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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.

property developers business plan templates

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 business plan for a property development company?

property development company business plan

Creating a business plan for a property development company is an essential process for any entrepreneur. It serves as a roadmap that outlines the necessary steps to be taken to start or grow the business, the resources required, and the anticipated financial outcomes. It should be crafted with method and confidence.

This guide is designed to provide you with the tools and knowledge necessary for creating a property development company business plan, covering why it is so important both when starting up and running an established business, what should be included in your plan, how it should be structured, what tools should be used to save time and avoid errors, and other helpful tips.

We have a lot to cover, so let's get to it!

In this guide:

Why write a business plan for a property development company?

  • What information is needed to create a business plan for a property development company?
  • What goes in the financial forecast for a property development company?
  • What goes in the written part of a property development company business plan?
  • What tool can I use to write my property development company business plan?

Having a clear understanding of why you want to write a business plan for your property development company will make it simpler for you to grasp the rationale behind its structure and content. So before delving into the plan's actual details, let's take a moment to remind ourselves of the primary reasons why you'd want to create a property development company business plan.

To have a clear roadmap to grow the business

Running a small business is tough! Economic cycles bring growth and recessions, while the business landscape is ever-changing with new technologies, regulations, competitors, and consumer behaviours emerging constantly.

In such a dynamic context, operating a business without a clear roadmap is akin to driving blindfolded: it's risky, to say the least. That's why crafting a business plan for your property development company is vital to establish a successful and sustainable venture.

To create an effective business plan, you'll need to assess your current position (if you're already in business) and define where you want the business to be in the next three to five years.

Once you have a clear destination for your property development company, you'll have to:

  • Identify the necessary resources (human, equipment, and capital) needed to reach your goals,
  • Determine the pace at which the business needs to progress to meet its objectives as scheduled,
  • Recognize and address the potential risks you may encounter along the way.

Engaging in this process regularly proves advantageous for both startups and established companies. It empowers you to make informed decisions about resource allocation, ensuring the long-term success of your business.

To anticipate future cash flows

Regularly comparing your actual financial performance to the projections in the financial forecast of your property development company's business plan gives you the ability to monitor your business's financial health and make necessary adjustments as needed.

This practice allows you to detect potential financial issues, such as unexpected cash shortfalls before they escalate into major problems. Giving you time to find additional financing or put in place corrective measures.

Additionally, it helps you identify growth opportunities, like excess cash flow that could be allocated to launch new products and services or expand into new markets.

Staying on track with these regular comparisons enables you to make well-informed decisions about the amount of financing your business might require, or the excess cash flow you can expect to generate from your main business activities.

To secure financing

Whether you are a startup or an existing business, writing a detailed property development company business plan is essential when seeking financing from banks or investors.

This makes sense given what we've just seen: financiers want to ensure you have a clear roadmap and visibility on your future cash flows.

Banks will use the information included in the plan to assess your borrowing capacity (how much debt your business can support) and your ability to repay the loan before deciding whether they will extend credit to your business and on what terms.

Similarly, investors will review your plan carefully to assess if their investment can generate an attractive return on investment.

To do so, they will be looking for evidence that your property development company has the potential for healthy growth, profitability, and cash flow generation over time.

Now that you understand why it is important to create a business plan for a property development company, let's take a look at what information is needed to create one.

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Information needed to create a business plan for a property development company

You need the right data in order to project sales, investments and costs accurately in the financial forecast of your property development company business plan.

Below, we'll cover three key pieces of information you should gather before drafting your business plan.

Carrying out market research for a property development company

As you consider writing your business plan for a property development company, conducting market research becomes a vital step to ensure accurate and realistic financial projections.

Market research provides valuable insights into your target customer base, competitors, pricing strategies, and other key factors that can significantly impact the commercial success of your business.

Through this research, you may uncover trends that could influence your property development company.

You may discover that potential buyers are increasingly interested in energy-efficient homes, or that they could be more likely to prioritize convenience and smart home features. These trends could potentially be revealed through market research for your property development company.

Such market trends play a significant role in forecasting revenue, as they offer valuable data about potential customers' spending habits and preferences.

By incorporating these findings into your financial projections, you can present investors with more accurate information, helping them make informed decisions about investing in your property development company.

Developing the sales and marketing plan for a property development company

As you embark on creating your property development company business plan, it is crucial to budget sales and marketing expenses beforehand.

A well-defined sales and marketing plan should include precise projections of the actions required to acquire and retain customers. It will also outline the necessary workforce to execute these initiatives and the budget required for promotions, advertising, and other marketing efforts.

This approach ensures that the appropriate amount of resources is allocated to these activities, aligning with the sales and growth objectives outlined in your business plan.

The staffing and capital expenditure requirements of a property development company

Whether you are starting or expanding a property development company, it is important to have a clear plan for recruitment and capital expenditures (investment in equipment and real estate) in order to ensure the success of the business.

Both the recruitment and investment plans need to be coherent with the timing and level of growth planned in your forecast, and require appropriate funding.

A property development company might incur staffing costs such as wages for builders, architects, engineers, and project managers, as well as administrative staff, to ensure the property development process runs smoothly. Equipment costs could include a fleet of vehicles for transportation, excavation and building equipment, computers and software for planning and design, and furniture for office spaces.

In order to create a realistic financial forecast, you will also need to consider the other operating expenses associated with running the business on a day-to-day basis (insurance, bookkeeping, etc.). 

Once you have all the necessary information to create a business plan for your property development company, it is time to start creating your financial forecast.

What goes into your property development company's financial forecast?

The objective of the financial forecast of your property development company's business plan is to show the growth, profitability, funding requirements, and cash generation potential of your business over the next 3 to 5 years.

The four key outputs of a financial forecast for a property development company are:

  • The profit and loss (P&L) statement ,
  • The projected balance sheet ,
  • The cash flow forecast ,
  • And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

Your property development company forecasted P&L statement enables the reader of your business plan to get an idea of how much revenue and profits your business is expected to make in the near future.

forecasted profit and loss statement in a property development company business plan

Ideally, your reader will want to see:

  • Growth above the inflation level
  • Expanding profit margins
  • Positive net profit throughout the plan

Expectations for an established property development company will of course be different than for a startup. Existing businesses which have reached their cruising altitude might have slower growth and higher margins than ventures just being started.

The projected balance sheet of your property development company

Your property development company's forecasted balance sheet enables the reader of your plan to assess your financial structure, working capital, and investment policy.

It is composed of three types of elements: assets, liabilities and equity:

  • Assets: represent what the business owns and uses to produce cash flows. It includes resources such as cash, equipment, and accounts receivable (money owed by clients).
  • Liabilities: represent funds advanced to the business by lenders and other creditors. It includes items such as accounts payable (money owed to suppliers), taxes due and loans.
  • Equity: is the combination of what has been invested by the business owners and the cumulative profits and losses generated by the business to date (which are called retained earnings). Equity is a proxy for the value of the owner's stake in the business.

example of forecasted balance sheet in a property development company business plan

Your property development company's balance sheet will usually be analyzed in conjunction with the other financial statements included in your forecast.

Two key points of focus will be:

  • Your property development company's liquidity: does your business have sufficient cash and short-term assets to pay what it owes over the next 12 months?
  • And its solvency: does your business have the capacity to repay its debt over the medium-term?

The projected cash flow statement

A cash flow forecast for a property development company shows how much cash the business is projected to generate or consume.

example of cash flow forecast in a property development company business plan

The cash flow statement is divided into 3 main areas:

  • The operating cash flow shows how much cash is generated or consumed by the operations (running the business)
  • The investing cash flow shows how much cash is being invested in capital expenditure (equipment, real estate, etc.)
  • The financing cash flow shows how much cash is raised or distributed to investors and lenders

Looking at the cash flow forecast helps you to ensure that your business has enough cash to keep running, and can help you anticipate potential cash shortfalls.

It is also a best practice to include a monthly cash flow statement in the appendices of your property development company business plan so that the readers can view the impact of seasonality on your business cash position and generation.

The initial financing plan

The initial financing plan - also called a sources and uses table - is an important tool when starting a property development company.

It shows where the money needed to set up the business will come from (sources) and how it will be allocated (uses).

initial financing plan in a property development company business plan

Having this table helps understand what costs are involved in setting up the property development company, how the risks are distributed between the shareholders and the lenders, and what will be the starting cash position (which needs to be sufficient to sustain operations until the business breaks even).

Now that the financial forecast of a property development company business plan is understood, let's focus on what goes into the written part of the plan.

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The written part of a property development company business plan

The written part of a property development company business plan plays a key role: it lays out the plan of action you intend to execute to seize the commercial opportunity you've identified on the market and provides the context needed for the reader to decide if they believe your plan to be achievable and your financial forecast to be realistic.

The written part of a property development company business plan is composed of 7 main sections:

  • The executive summary
  • The presentation of the company
  • The products and services
  • The market analysis
  • The strategy
  • The operations
  • The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

The executive summary, the first section of your property development company's business plan, serves as an inviting snapshot of your entire plan, leaving readers eager to know more about your business.

To compose an effective executive summary, start with a concise introduction of your business, covering its name, concept, location, history, and unique aspects. Share insights about the services or products you intend to offer and your target customer base.

Subsequently, provide an overview of your property development company's addressable market, highlighting current trends and potential growth opportunities.

Then, present a summary of critical financial figures, such as projected revenues, profits, and cash flows.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

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.

In the structure and ownership part, you'll provide an overview of the business's legal structure, details about the owners, and their respective investments and ownership shares. This clarity is crucial, especially if you're seeking financing, as it helps the reader understand which legal entity will receive the funds and who controls the business.

Moving on to the location part, you'll offer an overview of the company's premises and their surroundings. Explain why this particular location is of interest, highlighting factors like catchment area, accessibility, and nearby amenities.

When describing the location of your property development company, you could highlight the benefits of the area's economic potential. You might point out the area's access to transportation hubs, as well as potential for growth in local businesses. You could also emphasize the potential for strong returns on investment, given the area's potential for growth and development. Additionally, the area could offer a diverse array of amenities and activities that could attract potential buyers and renters. Finally, you could point out the area's potential for further growth, emphasizing the potential for long-term returns.

Finally, you should introduce your management team. Describe each member's role, background, and experience.

Don't forget to emphasize any past successes achieved by the management team and how long they've been working together. Demonstrating their track record and teamwork will help potential lenders or investors gain confidence in their leadership and ability to execute the business plan.

3. The products and services section

The products and services section of your business plan should include a detailed description of the offerings that your company provides to its customers. 

For example, your property development company might offer services such as construction, remodeling, and interior design. Construction services could include the building of new homes, garages, and other structures, while remodeling services could include the renovation of existing homes, kitchens, or bathrooms. Interior design services could help customers choose the right furniture, colors, and style to fit their needs. These services could help customers create their dream home or improve an existing property.

When drafting this section, you should be precise about the categories of products or services you sell, the types of customers you are targeting and how customers can buy them.

4. The market analysis

When presenting your market analysis in your property development company business plan, you should detail the customers' demographics and segmentation, target market, competition, barriers to entry, and any regulations that may apply.

The goal of this section is to help the reader understand how big and attractive your market is, and demonstrate that you have a solid understanding of the industry.

You should start with the demographics and segmentation subsection, which gives an overview of the addressable market for your property development company, the main trends in the marketplace, and introduces the different customer segments and their preferences in terms of purchasing habits and budgets.

The target market section should follow and zoom on the customer segments your property development company is targeting, and explain how your products and services meet the specific needs of these customers.

For example, your target market might include young professionals looking to purchase their first property. These customers are likely to be aged between 25-35, have a steady income, and are looking for a good quality property at an affordable price. They may be looking to invest in a property development project with a potential to increase in value over time.

Then comes the competition subsection, where you should introduce your main competitors and explain what differentiates you from them.

Finally, you should finish your market analysis by giving an overview of the main regulations applicable to your property development company.

5. The strategy section

When writing the strategy section of a business plan for your property development company, it is essential to include information about your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

The competitive edge subsection should explain what sets your company apart from its competitors. This part is especially key if you are writing the business plan of a startup, as you have to make a name for yourself in the marketplace against established players.

The pricing strategy subsection should demonstrate how you intend to remain profitable while still offering competitive prices to your customers.

The sales & marketing plan should outline how you intend to reach out and acquire new customers, as well as retain existing ones with loyalty programs or special offers. 

The milestones subsection should outline what your company has achieved to date, and its main objectives for the years to come - along with dates so that everyone involved has clear expectations of when progress can be expected.

The risks and mitigants subsection should list the main risks that jeopardize the execution of your plan and explain what measures you have taken to minimize these. This is essential in order for investors or lenders to feel secure in investing in your venture.

Your property development company could face a number of risks. For example, there may be a risk of a downturn in the housing market, which could reduce demand for the properties you develop. Additionally, there could be a risk of unexpected costs arising during the development process, which might mean that projects cannot be completed as originally planned.

6. The operations section

In your business plan, it's also essential to provide a detailed overview of the operations of your property development company.

Start by covering your team, highlighting key roles and your recruitment plan to support the expected growth. Outline the qualifications and experience required for each role and your intended recruitment methods, whether through job boards, referrals, or headhunters.

Next, clearly state your property development company's operating hours, allowing the reader to assess staffing levels adequately. Additionally, mention any plans for varying opening times during peak seasons and how you'll handle customer queries outside normal operating hours.

Then, shift your focus to the key assets and intellectual property (IP) necessary for your business. If you rely on licenses, trademarks, physical structures like equipment or property, or lease agreements, make sure to include them in this section.

You could have physical assets such as land or buildings that the property development company may own. Additionally, the company might have intellectual property like brand names, logos, or trademarks associated with the company. These could be used to distinguish the company’s services and products from its competitors.

Lastly, include a list of suppliers you plan to work with, detailing their services and main commercial terms, such as price, payment terms, and contract duration. Investors are interested in understanding why you've chosen specific suppliers, which may be due to higher-quality products or established relationships from previous ventures.

7. The presentation of the financial plan

The financial plan section is where we will present the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of what goes in your property development company business plan, let's look at the solutions you can use to draft yours.

What tool should I use to write my property development company's business plan?

In this section, we will be reviewing the two main solutions for creating a property development company business plan:

  • Using specialized online business plan software,
  • Outsourcing the plan to the business plan writer.

Using an online business plan software for your property development company's business plan

The modern and most efficient way to write a property development company business plan is to use business plan software .

There are several advantages to using specialized software:

  • You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
  • You are guided through the writing process by detailed instructions and examples for each part of the plan
  • You can access a library of dozens of complete business plan samples and templates for inspiration
  • You get a professional business plan, formatted and ready to be sent to your bank or investors
  • You can easily track your actual financial performance against your financial forecast
  • You can create scenarios to stress test your forecast's main assumptions
  • You can easily update your forecast as time goes by to maintain visibility on future cash flows
  • You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Need a solid financial forecast?

The Business Plan Shop does the maths for you. Simply enter your revenues, costs and investments. Click save and our online tool builds a three-way forecast for you instantly.

Screenshot from The Business Plan Shop's Financial Forecasting Software

Hiring a business plan writer to write your property development company's business plan

Outsourcing your property development company business plan to a business plan writer can also be a viable option.

Business plan writers are experienced in writing business plans and adept at creating financial forecasts without errors. Furthermore, hiring a consultant can save you time and allow you to focus on the day-to-day operations of your business.

However, hiring business plan writers is expensive as you are paying for the software used by the consultant, plus their time, and their profit margin of course.

From experience, you need to budget at least £1.5k ($2.0k) excluding tax for a complete business plan, more if you need to make changes after the initial version (which happens frequently after the initial meetings with lenders or investors).

You also need to be careful when seeking investment. Investors want their money to be used to grow the business, not spent on consulting fees. Therefore, the amount you spend on business plan writing services (and other consulting services such as legal services) needs to be negligible relative to the amount raised.

The other drawback is that you usually don't own the business plan itself: you just get the output, while the actual document is saved in the consultant's business plan software - which makes it difficult to maintain the document up to date without hiring the consultant on a retainer.

For these reasons, outsourcing the property development company business plan to a business plan writer should be considered carefully, weighing both the advantages and disadvantages of hiring outside help.

Ultimately, it may be the right decision for some businesses, while others may find it beneficial to write their business plan using online software.

Why not create your property development company's business plan using Word or Excel?

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write a property development company business plan is a terrible idea.

For starters, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is very technical and requires both a strong grasp of accounting principles and solid skills in financial modelling.

As a result, it is unlikely anyone will trust your numbers unless - like us at The Business Plan Shop - you hold a degree in finance and accounting and have significant financial modelling experience in your past.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the 1990s and early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Also, using software makes it easy to compare actuals vs. forecasts and maintain our forecasts up to date to maintain visibility on future cash flows - as we discussed earlier in this guide - whereas this is a pain to do with a spreadsheet.

That's for the forecast, but what about the written part of my property development company business plan?

This part is less error-prone, but here also software brings tremendous gains in productivity:

  • Word processors don't include instructions and examples for each part of your business plan
  • Word processors don't update your numbers automatically when they change in your forecast
  • Word processors don't handle the formatting for you

Overall, while Word or Excel may be viable options for creating a property development company business plan for some entrepreneurs, it is by far not the best or most efficient solution.

  • Having an up-to-date business plan is key to maintaining visibility on your future cash flows.
  • A business plan has 2 parts: a financial forecast highlighting the expected growth, profitability and cash generation of the business; and a written part which provides the context needed to interpret and assess the quality of the forecast.
  • Using business plan software is the modern way of writing and maintaining business plans.

We hope that this guide helped you to better understand how to write the business plan for a property development company. If you still have questions, do not hesitate to contact us.

Also on The Business Plan Shop

  • How to write a 5 years business plan
  • Business plan myths

Know someone who owns or wants to start a property development company? Share this article with them!

Guillaume Le Brouster

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

Page last updated on 06 Dec 2023 , as per our editorial standards (originally published on 24 Nov 2023 ).

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Home » Real Estate

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.

More on Real Estate

Business Plan Template for Real Estate Developers

Business Plan Template for Real Estate Developers

Real estate development is a complex and competitive industry, and having a solid business plan is essential for success. Whether you're a seasoned developer or just starting out, ClickUp's Business Plan Template for Real Estate Developers has got you covered!

With this template, you'll be able to:

  • Clearly define your vision, goals, and target market
  • Create detailed financial projections to attract investors and secure funding
  • Map out your strategies for property acquisition, development, and sales or leasing
  • Set milestones and track progress to ensure your projects stay on track

Don't let the complexities of real estate development overwhelm you. Use ClickUp's Business Plan Template for Real Estate Developers to streamline your planning process and take your projects to new heights!

Business Plan Template for Real Estate Developers Benefits

A business plan template for real estate developers offers numerous benefits in helping them succeed in their ventures, including:

  • Providing a clear roadmap for achieving business goals and objectives
  • Assisting in securing funding by showcasing the viability and profitability of the real estate development project
  • Attracting potential investors by presenting a comprehensive and professional plan
  • Guiding decision-making processes and ensuring strategic alignment throughout the development process
  • Facilitating effective communication and collaboration among team members and stakeholders
  • Streamlining financial projections and analysis, enabling developers to make informed financial decisions
  • Serving as a reference document for monitoring progress and making necessary adjustments along the way

Main Elements of Real Estate Developers Business Plan Template

ClickUp's Business Plan Template for Real Estate Developers provides a comprehensive framework to streamline your real estate development process and effectively communicate your vision and goals to stakeholders. Here are the main elements of this template:

  • Custom Statuses: Track the progress of each task with four different statuses including Complete, In Progress, Needs Revision, and To Do, ensuring efficient project management and clear visibility on task status.
  • Custom Fields: Utilize three custom fields such as Reference, Approved, and Section, to add important details to your tasks and easily categorize and filter information.
  • Custom Views: Access five different views including Topics, Status, Timeline, Business Plan, and Getting Started Guide, to visualize your business plan from various perspectives, track milestones, and monitor progress.
  • Collaboration Tools: Collaborate seamlessly with your team by utilizing features such as task comments, file attachments, and real-time collaboration, ensuring effective communication and collaboration throughout the business plan development process.

How To Use Business Plan Template for Real Estate Developers

If you're a real estate developer looking to create a solid business plan, ClickUp's Business Plan Template can help guide you through the process. Follow these 6 steps to get started:

1. Define your vision and mission

Start by clearly defining your vision and mission for your real estate development business. What do you want to achieve? What values and principles will guide your work? This will help set the foundation for your business plan.

Use a Doc in ClickUp to outline your vision and mission statement and ensure all team members are aligned.

2. Conduct market research

Before diving into the details of your business plan, it's important to conduct thorough market research. Identify your target market, analyze current trends, and assess the competition. This information will help you make informed decisions and set realistic goals.

Use the Table view in ClickUp to organize your market research findings and create custom fields for key data points such as market size and competition analysis.

3. Outline your development strategy

Next, outline your development strategy. Define the types of properties you plan to develop, the locations you'll focus on, and the target demographics. Consider factors such as market demand, profitability, and sustainability.

Create tasks in ClickUp to break down your development strategy into actionable steps, such as acquiring land, securing financing, and obtaining permits.

4. Set financial goals

Developing a real estate project requires careful financial planning. Determine your financial goals, including projected revenue, expenses, and profit margins. Consider factors such as construction costs, marketing expenses, and ongoing maintenance.

Use custom fields in ClickUp to track financial metrics and milestones, such as return on investment (ROI) and break-even point.

5. Create a marketing and sales plan

A successful real estate development business relies on effective marketing and sales strategies. Outline your marketing plan, including branding, advertising channels, and target audience. Additionally, develop a sales plan that outlines your pricing strategy, sales channels, and customer acquisition tactics.

Utilize the Board view in ClickUp to visualize and manage your marketing and sales plan, with each task representing a specific marketing or sales initiative.

6. Monitor and adjust

Once your business plan is in place, it's crucial to regularly monitor your progress and make adjustments as needed. Keep track of key performance indicators (KPIs) and compare them with your initial goals. Make changes to your plan as market conditions and business needs evolve.

Set up Dashboards in ClickUp to track KPIs, monitor progress, and generate reports to keep all stakeholders informed.

By following these steps and utilizing ClickUp's Business Plan Template, real estate developers can create a comprehensive business plan that sets them up for success.

Get Started with ClickUp’s Business Plan Template for Real Estate Developers

Real estate developers can use the Business Plan Template for Real Estate Developers in ClickUp to streamline their planning process and ensure a comprehensive and organized business plan.

First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a solid business plan:

  • Use the Topics View to outline the main sections and topics of your business plan
  • The Status View will help you track the progress of each section and easily identify what's complete, in progress, needs revision, or still to do
  • Utilize the Timeline View to set deadlines and milestones for each section of your business plan
  • The Business Plan View provides a comprehensive overview of your entire plan, allowing you to easily navigate and review all sections
  • Use the Getting Started Guide View to access helpful resources and tips on how to create a successful business plan
  • Customize the Reference, Approved, and Section custom fields to add additional information and track the status of each section
  • Update statuses and custom fields as you progress through each section to keep stakeholders informed of progress
  • Monitor and analyze your business plan to ensure it aligns with your goals and objectives
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Real Estate Development Business Plan

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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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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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Key Components of a Business Plan

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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.

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How To Write A Real Estate Business Plan

property developers business plan templates

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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PROPERTY DEVELOPMENT BUSINESS PLAN: 2023 UK Template & Guide

  • by Folakemi Adegbaju
  • August 9, 2023
  • No comments
  • 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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Property Development Business Plan : free template

Property Development Business Plan

In the realm of real estate and property development, strategic planning is essential for success. It serves as the bedrock on which businesses build their future and ascertain their path to growth and profitability. This article provides a comprehensive overview of a property development business plan for (Property Development Ltd). With a steadfast commitment to excellence and a pioneering approach, (Property Development Ltd) has carved a niche for itself in the dynamic property development industry.

This business plan outlines the company’s executive summary, product and service offerings, market analysis, marketing and sales strategy, management team, and financial forecasts. Each section delves into the specifics of our business operations, strategic goals, and the roadmap to achieve them. This detailed plan not only demonstrates our business acumen and understanding of the industry but also reiterates our commitment to delivering quality, value, and satisfaction to our customers and stakeholders. Let’s delve deeper into the vibrant world of (Property Development Ltd) and explore our strategic blueprint for success

Property Development Business Plan

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Property Development Business Plan: executive summary

At the heart of the burgeoning property market, stands a titan of innovation, dedication, and remarkable efficiency – (Property Development Ltd). With an established reputation and unparalleled commitment to quality, (Property Development Ltd) has been progressively shaping the future of real estate through a comprehensive Property Development Business Plan.

A Property Development Business Plan serves as a strategic framework for managing, developing, and investing in real estate properties. This document outlines the business objectives, strategies, and financial forecasts, acting as a blueprint for the company’s growth and success. At (Property Development Ltd), our business plan is meticulously crafted to align with the company’s vision, articulate our value proposition, and present a clear path to profitability and sustained growth.

(Property Development Ltd)’s business plan is centered around creating exceptional value for our stakeholders, partners, and customers. As an innovative property development company, we leverage cutting-edge architectural designs, rigorous project management, and sustainable construction practices to create premium-quality, energy-efficient residential and commercial properties.

Our unique approach to property development places a strong emphasis on integrating cutting-edge technology, affordability, and sustainability. This not only helps us stand out in the crowded property market but also reinforces our commitment to shaping a sustainable future.

In terms of financial projections, (Property Development Ltd) has strategically positioned itself for sustained growth. Our business model focuses on the acquisition of undervalued properties, refurbishment, and re-selling at profitable prices. With robust market analysis, financial planning, and strategic asset allocation, we project a steady increase in our profit margins over the next five years.

Our strengths lie in our team of highly experienced professionals, extensive industry knowledge, and an unwavering commitment to excellence. The combined expertise of our team allows us to identify emerging trends, adapt swiftly to market changes, and seize lucrative opportunities, which, in turn, translates into value for our customers and stakeholders.

In conclusion, (Property Development Ltd)’s Property Development Business Plan is a comprehensive roadmap, reflecting our strategic intent to lead the property development market. We aim to not only meet but exceed our customers’ expectations while contributing positively to the environmental, social, and economic fabric of the communities we serve. Through innovative, sustainable, and efficient practices, we at (Property Development Ltd) are poised to redefine the property development landscape

Property Development Business Plan: Product and Service

At the core of (Property Development Ltd)’s operations are our diverse portfolio of products and our unswerving commitment to service excellence. These are the pillars that enable us to deliver quality, value, and satisfaction to our customers and investors, all while propelling us to the forefront of the property development industry.

(Product Development Ltd)’s products are spread across residential, commercial, and mixed-use properties. We specialize in the acquisition, development, and refurbishment of a wide range of properties, which includes single and multi-family dwellings, office complexes, retail outlets, and industrial units. Our properties are designed with a keen eye for detail and a focus on contemporary aesthetics, functionality, and sustainability.

Our residential developments cater to a diverse clientele, from first-time homebuyers to seasoned investors, and from small families to larger multi-generational households. Every home developed by (Property Development Ltd) is a blend of comfort, safety, and modern aesthetics. These homes are thoughtfully designed to promote community living and ensure maximum usability of space.

Our commercial developments include state-of-the-art office complexes and retail spaces, built to cater to the evolving needs of businesses. These properties are strategically located, offering high visibility and easy access to transport links. They feature modern infrastructure, ample parking, and energy-efficient systems, all designed to enhance the workspace experience and foster business growth.

In terms of mixed-use properties, (Property Development Ltd) offers an amalgamation of residential, commercial, and recreational spaces within one development. These integrated projects bring together the best of urban living and commercial convenience, creating a vibrant and dynamic community environment.

Moving beyond just property development, (Property Development Ltd) is deeply committed to providing exceptional service. We offer end-to-end property development solutions, which include site identification and acquisition, project management, marketing, sales, and after-sales service.

Our team of experts provides guidance at every step of the development process. We undertake comprehensive feasibility studies and risk assessment, conduct market research, and follow meticulous planning and execution. This allows us to deliver projects on time and within budget while exceeding the quality standards set by the industry.

Furthermore, (Property Development Ltd)’s after-sales service is designed to provide continuous support and satisfaction to our customers. We believe that our relationship with our customers extends beyond the sales process, and we strive to offer an unmatched level of post-sale service, which includes property maintenance, customer care, and even assistance with leasing and resale.

In conclusion, (Property Development Ltd) takes immense pride in its diversified product portfolio and exceptional service standards. Our commitment to these aspects enables us to provide a seamless and fulfilling property development experience to our customers. This combination of superior products and services differentiates us in the marketplace and aligns with our mission to set new benchmarks in the property development industry

Property Development Business Plan: market analysis

In today’s highly competitive real estate sector, understanding the market dynamics and staying ahead of trends is crucial for business success. (Property Development Ltd) has meticulously crafted its market analysis, enabling us to make informed decisions and align our strategies with the evolving property landscape.

The real estate market is witnessing a surge in demand driven by various factors. Urbanization, population growth, and the rise of the middle class are contributing to an increased need for quality housing solutions. On the commercial front, the rise of entrepreneurship and the expansion of existing businesses have driven the demand for commercial spaces, specifically in urban centers.

In our primary market, (Property Development Ltd) has identified a growing demand for sustainable and affordable housing. Modern homebuyers seek properties that provide a blend of comfort, functionality, and sustainability, all at an affordable price point. Additionally, the trend towards remote working has bolstered demand for homes with dedicated workspaces and improved technology infrastructure.

Our analysis has also shown a significant shift towards mixed-use developments. These projects offer the convenience of having residential, commercial, and leisure spaces in one location, making them an attractive proposition for modern, urban dwellers and businesses alike.

On the commercial front, (Property Development Ltd) has observed an increased preference for flexible, green, and well-located office spaces. Companies are prioritizing employee well-being and productivity, driving a demand for commercial properties that offer innovative office designs, efficient space utilization, and sustainability features.

Our competitive analysis reveals a market with several property development firms. However, (Property Development Ltd) distinguishes itself through its focus on sustainable construction, affordability, use of advanced technologies, and commitment to exceptional customer service. Our strong financial footing and a robust business model further enhance our competitive edge.

In terms of demographics, our primary target markets include middle-income families, first-time homebuyers, working professionals, and businesses seeking commercial spaces. Our marketing strategies are tailored to reach these demographics effectively, ensuring that we communicate our value proposition clearly and persuasively.

In conclusion, (Property Development Ltd)’s market analysis reveals a robust demand for residential, commercial, and mixed-use properties. Our in-depth understanding of market dynamics, combined with our unique value proposition, positions us well to capitalize on these opportunities. Through continuous monitoring and evaluation, we will continue to align our strategies with market trends, thereby driving sustainable growth and enhancing stakeholder value.

Property Development Business Plan: Marketing & Sales Strategy

In an increasingly digital world, the success of a property development company depends largely on its ability to execute innovative and effective marketing and sales strategies. At (Property Development Ltd), we have a robust marketing and sales strategy that is designed to promote our unique value proposition, reach our target audience, and drive sales.

Our marketing strategy is built around our brand philosophy of delivering quality, affordable, and sustainable properties. We leverage a mix of traditional and digital marketing channels to reach our target audience, generate leads, and ultimately convert these leads into sales.

Digital marketing forms the backbone of our strategy, given the growing trend of property searches and purchases online. Our digital marketing efforts include a comprehensive website with detailed property listings, interactive property tours, and valuable content that helps potential customers make informed decisions. We also employ search engine optimization (SEO) techniques to improve our website’s visibility and reach.

Social media marketing is another key component of our strategy. Through platforms such as Facebook, LinkedIn, and Instagram, we engage with our audience, share updates about our projects, and showcase our success stories. These platforms also provide us with an excellent medium to interact with our customers and receive valuable feedback.

Content marketing forms a crucial part of our marketing efforts. By creating informative blogs, articles, and newsletters, we aim to position (Property Development Ltd) as a thought leader in the property development space. This helps build trust with our audience and drive traffic to our website.

In terms of sales, our strategy is centered around providing a seamless and enjoyable customer experience. Our sales team is trained to understand the customer’s needs thoroughly and guide them towards the right property choice. We also believe in the power of personal selling and maintaining strong relationships with our customers, which not only aids the sales process but also builds long-term customer loyalty.

We also utilize CRM (Customer Relationship Management) tools to manage our sales process effectively. These tools help us track leads, manage customer interactions, and analyze sales performance, thus enabling us to improve our sales efficiency and effectiveness.

Additionally, we work closely with real estate brokers and agents to widen our reach and increase our sales. Our commission structure is designed to incentivize them to promote our properties effectively.

In conclusion, (Property Development Ltd)’s marketing and sales strategy is a fine blend of traditional and digital marketing tactics, robust sales processes, and customer-centric approach. Our focus is on understanding our customer’s needs, delivering value, and building lasting relationships, all while promoting our brand values. By doing so, we are confident of achieving our sales targets and contributing to the growth and success of (Property Development Ltd).

Property Development Business Plan: The Management Team

In any successful organization, the management team forms the backbone, driving the company towards its vision, mission, and strategic objectives. At (Property Development Ltd), our management team is an amalgamation of highly experienced professionals, each with a unique set of skills and expertise that contribute to the company’s success.

At the helm of (Property Development Ltd) is our CEO, an industry veteran with over two decades of experience in property development. With a keen eye for detail and a passion for innovation, our CEO leads by example, setting the strategic direction for the company and ensuring we maintain our commitment to excellence and customer satisfaction.

Our Chief Financial Officer (CFO) brings with them a wealth of experience in financial planning and risk management. Their role involves developing financial strategies, managing investments, overseeing budgets, and ensuring the financial health of the company. With their prudent financial management, (Property Development Ltd) has consistently achieved its financial targets and maintained a strong financial footing.

The Director of Development is a pivotal part of our management team. They are responsible for overseeing all property development projects, ensuring they are completed on time, within budget, and to the highest standards of quality. Their experience in project management and passion for sustainable development have been instrumental in the successful execution of our projects.

Our Sales and Marketing Director oversees our marketing and sales strategies. Their in-depth understanding of the property market, along with their innovative marketing skills, have helped (Property Development Ltd) in reaching its target audience effectively and driving sales. Their focus on customer satisfaction has resulted in a strong brand reputation and high customer loyalty.

The Director of Human Resources manages our most valuable asset – our people. They are responsible for hiring, training, and retaining a highly skilled workforce. They foster a positive and engaging work environment, which promotes collaboration and professional growth. Their efforts have resulted in a highly motivated and productive team, which is a key driver of our success.

Finally, our Operations Director ensures that our day-to-day operations run smoothly. They oversee the procurement of materials, manage relationships with contractors and suppliers, and ensure our construction sites adhere to the highest safety and environmental standards. Their operational efficiency contributes significantly to the timely completion of our projects and the overall efficiency of the business.

In conclusion, the management team at (Property Development Ltd) combines strategic vision, operational efficiency, and a commitment to excellence. Their combined experience and expertise in various aspects of property development provide the leadership necessary to steer the company towards its strategic objectives. Each member of the management team plays a pivotal role in making (Property Development Ltd) a trusted and respected player in the property development market

Property Development Business Plan: Financial forecasts or projections

Financial projections are a crucial aspect of a business plan, providing potential investors with a glimpse into (Property Development Ltd)’s financial health and future potential. Our financial projections for the next five years reflect our company’s potential for growth and profitability, considering factors such as market trends, business strategies, operational costs, and revenue growth.

In terms of revenue, (Property Development Ltd) has projected a steady increase over the next five years. This is based on the ongoing property development projects, our robust pipeline of future developments, and the projected growth in the real estate market. We estimate an annual growth rate of 10-15%, considering our past performance and market growth trends.

On the cost side, we have accounted for variable costs such as construction expenses, including materials and labor, marketing expenses, and administrative costs. Fixed costs, including depreciation and amortization, interest, rent, and salaries, are also factored into our financial forecast. Although there will be an inevitable increase in these costs due to expansion and inflation, we plan to control them through efficient operations and cost management strategies.

Our gross profit margin is projected to improve over the forecast period, primarily due to an increase in the efficiency of our operations, strategic procurement, and the higher prices commanded by our premium-quality, sustainable properties.

In terms of net income, we forecast a steady increase over the next five years. This increase will be fueled by our growing revenues, cost efficiencies, and successful execution of our business strategies. As a testament to our commitment to shareholder value, we also plan to maintain a healthy return on equity throughout the forecast period.

To finance our operations and future projects, (Property Development Ltd) relies on a mix of internal funds, bank loans, and investments from shareholders. Our capital structure is designed to maintain a healthy balance between debt and equity, minimizing our cost of capital while ensuring sufficient funds for growth.

It’s important to note that these financial projections are based on assumptions about market conditions, business strategies, and economic factors. While we strive for accuracy, the actual results may vary based on changes in these factors. Therefore, (Property Development Ltd) is committed to regularly reviewing and updating these projections to reflect changes in our business and the market.

In conclusion, (Property Development Ltd)’s financial projections reflect a promising future for the company, marked by steady revenue growth, controlled costs, and improving profitability. Our prudent financial management and promising business strategies make us a viable and attractive investment for potential investors. Through our dedicated efforts and commitment to excellence, we aim to deliver significant value to our stakeholders and play a pivotal role in the growth of the property development sector

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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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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 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

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.

Finish Your Business Plan Today!

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

Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

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

business costs

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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Property Development Business Plan Template [Updated 2024]

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VII. Operations Plan

This Section's Contents

Functional Roles

Service Functions [Company Name] will carry out its day-to-day operations as a property developer. There will also be numerous administrative functions involved.

In order to execute on [Company Name]’s business model, the company needs to perform several functions. [Company Name] anticipates using the services of X employees, divided into the following roles.

Service and Administrative Roles

  • Team of designers
  • General contractor
  • General and administrative functions including legal/compliance, marketing, bookkeeping, etc.
  • Brand management/social media
  • IT management
  • Sales and marketing

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Property Development Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

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COMMENTS

  1. Property Development Business Plan Template

    Download our Ultimate Business Plan Template here > What Is a Business Plan? A business plan provides a snapshot of your property development business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them.

  2. Property Development Business Plan Template

    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.

  3. How to write a business plan for a property development company?

    Creating a business plan for a property development company is an essential process for any entrepreneur. It serves as a roadmap that outlines the necessary steps to be taken to start or grow the business, the resources required, and the anticipated financial outcomes. It should be crafted with method and confidence.

  4. Real Estate Development Business Plan Template

    Download our Ultimate Business Plan Template here > What Is a Business Plan? A business plan provides a snapshot of your real estate development business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them.

  5. A Sample Property Development Business Plan 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.

  6. Business Plan Template for Real Estate Developers

    Main Elements of Real Estate Developers Business Plan Template. Custom Fields: Utilize three custom fields such as Reference, Approved, and Section, to add important details to your tasks and easily categorize and filter information. Collaboration Tools: Collaborate seamlessly with your team by utilizing features such as task comments, file ...

  7. Real Estate Development Business Plan Template (2024)

    Learn more 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

  8. The Perfect 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.

  9. Property Development Business Plan Template [Updated 2024]

    The following Property Development business plan template gives you the key elements to include in a winning property development business plan. It can be used to create a land development business plan and a real estate development company business plan.

  10. How Do You Write a Property Development Business Plan?

    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 Your construction strategy Where you want to develop the property How long the project will take to complete

  11. Real Estate Development Proposal Template

    Free Real Estate Development Proposal Template (2024 Legal Sample) POPULAR available Real Estate Development Proposal Template Prepared by: [Sender.FirstName] [Sender.LastName] [Sender.Company] Prepared for: [Client.FirstName] [Client.LastName] [Client.Company] Table of Contents Executive Summary Client Testimonials Site Overview Aerial View

  12. Property Management Business Plan Template [Updated 2024]

    Property Management Business Plan Template. If you want to start a property management business or expand your current one, you need a business plan. Over the past 20+ years, we have helped over 7,000 entrepreneurs and business owners create business plans to start and grow their property management companies.

  13. Property Development Business Plan Template & Guide [Updated 2023

    Get Growthink's property development business planned template instructions the easily create your property development business plan. Property Development Business Plan Template & Guide [Updated 2023] - The Commercial Real Estate Development Process

  14. Property Development Business Plan Template [Updated 2024]

    You can download our Business Plan Template (including a full, customizable financial model) to your computer here. Business Overview [Company Name], located in [insert location here] is a new property development company that focuses on residential property development for single family and multi-family homes.

  15. 9+ Developer Business Plan Templates

    9+ Developer Business Plan Templates - PDF A Developer business plan is a must to ensure proper development in a project. Unlike a simple business plan, A Developer plan must include financial resources available, calculated progression, materials, and more. 43+ Business Plan Templates in Microsoft Word 22+ Business Plan Outline Templates

  16. PROPERTY DEVELOPMENT BUSINESS PLAN: 2023 UK Template & Guide

    What is Property Development Business Plan? The Importance of Having a Business Plan How to Write a Property Development 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

  17. Property Development Business Plan : free template

    A Property Development Business Plan serves as a strategic framework for managing, developing, and investing in real estate properties. This document outlines the business objectives, strategies, and financial forecasts, acting as a blueprint for the company's growth and success. At (Property Development Ltd), our business plan is ...

  18. A Sample Property Development Business Plan Template

    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

  19. Property Development Business Plan Template [Updated 2024]

    The property development industry in the United States is valued at an estimated $231B. There are currently around 64,982 housing development businesses and over 180,000 employees working in the industry throughout the country.

  20. Rental Properties Business Plan Template [Updated 2024]

    Download our Ultimate Business Plan Template here > What Is a 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.

  21. Property Development Business Plan Template [Updated 2024]

    Upscale Property Developers, Inc is a property development company in [location]. 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.

  22. Madison Marquette puts Montgomery Executive Center in Gaithersburg for

    Madison Marquette, one of the development partners that worked on The Wharf in D.C., is marketing a boutique Gaithersburg office building for sale, touting the property's adjacency to an enormous ...

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    Tri-County Mall's Texas-based owners have defaulted on their $28 million loan, sending the property into foreclosure - but the owners aren't ready to step away from their proposed $1 billion ...

  24. Property Development Business Plan Template [Updated 2024]

    Property Development Business Plan Template [Updated 2024] Written by Dave Lavinsky January 2, 2024 / 14128 0 . Property Development Business Plan Template [Updated 2024] Construction & Home Services Business Plan Templates. II. Company Overview. This Section's Contents.

  25. Property Development Business Plan Template [Updated 2024]

    You can download our Business Plan Template (including a full, customizable financial model) to your computer here. Functional Roles Service Functions [Company Name] will carry out its day-to-day operations as a property developer. There will also be numerous administrative functions involved.