Property Management Company

Words in [brackets] are blanks you fill in with your own details when you adopt this sample in Supreme Plan AI.

Executive Summary

Keystone Property Management is a property management company serving rental property owners in our city and the nearby suburbs. We find and screen tenants, collect rent, handle maintenance and keep owners informed, so owners can enjoy the benefits of rental property without the daily work. Owning a rental property can be a good investment, but many owners are tired of late-night calls, late rent and tenant problems, and some live far away. Many management companies are impersonal or slow. We will win owners by being responsive, transparent about money and careful with tenants and property. Here is what our numbers show. We expect sales of about $76,500 in Year 1, growing to about $306,000 by Year 5 as we add more properties and a leasing and maintenance coordinator. We expect losses of about $17,600 in Year 1 and $11,000 in Year 2 while we build our customer base, then a profit from Year 3 (about $25,300), growing to about $73,300 by Year 5. We need $53,000 in total. That covers $14,100 in startup costs (computers, a key system, inspection tools, license fees, insurance, trust account setup, software and a website) and a cash cushion of about three months of bills. I am putting in $15,000 of my own money, and I am asking for $38,000. I will work from home and at the properties, so no office lease is needed on day one. I am Maria Bennett, the owner. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Keystone Property Management will be a limited liability company (LLC) in Oklahoma, owned by Maria Bennett. We will work from my home office, with property visits and meetings at the properties and cafes. What we believe. Treat owners' properties like our own, treat tenants fairly and respectfully, be clear about money and respond fast. What we offer:
- Tenant finding and screening, with leases and move-in inspections. - Rent collection and monthly owner statements. - Maintenance coordination with trusted vendors. - Inspections and property check-ins. - Renewals, move-outs and legal notices handled by the book. Licenses and insurance. Property management is regulated. In many states, managing property for others, collecting rent and leasing require a real estate or property management license, or working under a licensed broker. Rent and security deposits must usually be held in a separate trust account. Our state requires a real estate license to manage rentals for others, which I will have in place before opening, and I will work under a licensed broker. We follow fair housing laws, landlord-tenant laws and written leases, and we carry errors and omissions and general liability insurance. We do not give legal advice to owners or tenants. Where things stand today. I own two rentals and have managed them for five years, I will have a real estate license in place before opening, and I have a list of reliable vendors.

Problem & Opportunity

Rental property owners near us want steady income and fewer headaches. 1. Late-night calls. Owners are tired of tenant emergencies. 2. Late rent and vacancies. Gaps between tenants and late payments cost money. 3. Unclear statements. Many owners do not know where their money goes. 4. Rules and risk. Fair housing, deposits and evictions have strict rules that owners can get wrong. How we know people want this. Three friends who own rentals asked me to manage theirs last year, and an attorney said she would refer landlords.

Products & Services

What we sell. 1. Monthly management fees. Ongoing management for a monthly fee per unit. Our plan assumes an average of about $95 per unit per month in Year 1, rising to about $106 by Year 5. Direct costs run about $20 per unit per month. We expect about 600 unit-months in Year 1 (about 50 units under management), growing to about 2,336 unit-months a year by Year 5. 2. Leasing commissions. A fee when we find and place a new tenant. Our plan assumes an average of about $650 per lease in Year 1, rising to about $730. Direct costs run about $100 per lease. We expect about 30 leases in Year 1, growing to about 80. Our prices. Monthly management fee $95 per unit. Leasing fee $650 for a new tenant. Maintenance coordination at cost plus 10%. How it works for the customer:
1. A free call with the owner to talk about the property, rent and goals. 2. A signed management agreement with clear fees. 3. Marketing, showings and screening, then a lease and move-in inspection. 4. Monthly rent collection, a clear owner statement and fast maintenance. Gross margin, explained. "Gross margin" is the share of each sale left after paying for materials and direct job costs. Our plan shows about 80% in Year 1. That money pays the owner and crew, vehicle costs, insurance and other bills.

Market Analysis

Who will hire us:
- Owners of single-family rentals, duplexes and small apartment buildings. - Owners who live far away or are too busy to manage. - New landlords who inherited or bought a rental. - Investors building a portfolio. Where we will work. Rental properties within a short drive, starting with three neighborhoods and two nearby towns within 20 minutes of my home. Season. Rentals are busiest in late spring and summer for leasing, and steady for management all year. Monthly fees give steady income, and leasing commissions come in waves. Our plan is careful on purpose. About 50 units in Year 1 is a portfolio one manager can handle well.

Competitive Landscape

Other choices customers have:
1. Larger property management companies. Metro Property Group (a made-up name) charges about 10% of rent; known for size, but slow to respond. 2. Real estate agents who manage a few properties. Convenient, but not their main business. 3. Owners managing themselves. Free, but time-consuming and risky. How we will win customers: responsive service, clear statements, careful screening, fair treatment of tenants and fast maintenance.

Marketing & Sales Strategy

How people will find us. - A simple website for owners, and a free Google business listing with reviews. - Relationships with real estate agents, attorneys, accountants and lenders who work with landlords. - Landlord meetups and a monthly email with tips. - Asking every happy owner for a review and a referral. - Listings of available rentals on major sites, which also attract owners. Marketing budget. About $5,000 a year. The logo, website and business cards are paid for from startup costs.

Operations Plan

How the business runs day to day. Properties and tenants. The owner handles owner relationships, leasing, rent and maintenance coordination. In Year 1 the owner works alone, with trusted vendors. We add one leasing and maintenance coordinator in Year 2 and grow to two by Year 5. Each property has an agreement, a file, a schedule of inspections and a list of approved vendors. Equipment. About $6,000 to start: laptops and phones; key cabinet and lockbox system; inspection tools: camera, tablet and flashlights; printer and scanner; office furniture. We set aside about $1,500 to $2,000 a year for repairs and replacements. Upkeep. Property files, leases and inspection records organized and kept current, vendors vetted regularly and software updated. Safety. Careful screening, written leases, safe showings (never alone with strangers when avoidable), emergency maintenance plans and safe handling of rent and deposits in a trust account. Running costs in Year 1: software and systems about $6,000, marketing to landlords about $5,000, admin and insurance about $7,000. Scheduling and billing. Property management software that collects rent online, pays owners monthly and tracks maintenance requests.

Management & Organization

Who runs the business. Maria Bennett, owner. As owner I will manage properties, find tenants, coordinate maintenance, communicate with owners and handle the money side of the business. I plan to pay myself $55,000 a year in salary in Year 1. Crew. Leasing and maintenance coordinators at about $36,000 a year each (or part-time pay): none in Year 1, one in Year 2, one in Year 3, one in Year 4 and two in Year 5. People who will help us: a bookkeeper or tax preparer, an insurance agent, and a free mentor from SCORE or the Small Business Development Center (SBDC). Kevin Williams serves as a key volunteer advisor.

Milestones Narrative

Our goals and when we plan to reach them. - Before starting: get the license or broker partnership, register the business, set up the trust account and insurance, build the website and sign the first owners. Target start: March 2027. - First year: manage about 50 units and place about 30 new leases, for about $76,500 in sales. - Year 2: add a leasing and maintenance coordinator, about $129,700 in sales, and a loss of about $11,000. - Years 3 to 5: grow to two leasing and maintenance coordinators and about $306,000 in sales by Year 5. Growth depends on hiring good people and winning the work, so treat the later years as goals, not promises. What we check every week: vacancies, rent collected, maintenance requests open, owner statements sent, and cash in the bank.

Funding Request

How much we need and how we will use it. Total needed: $53,000. This number comes from the Funding Need Calculator in this plan. It adds up: - Startup costs of $14,100, listed item by item in the Startup Costs section (about $6,000 for computers, a key system, inspection tools and office basics, $1,500 for license fees, $3,300 for insurance and software setup, $1,500 for trust account setup, contracts and legal review, and $1,800 for a logo, website and business cards). - A cash cushion of about $38,900: the deepest cash dip in the early months plus about three months of bills, so slow weeks do not put the business at risk. Lenders call this "working capital." - Together that comes to about $53,000 (rounded up to the nearest $500), which is the total we are planning for. Where the money comes from: - My own money: $15,000. - Amount requested: $38,000. Kind of funding we are looking for: an SBA microloan through a local community lender. How we will pay it back. We expect losses of about $17,600 in Year 1 and $11,000 in Year 2 while we build our customer base, then a profit from Year 3 (about $25,300), growing to about $73,300 by Year 5. With this funding, the business has money in the bank every year of the plan. The loan is planned at 13% interest over 6 years, the top of the usual range for SBA microloans, so payments of about $763 a month are already included in our cash flow. What we are offering the lender: my personal guarantee and my equipment A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan: - Phase 1: start by managing a few properties for friends and family, or working under a licensed broker, while keeping your current job. Startup can be under $1,500. - Phase 2: once you have more properties than you can handle part-time, set up the trust account and software and follow this plan. To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match. All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- Your resume (one page is fine) and any licenses or certificates. - A personal financial statement (a list of what you own and what you owe; lenders usually provide a form). - Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov). - Proof of insurance, or a quote. - Your real estate or property management license, or your broker agreement. - A sample management agreement and lease. - A list of references and vendors, if you have them. If you don't have any of this yet, no worries - let's continue. The assumptions behind our numbers (change them in the Financials section to match your own):
- Monthly Management Fees: about $95 per unit-month in Year 1, rising to $106; about $20 per unit-month in direct costs; about 600 unit-months in Year 1, growing to 2,336. - Leasing Commissions: about $650 per lease in Year 1, rising to $730; about $100 per lease in direct costs; about 30 leases in Year 1, growing to 80. - Owner salary: $55,000 a year. Crew: $36,000 a year each, from none in Year 1 to two in Year 5. - Other yearly costs in Year 1: software and systems about $6,000, marketing to landlords about $5,000, admin and insurance about $7,000. - Tax rate: 21%. - Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs