounds incredibly dull and complex, creating a business plan can often separate the best real estate investors from the rest.

Although it may be tempting to dive right in and start earning your (hopeful) millions right away, a rental property business plan can massively increase your chances of success and help you make the right decisions.

And the best part? It doesn’t have to be complicated. By reading this article, you can find out how to build the perfect rental property business plan in just six simple steps.

Topics on this page include:

  • Buy to let business plan example
  • How to write a rental property business plan
  • How to pick the right area for an investment

We’ve also created a downloadable (and completely free) property business plan template. All you need to do is fill out your details in the sign-up form below for instant access!

Without further ado, let’s find out how to write a plan to start building a rental property business.

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  • What Is a Property Business Plan and What Does it Consist of?

Before you make any decisions, let’s quickly explain what a property investment business plan consists of, and why you should spend the time making one.

Simply put, a rental property business plan outlines what you hope to achieve with your venture.

It doesn’t have to be a 30-minute PowerPoint presentation or a 1,000-word essay. In fact, the most effective business plans are simple, concise, and easy to commit to memory.

To make an effective one, there are three central aspects to make an ideal rental business plan.

You’ll need to think about:

  • Where you are now – this includes your available finances and how much money you’re willing to spend.
  • Your goals – think about where you want to get to, which can include an accurate financial goal to help you achieve specific dreams.
  • Your chosen strategy – by picking the right strategy that aligns with your goals, you’ll be able to bridge the gap between your current situation and your dream after real estate investing.

We’ll discuss each of these, plus two effective tips, in the following five sections.

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  • Step 1: Assess Your Starting Point 

Every journey has a start point, and knowing yours will help determine exactly what sort of rental property investment you’re aiming for.

To complete this step, there are a few questions you need to honestly ask yourself.

  • How much money do you have to invest?
  • How much time do you have available to manage your property?
  • Do you have the needed skills and knowledge to be an effective landlord?

The first point is likely the most important: Can you afford this investment?

This includes assessing your available funds, thinking about how much you’re willing to spend, and working out how you will pay for your investment.

The reality is property can be expensive, surpassing over £285k in March 2023, which was £11,000 higher than in 2022.

In our blog post,  how much money do you need to invest in property , we calculated that you’ll need about £30k as a minimum to buy a property worth £100k, which is on the lower end of the spectrum.

That’s not to mention the ongoing costs you’ll likely need to contend with, including potential ground rent, property management costs, maintenance costs, and mortgage payments.

Be sure to speak to a mortgage broker to determine what sort of finances you have available, and ensure you set some money aside (six months’ wages is recommended) in an emergency fund to help you enter your first property investment with a better sense of financial security.

With a clear view of your finances in order, you can start accurately assessing opportunities on the property market and start fleshing out your rental property business plan.

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  • Step 2: Think About Your Goals 

Once you know what you’re starting with as an investor in terms of budget and knowledge base, the next step of your property business plan should look at your goals.

Setting goals is an essential part of any property journey as it allows you to outline the reasons why you’re investing and paint a clear picture of what you hope to achieve.

It goes without saying that the main reason that a lot of people invest is to make money, but it’s important to look a little deeper than that for your investment property business plan.

When creating a property business plan, the most common investment goals are as follows:

  • Saving an attractive retirement fund.
  • Saving money for life events.
  • Increasing disposable income and passive income for financial freedom.

But while having these goals in mind is important, the best way to develop your rental property business plan is to put actual numbers behind each goal.

Instead of saying, “I want to have more money each month to fund my lifestyle” you should assess deeper and put a number behind this – let’s say £5k a month.

By doing this, you can accurately assess your local housing market and start building your property portfolio to see what real estate will effectively contribute to this figure.

You also should think about when you want to achieve your goals, which can have a huge impact on the type of property you choose.

Let’s go over two example properties.

  • A purpose-built student apartment in the city centre that is generating 10% annual returns through rental income but won’t grow too much in value.
  • A family home on the outskirts of a city that generates a 5% NET positive cash flow and has huge potential for further capital growth.

In these scenarios, someone hoping to increase their monthly rental income over the next three years would be more suited to the first.

However, those real estate investing for retirement funds would likely want to take the risk and wait for a long period to enjoy a huge cash payout on the family home.

Aside from the money you will have generated, think about your personal goals.

Do you want to be a skilled property professional who manages their rentals with a hands-on strategy and takes on landlord duties on a number of properties? Or do you want to own a portfolio of properties with a hands-off strategy, working with a rental/letting management company that takes care of all of the day-to-day duties?

If you have another career that you think will dominate a lot of your time and attention in the foreseeable future, your personal goals may be more fitted to an investment property business plan that allows you to juggle both your career and your investments.

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  • Step 3: Create Your Strategy 

Step three of your property venture journey is likely going to be your most important and is often the main factor that separates the most successful investors from the biggest failures.

For most people’s goals, one property simply won’t be enough, with the average UK rental income valued at £1,199 per calendar month according to the HomeLet rental index.

This is why it’s a smart idea to come up with a strategy to fulfil your long-term ambitions to flesh out your property portfolio.

You can do this in several ways.

  • You can save up your rent and reinvest the profit into a new real estate venture.
  • You can buy properties with lower property prices, at auction or off-plan, to increase your purchasing power.
  • You can flip houses, which means buying properties at a lower market value, adding value, and then quickly re-selling to boost your available cash.

By having a clear vision like this, you will avoid getting stuck in an investment that doesn’t further your goals and can instead focus your time and money on making a good investment.

Choosing a strategy can also involve specifically deciding what type of property you want to invest in.

When it comes to real estate and creating a buy-to-let business plan, there are several different strategies you can consider in your investment decisions – each being differently suited to your skillset and investment goals.

These can include:

  • Residential buy-to-let – the most standard form of buy-to-let that involves buying a flat or house and renting to a tenant. This type of property usually offers the best blend of cash flow and capital growth potential.
  • Purpose-built student accommodation – Another popular type of investment property that consists of buying a property and renting solely to student tenants. PBSA offers lower property prices and comparatively higher rent prices than traditional buy-to-let but has less capital growth potential.
  • HMOs – a house of multiple occupancies is rented out to multiple tenants, increasing potential cash flow and ROI. However, HMOs can be complex, with a tonne of legislation in place that beginner investors may find intimidating.
  • Commercial buy to let – involves the purchasing of an office block or retail space and renting to a company. Commercial properties have longer lease lengths than traditional buy-to-let, but it can be much harder for investors looking to secure financing from buy-to-let mortgages.

If you want to learn more about your options for choosing a rental property, be sure to check out our top 10 list of the best property investment strategies in 2024.

Along with the investment strategy itself, you should also think about your exit strategy.

An exit strategy outlines how and when you plan to exit your investment, which, with a property business plan, will mean selling the property.

Again, your investment goals will play a part in this decision. If you hope to generate as much money as possible for retirement, your exit strategy should look at selling the property sometime before you retire.

Spend some time researching exit strategies to better incorporate this into your buy-to-sell or buy-to-let business plan.

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  • Step 4: Action Your Buy to Let Business Plan With a To-Do List 

Now that you’ve got a business model in place and have nailed the planning process, it’s time to action your business plan.

But where to start? While it might seem daunting for many investors to action their solid plan, the best tip possible is to break down your goals into small actionable individual tasks.

Although your overall goal may be to, say, earn £5,000 a month, you’ll need a series of achievable sub-goals in place before you can reach your golden number.

These sub-goals could be anywhere from securing your first property within three months from now, finding tenants, or simply securing a mortgage broker.

By setting out these goals, you’ll have a much clearer financial plan and vision for your rental property business.

The best way to achieve these goals is to create a to-do list of every task you need to do, both one-off and recurring tasks. You should break some of these tasks into even smaller tasks so you constantly feel like you’re making progress.

For instance, let’s say you decide that you want to buy a city centre apartment for your first investment.

You should first allocate the amount of time you want to do this each day and break down your time into individual websites.

As an example, your tasks could be:

  • Search Rightmove for 20 minutes
  • Search Zoopla for 20 minutes
  • Search RWinvest for 20 minutes
  • Bookmark/favourite any properties that catch your eye.
  • Contact the estate agents/ sales agents to learn more about the properties.

With this, you’ve got a clear pathway, know exactly what you’re going to do, and can tick off each task as it’s completed. Soon enough, you will find the perfect rental property for you, and it will be well underway to create the dream property business.

It’s also important to address that not every task needs to be completed by you. In fact, while you could certainly achieve every aspect of property investment as an individual, if you don’t have the skillset, it would be a mistake not to outsource or reach out to others for help.

For example, if you have a full-time job or don’t have the necessary skills to fulfil your landlord responsibilities, you could hire a property manager. By doing this, a property manager will handle all day-to-day duties and can find tenants on your behalf.

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  • Step 5: Choose the Right Location for Your Target Tenant 

The next step in creating an ideal real estate investment group business plan is to decide on what location you’re investing in.

While many landlords fall into the trap of buying a property that’s close to where they live, this could be a mistake, with the UK rental market notorious for having huge regional variations.

These regional variations can impact every aspect of a property venture, with variations in the rent price you can charge, the purchase price of the property, rental demand, and capital growth.

You’ll want to target the best area possible and consider rental properties with the highest chance of attracting your target tenants.

For starters, let’s discuss how to evaluate if an area is worth an investment. You can do this in a few ways.

  • Research the average property price in the area – You can do this using sites like Zoopla, Rightmove, or the UK House Price Index.
  • Research the average rent in an area – This will be a good indicator of how much you can expect to charge, and you can find this on sites like Zoopla and the HomeLet rental index.
  • Look at past house price growth as an indicator of future growth potential – You can find this on the UK House Price Index, which shows average house prices every month, all the way back to 1968.
  • Think of tenant demand – This is a harder measure to find, but a good indicator is looking at how many rental properties there are in an area and the population, with lots of young people a good indicator of a strong rental market.
  • Familiarise yourself with future capital growth potential – You can achieve this by looking at the latest market predictions from experts like Savills or JLL.

Based on these criteria, the current best locations for rental property include Liverpool, Manchester, Birmingham, Leeds, and Luton. You can learn more by checking out our top 10 list of the  best places to invest in property.

If you live away from any of these areas but still want the benefits involved with starting a rental business there, you can always hire a property management company to fulfil all your landlord responsibilities.

Here at RWinvest, we have helped a huge amount of foreign investors who are looking to invest in areas like Liverpool and Manchester.

Remember, though, that you should avoid buying too many similar properties in one area, no matter how attractive it seems. This is because if a local property market tanks, you don’t want all your eggs in one basket.

To avoid this, it’s a smart idea to diversify your portfolio. You can do this by buying a mixture of student properties and residential properties, and buying them in different areas like Liverpool or Manchester.

Thinking of Your Tenant

While picking the right location is an important step in your rental property business plan, it’s not enough to guarantee a successful investment. For this, you’ll need to think about what your tenant wants from their home and pick a property that aligns with these wishes.

This is true whether you’re buying single-family homes or a city centre apartment targeting young professionals.

Covid-19 and the resulting lockdowns have changed a lot of tenant priorities, with research from Benham and Reeves finding that high-speed WiFi, outside space, and proximity to outside green space is now the top three demands from tenants.

This is significantly different to previous rankings, which saw nearby transport links, fast broadband, and onsite security as the top three.

While it’s a good idea to have a property that offers all tenant priorities, it’s essential you provide the top three desires to maximise your success potential.

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  • Step 6: Consider Forming a Limited Company 

The final step in your rental business plan is to decide if you’re going to form a limited company.

Forming a buy-to-let company has become incredibly popular over the last few years, with 2021 and 2022 breaking the record for the number of new companies set up by buy-to-let landlords.

This is for a good reason, too, with limited companies allowing some investors to save thousands on taxes by paying corporation tax instead of income tax and having access to more mortgage interest relief.

However, there are several downsides to starting a limited company, which include being taxed for taking money out of the company, no capital gains tax allowance, and difficulties securing a buy-to-let mortgage.

While forming limited companies isn’t usually beneficial for those only owning a single property, investors looking to build a property empire could see far higher profits from forming one.

You can learn more about this by reading our full guide on  buying property through a limited company.

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  • Conclusion 

We hope you’ve enjoyed this article about how to write a rental property business plan.

In summary, an effective plan is simple, has a clear intent, and is broken down into smaller tasks.

You can create a property business plan in just six steps.

  • Assess your starting point 
  • Think about your goals 
  • Create your strategy 
  • Action your buy to let business plan with a to-do list 
  • Choose the right location for your target tenant 
  • Consider forming a limited company  

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  • Take the Next Steps With RWinvest in 2024

Once you’ve created a detailed and considered property business plan, you should think about getting started with your investment and putting your business plan for buy to let into action.

The first step in actioning your investment is normally to find a property to invest in, and it’s important to focus on finding an opportunity that’s likely to bring you the highest returns possible.

That’s where RWinvest can help.

Here at RWinvest, we have a range of great investment properties in lucrative UK property investment hotspots, Liverpool and Manchester.

Offering assured yields of up to 7% and prices starting at £154,950, browsing our range of investment opportunities is a great way to put your business plan for buy to let into action.

Get in touch today for a free chat with one of our property consultants and get started with your property investment journey.

For more informative content and guides, take a look at the following suggestions:

  • The Best Way to Invest £100k 
  • The Best Places to Retire in the UK
  • Top Tips for Getting Started in Property Investment

Disclaimer

Reece Pape is a property writer at RWinvest. Reece is passionate about keeping property investors updated on must-have information and housing market news, utilising the latest property market statistics and data.

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

Setting investment goals

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

How to create a rental property business plan (and why you need one)

Last updated: 21 October 2022

Take it from someone who’s spoken to a lot of investors over the last few years: almost everyone who achieves great success started out with a solid plan.

All businesses start out with a plan . Even if that plan is just “I think I can buy this widget for £1 and sell it for £1.50”, it’s still a statement of what the business will do and how it will make a profit.

But many – in fact, most – wannabe property investors start out without even the most basic of plans. Often, people have nothing more than vague thoughts like “ property prices go up, so it’s a good investment ” or “ most wealthy people seem to own property ”.

It might feel like sitting around planning is just delaying you from getting out to look at properties and start making money. But take it from someone who’s spoken to a lot of investors over the last few years: almost everyone who achieves great success started out with a solid plan.

(Or to put it another, more painful way: almost everyone who didn’t start with a plan ends up disappointed with where they end up – however much effort, money and time they put in.)

What does a rental property business plan look like?

It certainly doesn't need to be 100 spiral-bound pages of projections and fancy charts. In fact, the best plan would be so simple that it fits on the back of an index card – meaning that you can commit it to memory and use it to drive every decision you make.

In order to get to that simplicity though, you might need to do some seriously brain-straining thinking first.

It's not easy, but it is simple: your plan basically just needs to set out…

Where you are now

  • Where you want to get to, and
  • What actions you're going to take to bridge the gap

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To give a cheesy analogy, you can't plan a route unless you know where you're starting from.

Working out your starting point is the easiest part, because it involves information that's either known or easily knowable to you.

You'll need to be clear about:

  • The amount of money you've got to invest
  • The amount of savings you can allocate to property investment in future years
  • The time you can invest each week or month
  • The skills and knowledge you can apply to your property business

Note that I said it was the easiest part, but still not easy – because it involves honesty about what you can commit, and self-knowledge to determine where your strengths lie.

Knowing how much money you've got to invest should be straightforward, but it's probably worthwhile speaking to a mortgage broker to check that you'll have borrowing options – because this will determine your total investment figure. A broker will also be able to tell you about your options around releasing equity from your own home, if that's something you want to consider.

I'd also strongly encourage you to consider what “emergency fund” you want to keep in cash, and deduct that from your total investable funds. I suggest having at least six months' expenses in the bank at all times: the last thing you want is to plough every last penny into investments, then lose your job the next day and be unable to pay your bills.

Where you want to get to

So now you know where you're starting from, where do you want to end up? In other words, what's your goal?

Yes, you want to be “rich”, or “secure”, or “build a future” – but what does that actually mean, in pounds and pence terms, for you?

And just as importantly, when do you want to have achieved that?

You might be surprised by how much thought is involved in answering these questions properly. It's easy to throw around terms like “enough to fund my lifestyle” and assume that it might involve an income of £10,000 per month, but it's another matter entirely to look honestly at your ideal lifestyle and determine what a genuinely meaningful figure is.

The same is true for “when” – and it's an often-ignored factor that actually cuts to the heart of the most basic of investment decisions.

For example, take a choice between two properties:

  • Property 1 will give a return on your investment of 15% but will probably never increase in value
  • Property 2 will give a return of 7% but has the potential to double in value over the next decade.

If your goal is to create a certain monthly income within three years, the Property 1 is likely to be a better choice. Growth is unlikely to happen to any great extent over that time, so you need to optimise for cash in the bank right now.

On the other hand, if you have a decade before you want to have achieved your goal, Property 2 is probably the better bet. It very much is a “bet” because you're taking something of a gamble on capital growth, but it's got a lot of time to happen – and when it does, your returns will dwarf the higher rental income you'd have made from the other property.

That's just one example of why making even simple decisions in your property business are impossible without having that most basic ingredient of your plan: where you ultimately want to end up, and when.

So, by this point in the plan you need to:

  • Assess your finances to build up an honest picture of where you are now
  • Put some serious thought into where you want to get to, and when

If you need help with this goal-setting process, I co-own Property Hub Invest which offers free strategy meetings . It's often easier to work this stuff out in conversation with someone who knows their stuff, rather than doing it all in your own head.

That's a great start, but for most people it'll produce an uncomfortable insight: the gap between where you are and where you want to be seems impossibly large! With the resources you've got now, how are you possibly going to reach your goal in a sensible period of time?

Well, that's where it's time to start thinking about the details of the third step: the strategy you'll use to pursue your goal.

A strategy to bridge the gap

The steps you take to get from Point A to Point Z are what's commonly referred to as your strategy – and strategy is a vital component of your business plan.

The way I like to think about strategy is the way you compensate for a lack of cash . It's an unusual way to look at it, but I find it useful – because it tells you (given your timeframe and your goal) how much heavy-lifting your strategy will need to do to keep you on track.

Think of it like this: if you had £10m in the bank and your goal was to make an income of £5,000 per month within a year, you wouldn't need any strategy at all . You could just use your £10m to buy any properties, anywhere – you wouldn't need to maximise the rent, manage them well or even keep them all occupied at all times! You'd be able to buy so much property that you really couldn't fail.

Sure, it'd be a pretty stupid thing to do – you should really have had a more ambitious goal – but you get the point.

Obviously, most of us aren't in that position – and that's why we need a strategy.

So, just what position are you in?

A rule of thumb

A handy way of looking at it is to take the amount of money you've got to invest in property, and assume that you can get a 5% annual return on that money (ROI) – which is a rough rule-of-thumb for a normal property bought with a 75% mortgage.

So, if you've got £100,000, you can generate a (pre-tax) profit of £5,000 per year – or £416 per month.

That's unlikely to be enough to hit most people's goals – but then there's the time factor. If you save up the rental income for 20 years, you'll be able to buy another batch of properties just like the first – so you'll now have income of £832 per month.

If you're happy with that, then you've already got your strategy: buy properties that will give you your desired ROI, then wait!

Portfolio-building strategies

But most people will want more than that: we've hardly been talking about life-changing sums, and 20 years is a long time to wait before you can buy again!

This is where more of an advanced strategy comes in, allowing you to get better results, faster.

This might include:

  • Buying properties and adding value, so you can refinance at the higher value and buy your next property more quickly ( learn more about this strategy )
  • Buying properties at a discount, allowing you again to refinance at the higher value and move on to the next one
  • Turning properties into HMOs, so you can generate a higher ROI on them
  • “Flipping” properties for a profit, so you can replenish your cash more quickly ( read my guide to flipping )

…or something else entirely.

I go into different strategies in enormous detail in my book, The Complete Guide To Property Investment .

Simply appreciating the need for one of these strategies from the start is a really big deal.

Most people don't: they'll rush in, use all their money to buy properties that generate (say) £500 profit per month, then…what? They'll be stuck – because they didn't go in with a plan for how they were going to get to their target number . They'll effectively be starting from scratch, having to scrape together the money to go again.

It's extremely common, and it doesn't surprise me – but it does frustrate me. If they'd started with just a bit of time making a plan, they wouldn't have made this mistake – because it would have become very obvious that they wouldn't reach their goal without applying some strategy.

Any of the strategies I listed (or a different one, or a combination of several of them), when applied effectively, can get you to where you need to be. But that's not to say that all of them will be equally good for you. Each of them has different risk factors, requires different time commitments, are suited to different skill sets, and so on.

That's why this is your business plan: copying someone else's homework isn't going to do you any good, because their skills, attributes and preferences will be different from yours.

For example, one person's plan might be to get their hands dirty by renovating properties for resale – completing two projects per year, and using the profits to buy an HMO. Within five years they'll have five HMOs, which will give them all the income they need.

Someone else might be hopeless at anything hands-on, but a master negotiator. Their plan could be to buy at enough of a discount that they can pull at least half of their funds back out again by refinancing – and keep doing that until in ten years' time they have 15 single-let properties giving them their target income figure.

(That's why when someone emails me asking if their strategy “sounds good”, I have to say that I don't know: usually it sounds like on paper like it would work for someone , but I have no idea if they're the right person to execute it.)

So, coming up with your strategy involves:

  • Starting with an assessment of where you are now
  • Deciding where you want to get to, and by when
  • Seeing how far you'll fall short by just buying “normal” properties
  • Thinking about your own skills, time and preferences to choose which strategy (or strategies) you'll use to fill in the gap

It might take a while, and that's OK – it's not an easy decision . To take the pressure off though, remember: your plan isn't set in stone. It's important to start with a clear vision and not get distracted by every new opportunity that comes your way, but every plan is just a starting point: you'll be seeing what works, reviewing and adjusting course along the way.

Once you've got a strategy down on paper, that's a huge step – and you should congratulate yourself, because it's a step that most people will never make (and will suffer for).

But of course, the act of writing the plan isn't going to magic it into existence: you need to get out there and execute on the plan.

Turning your property business plan into action

Having an appropriate goal and a solid strategy to get you there are essential, sure – but nothing is going to happen until you actually take the steps that are necessary to execute that strategy.

If you don't take the time to identify the steps and make a plan to carry them out, you'll end up in “pulling an all-nighter the day before your homework is due in” mode. And you don't want that: it's no good setting a five-year goal, feeling all virtuous for being such a strategic and big-picture thinker, then realising in four years and 364 days that you've not actually got any closer towards making it a reality!

So let's get those steps in place. And the good news is…it's really simple. (The best things usually are.)

Breaking it down

However big, ambitious and far in the future a goal seems to be, all goals are achieved in exactly the same way : by breaking them down into individual tasks, and working through those tasks one by one.

As you work through those tasks, it’s important to have sub-goals as “checkpoints” along the way.

Sub-goals are how you stay on track: by setting a deadline for each sub-goal, you can make sure that your progress is fast enough. They also keep you motivated, because it means you’ll always have a small “win” on the horizon: you won’t just be looking at the main goal (potentially) years off in the future. Think of them as mile markers at the side of a marathon course.

To put it another way:

Small task + Small task + Small task = Sub-goal Sub-goal + Sub-goal + Sub-goal = Overall goal

It's those small daily tasks that are the foundations of your achievement. And that's the beauty of a good plan: all you need to concentrate on is ticking off your tasks each day, and your overall goal is achieved automatically!

So, this final step in your plan is about breaking that big goal down into sub-goals, and those sub-goals down into bite-sized individual tasks. That's it!

As you break it down, there are a few things I find are useful to think about…

One-off tasks v recurring tasks

Your business will have two types of task:

  • One-off tasks , like finding a mortgage broker
  • Recurring tasks , like viewing properties and making offers

These two types of task will both appear in your weekly, monthly and quarterly to-do lists. A useful way of planning your time is to start by filling in your recurring tasks – like going through portals to find new potential acquisitions every day, and calling agents to follow up on offers once per week – then adding your recurring tasks on top.

By thinking about both types, you'll make sure you're not dropping the ball on the important day-by-day stuff, but you're also not ignoring the big-picture one-offs that are going to make a huge difference to your business in the long run.

The first, simplest step

Just like you break a goal down into sub-goals and sub-goals down into tasks, I favour breaking every one-off task down into the smallest possible unit .

For example, “find a mortgage broker” could be an important one-off task for you, but it's not something you can just sit down and do until it's done. Because it seems nebulous and you can never identify a block of time when you can do it from start to finish, you can end up never doing it at all.

Instead, you'll make yourself feel better by ticking off smaller tasks that seem easier – but are often less important.

The solution is to break every task down into as many sub-tasks as possible. So instead of “find a mortgage broker”, the tasks become :

  • Email 3 contacts to ask for recommendations
  • Post on The Property Hub forum to ask for recommendations
  • Email everyone who is recommended to set up a quick call
  • Draw up a shortlist of 2-3 people to have a longer conversation with
  • Pick a winner

Doesn't that seem much easier already? You can imagine sitting down and bashing out the first task in five minutes right now, then you're underway!

Who will do each job?

Here's a potential lightbulb moment: you don't have to do everything in your business yourself.

Any business has different “functions”, or departments – like sales, manufacturing, and admin. A property business is no exception.

The basic functions of all property businesses are the same:

  • Acquisition
  • Refurbishment
  • Refinancing/selling

The types of task that fall within each function will depend on your business plan. For example, if your aim is to find properties you can buy “below market value”, acquisition could be a major part of the business – involving direct-to-vendor marketing, networking with estate agents, and attending auctions.

On the other hand, if your model involves buying properties that you think will experience strong capital growth, there could be a lot more tasks in the “research” part of the business – and acquisition could be very straightforward once you’ve identified the opportunity itself.

Could you do every task within every function yourself? Maybe.

Could the business achieve better results if you bring in specialists to do what they do best? Definitely .

You could go big and employ an assistant to view properties and make offers for you, or just make sure you outsource functions like management and accountancy to the relevant professionals.

Whatever you do, once you start thinking about your property venture as a business with various departments, you'll start to break away from the idea that this is something you have to do all on your own – and that's a very powerful insight.

OK, this has been a long one – but we've covered a lot of ground.

To recap, those critical steps are:

  • Assess where you are now
  • Work out where you want to be, and by when
  • Outline a strategy to get you there
  • Fill in the detail, to get you from “big picture” to individual steps

It's a process that's worked for me, and I've seen it work for many investors I've encouraged to put it into action too.

Its power is in its simplicity: you take the time to intelligently decide exactly what you need to do, then you figure out a way to (to borrow a registered trademark) just do it . As long as you show up and work through your to-do list each day, the big, scary, long-term goal takes care of itself!

Of course, you'll need to assess your progress and adjust course along the way: nothing will pan out exactly as expected, and there's a lot that can change over a timespan of several years.

But by having your plan, what you won't do is get distracted by every new idea that comes your way – researching HMOs one day, and holiday lets the next – and end up getting nowhere.

(You'd be amazed by how many plan-less people that description fits to a tee.)

So now you know how to put a property business plan together. It's not a plan that will necessarily get you funding from the bank, but it's something more important than that: a plan you can use every day to make sure you stay on track to hit your goals.

The one thing that every successful investor does

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Rental Properties Business Plan Template

Written by Dave Lavinsky

Rental Properties Business Plan

Rental Property Business Plan

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their rental property business. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a rental property business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Rental Properties Business Plan?

A business plan provides a snapshot of your rental property business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Rental Properties Business

If you’re looking to purchase a rental property, multiple rental properties, or add to your existing rental properties business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your rental property business in order to improve your chances of success. Your rental property business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Rental Property Companies

With regards to funding, the main sources of funding for rental properties are personal savings, credit cards, mortgages, 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 rental property 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. Venture capitalists will not fund a rental property company. They might consider funding a rental property company with a national presence, but never an individual location. This is because most venture capitalists are looking for millions of dollars in return when they make an investment, and an individual location could never achieve such results.

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How to write a business plan for a rental property company.

Your business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of rental property you are operating and the status; for example, are you a startup, or do you have a portfolio of existing rental properties that you would like to add to?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the rental properties industry. Discuss the type of rental property you are offering. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of rental properties you are offering.

For example, you might offer the following options:

  • Single family homes – This type of rental property is often owned by a single individual, rather than a company, who acts as both landlord and property manager.
  • Multi-family properties – These types of properties can be subcategorized by the number of units per site. Buildings with 2 – 4 units are the most common (17.5%), while multistory apartment complexes with more than 50 units represent the next-largest, at 12.6% of the industry.
  • Short-Term Rental properties – These are fully furnished properties that are rented for a short period of time – usually on a weekly basis for vacation purposes.

In addition to explaining the type of rental property you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

  • When and why did you start the business?
  • What milestones have you achieved to date? Milestones could include occupancy goals you’ve reached, number of property acquisitions, etc.
  • Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the rental properties industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the rental property industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your rental property business plan:

  • How big is the rental properties industry (in dollars)?
  • Is the market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key suppliers in the market?
  • What trends are affecting the industry?
  • What is the industry’s growth forecast over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential market for your rental property. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population or tourist arrivals.

Customer Analysis

The customer analysis section of your rental property business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: households, tourists, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of rental property you offer. Clearly, vacationers would want different amenities and services, and would respond to different marketing promotions than long-term tenants.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.  

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other rental property companies.

Indirect competitors are other options customers may use that aren’t direct competitors. This includes the housing market, or hotels. You need to mention such competition to show you understand that not everyone who needs housing or accommodation will seek out a rental property.

With regards to direct competition, you want to detail the other rental properties with which you compete. Most likely, your direct competitors will be rental properties in the vicinity.

rental property competition

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

  • What types of customers do they serve?
  • What lease lengths or amenities do they offer?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

  • Will you provide superior properties?
  • Will you provide services that your competitors don’t offer?
  • Will you make it easier or faster for customers to book the property or submit a lease application?
  • Will you provide better customer service?
  • Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a rental property business plan, your marketing plan should include the following:

Product : in the product section you should reiterate the type of rental property business that you documented in your Company Analysis. Then, detail the specific options you will be offering. For example, in addition to long-term tenancy, are you offering month-to-month, or short-term rental?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the properties and term options you offer and their prices.

Place : Place refers to the location of your rental property. Document your location and mention how the location will impact your success. For example, is your rental property located in a tourist destination, or in an urban area, etc. Discuss how your location might draw customer interest.

Promotions : the final part of your rental property marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

  • Advertising in local papers and magazines
  • Reaching out to local websites
  • Social media marketing
  • Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your rental property business, such as customer service, maintenance, processing applications, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect 100% occupancy, or when you hope to reach $X in sales. It could also be when you expect to acquire a new property.  

Management Team

To demonstrate your rental property business’ ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in rental property management. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in real estate, and/or successfully running small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

sales growth

In developing your income statement, you need to devise assumptions. For example, will you have 1 rental unit or 10? And will revenue grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $200,000 on purchasing and renovating your rental property, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $200,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

business costs

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a rental property business:

  • Location build-out including design fees, construction, etc.
  • Cost of equipment like computers, software, etc.
  • Payroll or salaries paid to staff
  • Business insurance
  • Taxes and permits
  • Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your property blueprint or map.  

Putting together a business plan for your rental properties company is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the rental property industry, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful rental properties business.

Rental Properties Business Plan FAQs

What is the easiest way to complete my rental properties business plan.

Growthink's Ultimate Business Plan Template  allows you to quickly and easily complete your Rental Properties Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of rental property business you are operating and the status; for example, are you a startup, do you have a rental properties business that you would like to grow, or are you operating multiple rental property businesses.

Don’t you wish there was a faster, easier way to finish your Rental Properties business plan?

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Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.  

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Other Helpful Business Plan Articles & Templates

Business Plan Template

ProfitableVenture

A Sample Property Development Business Plan Template

By: Author Tony Martins Ajaero

When you talk about property development business, loads of entrepreneurs will back off because they know that it is a business that involves huge startup capital. Beyond every reasonable doubt, one of the most profitable, creative and interesting aspects of the real estate industry in south africa is property development.

As a matter of fact, developers are major players when it comes to determining the prices of properties. Although this type of business venture can be risky, but in other to make it big in the industry as a property developer, you just have to take calculated risks.

Some factors that are major concerns in the property development business are cost increase as a result of inflation, currency devaluation and economic challenges. Unforeseen delays on the part of government agencies, litigation and also delays from contractors can lead to substantial cost increase especially if the project is heavily dependent on bank loans.

If perhaps during this period there is a change in the supply and demand dynamics of the property sector, the project can be affected negatively. Below is a sample property development company business plan template that will help you successfully write yours with little or no stress.

How to Write a Property Development Business Plan for South Africa

1. industry overview.

Property development industry is a many-sided business that covers all activities ranging from acquiring raw land to selling or renting or leasing of fully finished and furnished properties. Developers are responsible for turning ideas into real properties; i.e. they acquire land, they finance real estate deals, they engage in building projects and they sell, rent, lease and manage properties on behalf of their clients.

In 2016, the investment volume in South Africa’s real estate saw a 55.2 percent increase, in spite of economic challenges, weak currency and political uncertainty. The South African listed property industry has risen nearly 9 percent in the first nine months of the year, about double in equities achieved which was 4.82 percent. At 7%, South Africa’s real estate market continues to demonstrate maturity and ongoing resilience.

The South African property sector is valued at R5.8 trillion, according to the latest Property Sector Charter Council’s (PSCC) report. New research shows 75 percent of global real estate investment takes place in highly transparent markets with South Africa ranking 25th out of 109 markets.

Property Divisions in the Pretoria region enjoyed a 49 percent increase in turnover and a 42 percent increase in unit sales. Foreign buyers only make up around 5 percent of new homeowners in South Africa.

Just like all other investment vehicles, there are potential down sides that you need to look out for as a property developer. One of the major risks in property development is a sudden down turn in the economy. Property development could take a period of two to three years from conception to completion depending on the size of the project and the cash flow.

As a matter of fact, some projects can even take much longer than that. Because of the time involved in developing properties from start to finish, loads of unanticipated things could crop up.

The property development cum real estate industry is highly regulated in South Africa and anyone who aspires to start a property development company must apply and obtain a license before they can legally operate in the industry.

Lastly, as a property developer, it is very important to be creative, to be able to use your ideas to meet the rapidly changing needs of the society when it comes to properties.

2. Executive Summary

Lucas Polokwane® Property Development Company is a South African based property development company. Our head office will be located in a centrally located office facility in the heart of Cape Town – Western Cape Province. We chose Western Cape because reports show that the Western Cape will continue to outperform all other areas of the country, remaining the top performing major metro housing market in SA. House price inflation in the region has risen by over 10.35 percent, with no indication of it slowing down.

Although our Head Office will be located in Cape Town, but we will open our branch offices in major cities in South Africa within our first five years of operation. Lucas Polokwane® Property Development Company will engage in property development projects for a wide range of clients. We will work towards becoming one of the largest property development companies in South Africa.

We are quite aware that property development requires huge a capital base, which is why we have perfect plans for steady flow of cash from private investors who are interested in working with us. We can confidently say that we have a robust financial standing and we are ready to take on any opportunity that comes our way in the real estate industry.

As part of our plans to make our customers our number one priority and to become one of the leading property development companies in South Africa, we have perfected plans to adopt international best practices. Lucas Polokwane® Property Development Company has perfected plans that will help us to become a specialist in turning slums into beautiful cities and turning dilapidated buildings into master pieces, and that hopefully will be our brand and signature.

Lucas Polokwane® Property Development Company will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Lucas Polokwane® Property Development Company is owned by Lucas Polokwane and his immediate family members. Lucas Polokwane has a Degree in Building Engineering from the University of Cape Town and he has successfully acquired over a decade of experience prior to starting his own company.

Other investors with the same investment ideology whose names cannot be mentioned here for obvious reasons are going to be part of the business especially as it relates to pooling cash together for property acquisition, renovation and beautification.

3. Our Products and Services

Lucas Polokwane® Property Development Company is going to offer varieties of services within the scope of the property development industry in South Africa. Our intention of starting our property development company is to favorably compete with leading players in the real estate industry both in Western Cape and in the whole of South Africa.

Our business offerings are listed below;

  • Residential additions, alterations and renovations
  • Construction management for residential remodeling
  • Fire and flood restoration
  • Home improvement
  • Porch construction
  • Sunroom additions
  • Kitchen and bathroom upgrades
  • Disaster repairs
  • Manage Properties and Facility for Clients
  • Property Makeover Services
  • Real estate consultancy and advisory services

4. Our Mission and Vision Statement

  • Our vision is to become one of the top 10 property development companies in South Africa within the first 10 years of starting Lucas Polokwane® Property Development Company.
  • Our mission is to help people, businesses, property owners and clients in Cape Town – Western Cape and throughout South Africa develop and remodel their homes, offices and properties to fit into the ideal mental picture they have.

Our Business Structure

Our company’s structure is not entirely different from what is obtainable in the real estate industry. As a matter of fact, we have created a structure that will allow for easy growth for all our employees and also, we have created platforms that will enable us attract some of the best hands in the industry.

We are quite aware that the success of any business lies in the foundation on which the business is built on, this is why we have decided to build our property development company on the right business foundation. We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all our stakeholders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more depending how fast we meet our set target.

Lucas Polokwane® Property Development Company is fully aware of the modus operandi in the property development line of business, hence adequate provision and competitive packages have been prepared for independent sales agents. Our marketing department will be responsible for managing this aspect of our business structure.

Below is the business structure we will build Lucas Polokwane® Property Development Company on;

  • Chief Executive Officer

Project Manager

  • Company’s Lawyer/Secretary

Admin and HR Manager

  • Head of Construction and Renovation
  • Business Developer/Sales and Marketing
  • Customer Service Executive/Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (President):

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions.
  • Creates, communicates and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization
  • Responsible for planning, management and coordinating all projects on behalf of the company
  • Supervises renovation projects
  • Ensures compliance during project execution
  • 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
  • Ensures that project desired result is achieved, the most efficient resources are utilized and different interests involved are satisfied.

Company’s Lawyer/Secretary 

  • Responsible for drawing up contracts and other legal documents for the company
  • Consults and handles all corporate legal processes
  • 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 report for the company
  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Designs job descriptions with KPI to drive performance management for clients
  • Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Defines job positions for recruitment and managing interviewing process
  • Carries out 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

Construction Engineers

  • Responsible for handling property development services
  • Establishes and enforces company’s engineering and construction standards
  • Ensures that renovation / construction work meets or exceeds standards within a designated geographic area.
  • Provides overall direction on assigned construction projects; reviews and makes recommendations on planning and design of projects; negotiates contracts or participates in contract negotiations; monitors day‐to‐day progress and activities on project construction sites.

Marketing and Sales Executive/Business Developer

  • 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 need s, and communicate with clients
  • Finds and qualifies land for development based on company’s land requirements; maintains a land search database; initiates discussions with property owners about the possible sale of property
  • Develops, executes and evaluates new plans for expanding sales
  • Documents all customer contact and information
  • Represents the company in strategic meetings
  • Helps to increase sales and growth for the company
  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managers with financial analyses, 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
  • Distributes mails in the organization
  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Manages administrative duties assigned by the line manager in an effective and timely manner
  • Consistently stays abreast of any new information on the company’s properties that are put up for sale, promotional campaigns etc. to ensure accurate information is supplied to clients when they make enquiries

6. SWOT Analysis

The fact that property development is a very rewarding business in South Africa does not mean that there are no challenges in the industry. Starting a property development business in South Africa comes with its own fair share of challenges as you would have to abide by the law and also compete with entrepreneurs in the real estate business value chain.

In order to compete favorably in the property development industry, we have been able to hire the services of HR consultants to help us conduct critical SWOT analysis for us. Here is a summary of the result of the SWOT analysis that was conducted on behalf of Lucas Polokwane® Property Development Company.

Some of the strengths that we will be bringing to the table in the industry is our robust relations with property owners and properties investment moguls in the whole of South Africa; our access to funding and our team of experts who have cut their teeth in the property development line of business; our commission structure and relationship with freelance real estate agents in Cape Town – Western Cape and other province in South Africa will also count towards our advantage.

As a newbie in the property development line of business, we may have challenges competing with big time property developers in South Africa; that perhaps is part of our weakness.

  • Opportunities:

The opportunities in the property development industry especially in Cape Town – Western Cape is massive considering the fact that reports show that the Western Cape will continue to outperform all other areas of the country, remaining the top performing major metro housing market in S.A. 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 development company operating in South Africa are unfavorable government policies , and global economic downturn; global economic downturn usually affects spending power and the real estate industry is known to encounter decline in sales and profits during this period. 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

A notable trend in the property development industry in South Africa shows that the biggest group of home buyers are millennials; in fact, buyers who are 36 years old and younger continue to purchase homes at a higher rate than other age groups.

The market trend in the property development sector is that there are no fixed profit projections when engaging in a property development deal.

The profit you stand to gain depends on loads of factors amongst which are your attention to details, ability to turn a slum into an edifice and knowing exactly when to seal a property development deal. If you are able to get all the above stated factors right as a property development company, your gains will always be far more than your loss.

Another obvious trend that is common with property development companies in South Africa is that there is also an increased demand for luxury cluster homes in areas like Hyde Park, Atholl, and Morningside. In Gauteng, luxury homes that move away from the noise and congestion of traffic have become popular. High-end buyers are also opting for homes that are still opulent, yet offer more security and convenience.

This explains some of their big sales including the sale of a R33 million French style house in Constantia Upper Cape Town, and a R35 million property in Zimbali.

One thing is certain for every property development company; if they are hardworking, creative and proactive, they will always generate enough income to meet all their overhead and operational cost, keep their business going without struggle and make reasonable profits from all business deals that they are involved in.

8. Our Target Market

As a property development company, our target market cuts across property owners of different class and people from all walks of life. We are coming into the property development industry with a business concept that will enable us work with people of different financial capabilities.

As a matter of fact, our target market is the whole of South Africa and we have put plans in place to recruit freelance agents to represent our business interest wherever they are located in South Africa. Below is a list of the people and organizations that we have specifically designed our services for;

  • Families who are interested in acquiring a decent and well renovated home
  • Corporate organizations who are interested in acquiring their own property
  • Home owners who are interested in developing/remodeling and selling off their homes
  • Properties owners who are interested in remodeling and selling off their properties
  • Foreign investors who are interested in owning properties in South Africa and remodeling the property
  • The government of South Africa (Government contracts)
  • Managers of public facilities who would want to engage property development companies to help them develop/remodel properties under their care

Our competitive advantage

The property development industry is a highly competitive industry. Clients will only hire your services if they know that you can help them remodel their homes to fit into the picture of the ideal home they have in mind.

We are quite aware that to be highly competitive in the property development industry means that you should be able to deliver consistent quality property development jobs and you should be able to meet the expectations of your clients at all times.

Lucas Polokwane® Property Development Company might be a new property development company, but the owner of the business is a guru in the industry and has what it takes to grow a business from scratch to become a top brand within the shortest time possible.

Aside from our robust experience and expertise of our team, we have a very strong online presence that will enable us attract clients from all across South Africa.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business objectives. We will also engage freelance marketing agents on a commission level to help us market our services.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Lucas Polokwane® Property Development Company is established with the aim of maximizing profits in the property development industry. Although we are a property development company, but part of our work force are also licensed real estate agents hence we intend generating additional income from diverse means in the real estate agency.

We have successfully built a vibrant real estate network that covers the whole of South Africa so as to help us build a profitable business. Below are the sources we intend exploring to generate income for Lucas Polokwane® Property Development Company;

10. Sales Forecast

It is a known fact that as long as there are property owners in South Africa, there will always be need to for them to remodel their properties from time to time to conform with the trends in the neighborhood or city.

We are well positioned to take on the challenges that are synonymous to property development businesses in South Africa, and we are quite optimistic that we will meet out set target of generating enough profits from the first months of operation and grow the business beyond Cape Town to other Provinces in South Africa within record time.

We have been able to critically examine the property development line of business, 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 assumptions peculiar to similar startups in South Africa.

  • First Fiscal Year: R500,000
  • Second Fiscal Year: R1.2 million
  • Third Fiscal Year: R1.7 million

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and any major competitor offering the same services we do within the locations where we have a strong business presence. Please note that the above projection might be lower and at the same time it might be higher since some factors are beyond our control.

  • Marketing Strategy and Sales Strategy

We are mindful of the fact that there are competitions in the property development market in South Africa, hence we have been able to hire some of the best business developers to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be equipped to meet their targets and the overall goal of the organization. The training is not restricted to only our full – time employees but would also extend to our freelance brokers.

Our goal is to become one of the leading property development companies in South Africa which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force in the industry.

Lucas Polokwane® Property Development Company is set to make use of the following marketing and sales strategies;

  • Introduce our business by sending introductory letters alongside our brochure to stake holders in the real estate industry
  • Promptness in bidding for properties that are put up for remodeling and development
  • Advertise our business in real estate/properties magazines and websites
  • List our business on yellow pages (local directories)
  • Attend real estate related expos, seminars, and business fairs et al
  • Create different packages for different category of clients in order to successfully remodel or develop their homes/properties
  • Leverage on the internet (social media platforms) and our official website to promote our business
  • Encourage word of mouth marketing especially when we have a home for sale

11. Publicity and Advertising Strategy

We have been able to work with our consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to take the property development industry by storm which is why we have made provisions for effective publicity and advertisement of our company.

Below are the platforms we intend to leverage on to promote and advertise our property development 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
  • Sponsor relevant TV shows so as to be able to communicate our brand and what we do
  • Maximize our company’s website to promote our business
  • Leverage on the internet and social media platforms like Instagram, Facebook, Twitter, LinkedIn, Google+ and other platforms (real estate online forums) to promote our business and list our properties for sale and for lease.
  • Install our billboards in strategic locations all across Western Cape Province
  • Distribute our fliers and handbills in targeted areas from time to time
  • Attend landlord and residents association meetings with the aim of networking and introducing our business.
  • Ensure that all our workers wear our branded shirts and all our vehicles are branded with our company’s logo

12. Our Pricing Strategy

Part of our business strategy is to ensure that we work within the budget of our potential clients to help them develop or remodel their properties to meet their expectations. It is the practice in most parts of the world for properties to be 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 fixing a price for a property development contract. But one thing is certain, we will ensure that we deliver excellent jobs when have we are contracted to do so.

Lastly, we will ensure that we keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to our clients from time to time especially when they recommend clients to us.

  • Payment Options

At Lucas Polokwane® Property Development Company, 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 involve huge amounts of money.

Here are the payment options that Lucas Polokwane® Property Development 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 help us achieve our aims without any hitches and we will also pay our freelance agents (real estate brokers) with same platforms. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our services.

Any agent who intend paying with cash will be directed to deposit the money into our corporate account and then present their payment tellers to us.

13. Startup Expenditure (Budget)

From our market survey and feasibility studies , we have been able to come up with a detailed budget on achieving our aim of establishing a standard and highly competitive property development company in Cape Town – South Africa and here are the key areas where we will spend our startup capital;

  • The total fee for incorporating the business in South Africa – Name reservation application costs R50 and company registration R125
  • The budget for permits and license – R2,000
  • The cost for hiring business consultant – R2,500.
  • The cost for computer software apps (Accounting Software, Payroll Software, CRM Software, Microsoft Office, QuickBooks Pro, Project Management Software) – R7,000
  • The budget for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – R5,400.
  • Cost for payment of rent for a suitable Office facility with enough space in Cape Town – Western Cape for 12 months at R1.76 per square feet in the total amount of – R85,600.
  • The cost for office remodeling (construction of racks and shelves) – R20,000.
  • The cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – R15,000
  • Other start-up expenses including stationery ($500) and phone and utility deposits ( R2,500 ).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – R100,000
  • Working capital (investment fund): R2,000,000 (2 Million Rand)
  • The cost of launching our official website – R600
  • Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – R5,000

Going by our research and feasibility studies, we will need about R2,200,000 ( 2.2 Million Rand ) to set up a property development company in Cape Town – Western Cape.

In the property development business, the larger your capital base, the greater the opportunities you can access and the more profits you will make. Despite the fact that we have a working capital of 3 Million Rand , we have been able to create a business relationship with our banks so as to easily access loans when the need arises.

Generating Startup Capital for Lucas Polokwane® Property Development Company

Lucas Polokwane® Property Development Company is a business that will be owned and managed by Lucas Polokwane, his immediate family members and other business partners. They decided to restrict the sourcing of the startup capital for the business to just three major sources.

  • Generate part of the startup capital from personal savings and sale of stocks
  • Generate part of the startup capital from friends and other extended family members
  • Generate a larger chunk of the startup capital from the bank

N.B: We have been able to generate about R200,000 ( Personal savings R150,000 and soft loan from family members R50,000 ) and we are at the final stages of obtaining a loan facility of 2 million Rand from the bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers they have, the capacity and competence of their employees, their investment strategy and the business structure. If all these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Lucas Polokwane® Property Development Company is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

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

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

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

  • Business Name Availability Check: Completed
  • Business Incorporation: Completed
  • Opening of Corporate Bank Accounts various banks in South Africa: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Renting of Office Facility and remodeling the facility in Cape Town – Western Cape: Completed
  • Conducting Feasibility Studies: Completed
  • Generating capital from the CEO / President and Business Partners: Completed
  • Applications for Loan from our Bankers: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Printing of Promotional Materials: Completed
  • Recruitment of employees: In Progress
  • Purchase of furniture, office equipment, electronic appliances and facility facelift: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business: In Progress
  • Health and Safety and Fire Safety Arrangement: In Progress
  • Establishing business relationship with key players in the industry: In Progress

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Home > Business > Business Startup

How To Write a Business Plan

Stephanie Coleman

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How-to-write-a-business-plan

Starting a business is a wild ride, and a solid business plan can be the key to keeping you on track. A business plan is essentially a roadmap for your business — outlining your goals, strategies, market analysis and financial projections. Not only will it guide your decision-making, a business plan can help you secure funding with a loan or from investors .

Writing a business plan can seem like a huge task, but taking it one step at a time can break the plan down into manageable milestones. Here is our step-by-step guide on how to write a business plan.

Table of contents

  • Write your executive summary
  • Do your market research homework
  • Set your business goals and objectives
  • Plan your business strategy
  • Describe your product or service
  • Crunch the numbers
  • Finalize your business plan

how to write a property development business plan

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Step 1: Write your executive summary

Though this will be the first page of your business plan , we recommend you actually write the executive summary last. That’s because an executive summary highlights what’s to come in the business plan but in a more condensed fashion.

An executive summary gives stakeholders who are reading your business plan the key points quickly without having to comb through pages and pages. Be sure to cover each successive point in a concise manner, and include as much data as necessary to support your claims.

You’ll cover other things too, but answer these basic questions in your executive summary:

  • Idea: What’s your business concept? What problem does your business solve? What are your business goals?
  • Product: What’s your product/service and how is it different?
  • Market: Who’s your audience? How will you reach customers?
  • Finance: How much will your idea cost? And if you’re seeking funding, how much money do you need? How much do you expect to earn? If you’ve already started, where is your revenue at now?

how to write a property development business plan

Step 2: Do your market research homework

The next step in writing a business plan is to conduct market research . This involves gathering information about your target market (or customer persona), your competition, and the industry as a whole. You can use a variety of research methods such as surveys, focus groups, and online research to gather this information. Your method may be formal or more casual, just make sure that you’re getting good data back.

This research will help you to understand the needs of your target market and the potential demand for your product or service—essential aspects of starting and growing a successful business.

Step 3: Set your business goals and objectives

Once you’ve completed your market research, you can begin to define your business goals and objectives. What is the problem you want to solve? What’s your vision for the future? Where do you want to be in a year from now?

Use this step to decide what you want to achieve with your business, both in the short and long term. Try to set SMART goals—specific, measurable, achievable, relevant, and time-bound benchmarks—that will help you to stay focused and motivated as you build your business.

Step 4: Plan your business strategy

Your business strategy is how you plan to reach your goals and objectives. This includes details on positioning your product or service, marketing and sales strategies, operational plans, and the organizational structure of your small business.

Make sure to include key roles and responsibilities for each team member if you’re in a business entity with multiple people.

Step 5: Describe your product or service

In this section, get into the nitty-gritty of your product or service. Go into depth regarding the features, benefits, target market, and any patents or proprietary tech you have. Make sure to paint a clear picture of what sets your product apart from the competition—and don’t forget to highlight any customer benefits.

Step 6: Crunch the numbers

Financial analysis is an essential part of your business plan. If you’re already in business that includes your profit and loss statement , cash flow statement and balance sheet .

These financial projections will give investors and lenders an understanding of the financial health of your business and the potential return on investment.

You may want to work with a financial professional to ensure your financial projections are realistic and accurate.

Step 7: Finalize your business plan

Once you’ve completed everything, it's time to finalize your business plan. This involves reviewing and editing your plan to ensure that it is clear, concise, and easy to understand.

You should also have someone else review your plan to get a fresh perspective and identify any areas that may need improvement. You could even work with a free SCORE mentor on your business plan or use a SCORE business plan template for more detailed guidance.

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Data effective 1/10/23. At publishing time, rates, fees, and requirements are current but are subject to change. Offers may not be available in all areas.

The takeaway

Writing a business plan is an essential process for any forward-thinking entrepreneur or business owner. A business plan requires a lot of up-front research, planning, and attention to detail, but it’s worthwhile. Creating a comprehensive business plan can help you achieve your business goals and secure the funding you need.

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IMAGES

  1. How to Write a Real Estate Business Plan (+ Free Template)

    how to write a property development business plan

  2. FREE 13+ Sample Real Estate Business Plan Templates in MS Word

    how to write a property development business plan

  3. Ultimate Property Development Business Plan: 9-Step Checklist

    how to write a property development business plan

  4. FREE 10+ Rental Property Business Plan Templates in PDF

    how to write a property development business plan

  5. Writing a Business Plan

    how to write a property development business plan

  6. Real Estate Business Plan

    how to write a property development business plan

VIDEO

  1. 44 HOUSES! First Property Development

  2. UNION Office & Residence, Tanah Abang

  3. D9. How to Write an Ideal Real Estate Development Business Plan

  4. How to Start Real Estate Investing With £0

  5. How To Write A Business Plan In 10 Simple Steps!

  6. How to write a business plan for your trade business

COMMENTS

  1. Property Development Business Plan Template (2024)

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

  2. Property Development Business Plan Template

    Property Development Business Plan. Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their property development companies. If you're unfamiliar with creating a business plan, you may think creating one will be a time-consuming and frustrating process.

  3. Writing a Property Development Business Plan [Sample Template]

    A Sample Property Development Business Plan Template. A property development company is a company that is involved in buying land, financing real estate, building, or having builders build and develop projects for commercial purposes. Property development companies renovate and re-lease existing buildings, purchase raw land, and sell developed ...

  4. Ultimate Property Development Business Plan: 9-Step Checklist

    Assessing the competition and market demand is a crucial step in developing a business plan for a property development company. Understanding the landscape of competitors and the level of demand in the market will help you make informed decisions and develop strategies for success. 1. Research your competition: Conduct a thorough analysis of ...

  5. How Do You Write a Property Development Business Plan?

    Your business plan will consider which aspects will affect your business that do not ordinarily impact other businesses. Your property development business plan will cover: Your business's structure, be it sole trader, trust, partnership, or company. Your funding strategy. The type of property you want to develop. Your development strategy.

  6. Real Estate Development Business Plan Template

    Next, provide an overview of each of the subsequent sections of your plan. Give a brief overview of the real estate development industry. Discuss the type of real estate development business you are operating. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your marketing strategy.

  7. How To Write a Business Plan for Property Development in 9 Steps: Checklist

    Here is a nine-step checklist to help you write a comprehensive business plan for property development: Identify the target market and research market trends and demands. Conduct a thorough analysis of the competitive landscape. Determine the feasibility of the property development project. Define the project's objectives, goals, and scope.

  8. Real Estate Developer: get a solid business plan (example)

    A solid business plan must include detailed financial information such as projected income, expenses, cash flow, and balance sheets. As part of your business planning process, you'll be required to predict the revenue for your real estate development venture. Of course, this revenue forecast will have to make sense.

  9. Real Estate Development Business Plan Template (2024)

    Keep your target audience in mind while writing the business plan; 4. Products And Services. The product and services section of a property development business plan should describe the specific services and products that will be offered to customers. To write this section should include the following: List the services:

  10. PROPERTY DEVELOPMENT BUSINESS PLAN: 2023 UK Template & Guide

    Download our property development business plan template to help you construct a plan of your own. #1. Executive Summary. Although it serves as an introduction to the rest of your business plan, the executive summary is typically written last because it summarises all of the other major sections.

  11. 7 Steps to Writing a Real Estate Business Plan (+ Template)

    Community: Building strong, vibrant communities and giving back. Clearly defining your mission, vision, and values lays the foundation for a strong and purposeful real estate business that will help you positively impact your clients' lives and your community. 2. Analyze Your Real Estate Market.

  12. How to write a business plan for a property development company?

    Lastly, address any funding needs in the "ask" section of your executive summary. 2. The presentation of the company. In your property development company business plan, the second section should focus on the structure and ownership, location, and management team of your company.

  13. A Sample Property Development Business Plan Template

    A Sample Property Development Business Plan Template. 1. Industry Overview. The property development industry falls into the real estate category and it is indeed a very large industry that has the potential to make entrepreneurs millionaire within a short period of time. Property development industry is a many-sided business that covers all ...

  14. Master Condo Property Development: 9-Step Business Plan Checklist

    Welcome to our guide on how to write a business plan for a condominium property development business! In today's ever-growing real estate industry, the demand for residential condominiums continues to rise. According to recent statistics, the global condominium market is projected to reach a value of $905.4 billion by 2027, growing at a CAGR of ...

  15. How To Write a Property Development Business Plan

    The primary goal of your business plan is to attract the interest of investors and secure funding for your business. Property development takes quite a bit of start-up money and it can be a while until you see any profit, so funding and investors can be a necessity. It also helps you to secure any loans you need, such as bank loans.

  16. Property Development Business Plan

    Pro Business Plans is a team of professional researchers, writers, designers, and financial. analysts. Speak with an advisor today. GET QUOTE. Speak with Sales (646) 866-7619. This article provides information on what is included in a Property Development business plan and how it is typically structured.

  17. The Perfect Real Estate Investing Business Plan

    Below are seven must-haves for a well executed business plan: Outline the company values and mission statement. Break down future goals into short and long term. Strategize the strengths and weaknesses of the company. Formulate the best investment strategy for each property and your respective goals.

  18. How To Create A Property Business Plan: 6 Simple Steps

    Research the average property price in the area - You can do this using sites like Zoopla, Rightmove, or the UK House Price Index. Research the average rent in an area - This will be a good indicator of how much you can expect to charge, and you can find this on sites like Zoopla and the HomeLet rental index.

  19. How to create a rental property business plan (and why you need one)

    Property 1 will give a return on your investment of 15% but will probably never increase in value. Property 2 will give a return of 7% but has the potential to double in value over the next decade. If your goal is to create a certain monthly income within three years, the Property 1 is likely to be a better choice.

  20. Rental Properties Business Plan Template [Updated 2024]

    Traditionally, a marketing plan includes the four P's: Product, Price, Place, and Promotion. For a rental property business plan, your marketing plan should include the following: Product: in the product section you should reiterate the type of rental property business that you documented in your Company Analysis.

  21. Write your business plan

    Traditional business plans use some combination of these nine sections. Executive summary. Briefly tell your reader what your company is and why it will be successful. Include your mission statement, your product or service, and basic information about your company's leadership team, employees, and location.

  22. A Sample Property Development Business Plan Template

    How to Write a Property Development Business Plan for South Africa 1. Industry Overview. Property development industry is a many-sided business that covers all activities ranging from acquiring raw land to selling or renting or leasing of fully finished and furnished properties. Developers are responsible for turning ideas into real properties ...

  23. How To Write a Business Plan

    Step 2: Do your market research homework. The next step in writing a business plan is to conduct market research. This involves gathering information about your target market (or customer persona), your competition, and the industry as a whole. You can use a variety of research methods such as surveys, focus groups, and online research to ...

  24. 10 Investment Proposal Template to Use [+ Quick Guide]

    Quick Read. An investment proposal is a written document that presents your company to interested investors as a viable investment option. Your investment proposal should include the following key components: the cover page, table of contents, executive summary or about us page, market analysis, value proposition and plan of action, budget and revenue model, team's portfolio, ROI or exit ...