business plan template for apartments

BUSINESS STRATEGIES

How to create a rental property business plan

• Annabelle Amery

In the dynamic realm of real estate and rental properties, a well-designed business plan is the cornerstone of starting a thriving rental property venture . It goes beyond a mere document, serving as a strategic guide that shapes your goals, operations and adaptability.

Your business plan plays a vital role in making informed decisions and navigating market shifts. Moreover, it enhances your credibility with potential partners and investors, showcasing your grasp of the industry. When you’re starting a business in the real estate industry, a solid business plan can truly pave the way for rental property triumph.

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How to write a rental property business plan in 6 steps

Writing a comprehensive business plan for your rental property business is crucial for setting a solid foundation and ensuring long-term success. It provides a roadmap for your business, outlining your goals, strategies, and financial projections. Here are the six main parts of a rental property business plan:

Executive summary

Business and domain names

Market analysis and research

Operation plan

Marketing and advertising plan

Financial plan

01. Executive summary

The executive summary is the first section of your rental property business plan. It provides an overview of your business and highlights the key points from each section of the plan. The executive summary should be concise, clear and engaging to capture the reader's attention. It should include:

A brief description of your rental property business

Your mission statement and vision for the business

A summary of your target market and competition

An overview of your marketing and growth strategies

Your financial projections and funding requirements

Example of an executive summary for rental property businesses

“ABC Rentals is a leading provider of high-quality rental properties in the city. Our mission is to provide comfortable and affordable housing solutions for individuals and families. With a strong focus on customer satisfaction, we aim to exceed our tenants' expectations by offering well-maintained properties, excellent customer service and competitive rental rates.

In an increasingly competitive rental market, ABC Rentals stands out by offering unique amenities such as on-site laundry facilities, secure parking and pet-friendly options. Our marketing strategies include targeted online advertising, partnerships with local businesses and word-of-mouth referrals. With an initial investment of $500,000 from private investors, we project steady growth over the next five years.”

02. Business and domain names

Choosing the right business name for your rental property is crucial for building brand awareness and trust. Start by brainstorming ideas that reflect the essence of your business and resonate with your target market. You can use a business name generator tool for inspiration and to check the availability of domain names .

When choosing a domain name make sure to keep it short, memorable and easy to spell. Include relevant keywords and avoid numbers, hyphens or special characters.

After you’ve decided on a name and the right legal structure, make sure to register your business .

03. Market analysis and research

Including a market analysis and research section in your rental property business plan is essential for understanding the competitive environment and developing effective business strategies. Conduct market research to identify trends, demand and competition in the rental property market.

Your market analysis should cover:

An overview of the rental property market in your target area

Demographic information about your target audience

Competitor analysis, including their strengths and weaknesses

Pricing strategies and rental rates in the market

Opportunities for differentiation and unique selling propositions

04. Operations plan

The operations plan outlines the logistical aspects of your rental property business. It covers important details such as location, premises, equipment and staffing needs.

Detail the ideal location for your rental properties based on target market preferences and accessibility to amenities. Include in this the size and layout of the premises, including the number of units and common areas. Remember to list all of the necessary equipment for property management, maintenance and tenant services.

You should also include staffing requirements. This includes property managers, maintenance personnel and administrative staff.

05. Marketing and advertising plan

Your rental property business plan should include a detailed marketing and advertising plan to attract tenants. Some strategies to consider: online advertising through rental listing websites, social media platforms and targeted online ads.

You can also look into traditional advertising methods like print ads in local newspapers or magazines—and at the same time partnerships with local businesses or organizations for referral programs. Don’t forget to create a business website to showcase your services and land more leads.

No matter where you promote your business, you’ll want to keep your branding consistent. As a first step, use a logo maker to generate real estate logo ideas .

06. Financial plan

When it comes to a rental property business, the financial plan lays out the money side of things, like how much it'll cost to start up, where the funds are coming from, how much you expect to earn and when you're likely to start making a profit. This section isn't just about showing your business's money smarts, but it's also a way for potential backers and lenders to figure out what they might get out of investing in your business.

Rental property business plan examples

Creating a business plan for your rental property business is essential for setting a solid foundation and ensuring long-term success. To help you get started, here are two draft business plans for a hypothetical rental property business.

Business plan template 1: Urban Rentals

Urban Rentals is a premier rental property business specializing in providing high-quality urban living spaces for young professionals and students in the city. Our mission is to offer modern, well-designed apartments in desirable locations at competitive rental rates. With a focus on customer satisfaction, we aim to create a hassle-free rental experience for our tenants.

Company and domain names

The company name, Urban Rentals, reflects our target market and the type of properties we offer. We have secured the domain name urbanrentals.com, which aligns perfectly with our brand identity and makes it easy for potential tenants to find us online.

We have conducted extensive market research to understand the demand for rental properties in urban areas. Our target audience consists of young professionals and students seeking convenient, stylish and affordable apartments. We have identified several competitors in the market but believe that our unique amenities and competitive pricing will set us apart.

Operations plan

Urban Rentals plans to acquire properties in desirable urban neighborhoods close to public transportation, restaurants, and entertainment options. We will renovate these properties to meet modern standards and provide essential amenities such as high-speed internet, laundry facilities, and secure access. Our dedicated property management team will handle tenant inquiries, maintenance requests, and ensure that all properties are well-maintained.

To attract tenants, we will utilize a multi-channel marketing approach. This includes online advertising through rental listing websites and social media platforms, as well as targeted online ads. We will also establish partnerships with local colleges and universities to reach student tenants. Additionally, we will implement referral programs and incentivize word-of-mouth marketing through satisfied tenants.

Urban Rentals will be initially funded through a combination of personal savings and a small business loan. We project steady growth over the next five years, with a focus on maintaining high occupancy rates and increasing rental income. Our financial plan includes detailed revenue projections, expense forecasts and cash flow analysis.

Business plan template 2: Coastal Properties

Coastal Properties is a rental property business specializing in providing beachfront vacation homes for tourists and travelers seeking a luxurious coastal experience. Our mission is to offer premium properties with stunning ocean views, top-notch amenities and exceptional customer service. We aim to create unforgettable vacation experiences for our guests.

The company name, Coastal Properties, reflects our focus on beachfront locations and coastal living. We have secured the domain name coastalproperties.com, which perfectly represents our brand and helps potential guests find us easily online.

We have conducted extensive market research to understand the demand for vacation rentals in popular coastal destinations. Our target audience consists of affluent travelers seeking high-end accommodations with breathtaking views. We have identified competitors in the market but believe that our exclusive properties and exceptional service will attract discerning guests.

Coastal Properties plans to acquire premium beachfront properties in sought-after coastal destinations. These properties will be fully furnished with upscale amenities like private pools, beach access and concierge services. We will work with reputable property management companies to handle guest inquiries, reservations and property maintenance.

To reach our target audience, we will implement a comprehensive marketing and advertising plan. This includes online advertising through vacation rental platforms and luxury travel websites. We will also collaborate with travel influencers and establish partnerships with local businesses to promote our properties. Additionally, we will leverage social media platforms to showcase stunning visuals of our properties and engage with potential guests.

Coastal Properties will be initially funded through a combination of personal investments and private investors. We project strong revenue growth based on high occupancy rates and premium rental rates. Our financial plan includes detailed income projections, expense forecasts and return on investment analysis.

Benefits of a rental property business plan

Writing a business plan for your rental property business is a crucial step in setting yourself up for success. It provides numerous benefits that can help attract investors and funding, ensure you have the necessary resources and staff, and create a plan to achieve long-term success.

Attracting funding: A well-written business plan is essential for attracting investors and raising money for your business . Investors want to see a clear and comprehensive plan that demonstrates your understanding of the market, your target audience and your strategies for success. A business plan that outlines your financial projections, marketing strategies and competitive analysis will give potential investors confidence in your ability to generate returns on their investment.

Resource requirements: Creating a business plan helps you understand the resources, supplies and staff required to start and operate your rental property business. It allows you to assess the upfront costs of acquiring properties, renovating them if necessary, and furnishing them with the necessary amenities. Additionally, it helps you determine the ongoing expenses like maintenance costs, property management fees and marketing expenses. By having a clear understanding of these resource requirements, you can budget effectively and avoid unexpected financial challenges.

Business success: A rental property business plan serves as a roadmap for achieving long-term success. It allows you to set specific goals and outline actionable steps to reach those goals. By identifying potential challenges and developing strategies to overcome them, you can mitigate risks and increase the likelihood of success. A well-thought-out business plan also helps you stay focused on your objectives and track your progress over time.

Guiding decision-making: A comprehensive business plan provides a framework for making informed decisions in your rental property business. It helps you evaluate potential investment opportunities, assess risks and prioritize tasks. When faced with important decisions, you can refer back to your business plan to ensure alignment with your overall vision and goals. This ensures that you make decisions that are in the best interest of your business's long-term success.

Financial forecasting: A crucial part of any business plan is the financial plan, which includes information on how your rental property business will be funded initially and its projected profitability over time. By outlining your sources of funding, such as personal savings or loans, you can ensure that you have the necessary capital to start and grow your business. Financial forecasting allows you to estimate future revenue, expenses and cash flow, helping you make informed financial decisions and plan for growth.

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Property Rental Business Plan PDF Example

• February 28, 2024
• Business Plan

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

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

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

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

• Executive Summary : Offers an overview of the property rental business’s concept, market analysis , management, and financial strategy.
• Properties, Amenities & Services: Describes the diverse range of properties, from urban apartments to countryside cottages, each equipped with customized amenities and services to cater to various guest preferences.
• Properties Deep Dive: Offers a detailed look into each property, including design style, location, key features, and financials related to purchase and renovation.
• Key Stats: Shares industry size , growth trends, and relevant statistics for the short-term rental market.
• Key Trends: Highlights recent trends affecting the short-term rental sector, such as the rise of eco-friendly properties, technology integration, and the shift towards local experiences.
• Key Competitors : Analyzes main competitors and differentiates the business based on unique property offerings and guest experiences.
• SWOT: Strengths, weaknesses, opportunities, and threats analysis.
• Marketing Plan : Strategies for marketing the properties to maximize occupancy and revenue.
• Timeline : Key milestones and objectives from property acquisition and planning through launch and operational optimization.
• Management: Information on who manages the property rental business and their roles.
• Financial Plan : Projects the business’s financial performance, including revenue, profits, and expected expenses, with a focus on achieving profitability and sustainable growth.

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Executive Summary

The Executive Summary introduces your property rental business plan, providing a succinct overview of your rental operation and its offerings. It should detail your market positioning, the variety of properties you manage, their locations, sizes, and an overview of day-to-day management practices.

This section should also discuss how your property rental business will fit into the local real estate market, including the number of direct competitors in the area, identifying who they are, along with your business’s unique selling points that set it apart from these competitors.

Moreover, it’s important to include information about the management and co-founding team, detailing their roles and contributions to the business’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your property rental business’s financial plan.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Dive deeper into Executive Summary

Business Overview

For a Property Rental Business, the Business Overview section can be effectively divided into 2 main sections:

Properties & Locations

Describe the range and types of properties within your portfolio, such as apartments, single-family homes, vacation rentals, or commercial spaces. Emphasize the diversity and quality of your properties, including any unique features or high-demand attributes they may have. Discuss the locations of your properties, stressing their accessibility and the convenience they offer to tenants.

Highlight properties that are strategically located near key amenities, such as public transport, business districts, schools, or recreational areas. Explain why these locations are beneficial in attracting and retaining your target tenants.

Amenities & Services

Detail the amenities and features available with your properties, such as in-unit laundry, security systems, fitness centers, communal spaces, or eco-friendly installations. Highlight how these amenities meet the needs and preferences of your target tenant demographic.

Outline your leasing terms and pricing strategy , ensuring they align with the value provided by your properties and the competitive market landscape. Discuss any flexible leasing options, promotional offers, or loyalty incentives you provide to enhance tenant retention and attract new tenants.

Make sure to cover here _ Properties, Amenities & Services _ Properties Deep Dive

Market Overview

Industry size & growth.

In the Market Overview of your property rental business plan, begin by examining the size of the property rental industry and its growth potential. This analysis is vital for understanding the market’s breadth and pinpointing opportunities for expansion.

Key Market Trends

Next, discuss recent trends in the property rental market, such as the growing demand for flexible leasing options, the rise of smart home technology in rental properties, and the increasing preference for properties with green, sustainable features. Highlight the shift towards more personalized tenant experiences and the popularity of properties that offer unique amenities, such as co-working spaces or pet-friendly environments.

Key Competitors

Finally, assess the competitive landscape, which ranges from large property management companies to individual landlords, as well as emerging short-term rental trends facilitated by platforms like Airbnb. Focus on what sets your rental business apart, be it superior tenant services, innovative property features, or niche market focus. This section will outline the demand for rental properties, the competitive environment, and how your business is uniquely positioned to succeed in this dynamic market.

Make sure to cover here _ Industry size & growth _ Key market trends _ Key competitors

Dive deeper into Key competitors

First, conduct a SWOT analysis for your property rental business, identifying Strengths (like diverse property portfolio and prime locations), Weaknesses (such as maintenance costs or vacancy rates), Opportunities (for instance, the growing demand for flexible housing and rental spaces), and Threats (like market saturation or regulatory changes impacting rental operations).

Marketing Plan

Then, devise a marketing strategy that details how to attract and retain tenants through strategic online listings, virtual tours, referral incentives, a strong online presence, and engagement with the local community.

Lastly, establish a comprehensive timeline that marks key milestones for the launch of your rental operations, marketing initiatives, tenant engagement plans, and growth or diversification goals, ensuring the business progresses with a focused and strategic approach.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Dive deeper into SWOT

Dive deeper into Marketing Plan

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

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

Financial Plan

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

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

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

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

Privacy Overview

Rental Property Business Plan

A rental property business is perfect for anyone who wants an easy way into the world of business ownership. You simply need a house or an apartment building to rent, and a solid business plan as a ticket to the industry. Of course, preparation is always the key to success. If you really want to make money by investing in a property, you first need to have a solid plan on how to make it work. Otherwise, your future investment will not be any different to throwing your money and hoping it will multiply and come back to you. You may also see  real estate investor marketing plan examples .

Planning will involve analyzing your goals as an investor and your goals for the investment property. Are you doing this to have a steady stream of income, or because you have an unused property at your disposal and you want to make the best out of it? Perhaps it’s because you’re simply bored and tenants would help create a noisy environment for you?

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Nine Questions that can help you Develop and Focus your Plan

Whatever the reason may be, there are certain questions you can ask yourself to help you put together a strategy for a long-term success. These questions will help you focus by answering the  who, what, when, where, why,  and how of starting a business. You may also see  rental inventory examples .

Unfortunately for you, you can’t skip this part since there is no cookie cutter for starting a business. Each one of us will have different goals and objectives when investing in real estate , which means that we can’t simply follow other people’s footsteps. We need to make our own. The secret lies in defining your personal objectives and then developing specific strategies and plans of action to meet them. You may also see  real estate strategic plan examples .

You can start by asking yourself how you can make money through real estate, and deciding how much  exactly  it is that you want to earn per month. However, to be more specific, here are nine questions that can help you develop and focus your plan:

1. What is your goal as a property investor?

You need to decide exactly how you are planning to earn money as a property investor so that we can start focusing all of our efforts toward that goal. Is being a landlord a side job, or do you want to quit your day job to do this full-time? Do you want to make a quick profit by selling the house instead? Or do you want to buy and hold a property for capital appreciation and to make passive income each month?

Whatever your answer to this question is, it will help you understand the course you will take. It will identify the next big decisions you will be making, each one of them relevant to achieving your goal. You may also see  real estate sales plan examples .

2. Do you understand the different types of investment properties?

There are many different ways to invest in real estate. Are you sure you are aware of your choices? Rental properties are a great choice. It offers you a steady source of income without compromising your ownership of the building; however, there are also other choices at your disposal. You may also see  self-catering business plan examples .

Before you make any permanent decisions, make sure that you’ve gone through all of your choices and equally considered each one so that you can choose the one or two that are most in line with your goals as a person and a future businessman, with your finances, and even with your personality type.

By conducting a thorough research, you may learn more about the industry that you are getting yourself into. Make sure you’ve chosen, and that you’ve chosen well. After all, you’ll be stuck with your business for a long time. You may also see company plan examples .

3. Where will the property be located compared to your current home?

Decide how far away you are willing to have the property, especially if you are yet to purchase the real estate. Take costs into consideration. How much money will you need for transportation from your house to your rental property? How much gas will you consume? Will you need a bus, train, or plane ticket to get there?

The opportunity cost associated with travel time can be considered lost productivity, so this early on, start calculating how much time you can lose. Some investors make the mistake of investing in a property that is too far from where they live. If you want to be a hands-on owner, proximity will matter. You may also see  apartment marketing plan examples .

4. What will it cost?

Of course, we need to think about the initial investment . How much exactly is it? If you don’t have enough money on your own for it, how will you afford it? How much monthly expenses do you think you will have because of it? Are you being realistic with your numbers? Make sure that you are, otherwise, you will end up with a crunch in your numbers when the actual paying comes. You may also see  commercial real estate marketing plan examples .

Mortgage payment, monthly maintenance, taxes, and insurance are just some of the bills you need to prepare for. You should also consider having a reserve account from which you can take funds to cover emergency repairs and unforeseen vacancies in your rental property.

Anticipate the exact amount of monthly income you will have. This means that you need to foresee the vacancy rate in the area where your rental property is located. You also need to calculate how much you can charge for the rent. You may also see risk management examples .

5. How will you market your property?

This one can be a little tricky. Once you have the numbers set and waiting, the next thing you will have to do is to find tenants whose monthly rent you will need to realize the numbers you’ve predicted. Think: will you be posting advertisements online? Will you use a realtor? Is your property appealing enough to prospective tenants?

6. How will you manage the property?

Do you have enough time in your hands to become the landlord, or will you hire a property manager? If so, you will need to research for management companies or interview superintendents to find out how much they will charge for that so you can add it to your expenses. You may also see budget action plan examples .

But before deciding, you must remember that the upkeep of your property is your obligation. All these preparations, all these planning are all for nothing if you will only leave the welfare of your property in the hands of unprofessional strangers who are not interested in doing what’s best for your property. You still need to have a say in it to make sure that your rental property will be maintained. You may also see property survey examples .

7. How will you manage tenants?

What will you require from your tenants as they move in? How much will you charge for the security deposit ? Landlords usually charge on to one and a half month’s rent. Will you apply the same rule? How will you select the right tenants? After all, you just can’t have  anyone living in your property, can you? Will you run a credit check on prospective tenants, or will you choose to give them all the benefit of the doubt?

Do you have all of the proper legal forms such as the lease, rental application, or the notice to quit, or will all of this be conducted without that sort of formality? Do you understand what fair housing is? Do you understand how to evict a tenant? Will you make your property pet-friendly, or are these cute little creatures banned from it?

Being a landlord is not limited to having a property, renting it, and then collecting the money at the end of the month. There are legal preparations that need your attention and documents you need to have. You will be responsible for an entire inhabited building. Make sure you are ready for that responsibility. You may also see  wholesale real estate marketing plan examples .

8. How will you maintain the property?

Of course, you can’t possibly place an immaculate, beautiful building up for renting only to give it up to neglect after a year or so. You constantly need to think about remodeling, renovations, and the basic cleaning maintenance. Think: will you hire a contractor for that, or will you do the repairs yourself?

How will you take care of yard maintenance such as mowing the lawn and shoveling snow? What about the general appearance of the place? These are important things to consider since you don’t want your tenants to end their contract with you just because you’ve allowed the place to look shabby. You may also see free business plan examples .

9. Do you have a plan if your investment fails?

We don’t want to entertain the thought of failure when the business hasn’t even started yet, but it’s a possibility we can’t shake off. Do you have an exit strategy should the worse happen? And should  that  exit strategy end, do you have another one?

Building Your Business Plan

The trick is not only to  build your business plan but also to accomplish everything in it. Here are some exercises you can do to document everything from your long-term vision to your day-to-day tasks.

Ask yourself, if it was a perfect world, where would you be in five years? What does a perfect day look like to you? Your vision can be something as realistic as paying off your house, or it could be something as absurd and far-fetch as earning $500,000 doing what you love. Understand what you want to make happen. You may also see importance of business plan examples .

What is your personal mission? What are you trying to achieve for yourself? It could be to gain financial freedom through investing in a real estate property , or it could be educating the world on the different ways to finance real estate. Your mission is the thought, the idea of achieving something that can give you a sense of success and accomplishment. You may also see business plan outline examples .

3. Objectives

Try to create measurable short- and long-term goals that will help you calculate and measure your success along the way. Start with something small like reaching $10,000 total revenue by the end of a year, or ending it with 3 solid lending partners. Create benchmarks and tiny milestones to show yourself that you are actually achieving something, that you are getting somewhere. You may also see  advertising and marketing business plan examples .

4. Strategies

Identify how you will reach these objectives. Will you do it by networking with other businessmen and cultivating relationships with people who can help you in your journey? What about getting referrals from other real estate investors? Or are you planning on simply working hard, lone wolf style? Whatever it may be, make sure you know how to proceed with this. You may also see  annual plan examples .

5. High-level plans

High-level plans will help you create a road map for implementing your strategies and achieving your objectives. Although technically, your business plan is a road map in itself, high-level plans will bring more concentration into your every step.

6. Daily plans

Ideally, you will break down your high-level plans into daily plans so that every day, you will be working toward your long-term goals. It’s easy to push aside your plans thinking, “I’ll do it later,” but we all know where  that attitude can get us. If you work for at least 15 minutes a day on a project, your plans will accelerate more than you think. You may also see  network marketing business plan examples .

How to Be Successful in Your Rental Property Business

If you are in the rental property industry or you’re planning to be, you already have one sound advantage: you own an asset that can help you generate income, as opposed to having assets that mostly yield to expenses. Even experts admit that in an equation, the former has more good weight to boast of. It is undeniable, of course, since property purchase to be rented out does generate a more consistent amount of income compared to when it is limited to personal use or kept idle. You may also see bar business plan examples .

However, this doesn’t grant you immunity to the many common pitfalls for not-so-successful landlords and how they approach property rental as a business. Learn from them by following these tips.

1. Know who your market is.

Narrow down your market based on the property you offer. Make sure you have a keen understanding of what they require from the use of your space. The location will also play an important role here. You may also see  tutoring business plan examples .

2. Set aside a budget.

The properties and facilities that you will offer to your tenants will need a budget. Set aside an ample amount for the upkeep of your property. You can also check  social media business plan examples .

3. Have everything in writing.

Like every smart businessman, you should have  literally everything in formal writing. You should have your tenants sign an official lease agreement ; they should sign a copy of your rules so that you have a document to back you up should you need one; you should settle payment terms and lease duration in writing; any specific cleanliness guidelines that they need to adhere to; and when the rent is exactly due and what happens for late payments.

4. Keep track of your cash flow.

What differentiates a successful rental business from failed ones is that the former is capable of maintaining a healthy cash flow, which means that they make sure that what they are earning from the monthly rent is more than enough to cover their expenses.

5. Fulfill your duties and obligations as landlord and property owner.

The best way to get your tenants to meet their obligations is to make sure that you do too. Your job is not only to take the rent money, but you also need to make sure that your tenants are living well  inside your building  and that your property is always suitable for human inhabitants. You may also see  market analysis business plan examples .

Starting your business can be daunting, but with the right business plan to guide your way, success can be a sure destination. You may also see  affiliate marketing business plan examples .

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This article is part of a larger series on Investing in Real Estate .

Get the templates and resources you need as a landlord

• 1 Write Your Mission & Vision Statement
• 2 Conduct a SWOT Analysis
• 3 Choose a Real Estate Business Investing Model
• 4 Set Specific & Measurable Goals
• 5 Write a Company Summary
• 6 Determine Your Financial Plan
• 7 Perform a Rental Market Analysis
• 8 Create a Marketing Plan
• 9 Build a Team & Implement Systems
• 10 Have an Exit Strategy
• 11 Bottom Line

A real estate investment business plan is a guide with actionable steps for determining how you’ll operate your real estate investing business. It also indicates how you’ll measure your business’ success. The plan outlines your mission and vision statement, lets you conduct a strengths, weaknesses, opportunities, and threats (SWOT) analysis, and sets goals in place. It’s similar to a business plan for any business, but the objectives are geared toward how you will manage the business, grow your investment, and secure funding.

We’ve created a free real estate investment business plan template for you to download and use as a guide as you read through the article and learn how to write a business plan for real estate investment:

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Free Real Estate Investment Business Plan Template

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1. write your mission & vision statement.

Every real estate investment business plan should begin with a concrete mission statement and vision. A mission statement declares actions and strategies the organization will use—serving as its North Star in achieving its business or investment objectives. A strong mission statement directs a real estate business, keeps teams accountable, inspires customers, and helps you measure success.

Before you compose your mission statement, you need to think about the following questions to do it effectively:

• What exactly is our business? The answer should encompass the essential functions of your real estate organization.
• How are we doing it? The response must explain your real estate goals and methods based on your core principles.
• Who are we doing it for? The response explains who your primary market is.
• What are our guiding principles? The “why” for your real estate company’s existence.

Mission statement example (Source: Oak Tree Capital )

The example above provides the mission statement of Oak Tree Capital. As a real estate investment business, it’s clear what its ultimate business objective is and how it will approach investing with integrity to maximize profit. Essentially, the investment company will drive monetary results—while maintaining its moral principles.

On the other hand, vision statements differ slightly from mission statements. They’re a bit more inspirational and provide some direction for future planning and execution of business investment strategies. Vision statements touch on a company’s desires and purpose beyond day-to-day operational activity. A vision statement outlines what the business desires to be once its mission statement is achieved.

For more mission statement examples, read our 16 Small Business Mission Statement Examples & Why They Inspire article and download our free mission statement template to get started.

If you want to write a vision statement that is truly aspirational and motivating, you should include your significant stakeholders as well as words that describe your products, services, values, initiatives, and goals. It would be best if you also answer the following questions:

• What is the primary goal of your organization?
• What are the key strengths of your business?
• What are the core values of your company?
• How do you aim to change the world as a business?
• What kind of global influence do you want your business to have?
• What needs and wants does your company have?
• How would the world be different if our organization achieved its goals?

In the example below from Aguila Real Estate, it hopes to be the preferred real estate company in its market.

Example of a vision statement (Source: Aguila Real Estate )

To make it easier, download our free template and follow our steps to create a vision statement for your small business. Take a look also at our 12 Inspiring Vision Statement Examples for Small Businesses in 2023 article to better understand how to create an impactful vision statement.

2. Conduct a SWOT Analysis

A SWOT analysis section of your real estate investing business plan template helps identify a business’ strengths, weaknesses, opportunities, and threats. This tool enables real estate investors to identify internal areas of improvement within their business through their strengths and weaknesses.

The opportunities and threats can assist with motivating a team to take actions that keep them ahead of an ever-changing real estate landscape. For a real estate business investor, the SWOT analysis is aimed at helping grow and protect investments over time.

Strengths & Weaknesses

Specifically for real estate investing, strengths and weaknesses correlate with the investment properties’ success and touch on items that will drive investment growth. The strengths can be the property’s location, condition, available amenities, and decreased vacancy. All of these items contribute to the success of a property.

On the contrary, the weaknesses include small unit sizes, excessive expenditures (finances to repair, upgrade, properties to acquire), low rents, and low cap rates. These weaknesses indicate less money is being collected and a lower overall return on investment (ROI). They are all factors that limit cash flow into the business and are internal factors that an investor can change.

See below for an example of strengths and weaknesses that could be included in a SWOT analysis:

Opportunities & Threats

Opportunities and threats are external factors that can affect an investment business. You don’t have control over these items, but you can maneuver your business to take advantage of the opportunities or mitigate any long-term effects of external threats. Opportunities relating to investment properties can be receiving certification with a city as a preferred development or having excess equity.

However, threats to an investment property do not need to be particularly connected to the property itself. They can be factors that affect your overall business. For example, interest rates may be high, which cuts your profits if you obtain a mortgage during that time frame.

An example of possible opportunities and threats for an investment business could be:

After creating your SWOT analysis, an investor can use these factors to develop business goals to support your strengths and opportunities while implementing change to combat the weaknesses and threats you anticipate. It also helps investors prioritize what items need to be addressed to succeed. These factors in a SWOT can change as the business grows, so don’t forget to revisit this portion and continuously reevaluate your SWOT.

3. Choose a Real Estate Business Investing Model

The core of real estate investing is to purchase and sell properties for a profit. How to make that profit is a factor in identifying your investment model. Different investing models are beneficial to an investor at different times.

For example, when interest rates are low, you may consider selling your property altogether. When interest rates are high and it is more difficult for people to obtain a mortgage, you may choose to rent out your properties instead. Sometimes, you must try a few models to see what works best for your business, given your area of expertise.

We’ve identified some investment business models to consider:

• Buy and hold: This strategy mainly involves renting out the property and earning regular rental income. This is also considered the BRRRR method : buy, rehab, rent, refinance, and repeat until you have increased your portfolio.
• Flipping properties : Flipping a property entails purchasing, adding value, and selling it higher than the investment costs. Many investors have a set profitability number they would like to hit but should consider market fluctuations on what they can realistically receive during the sale.
• Owner-occupied: Investors can live in the property while renting out extra units to reduce their housing costs and have rental income coming in simultaneously. This model is best if you own multifamily units, especially duplexes, triplexes, or fourplexes . It’s also a great way to understand the complexities of being a landlord. You can transition your unit to another renter when you want to move.
• Turnkey: Buying a turnkey property is the best option for investors who wish to enter the real estate market without having to deal with renovations or tenant management. It’s a practical way for seasoned investors to diversify their portfolios with fewer time commitments.

Investors don’t have to stick to one model, and they can have a few of these investment models within their portfolio, depending on how much effort they would like to put into each property. Before choosing an investment model, consider which will help you meet your investing goals most efficiently.

Read our Investing in Real Estate: The 14-Tip Guide for Beginners article to learn how real estate investment works and other investing business models. Also, if you’re new to real estate investing and are looking for foundational knowledge to get started or seeking information about the best online courses for real estate investing, look at our The 13 Best Real Estate Investing Courses Online 2023 article.

4. Set Specific & Measurable Goals

The next step to completing a real estate investment business plan for real estate investing is to set SMART goals. SMART is an acronym that stands for specific, measurable, achievable, relevant, and time-bound. Creating goals that contain all of the criteria of SMART goals results in extremely specific goals, provides focus, and sets an investor up for achieving the goals. The process of creating these goals takes some experience and continued practice.

An investor’s goals can consist of small short-term goals and more monumental long-term goals. Whether big or small, ideal goals will propel your business forward. For example, your end goal could be having a specific number of properties in your portfolio or setting a particular return on investment (ROI) you want to achieve annually.

Remember that your SMART goals don’t always have to be property-related just because you’re an investor. They can be goals that help you improve your networking or public speaking skills that can also add to a growing business.

Example of improving goals with SMART in mind:

Begin creating SMART goals with an initial goal. Then, take that initial goal and break it down into the different SMART components. SMART goals leave no room for error or confusion. The specific, measurable, and time-bound criteria identify the exact components for success.

However, the relevant and achievable parts of the goal require a little extra work to identify. The relevancy should align with your company’s mission, and extra research must be performed to ensure the goal is attainable.

Initial goal: Receive a 5% return on investment from the property

Smart goal:

• Specific: I want to achieve a 5% return on the 99 Park Place property.
• Measurable: The goal is to sell it for greater than or equal to $499,000.
• Achievable: The current market value for a two-bedroom in Chicago is selling for $500,000 and growing by 1% yearly.
• Relevant: I aim to meet my overall portfolio returns by 20% annually.
• Time-bound: I want to offload this property in the next three years.

5. Write a Company Summary

The company summary section of a business plan for investors is a high-level overview, giving insight into your business, its services, goals, and mission, and how you differentiate yourself from your competition. Other items that can be included in this overview are business legal structure, business location, and business goals. The company summary is beneficial if you want to involve outside investors or partners in your business.

​​Example company profile from Choueri Real Estate

A company summary is customizable to your target audience. If you’re using this section to recruit high-level executives to your team, center it around business operations and corporate culture. However, if you’re looking to target funding and develop investor relationships for a new project, then you should include investor-specific topics relating to profitability, investment strategy, and company business structure.

Partners and outside investors will want to consider your company’s specific legal business structure to know what types of liabilities are at hand. Legal business structure determines how taxes are charged and paid and what legal entity owns the assets. This information helps determine how the liabilities are separated from personal assets. For example, if a tenant wants to seek legal damages against the landlord and the property is owned by an LLC, personal assets like your personal home will not be at risk.

6. Determine Your Financial Plan

The most essential part of creating a real estate investing business is the financial aspect since much of the business involves purchasing, managing, and selling real estate. To buy real estate initially, you’ll have to determine where funding will come from. Funding can come from your personal assets, a line of credit, or external investors.

A few options are available to real estate investors when obtaining a loan to purchase properties. The lending options available to most real estate investors include the following:

• Mortgage: This is one of the most common means of obtaining financing. A financial institution will provide money based on a borrower’s credit score and ability to repay the loan.
• Federal Housing Authority (FHA) loans : This loan is secured by the FHA to assist with getting you a low down payment or lower closing costs, and sometimes easily obtain credit. There are some restrictions to qualify for this loan—but it could be suitable for newer investors who want to begin investing starting with their primary home.
• Home equity line of credit (HELOC) : If you currently have property, obtain a HELOC by using your current property to secure the line of credit and borrow against the equity in your property. As you repay the loan, your available balance on the line of credit gets replenished.
• Private lenders : These are lenders who are not financial institutions. These individual lenders typically have fewer restrictions than traditional lenders and will lend money to individuals who can grow their investments.
• Hard-money loans : This loan requires a hard asset to be leveraged for money. For example, you can put up the home you want to purchase as the asset for cash upfront, and the hard-money loan will be paid back once the home is sold or other funding is secured. This is great for short-term deals due to quick approval and little upfront money.

After funding is obtained to purchase property, financial projections help investors understand their financial standing. These projections can tell you potential income, profits, and when you may need additional funding in the future. Similar to lending options, these calculations are specific to your investing model. If you’re not planning to rent out the property, then calculations like gross rent multiplier are not applicable.

For more information on what is needed to obtain financing, read our articles Investment Property Financing & Requirements and 5 Best Crowdfunding Sites for Investors 2023 .

Additional Investment Calculations

In a rental property business plan, it’s important to use a rental property calculator to determine a property’s potential return on investment. The calculator considers various factors, such as purchase price, operating expenses, monthly income, or vacancy rates, to determine whether a property is a good investment.

Click on the tabs below for the other important calculations all investors should be aware of when purchasing and managing rental properties :

• Gross Operating Income
• Gross Rent Multiplier
• Vacancy Rate

The gross operating income (GOI) calculates the amount of rent and income received from a property minus any vacancy. It doesn’t take into account other expenses. It tells an investor how much income they’ll make after some assumed losses with vacancy.

GOI = Total rent + Other income – Vacancy losses

The capitalization (cap) rate calculates the return on investment (ROI) of a property. This equation is used to compare the return of one building to another. The higher the cap rate, the better since the purchase price is low.

Cap Rate = Net operating income / Purchase price

The gross rent multiplier (GRM) is a factor that helps determine a property’s potential profitability. It can be used to compare perspective buildings to determine which one is the better deal.

GRM = Property price / Gross annual income

The vacancy rate calculates the vacancy percentage of all your investment properties during a specific period. Percentage helps an investor determine how their property performs given current market conditions. If you have a high vacancy rate, you must determine the cause. Perhaps your asking rents are too high for the current housing market.

Vacancy Rate Formula = # of Vacant Units x 100 / Total # of Units

Cash flow is the movement of money in and out of your business, also known as net operating income. In an ideal scenario, investors will bring in more income than expenses, thus showing profit and a positive cash flow. Positive cash flow allows investors to decide how to use that profit. They can invest it in growing their portfolio or increasing their cash reserves for unexpected expenses.

Cash Flow = Gross rental income – Total expenses

Investors can use their current cash flow to forecast future cash flows, which will give you an idea of how much profit you will see over a specific period. Use past cash flow information to determine if there are any trends. For example, during the summer, your water expenses increase, or possibly every few months, you see an increase in property repairs. Consider these trends when estimating future cash flows and compare actual numbers to determine if your forecasting is accurate.

Use the template below to forecast future cash flow for six months and determine how much cash flow reserves you will have:

Cash Flow Template

💡 Quick tip:

In addition to the template, investing in property management software like TenantCloud will set you up for success. The free plan from TenantCloud will help you list apartments, collect rent payments, and screen applicants to maximize profits and minimize vacancies.

7. Perform a Rental Market Analysis

While determining what properties to purchase, investors should perform a rental market analysis (RMA) to gauge the investment potential of a rental property. The RMA consists of running comparables against current units on the market and collecting data that may affect your rental rate to understand if the rental property in question is a solid long-term investment. The analysis helps determine the average rental rate and future rent if you want to make any property upgrades.

Investors can use resources like Zillow to pull comparable property information and gather information on unit layout, building amenities, rental concessions offered, or listing prices. Once the information is gathered, the spreadsheet itemizes the average, median, highest, and lowest rent. When such information is available, it also provides an average price per square foot compared to the subject property. With this information, investors can decide whether the subject property is worth the investment.

Read our 10 Best States to Invest in Real Estate (& 5 Worst) in 2023 article to better understand which states yield a positive cash flow, build equity, and have long-term profitability.

8. Create a Marketing Plan

Once you determine which property to invest in, investors should identify a marketing plan to list the vacant units. Some investors offload the marketing and advertising to real estate agents and brokerages, which will also collect a fee for renting out the property. Refer to some of the best real estate marketing materials to get started, or use our free real estate marketing plan template to lay out your objectives and tactics.

A real estate marketing plan should include your goals, budget, target market, competitors, feasible marketing strategies, and unique selling offers. In addition, it’s crucial to balance your strategy and split your potential marketing plans into categories, like print materials, online ads, email, and social media, so that you can be very specific with your goals and metrics.

Here are some of the real estate marketing mediums to include as you set your marketing goals:

• Real estate website and landing pages
• Email marketing
• SMS and text message marketing
• Real estate ads
• Social media marketing
• Print marketing materials
• Real estate signs

Download our marketing plan template by visiting our article Free Real Estate Marketing Plan Template & Strategy Guide .

9. Build a Team & Implement Systems

As a new investor, you may be unable to hire an entire team of employees to help perform research, run analysis, property management , and accounting duties. It is best to have a list of vendors you can rely on to assist you with purchasing, rehabilitating, and buying or selling your investment properties. Find vendors you trust so you can free yourself from having to micromanage them and know they have your best interest and the interest of your investments in mind.

Here are a few people you want to include on your team:

• Contractors
• Electricians
• Property managers
• Accountants

You should also utilize real estate investing apps and property intelligence software like Baselane that relieve you of manually performing daily duties to keep your investments profitable.

Automated rent collection feature (Source: Baselane )

Baselane is an all-in-one solution—from banking to rent collection, bookkeeping, reporting, and analytics. This software will help you efficiently manage your portfolio and eliminate the need for manual tasks. Learn more about how Baselane can make you a better property owner.

Visit Baselane

If you’re looking for more tools to help you get started, improve your portfolio management, and streamline your operations, read our 6 Best Real Estate Software for Investors 2023 article. We listed the six best software tools available for real estate investing based on affordability, customer reviews, features, and support to assist you in finding the best software that suits your needs.

10. Have an Exit Strategy

Since an investor’s money is tied up in the properties they own until they choose to sell, deciding when to sell or liquidate to get access to your money is part of an investor’s overall real estate exit strategy. The exit strategy for a real estate investment business is a plan for when an investor would like to remove themself from a deal or the business altogether. It helps weigh the different scenarios to minimize business risks and maximize the total return on investments.

A few exit strategy examples are:

The factors that an investor should consider when devising an exit strategy are minimizing financial loss, recouping as much of their original investment as possible, and avoiding any unseen fees that will cut into profits like tax consequences. An investor’s plan should always be to grow their original investment, but unforeseen circumstances may occur that will require you to plan on when to cut your losses as well.

Bottom Line

Before launching a successful real estate investment business, you must have an efficient business plan, aligning your strategies with your business objectives. Our real estate investment business plan template can help get you started. These plans act as a roadmap so you can focus on the steps required to grow your business. Business plans evolve, so continuously revisit and improve your strategies. There is no right or wrong way to write a real estate investor business plan as long as it is used to achieve your goals.

About the Author

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Jealie Dacanay

Jealie is a staff writer expert focusing on real estate education, lead generation, marketing, and investing. She has always seen writing as an opportunity to apply her knowledge and express her ideas. Over the years and through her internship at a real estate developer in the Philippines, Camella, she developed and discovered essential skills for producing high-quality online content.

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• Rental Property Business Plan

Article Index:

2.0 Company Description

• 3.0 Daily Operations and Production

4.0 Market Analysis

5.0 marketing strategy and implementation, 6.0 organization and management, 7.0 financial plan, 1.0 executive summary.

Real Estate Ventures, Inc. is a newly formed S-Corporation wholly owned by Steve and Linda Rogers for purposes of purchasing and owing income producing real estate. Real Estate Ventures, Inc. fills the void in the local Franklin, Tennessee rental housing market by providing clean, well cared for rental homes to well qualified tenants. Neither the homes nor the ten\ants are chosen on a hasty basis, but rather on purposeful, planned and methodical basis. The property selection process is rigorous and based on long term investment standards and tenants are personally evaluated by the owners. Real Estate Ventures, Inc. believes the key to successful property management is to be committed for the long term in both the property and tenant selection process.

The owners of Real Estate Ventures, Inc. are lifelong residents of the thriving Franklin, Tennessee area, a suburb of Nashville. Steve Rogers, an entrepreneur has owned his own company, ProStar Paints for 15+ years. Linda Rogers is a math teacher at Franklin Elementary. Both owners have access to additional sources of revenue to supplement expenses associated with the investment property. In addition to their outside revenue, the Rogers received a $100,000 inherence when Linda’s mother passed away recently.

Real Estate Ventures, Inc. is purchasing their first investment property, a well maintained single family home located in the highly sought after Red Mill Estates subdivision. Real Estate Ventures, Inc. has a contract on the house and the sales price is $107,500. The property is in need of some repair and maintenance (primarily cosmetic). Real Estate Ventures, Inc. will contract the work to a well known contractor that is personally known by Real Estate Ventures, Inc. for 15years. Steve Rogers will paint the property. It is estimated the repairs will take one month to complete at a cost of approximately $10,000.

A tenant, known by the owners with excellent credit and references, has been located and is ready take occupancy the following month. She has provided a security deposit.

The owners of Real Estate Ventures, Inc. are requesting a $53,750 commercial real estate loan to purchase the investment property. The credit facility will be based on 15 year amortization and have a loan to value ratio of 50%. The following business plan will provide a history of Real Estate Ventures, Inc., its current and future plans, and its ability to repay this financial obligation.

1.1 Business Objectives

• Invest in quality well cared for properties that are priced within the local market range
• Locate only well qualified tenants, desiring to lease long term
• Generate passive income

1.2 Mission Statement

Real Estate Ventures, Inc.’s goal is to invest in quality – both in its properties and in its tenants. One of the largest mistakes made by new real estate investors is in poor property selection. Even worse is their tenant selection process, often with little or no background and credit checks. At Real Estate Ventures, Inc., the owners are extremely devoted to their business and their commitment to the long term can be seen in their extreme dedication to both their properties and their meticulous selection process of finding long term tenants.

1.3 Guiding Principles

Real Estate Ventures, Inc. holds the following as its Guiding Principles.

• Treat the investment as a business first and foremost Many real estate owners will fail to take their investment seriously and keep sloppy or minimal business records. Over time this lack of discipline can permeate into other aspects of the business resulting in a downward slide of the business.
• Selective in tenant process Instead of accepting the first person in the door to accept the lease, Real Estate Ventures, Inc. will personally meet with each applicant for a personal interview. Real Estate Ventures, Inc. is seeking a long term lease with quality tenants. All applicants will be required to pass the credit and background check as well as provide the applicable deposits. References are a must and will always be verified.
• Provide exemplary service to tenants The goal of Real Estate Ventures, Inc. is to achieve long term occupancy levels. If the tenant has a broken A/C unit, then, they’ll fix it – that same day! Period! The property will be clean, well maintained and professionally managed.

1.4 Keys to Success

Real Estate Ventures, Inc. is fully committed to make its rental property business a long term success with future plans for expansion. It is this dedication and drive which will set them apart from their local peers. The following are what Real Estate Ventures, Inc. believes are its keys to success:

• Property management – The owners of Real Estate Ventures, Inc. will personally manage the rental property and not rely on an outside management team. This way, all repairs can be addressed immediately, rents will be collected in a timely manner and the accounting ledger will be kept current and up to date.
• Invest in only sustainable, high quality investments – Real Estate Ventures, Inc. is not interested in ‘flipping’ properties. Prior to making any purchases, the properties are fully evaluated to determine positive cash flow and long term sustainability.

Real Estate Ventures, Inc., (“Real Estate Ventures, Inc.”), is a newly formed S-Corporation formed for purposes of managing the underlying real estate located in Franklin, Tennessee, a principal city in the Nashville Metropolitan Statistical Area (“MSA”). Real Estate Ventures, Inc. is jointly owned by Steve and Linda Rogers, husband and wife.

2.1 Ownership

Steve and Linda Rogers are lifelong residents of Franklin, Tennessee. Steve has an established business and has owned his paint business known as ProStar Paint for 15+ years. Linda Rogers, a graduate of Middle Tennessee State University, is a math teacher at Franklin Elementary School.

2.2 Legal Form

Real Estate Ventures, Inc. is an S-Corporation.

2.3 Start-Up Summary

Steve and Linda Rogers, the owners of Real Estate Ventures, Inc. have been interested in finding a means to supplement their income. When Linda’s mother passed away earlier this year, the couple received approximately $100,000 in inheritance and they decided to use this windfall to purchase and manage investment income properties. Together they attended several continuing education classes at their local community college and decided upon the subject property for their first purchase. The 1,356 SF house is located in the Red Mill Estates neighborhood. The house is in need of some cosmetic updates to bring the property to current rental market standards and is primarily comprised of new carpet, paint, and laminate tile.

The couple plans to subcontract the project and have build-out and completion within 30 days and the tenant taking occupancy thereafter.

Below is a detailed summary of the Construction Budget :

Steve Rogers personally knows the contractor, Ben Nelson, of Ben Nelson Construction, and has painted many houses for the contractor over the past 15 years. Mr. Nelson has approved the budget and believes that barring weather conditions, the project should be completed on schedule with minimal cost overruns. The contractor is reputable and is well known in the community for its integrity, finishing projects on time, and its quality of workmanship. Steve will do the painting himself. The estimated time to complete the renovation and rehabilitation is one month.

Real Estate Ventures, Inc. has located an approved tenant for the property as well. A teacher and acquaintance at Linda’s school has requested to occupy the unit. The single mother of two recently divorced and is currently living with a relative. The house is a wonderful opportunity for the teacher to launch a fresh start and the location is 5 minutes to the school where she teaches with Linda. The tenant has passed the credit and rigorous background checks and her references have all checked out. Real Estate Ventures, Inc. is holding her security deposit.

2.4 Location and Facilities

Real Estate Ventures, Inc. extensively researched the local market and found it met their key criterion. The Red Mill Estates neighborhood has lush landscaping, larger than average lots and is primarily owner occupied. The surrounding neighborhoods are middle class suburbs with five grocery stores within a 5 mile radius, various restaurants, and shopping malls 3 miles away near the easily accessible I-65. The property is located in the Franklin City Elementary School District.

The property is clean and well maintained by the original owner. Updates to the property will primarily be cosmetic to bring the property to current market standards.

3.0 Products

3.1 products/services descriptions.

Real Estate Ventures, Inc. provides clean, quality homes in growing markets to well qualified tenants.

The primary source of revenue is rental income. Supplemental income will include:

Forfeited Deposits Bounced Check fees (NSF) Late charges Damage and Cleaning Charges Application fees Pet Charges Lease Termination charges

3.2 Competitive Comparison

There are seven rental income properties within a 1 mile radius of the subject along with several multifamily apartment units. For comparison purposes, the multifamily units have been excluded from this comparison. Rents per square foot range from a high of $1.11 to a low of $0.83 per square foot (“PSF”). The average market rent PSF in the Franklin market is $1.01. The subject rent PSF is $0.98 and compares favorably with the market.

Following is a table outlining the local comparables:

3.3 Product/Service Sourcing

3.4 inventory management, 3.5 warehousing and fulfillment, 3.6 future products/services.

Real Estate Ventures, Inc. has near term plans to purchase additional quality income producing properties sufficient to generate, passive income streams.

Franklin, Tennessee, located in Williamson County, is a Principal City in the in the Nashville Metropolitan Statistical Area (“MSA”) and is ranked 31 in the United States. According to the University Of Tennessee’s 2012 Economic Outlook, Williamson County is one of the fastest growing counties in the state, expanding by 44.7% over the prior year.

Health Spring, Community Health Systems, Healthways, Home Instead Senior Care, MedSolutions Inc, Magazines.com, the Provident Music Group, Renal Advantage Inc, World Christian Broadcasting and Nissan’s North American headquarters are based in Franklin.

There are over 1,600 businesses in the surrounding 3 mile radius of the subject. The majority of the local businesses are in the service category and comprise 40.1% of the local employment base followed by 20.8% in the retail trade.

Franklin vacancy levels were reported to be 6% compared to the industry average of 7.9%. SOURCE: Trulia, Bureau of Labor Statistics

4.1 Industry Analysis

The housing market recovery has remained true to the old real estate axiom of “location, location, location.” How your local market is faring today – and if it makes more sense to buy or rent, to sell now or to hold off if possible – is largely determined by unique, local factors and fundamentals. Timely and comprehensive local market information will be even more important in 2013 as buyers continue to seek bargains and sellers look to maximize returns. Source: Zillow Research

4.1.1 Market Size

A recent survey of Franklin, Tennessee revealed there are currently 67 single family residences available for rent. The average monthly rental charge ranges from $2,202 monthly to $1,058 monthly. The middle tier monthly rent is $1,283 or $1,031,532 annualized.

Real Estate Ventures, Inc.’s portion of the $1 million market represents 1.51% of market share.

4.1.2 Industry Participants

The primary participants in the rental real estate market are other single family residences and apartments. However, other indirect competitors include: condos, mobile homes, trailers, garage apartments and duplexes. Sellers of homes that offer rent to own options pose yet another form of competition.

4.1.3 Main Competitors

Within a one mile radius of the subject are 10 apartment complexes and 7 single family residences available for rent. For comparison, this analysis will focus only on the single family residences available for rent.

1101 Gown Blvd 2 BDR / 2 BA $1,200 month / 1,107 SF This property competes closely with the subject. However, the subject is superior with its extra square footage and additional bedroom.

1102 Gown Blvd 3 BDR / 2 BA $1,350 month / 1,445 SF This property is most comparable to the subject. Comparable Number Two has 119 additional square feet are and is $0.05 lower in monthly rent.

700 Fountain Blvd 3 BDR / 2 BA $2,595 month / 2,328 SF This property has the largest square footage of the comparables and is located on acreage. It is also the demanding the highest monthly rental charge. Based on these factors Comparable Number 3 is an indirect competitor.

3104 Travis Road 3 BDR / 2 BA $1,995 month / 2,083 SF This property competes directly with the subject. With an additional 757 square feet, this property is priced $0.02 PSF below the subject and could appeal to the value renter. The downside to this property is its inferior location – which is across the street from a landfill. The property has been vacant for four months and it is rumored the owner will be dropping the asking rental price.

308 Hardy Street 3 BDR / 2 BA $1,125 month / 1,200 SF Comparable Number 5 is slightly older and smaller the subject. Built in 1980, the property is 126 feet smaller than the subject. The property is clean and well maintained and is considered a direct competitor with the subject.

1200 Main Street 4 BDR / 3 BA $1,800 month / 1,700 SF This property is larger than the subject by over 300 feet. Asking rent is higher than the subject as well and higher than the $1,100-$1,400 range Real Estate Ventures, Inc. is hoping to attract. This property has an additional bedroom. Based on these factors; Comparable Number 6 is considered an indirect competitor.

3225 Bolen Drive 3 BDR / 3 BA $1,750 month / 2,100 SF Comparable Number 7, like Comps 3 and 4 is substantially larger than the subject. The asking monthly rent of $1,750 is also above the range Real Estate Ventures, Inc. is targeting. The property has exceptional value with rents per square foot the lowest in the market at $0.83 and will appeal to the value renter. The property is clean and well maintained. Based on its larger square footage and higher asking monthly rent, Comparable Number 7 represents an indirect competitor.

4.1.4 Market Segments

The 1 mile radius surrounding the subject had a population of 7,199 at the 2010 Census and is expected to grow to 7,363 by the Year 2017. The majority of the homes are owner occupied with 1,950 housing units and a reported 793 renter occupied units from the 2010 Census. Rental units are expected to grow to 854 by the Year 2017. The median age at 2010 was 34. Source: BUSINESSDECISION.INFO

Residents within a 1 mile radius of the subject are comprised primarily of two market segment groups: In Style represents 52.7% of the market share and Crossroads with 35.4% of the market or 88.1% cumulative market. The In Style market is comprised primarily of residents that live in the suburbs but prefer the city lifestyle. These residents prefer townhomes to traditional single family homes and have a median household income of $182,665. Real Estate Ventures, Inc. is targeting the latter group, Crossroads, as their primary target customer. Following is a brief summary of their target occupant:

Crossroads neighborhoods are growing communities in small towns. Married couples with and without children and single parents are the primary household types in these areas. They have a median age of 32.2 years. This population is growing at 1.6% annually faster than the US population. The median household income is $43,799. Children are the focus of their lives. They drive domestic cars and trucks and handle the maintenance themselves. Source: ESRI.COM/Tapestry

4.2 Market Tests

Prior to selecting the rental unit, Real Estate Ventures, Inc. placed an advertisement for rent with the online classifieds at Linda’s place of employment, Franklin Elementary. The response was overwhelming! Real Estate Ventures, Inc. had 14 candidates to choose from! The majority of these applicants were fellow teachers or friends of teachers. All applicants were families, both single income and dual income. Real Estate Ventures, Inc. had to inform the turned down applicants that the property was already leased.

Based on this market ‘test’ Real Estate Ventures, Inc. decided to put the “pedal to the metal” and make an offer on the property.

4.3 Target Market Segment Strategy

Real Estate Ventures, Inc. is targeting families with children – single family households or dual income households. The target tenant is young, under the age of 35 and is likely to have some additional financial obligations, such as student loan debt and car note debt that they want to pay off prior to considering home ownership. Many of the new teachers at Linda’s school fit the target profile and Real Estate Ventures, Inc. will continue to pursue this target group as tenants. The target rent is the $1,100-$1,400 range.

4.3.1 Market Needs

Given the option of raising a family in a traditional single family home compared to an apartment complex, Real Estate Ventures, Inc.’s target tenant prefers the former. The Red Mill Estates neighborhood and surrounding neighborhoods are growing residential neighborhoods making the location ideal for Real Estate Ventures, Inc.’s tenants. With limited direct comparables, the demand for single family residences available for rental is high in this market.

4.3.2 Market Trends

• Homeownership make financial sense when the occupant is planning on staying 5+ years and has the cash flow cover the normal repair and maintenance costs. And as we leave the recession behind us over time tenants may vacate to pursue homeownership.
• Renting still makes financial sense for Real Estate Ventures, Inc.’s targeted tenant who does not want the additional cost/time burden of property maintenance.

4.3.3 Market Growth

The local single family rental home market increased 1.4% over the prior year. Source: Zillow Rent Index

4.4 Positioning

Real Estate Ventures, Inc. will position itself as the rental property of choice when it comes to quality properties in solid neighborhoods, by actively staying current on local market conditions.

Real Estate Ventures, Inc. will own, operate, and lease clean, well maintained single family residences to well qualified tenants. Others often miss the mark by investing in low quality properties which will not provide sufficient ROI (return on investment). Additionally other landlords often fall short in responding to tenants needs for repairs. When a tenant calls requesting repairs to say a leaky faucet, Real Estate Ventures, Inc. will have a repairman on premises that same day and more than likely one of the owners will personally make the repair. What will set Real Estate Ventures, Inc. apart from other property managers will be its unique ability to bring quality properties and tenants together. The following sections address the various tactics that will contribute to this effort.

5.1 SWOT Analysis

SWOT stands for strengths, weaknesses, opportunities and threats. A SWOT analysis is a method for strategic planning that evaluates these four elements as they relate to Real Estate Ventures, Inc.’s business objectives. The following section helps demonstrate Real Estate Ventures, Inc.’s marketing strategy:

5.1.1 Strengths

• The rental property is well located in a growing neighborhood with easy access to neighborhood schools, shopping and restaurants. Located less than 5 minutes from I-65, the commute to Nashville is less than 20 minutes.
• Real Estate Ventures, Inc. has an approved tenant in place with a security deposit. The tenant has excellent credit and payment history. The tenant is known by Real Estate Ventures, Inc. and works as a teacher at the same school as Linda Rogers.
• Upgrades to the property will be made by a reputable contractor with a 15 year history with the owners of Real Estate Ventures, Inc.. The owners of Real Estate Ventures, Inc. will paint the property themselves which will further reduce expenses.
• Real Estate Ventures, Inc. will come out of pocket in excess of $67,000 toward the house purchase and capital improvements resulting a low, loan to value (LTV) ratio of 50%.
• The owners of Real Estate Ventures, Inc. have ‘day jobs’ and thus have additional income sources and savings to draw from to support business operations.

5.1.2 Weaknesses

• New entrants into real estate property management, Real Estate Ventures, Inc. has limited experience owning and managing investment income properties.

5.1.3 Opportunities

• Franklin has low vacancy levels at 6% compared to the national average of 7.9%.
• The property is located in a strong growing community and the fastest growing county in the state.
• Real Estate Ventures, Inc. has an opportunity to participate in a $1 million local real estate rental market.

5.1.4 Threats

• Investment real estate is economically tied – changes in unemployment, rent spikes and changes in the economy could adversely impact demand for rental units.
• Declination in the local neighborhood could impact attractiveness of rents
• Cost overruns in the construction budget and failure to complete upgrades in time could impact Real Estate Ventures, Inc.’s cash flow.

5.2 Strategy Pyramid

Real Estate Ventures, Inc. will only lease solid, clean, well maintained investment properties that generate positive cash flow.

In order to meet these objectives, Real Estate Ventures, Inc. will not make the mistakes many new landlords make and perform thorough due diligence prior to purchasing any property; All perspective properties must meet the following requirements:

• Property must be clean and well maintained
• Property must be a growing community with low vacancy rates
• Rents will be priced within market range – typically between the $1,100-$1,400 range
• Property must generate positive passive income
• All tenants will be required to: Pass background and credit checks; Provide verifiable references
• Provide non-refundable application fee to cover the costs associated with these checks.
• All tenants will be required to provide a security deposit.
• Tenants will be required to make payments via EFT which will further ensure payments will be made as agreed and on time.

Real Estate Ventures, Inc. will strive to be a superlative landlord as well – by responding within one hour to any tenant issues regarding repairs and maintenance during normal business hours of operation. Weekend and evening calls will be answered the following business day unless it is a life threatening emergency (such as the smell of gas, water main breaks) in which case the owners will be paged immediately and an emergency response service will be sent.

On a monthly basis, Real Estate Ventures, Inc. will change and replace air filters and monitor smoke and radon detectors.

5.3 Unique Selling Proposition (USP)

The owners of Real Estate Ventures, Inc. love what they do! And it shows in from the quality of the properties they invest in to the caliber of tenants they lease to. They thoroughly review the property and analyze the real estate market. Real Estate Ventures, Inc. will continually monitor and evaluate the local market trends. They are in this for the long term!

5.4 Competitive Edge

Real Estate Ventures, Inc. utilizes a thorough due diligence process prior to purchasing and investing in any property. By doing their homework, Real Estate Ventures, Inc. can competitively price their rents – often at or below market. Thoroughly knowing their market gives Real Estate Ventures, Inc. the competitive edge over their competitors. Further, Steve’s background in painting and his extensive connections in the construction field in the local Franklin market, gives Real Estate Ventures, Inc. the competitive edge when in it comes to knowing the quality and caliber of the local contractors. Many competitors will fall short and subcontract often to the lowest bidder with unknown track records. If a major tenant repair is required, Real Estate Ventures, Inc. will be prepared and have the ability to select the best contractor at a fair price. This in turn will keep expenses down and profit margins and return on investment on target.

5.5 Marketing Strategy and Positioning

Real Estate Ventures, Inc.’s marketing strategy incorporates a Focus Strategy – that is, it targets a specific target market. Real Estate Ventures, Inc. concentrates their marketing efforts on attracting solid, credit worthy tenants that are motivated to live in growing, thriving comminutes.

5.5.1 Positioning Statement

Real Estate Ventures, Inc. is a high quality real estate investment corporation. Real Estate Ventures, Inc. carefully and methodically selects its rental properties in growing neighborhoods, with low vacancy rates. The properties are clean, well maintained and provide positive cash flow. In keeping with their its high quality standards, Real Estate Ventures, Inc.’s tenants, reflect these attributes as well and have exceptional credit scores, timely rental payment history and a strong desire to live long term with their families in a solid community. Real Estate Ventures, Inc. is committed to their properties for the long term – they do not foster a “here today gone tomorrow” mentality. Above all Real Estate Ventures, Inc.’s owners love what they do and are committed to the company for the long term.

5.5.2 Pricing Strategy

Real Estate Ventures, Inc. utilizes Competition Based Pricing – in which prices are based on the market. The company’s thorough due diligence process assures that they never buy the highest priced property or the lowest priced for that matter.

5.5.3 Promotion and Advertising Strategy

Real Estate Ventures, Inc. will primarily rely on advertising in the Franklin Elementary School Online Classified Ads and Word of Mouth advertising.

As properties become available, Real Estate Ventures, Inc. will post signage in front of the property. As a last resort, Real Estate Ventures, Inc. will post classified ads with the local newspaper and Craigslist.

5.5.4 Website

Real Estate Ventures, Inc.’s website features properties available to rent, the business phone number to contact for information regarding renting or who to contact for repairs. Additionally the website will have links to complete an online application and links to key articles for tenants such as the importance of obtaining sufficient renters insurance for example.

In the event that a property is available, the site will feature photos of the property along with detailed description of the property, amenities, details of the surrounding neighborhood and any concessions that are currently available.

5.5.5 Marketing Programs

Real Estate Ventures, Inc. is uniquely sized to both personally own and manage its investment properties. Through their extensive contacts in the Franklin area, Real Estate Ventures, Inc. hopes to rely on Word of Mouth advertising and not be forced to allocate a large portion of their budget to advertising costs. However, in the event that a property remains vacant for 30+ days, Real Estate Ventures, Inc. has a policy in place to purchase classified advertising space in both the local newspaper and on Craigslist.

5.6 Sales Strategy

Real Estate Ventures, Inc. will meet with prospects right on site. The prospects will be greeted and treated with the utmost professionalism in a relaxed and respectful environment. The first meeting is an opportunity for the owners of Real Estate Ventures, Inc. to decide on leasing to the prospective tenant. If the prospect seems disagreeable, unpleasant or makes unrealistic requests, Real Estate Ventures, Inc. will not lease the property. If however the prospect is professional, and has reasonable requests, then this meeting will be considered along with the credit report and background check in making a decision to lease.

5.6.1 Sales Forecast

The following table represents the estimated sales from the rental unit the initial three years of operations. The analysis assumes 100% leased and no escalations in rent the initial two years.

Table 5.6.1 Annual Sales Forecast

5.6.2 Sales Programs

The owners of Real Estate Ventures, Inc. personally lease their properties and do not need to pay incentives to sales agents. However, just like sales agents, the owners of Real Estate Ventures, Inc. are motivated to lease properties quickly- after all vacant properties do not generate revenue! Although the owners of Real Estate Ventures, Inc. are motivated to get tenants in quickly they will not ‘rush’ at the expense of sacrificing quality. If Real Estate Ventures, Inc. is unable to find a perspective tenant in a reasonable amount of time (approximately 30 days) then the cost of doing business are the advertising costs associated with placing classified ads with the local newspaper and Craigslist.

Clean title and zoning, will be instrumental in purchasing investment real estate. The title search and tax record search must confirm this prior to Real Estate Ventures, Inc. purchasing any property. The title search must be free of liens.

All maintenance and repairs will be performed by bonded and licensed contractors that are in good standing with the state.

5.8 Milestones

Following are the Milestones Real Estate Ventures, Inc. believes will allow them to meet their objectives.

Table 5.8 Milestones

5.9 Exit Strategy

In the event the rental unit remains vacant for an extended period of time or in the event that extreme repairs and depletes all cash reserves, the secondary recourse will be to the owners. After the owners have depleted their personal reserves, the property will be sold. Proceeds will be used to satisfy obligations to creditors and any surplus will be returned to the owners.

The following section highlights ownership and future staffing expectations of Real Estate Ventures, Inc.:

6.1 Organizational Structure

Both Linda and Steve Rogers will own and manage the subject real estate. Steve Rogers will perform routine maintenance requirements and repairs. Linda Rogers will manage the daily bookkeeping requirements. She will submit payments to vendors such as trash service and recycling service, and forward the required information to Real Estate Ventures, Inc.’s certified public accountant for preparation of the annual income taxes.

6.2 Management Team

Steve Rogers will oversee the day to day maintenance of the rental unit. On a monthly basis he will replace air filters, inspect the grounds, and make notations of the overall physical condition of the property. The tenant will be put on notice for example if the yard needs to be mowed or weeds appear to be an issue. The tenant will have sufficient time to remedy the notice and will be fined daily until the issue has been resolved.

Steve has successfully owned and operated his painting business for 15+ years and is in the neighborhood on a daily basis. He will drive by the property frequently for visual inspections of the property. He is readily available in the event the tenant has any repair needs. Steve is also the author of this rental property business plan.

Linda Rogers will oversee the day to day bookkeeping needs for the rental property.

All tenants will be required to agree to EFT (electronic funds transfer) for monthly payments – which should minimize the need to collect rents.

6.3 Management Team Gaps

Real Estate Ventures, Inc. does not have an accountant or attorney on its staff. Income tax preparation and consulting services will be provided by the owner’s long term personal public accountant. Real Estate Ventures, Inc. will rely on their title company to verify clear title.

6.4 Personnel Plan

Steve and Linda Rogers will own and operate Real Estate Ventures, Inc. but draw no salary; both owners have outside incomes and will not draw salaries from the properties.

Table 6.4 Personnel Plan

Steve and Linda Rogers, owners and operators

6.5 Board of Directors

The following financial plan covers the following:

• Required Cost of Start-Up
• Profit and Loss
• Balance Sheet
• Financial Ratios

7.1 Important Assumptions

Construction Budget Real Estate Ventures, Inc. estimates a 1 month completion. Work will be performed by a contractor that is well known by the owners. The contractor is bonded, licensed and in good standing with the state.

Source of Funds The owners of Real Estate Ventures, Inc. received approximately $100,000 in inheritance and have access to liquidity to fund start up costs and meet operating shortfalls. However, they plan to invest a portion of these proceeds into additional rental income properties. Additional source of funds comes from both owners ‘day jobs’ – Steve Rogers owns his own house painting business and Linda Rogers is a math teacher at Franklin Elementary.

Profit and Loss Vacancy levels in Franklin are a low 6% and is substantially lower than the national average of 7.9%. The analysis assumes 100% occupancy over the 3 years reviewed.

7.2 Start-Up Costs

The following table represents start up costs.

Table 7.2 Start-Up Costs

7.3 Source and Use of Funds

The owners of Real Estate Ventures, Inc. received approximately $100,000 in inheritance and have access to liquidity to fund start up costs and meet operating shortfalls. However, they plan to invest a portion of these proceeds into additional rental income properties. Additional source of funds comes from both owners ‘day jobs’ – Steve Rogers owns his own house painting business and Linda Rogers is an elementary school math teacher at Franklin Elementary. The following table shows the proposed Source and Use of Funds:

Table 7.3 Source and Use of Funds

7.4 Break-Even Analysis

The rental income property is expected to generate $1,300 in monthly rent or $15,600 annually. Break even rents required are $14,020 or approximately 10.78 months of revenue. The following chart depicts break-even analysis:

Table 7.4 Break-Even Analysis

7.5 Projections

7.5.1 projected profit and loss.

The pro forma profit and loss is based on the initial 3 years associated with the subject property.

Table 7.5.1 Pro Forma Profit and Loss

7.5.2 Projected Cash Flow

The statement of cash flow shows the incoming and outgoing cash of the business.

Table 7.5.2 Pro Forma Cash Flow

7.5.3 Projected Balance Sheet

Table 7.5.3 Pro Forma Balance Sheet

7.6 Business Ratios

The business ratios are based on NAICS code 531110. The ratios demonstrate that Real Estate Ventures, Inc. is well capitalized, has a low leverage position and has good liquidity. Real Estate Ventures, Inc. compares more favorably to its industry peers primarily due to the owner’s injection in equity.

Table 7.6 Ratio Analysis

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• Do You Need a Business Plan for Apartment Investing?

If you want to give yourself the greatest chance of succeeding in the multifamily investing game, writing an effective business plan is key. A business plan can clarify your goals and bring potential obstacles to your attention.

• Apartment Investing Business Plans: What You Should Know 
• Elements of a Successful Apartment Investing Business Plan
• Mission Statement
• Investment Strategy
• Target Market (Geographic and Demographic)
• Property Financing
• Marketing Strategy
• Financial Projections
• Exit Strategy
• Property Management
• Legal, Accounting, and Asset Management
• The Best Multifamily Business Plans Are Flexible  
• Related Questions
• Get Financing

Depending on the nature of your investment goals, you may want to have a specific business plan for each property you acquire, as well as an overarching business plan for acquiring a larger number of properties. While multifamily business plans can vary significantly in nature, they generally have a few shared components. These include: 

In the same way that 19th century Prussian military commander Helmuth von Moltke said “No plan survives first contact with the enemy,” no multifamily business plan will ‘survive’ contact with the real world. Markets change, lenders change requirements, and service providers adjust their costs all the time — and your apartment investing business plan should reflect that. If you’ve realized that a new type of marketing could benefit your property, or that you want to look for properties in an entirely different market-- simply change your plan. Having a business plan is great, but it’s a template, not a stone carving, so allow it to guide you on your journey while not letting it restrict your choices.

What are the benefits of having a business plan for apartment investing?

Having a business plan for apartment investing can help you gain clarity on your goals, identify potential obstacles, and gain ideas and insights that can make your investments more lucrative. It can also be essential if you plan to purchase multiple properties, or if you’re considering bringing in business partners or outside investors, as you’ll likely need to share it with them in order to get their approval.

Your business plan should include your investment strategy, which summarizes what type of property you will invest in and how you will make it profitable. This is a bird’s eye view, and can also include mentions of your plans for financing, property management, renovations, exit strategies, and other important elements.

For example, a specific plan could say “We plan to acquire a class C 15-25 unit property in the Atlanta, Charlotte, or Charleston markets, upgrade it to a class B property, and raise rents by 10-15%. We will hire an outside property management company to take care of management responsibilities, and plan to finance the property with a 70% LTV loan.”

What are the key components of a business plan for apartment investing?

The key components of a business plan for apartment investing include:

The investment strategy summarizes what type of property you will invest in and how you will make it profitable. This is a bird’s eye view, and can also include mentions of your plans for financing, property management, renovations, exit strategies, and other important elements, which you can elaborate on in future sections.

For instance, a specific plan could say “We plan to acquire a class C 15-25 unit property in the Atlanta, Charlotte, or Charleston markets, upgrade it to a class B property, and raise rents by 10-15%. We will hire an outside property management company to take care of management responsibilities, and plan to finance the property with a 70% LTV loan.”

For more information on financing your apartment investment, please visit Multifamily.loans Apartment Financing .

How can I create a business plan for apartment investing?

Creating a business plan for apartment investing requires a comprehensive understanding of the investment strategy, legal, accounting, and asset management. The investment strategy should include the type of property you will invest in, how you will make it profitable, financing plans, property management, renovations, and exit strategies. You should also consider who you will use for legal, accounting, and asset management services, and how much they will cost. These costs should be reflected in your financial projections.

For more information, please see Do You Need a Business Plan for Apartment Investing? from Multifamily.Loans.

What are the best practices for creating a business plan for apartment investing?

The best practices for creating a business plan for apartment investing include having a mission statement, investment strategy, target market, property financing, marketing strategy, financial projections, exit strategy, and legal, accounting, and asset management. Your investment strategy should summarize what type of property you will invest in and how you will make it profitable. This is a bird’s eye view, and can also include mentions of your plans for financing, property management, renovations, exit strategies, and other important elements. For instance, a specific plan could say “We plan to acquire a class C 15-25 unit property in the Atlanta, Charlotte, or Charleston markets, upgrade it to a class B property, and raise rents by 10-15%. We will hire an outside property management company to take care of management responsibilities, and plan to finance the property with a 70% LTV loan.”

For more information, please visit this article .

What are the risks associated with apartment investing without a business plan?

Without a business plan, apartment investors may not be able to accurately measure their profitability goals against their actual progress. Additionally, lenders generally require detailed financial plans before approving a borrower for a loan, so if you want financing, you’ll need to create a reasonable estimate of what the future may hold. Without a business plan, investors may not be able to accurately assess the risks associated with their investments, and may not be able to respond to opportunities or setbacks in the market. Source

What resources are available to help me create a business plan for apartment investing?

Creating a business plan for apartment investing can be a daunting task. Fortunately, there are a number of resources available to help you get started. The Multifamily.loans blog is a great place to start, as it provides an overview of the legal, accounting, and asset management considerations you should take into account. Additionally, the blog provides guidance on how to create an investment strategy that outlines the type of property you will invest in and how you will make it profitable.

Other helpful resources include the Small Business Administration's guide to writing a business plan , which provides a step-by-step guide to creating a business plan, and the Investopedia guide to creating a real estate investment business plan , which provides an overview of the key elements of a real estate investment business plan.

Finally, you may want to consider working with a professional business plan consultant to help you create a comprehensive and effective business plan. A professional consultant can provide valuable insight and guidance to ensure that your business plan is well-crafted and meets your investment goals.

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Checklist for Starting a Apartment Business: Essential Ingredients for Success

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Special Requirements and Needs

You are not ready to start your business until you have considered the special requirements of your proposed new enterprise. For instance, what laws and regulations will affect you? To what taxes will your business be subject? How many kinds and how much insurance should you carry? Must your proposed business meet any special licensing or zoning requirements?

Laws and Regulations

The more common types of laws and regulations are reviewed briefly here but this section is not intended to substitute for legal advice. The services of a competent attorney when you require legal assistance is a business expense which will pay for itself.

Licensing controls directly affect many small businesses. The degree of regulation will vary, depending upon the type and location of the enterprise. If your operations are intrastate you will be concerned primarily with State and local rather than Federal licensing. Businesses frequently subject to State or local control are retail food establishments, drinking places, barber shops, beauty shops, plumbing firms and taxi companies. These are primarily service businesses, subject to regulations for the protection of public health and morals.

Retail stores, devoted exclusively to handling merchandise, may not be required to have a license but are subject to regulations dealing with fire, safety, and zoning restrictions.

Most licenses require payments of fees and are usually issued on an annual basis. Ordinarily, as a prerequisite to the issuance of a license, a written application is required. State, municipal and county authorities should be contacted for complete information regarding licensing.

Regulations for Consumer Protection

In addition to the licenses referred to above, laws and regulations are also designed for consumer protection. Some may directly affect your business practices.

For example, the Consumer Credit Protection Act became the law of the land on July 1,1969. This is commonly known as the "Truth-in-Lending Act". If you extend credit to your customers, you must make a meaningful disclosure of credit terms in prescribed standard terminology so consumers may compare more readily the various credit terms available to them.

"Truth in Fabrics" legislation also has been enacted for consumer protection. This legislation requires informative labeling and advertising of textile fiber products. If you sell or advertise textile products either as a retailer or wholesaler, you share the manufacturers' responsibility for seeing that they are properly labeled and advertised for fiber content. If you advertise wearing apparel or household fabric products in newspapers having interstate circulation or offer for sale cloth items previously shipped in interstate commerce, the Federal legislation applies to you whether you actually market goods across state lines or not. This means the vast majority of retailers handling textiles have definite responsibilities under labeling law.

Other laws are designed to protect the consumer directly, such as the Food, Drug and Cosmetic Act and the Flammable Fabric Act. The consumer benefits too from laws which provide freedom of competition as discussed below.

Laws Protecting the Environment

In recent years, concern about protecting the environment has produced regulations to decrease pollution to air, water, and other parts of the environment. Determine what pollution laws and regulations, if any, apply to your prospective business. Good starting points for this check are the trade association for business or your local Chamber of Commerce.

Laws Encouraging Competition

Some business practices are prohibited or restricted by legislation to encourage competition. Federal laws govern interstate commerce, while State legislation regulates intrastate transactions. The broad body of Federal legislation encouraging free private enterprise includes the Sherman, Clayton, and Federal Trade Commission Acts. Comparable State laws have also been passed. The purpose of these laws is to encourage competition by prohibiting or restricting certain types of business activities such as: contracts, combinations, and conspiracies in restraint of trade; price discrimination between purchasers of commodities of like grade and quality; false advertising, disparagement of competitors and misrepresentation.

From time to time these statutes are amended, and new interpretations are made by the courts. Your lawyer, Chamber of Commerce or business association can tell you how such laws or proposed laws may affect you.

Labor Relations

Federal and State employer-employee relations legislation deals with settlement of labor disputes; wages, hours and working conditions; fair-employment practices; and economic security.

The National Labor Relations Act, the Taft-Hartley Act and the Labor Management Reporting and Disclosure Act are three major Federal acts dealing with settlement of labor disputes. They guarantee the right of employees engaged in interstate commerce to organize and bargain collectively with their employers, or to refrain from such activities. States also have enacted laws to uphold collective bargaining and to define unfair labor practices.

Fair Labor Standards

Wages, hours and working conditions are regulated by the Fair Labor Standards Act. The act provides for minimum wages, maximum hours, overtime pay, equal pay, recordkeeping and child labor limitations. In addition to this Act the Walsh-Healey Public Contracts Act, the Davis-Bacon Act, and other related acts establish wages, hours, and working conditions applicable to Government contractors. Whether your employees will be covered depends on your individual situation. Obtain specific information from your nearest office of the Wage, Hour and Public Contracts Division, Department of Labor.

Be aware also, of the Occupational Safety and Health Act (OSHA) of 1970. This law makes each employer responsible for furnishing employees places of employment free from recognized hazards causing, or likely to cause, death or serious physical harm. The employer must comply with safety and health standards promulgated under the Act. It is every employee's duty to comply with these safety and health standards and all rules, regulations, and orders issued pursuant to the Act which are applicable to their own actions and conduct. Specific information can be obtained from your nearest office of the Occupational Safety and Health Administration.

Fair Employment Practices

Fair employment practices are established by the Federal Civil Rights Act of 1964 which makes it unlawful to discriminate on the basis of race, religion, age, or sex as a condition of employment. Many states have enacted fair employment practice laws. As a small business owner soliciting and selecting employees, you must abide by the standards established by such laws.

Say that you are the sort who is starting new small business. You Have given focus to the overall opportunities for success, and have chosen the new company you wish to establish. What practical issues will you face in establishing your business? How Much cash will you need for starting new small business? Where can you get it? What form of business organization will you have? Where should you locate the business? (start business tips to follow along ) The first question you need to reply is: How much money will I need? But this question can not be answered until several other questions are answered and several decisions are made. To decide how much money is needed to start a company, enter all Of your potential income and all your planned expenses onto a job sheet or form. Even though you may feel that This Type of preparation is more than You need to start a simple small business it's beneficial to begin with this approach to management which puts down figures in black and white. You will discover the exact same approach valuable in an established business. First, estimate your sales quantity. This will depend on the overall Quantity of business in the region, the number and ability of opponents now sharing that company, and your own capability to compete for the customer's dollar. Obtain assistance in making your sales estimate from wholesalers, trade associations, your banker, and other business-people. Several company and statistical publications could be useful in making sales volume quotes. In reaching your final estimate of earnings don't be over-enthusiastic. A new company generally grows slowly at the beginning. Should you overestimate sales you are most likely to invest too much in gear and first inventory, and devote yourself to thicker operating expenses compared to your actual sales volume will warrant. Since you're just starting up you might have no sales for the first few months. At any rate you can expect your first few months to be quite low. You must also determine what proportion of your sales will be cash And what percentage will be sold on credit. If you estimate that a particular part of the earnings are going to be on charge then you have to figure whenever you are going to have the money for these earnings. 1 month? 2 months? More? Never? Next, in our guide to starting new small business, estimate how Much cash will be paid out. Bear in mind that in starting a business you may be purchasing equipment, paying fees and licenses, which makes deposits on lease, utilities and so forth, several months until you open the door. A few of these expenses are easy to estimate. In case you have decided to lease a building (more about this later) then you know what your deposits will be and how much you will have to pay out each month. You can probably get the cost of fees, licenses and utility deposits with a few telephone calls. Other expense figures may take a little more work for you. 1 way Is to obtain typical operating ratios for the type of company in which you're interested. Among the sources for such ratios include Dun & Bradstreet, Inc., trade associations, publishers of trade magazines, specialized accounting firms, industrial companies, and colleges and universities. The typical ratios for your type of company multiplied by your projected sales volume will serve as bench marks for estimating the several items of expenditure. But do not rely solely on this method for estimating each cost item. Verify and change these quotes through investigation and quotes in the specific market area in which you plan to operate. Don't forget to pay yourself also. You Might Need cash to live on if You have to quit your job. If your partner is working and can encourage the household for a while you might not need to withdraw cash from the business. The longer you can go without taking money out, the quicker you'll develop a strong cash position. Now you've estimated your cash receipts and expenditures, write down the quantity of cash you'll put into the company to begin. This goes online 1 at the example below. Next, add lines 1 and 2 for your first month to get line 3. Then add up all of the expenses to get 5. Subtract line 5 from line 3 to get line 6. This money at the end of month then goes to line 1 to the beginning of the next month, and so on. Should you continue this for the Whole year, very shortly you will find You have negative amounts or a negative cash flow. About this time you'll also understand that you should be operating on this form with a pencil which has a fantastic eraser. In this overly-simplified illustration, you see that by the end of June you are minus $200 in money. Two solutions can be tried - reduce your purchases in June by $200 or begin with $200 more. You may not be able to reduce expenses (they will likely go up as your business starts). That means you will have to put in $200 more to begin with. If all you have is $4000 then the additional $200 you need is funding you must get from somewhere else. Do not be fooled by this simple illustration. Many small businesses Start with the 200, and attempt to get the $4000 from somewhere else. Since a Major cause of failure in the first phases of a business is Under-capitalization, be very careful in your planning at this point. You can Almost always plan on some unexpected expenses and a few delays in expected income.

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Multifamily Apartment Financial Modeling: Developer Guide + Template

March 28, 2023

Adam Hoeksema

The purpose of this post is to help new and experienced multifamily developers learn the process of building a financial model that can be used to raise capital from lenders and investors.  In this post we are going to assume that you are a developer, constructing a multifamily apartment complex from the ground up.  

To put it simply - your goal is to:

• 1. Identify a location
• 2. Determine how many units you plan to build
• 3. Plan your unit mix
• 4. Calculate your gross potential income (GPI)
• 5. Calculate your operating expenses
• 6. Calculate net operating income (NOI)
• 7. Determine a loan amount based on your NOI and cap rates
• 8. Finalize a construction budget based on your loan and equity amount
• 9. Add assumptions for rent stabilization
• 10. Calculate potential sales price based on cap rate
• 11. Forecast investor returns

Multifamily Apartment Financial Model Template

Before I dive in, I wanted to mention that I will be referencing our multifamily apartment financial projection templates throughout the article to demonstrate and include a number of screenshots and a demo video as well. Our 2 templates include:

• Multifamily Apartment Developer Template
• Multifamily Apartment Acquisition Template

With that, let's dive in! 

1. Identify a Location

The first step in developing a multifamily property is selecting a location. Consider factors such as local demographics, employment opportunities, access to public transportation, and nearby amenities. Your location will determine the type of multifamily complex you will build based on the zoning requirements and architectural norms of the area.  Your location helps determine whether you are going to build a single story complex, or build vertically.  

How Many Apartment Units per Acre?  

The University of Idaho estimates that you can achieve between 6 and 100 apartment units per acre depending on whether you are building vertically or horizontally.  

• Single story duplex apartments can fit 6 to 8 apartment units per acre
• Two and three story apartment complexes can fit 20 apartment units per acre.
• Multiple story apartment complexes can fit 50 to 100 apartment units per acre.

Your location, urban, suburban or rural, will likely determine whether you are building vertically or horizontally and ultimately determine how many acres you might be able to acquire.  

2. Determine how Many Units you Plan to Build

Once you have the proposed land identified you can plan the number of apartment units that you would like to build.  Specifically this is often called your “program” which effectively means how many buildings will you build, what type of buildings, and how many units will each building have.  An example of a Multifamily program could be as follows:

How Many Units Does the Average New Multifamily Apartment Complex Have?

The average number of apartment units per new multifamily development is roughly 111 apartment units according to Fannie Mae data.    

3. Plan your Unit Mix

Next, you need to determine the mix of unit types (e.g., studio, one-bedroom, two-bedroom) to cater to the needs of your target market. You will likely want a diverse unit mix in order to appeal to a wider range of potential tenants, thereby reducing vacancy rates and stabilizing income faster. Our Multifamily Financial Model allows you to enter in your unit mix as seen below:

What is the Typical Unit Mix for a Multifamily Apartment Development?

The typical unit mix for a multifamily apartment development is 2 two or three bedroom units for every 1 single bedroom or studio apartment unit.  This seems to be the standard rule of thumb based on multiple sources ( Jake and Gino , Willowdale Equity ).  

The reason that most multifamily complexes have a 2 to 1 ratio of 2 bedrooms to 1 bedrooms is because typically 2 bedroom units are in higher demand; however, this doesn’t mean that this unit mix is guaranteed to be the most profitable.  In fact, you can typically earn a higher rent per square foot with a studio apartment for example.  If you think there is sufficient demand to fill studio apartments, those are likely to be more profitable per square foot when compared to two bedrooms.  

4. Calculate your Gross Potential Income (GPI)

GPI is the total income your property can generate if all units are rented at market rates without any vacancies, concessions or bad debt. 

How to Calculate Gross Potential Income (GPI)

To calculate GPI, multiply the number of units by the average monthly rent per unit type.

Although gross potential income, also known as potential gross income (PGI), is an important number, effective gross income is maybe even more important.  

How to Calculate Effective Gross Income (EGI)

Effective gross income equals gross potential income minus vacancy and credit loss.  In other words, your effective gross income is the total income you will actually receive after taking into consideration vacancies and the tenants that don’t pay rent for some period of time.  

What is the Average Vacancy Rate for Multifamily Apartment Properties?

The average vacancy rate for a multifamily apartment is roughly 6% according to Matthews Real Estate Investment Services .  

What is the Average Credit Loss for a Multifamily Apartment Property?

The average bad debt or credit loss for a multifamily apartment is 0.7% according to CF Capital . 

5. Calculate your Multifamily Operating Expenses

Operating expenses for a multifamily apartment complex are typically between 35% and 45% of your effective gross income according to Bullpen .  Typical operating expenses for a multifamily property include:

• Apartment Turn Costs
• General and Administrative
• Maintenance
• Management Fees
• Real Estate Taxes

Our model will allow you to enter in your operating expenses on a per property, per unit, or per square foot basis.  You can also enter in expenses as a percentage of revenue if you prefer.

Typical Operating Expenses for Multifamily Apartments

It is difficult to provide specific percentages for each operating expense category without knowing the details of a specific multifamily apartment complex, as these costs can vary significantly based on location, size, age, and management practices. However, here are some approximate ranges for some of these operating expenses as a percentage of the effective gross income (EGI):

• Apartment Turn Costs: 1-3%
• General and Administrative: 2-5%
• HOA fees: This is highly variable depending on the specific complex and location; can range from 0% (if no HOA) to over 10%
• Insurance: 2-4%
• Janitorial: 1-3%
• Maintenance: 5-10%
• Management Fees: 3-6%
• Marketing: 1-3%
• Real Estate Taxes: 10-20% (depends on location and tax rates)
• Salaries: 5-10% (includes on-site staff, such as property managers and maintenance personnel)
• Utilities: 5-10%

Please note that these percentages are approximate ranges and can vary based on the specific circumstances of a property. For a more accurate analysis, it would be best to consult with a property management company or a real estate investment professional who can provide tailored guidance based on your unique situation.

6. Calculate Net Operating Income (NOI)

In order to calculate net operating income for a multifamily apartment complex you can utilize the following formula:

Gross Potential Income - Vacancies - Bad debt (aka credit losses) = Effective Gross Income

Effective Gross Income - Total Operating Expenses = Net Operating Income

7. Determine a Loan Amount Based on Your NOI, Cap Rates and Debt Service Coverage Ratio

Once you have an estimated Net Operating Income (NOI) for your multifamily property, you can calculate the potential loan amount that a lender might provide.  

Lenders may use a loan-to-value ratio to determine a loan amount for your proposed development.  Lenders may also require that you maintain a certain debt service coverage ratio (DSCR).  Based on your NOI and your DSCR, you can back into the maximum loan amount that your project can afford.  Once you have a monthly loan amount, you can estimate the total loan amount that would give you that monthly loan payment.   Here are 8 steps I would follow to estimate a loan amount for a multifamily development. 

• Estimate Net Operating Income
• Estimate Current Cap Rates for Your Property Type
• Estimate the Value of your Proposed Property based on NOI and Cap Rates
• Estimate a Loan-to-Value Ratio that the Bank will Use
• Estimate a Loan Amount based on Property Value and LTV
• Estimate a Debt Service Coverage Ratio that the Bank will Require
• Calculate a Maximum Loan Payment you can Afford based on the NOI and DSCR
• Estimate a Loan Amount based on the Maximum Loan Payment you can Afford

There is quite a bit here, so let me try to walk through this step by step:

1. Estimate Net Operating Income

Again, the formula to calculate net operating income is Gross Potential Income - Vacancies - Credit Losses - Operating Expenses = Net Operating Income. For the sake of an example, let’s assume we have a property with a projected net operating income of $1 million.  

2. Estimate Current Cap Rates for Your Property Type

Next, you need to know what the cap rates are for your type of property and location.  Cap rates change as the market changes, so you will need to do a bit of research.  

What is a Cap Rate?

A cap rate, short for capitalization rate, is a measure used in real estate to evaluate the profitability and potential return on investment of a property. It is calculated by dividing the net operating income (NOI) of a property by its current market value or purchase price.

The formula for cap rate is:

Cap Rate = Net Operating Income / Current Market Value or Purchase Price

The cap rate is expressed as a percentage and is used to estimate the potential return on investment of a property. A higher cap rate indicates a higher potential return, while a lower cap rate indicates a lower potential return.

What are Typical Cap Rates for Multifamily Apartments?

Cap rates for multifamily properties in prime locations in urban areas can be as low as 4% to 5%.

Cap rates for class B and C multifamily properties in less desirable locations can be in the 5% to 8% range.  

For the sake of this example, let’s use a 5% cap rate for our proposed property.

3. Estimate the Value of your Proposed Property based on NOI and Cap Rates

Since you don’t know the value of your proposed property, but you do have a projected NOI and you can find the market cap rates, you can then calculate an estimate of the value of the property.  

With our example of a $1,000,000 NOI and a 5% cap rate, we can take $1,000,000 divided by 5% and calculate a property value estimate of $20,000,000.

4. Estimate a Loan-to-Value Ratio that the Bank will Use for Multifamily

The average loan to value ratio for multifamily properties is 73% according to Lev Capital .  The maximum LTV for a multifamily property that you might be able to secure is 80%. 

5. Estimate a Loan Amount based on Property Value and LTV

Based on an LTV of 73% for Multifamily properties, and our example property value of $20,000,000, we can estimate a loan amount of $14,600,000. 

6. Estimate a Debt Service Coverage Ratio that the Bank will Require

The other guardrail that will determine how much you can borrow is how much you can cash flow.  Your Debt Service Coverage Ratio is a way to measure how much debt service you can cover based on your Net Operating Income.  

Average Debt Service Coverage Ratio for Multifamily Properties

The average required debt service coverage ratio for multifamily properties is 1.2 according to Janover . 

7. Calculate a Maximum Loan Payment you can Afford based on the NOI and DSCR

If we assume Net Operating Income of $1 million and a required debt service coverage ratio of 1.2 we can calculate the maximum loan payment that you can afford each month and still maintain a DSCR of 1.2.  

In order to calculate the debt service amount we can afford, we can take our NOI divided by DSCR which is $1 million divided by 1.2 which equals $833,333 in annual debt service.  If we divide by 12 months we come up with a monthly loan payment maximum of $69,444.

8. Estimate a Loan Amount based on the Maximum Loan Payment you can Afford

Next we can try to estimate a loan amount that would give us a monthly payment of $69,444. 

But in order to do this we need to make assumptions about the term of the loan and the interest rate.  

What is the Average Term for a Multifamily Apartment Loan?

The average term for a multifamily apartment loan is 30 years, but can be up to 35 years in some cases according to Janover . 

What is the Average Interest Rate for a Multifamily Property Loan?

A common interest rate for a multifamily property loan is the 10 year treasury rate + 2%.  So if the 10 year treasury rate is 3.5%, your interest rate would be 5.5%.  These rates fluctuate daily, so you will need to check the current rates.  

For our example we are going to assume an interest rate of 5.5% and a 30 year term with a monthly payment of $69,444.  Then I did a quick trick and asked ChatGPT to calculate what my loan amount would be with those parameters and it calculated a loan amount of $10,850,000. 

ChatGPT did a wonderful job explaining the process and calculation below:

“To calculate the loan amount, we need to use the formula for a fixed payment loan:

Loan Amount = Monthly Payment / ((1 - (1 + Monthly Interest Rate)^(-Number of Months)))

where Monthly Interest Rate = Annual Interest Rate / 12 and Number of Months = Loan Term x 12.

Plugging in the given values, we get:

Monthly Interest Rate = 5.5% / 12 = 0.00458 Number of Months = 30 years x 12 = 360

Loan Amount = $69,444 / ((1 - (1 + 0.00458)^(-360))) Loan Amount = $69,444 / ((1 - 0.3681)) Loan Amount = $10,850,000

Therefore, the loan amount assuming an interest rate of 5.5% and a 30-year term with a monthly payment of $69,444 would be $10,850,000.”

So after all of this we have 2 different loan amounts!  The loan to value ratio process estimated a loan amount of $14,600,000 and the DSCR process estimated a loan amount of $10,850,000.  

You should assume that you will need to take the lower of the two numbers.  So we are going to move forward with a $10,850,000 loan in this example.

8. Finalize a Construction Budget Based on your Loan and Equity Amount

Your construction budget should include all costs related to land acquisition, construction, professional fees, and financing costs. Your total project cost should be covered by the combination of your loan and equity investments.  We already know our loan amount is $10,850,000, but we need to know our equity amount.  

Average Equity Injection for a Multifamily Apartment Complex 

The average equity injection for a multifamily apartment development is 25% according to Janover . 

If we assume that $10,850,000 is 75% of the total project cost, then the total project would be $14,466,667.  Our equity portion would be 25% which equals $3,616,667

So our construction budget can be $14,466,667.  

Our model includes a Construction Budget Template tab that allows you to enter in the details and timing of construction as seen below:

9. Add Assumptions for Rent Stabilization

Let’s fast forward and assume your multifamily property is complete.  Your multifamily financial model should include assumptions for rent stabilization, meaning how long does it take to get the property full and stabilized?  

How Long Does it Take to Fill a New Multifamily Apartment?

Let’s assume it takes 9 months from the time the property is complete to have all of the units occupied, less the normal vacancy rate that you might expect. 

10. Calculate Potential Sales Price Based on Cap Rate

The capitalization rate (cap rate) is the ratio of NOI to property value. To calculate the potential sales price, divide your NOI by the cap rate, which is determined by market conditions and comparable properties.   To be specific, the cap rate when you sell a property is called your exit cap rate . You need to be careful to assume a conservative exit cap rate because the exit cap rate will have a dramatic impact on your rate of return on the property.

As we discussed earlier, if we assume a 5% cap rate and a $1 million NOI, the expected value of the property would be $20,000,000. 

11. Forecast Investor Returns

Finally, you will want to calculate key investor return metrics, such as internal rate of return (IRR), cash-on-cash return, and equity multiple. These metrics help investors evaluate the attractiveness of your project and make informed decisions about whether to invest. You can run different scenarios with our template to forecast IRR based on sale details as seen below:

Typical Multifamily Investor Returns

The typical multifamily investor might expect average returns of between 14% and 18% according to ButterflyMX .

IRR vs XIRR

Your investors might ask your for a projected IRR or XIRR.  Let’s look at the difference between IRR and XIRR. 

Both XIRR and IRR are financial metrics used in real estate to analyze the returns of an investment. However, they differ in their calculation methods and the way they account for irregular cash flows.

IRR (Internal Rate of Return) is a measure of the profitability of an investment, expressed as a percentage rate. It calculates the discount rate at which the net present value of all the cash inflows and outflows from an investment is equal to zero. In other words, it is the rate at which the investment breaks even.

XIRR (Extended Internal Rate of Return) is an advanced version of IRR that is used to calculate the returns on investments with irregular cash flows. Unlike IRR, which assumes that cash flows occur at regular intervals, XIRR considers the exact dates of cash flows and the amount of each cash flow.

In real estate, XIRR is generally used for investments that have irregular cash flows, such as rental properties that generate monthly rent payments, irregular capital expenditures, or other cash flows that are not evenly distributed over time. On the other hand, IRR is more commonly used for investments with regular cash flows, such as development projects with predictable timelines and cash flows.

In summary, the main difference between XIRR and IRR is that XIRR is more precise and takes into account the timing and amount of each cash flow, whereas IRR assumes that cash flows are evenly distributed over time. As such, XIRR is more appropriate for analyzing investments with irregular cash flows, while IRR is more suitable for investments with regular cash flows.

I hope this has been helpful to you as you think through the process of building a financial model for a multifamily apartment complex.  If you have any questions please feel free to reach out, we would love to help! 

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 50,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

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Serviced Apartments Business Plan

$59.00 $39.00 5 reviews

Resources On Serviced Apartments

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

Marketing Plan

• Bundle Business Plan & Fin Model
• Description

Executive Summary

Products & services, market analysis.

• Management Plan
• Financial Plan

Luxury Living's serviced apartments start-up is addressing a significant gap in the market for short-term housing solutions in New York City. With a high demand for short-term housing options for travelers, business professionals, and anyone requiring a temporary housing solution, the current options are limited and often expensive.

Additionally, the market lacks high-quality serviced apartments that offer exceptional customer service, flexible lease terms, and additional amenities such as housekeeping and concierge services. This creates a gap, particularly in the upper-end market segment, for a premier provider such as Luxury Living to address this demand.

By offering a convenient, flexible, and comfortable short-term accommodation option with additional services, Luxury Living aims to fill this gap in the market and establish itself as a premier provider of serviced apartments in New York City.

Luxury Living's solution is to provide short-term serviced apartment rentals with flexible lease terms and amenities such as housekeeping and concierge services. We understand the challenges that travelers, business professionals, and anyone looking for a temporary housing solution face in finding convenient, comfortable, and affordable accommodation. Our serviced apartments offer a hassle-free housing option for those who need a temporary home away from home. Our apartments have all the necessary amenities to cater to our customers' needs and our team is dedicated to providing top-notch customer service to ensure a seamless and comfortable stay. Our solution aims to solve the problem of finding a convenient and comfortable temporary housing solution by providing a flexible, high-quality, and value-added service to our customers.

Target Market

The target market for Luxury Living's serviced apartments consists of a diverse range of customers, including travelers, business professionals, and anyone in need of temporary housing. These customers may require short-term accommodation due to business trips, a change of residence, or other personal or professional reasons. Our flexible lease terms and additional services, such as housekeeping and concierge services, will cater to the needs of these customers and provide them with a comfortable and convenient experience.

We will focus on reaching out to these customers through various channels such as online booking platforms, social media, advertising, and referral networks. Our customer relationships will be built on personalized support and a high level of communication to ensure customer satisfaction. By targeting this growing demand for short-term serviced apartments, we aim to establish ourselves as a premier provider of temporary housing solutions in New York City.

Competition

There are several alternatives and substitutes in the market that Luxury Living will be competing against. Traditional hotel stays provide short-term accommodation options, but often lack the flexibility and convenience of serviced apartments. Similarly, vacation rental platforms such as Airbnb offer short-term rentals, but may not provide consistent quality and safety standards. Other serviced apartment providers in New York City, such as Sonder and Stay Alfred, will also be competing for similar customer segments.

However, Luxury Living's value proposition of providing a convenient, flexible, and comfortable short-term accommodation option with additional services, such as housekeeping and concierge services, sets us apart from the competition. Our personalized customer service and high-quality facilities aim to deliver a premier serviced apartment experience, earning customer loyalty and positive word-of-mouth recommendations.

Financial Summary

Our financial plan is designed to ensure profitability and sustainable growth while providing our customers with high-quality serviced apartments and additional services. Key highlights of our financial plan include:

• A projected start-up cost of $500,000, which will cover expenses such as facility acquisition, staff hiring and training, and technology infrastructure setup.
• An estimated revenue of $1.5 million in the first year, with a projected growth rate of 20% for the next five years.
• A target net profit margin of 25%, which will be achieved through effective cost management and revenue maximization strategies.
• Regular monitoring of financial performance through KPIs such as occupancy rates, average daily rates (ADR), and revenue per available room (RevPAR).
• An aggressive marketing strategy that leverages online booking platforms, social media, and referral networks to reach our target audience.
• A commitment to investing in staff training, technology upgrades, and facility maintenance to ensure customer satisfaction and retention.

Funding Requirements

As a start-up, Luxury Living requires an initial capital investment to cover the following expenses:

• Lease deposit for serviced apartment facilities: $50,000
• Technology infrastructure setup: $35,000
• Staff hiring and training expenses: $100,000
• Marketing and advertising expenses: $25,000
• Miscellaneous expenses: $10,000

The total startup cost of Luxury Living amounts to $220,000. We are seeking funding from investors who are aligned with our vision of establishing ourselves as a premier provider of short-term serviced apartments in New York City. With our well-planned business model and experienced team, we believe that we can generate significant returns on investment in the long run.

Milestones and Traction

Our roadmap for Luxury Living involves achieving specific milestones to establish ourselves as a premier provider of serviced apartments in New York City. We are confident in our ability to deliver high-quality service and value-added amenities that will set us apart from our competitors.

We will track our progress towards these milestones and adjust our strategy as needed to ensure we are on track to achieve our business goals. Achieving these milestones will help us gain traction in the market and establish a strong foundation for future growth and expansion.

Problem Worth Solving

The problem we aim to solve at Luxury Living is the lack of convenient, flexible, and comfortable short-term accommodation options with additional services in New York City. Many travelers, business professionals, and anyone looking for a temporary housing solution face difficulties in finding fully furnished and serviced apartments that are available for shorter lease terms with added benefits like housekeeping and concierge services. Traditional hotel stays can be expensive, and many long-term rental options require a minimum lease of one year or longer, making it difficult for those who only need temporary housing for a period of weeks or months.

We believe that by providing a solution that meets the needs of these individuals, we can offer a unique value proposition that sets us apart from our competitors. Our goal is to provide a seamless experience, offering top-notch short-term serviced apartment rentals with flexible lease terms, and additional services like housekeeping and concierge services to ensure that our customers have everything they need to feel comfortable and at ease during their stay. By solving this problem, we hope to establish ourselves as a premier provider of serviced apartments in New York City, delivering customer satisfaction and added value.

Our Solution

At Luxury Living, our solution is to provide short-term serviced apartment rentals with flexible lease terms and amenities such as housekeeping and concierge services. We understand the hassle of finding temporary housing that is comfortable, convenient, and affordable, which is why we offer a wide selection of serviced apartments that cater to different customer segments. Our apartments are fully furnished and equipped with modern amenities and appliances, ensuring that our guests feel at home during their stay.

In addition, our housekeeping and concierge services offer a seamless and high-quality experience for our customers. Our housekeeping team provides regular cleaning services, ensuring that our apartments are always clean and comfortable for our guests. Meanwhile, our concierge services provide personalized support, such as arranging transportation, recommending restaurants, and suggesting local attractions, to ensure that our guests have a stress-free and enjoyable experience in New York City.

Overall, our solution addresses the problem of finding short-term accommodation that is convenient, flexible, and comfortable, and alleviates the stress and hassle of finding temporary housing in a new city.

Validation of Problem and Solution

Product overview.

Luxury Living is a serviced apartments start-up in the US, offering short-term rentals with flexible lease terms and amenities such as housekeeping and concierge services. Our core business is to provide a convenient, flexible, and comfortable short-term accommodation option with additional services for a variety of customer segments, including travelers, business professionals, and anyone looking for a temporary housing solution.

Our serviced apartments are fully furnished and equipped with all necessary amenities and utilities, making them ideal for both short and long-term stays. We provide flexible lease terms to cater to the unique needs of our customers, whether they need accommodation for a few days, weeks or months.

At Luxury Living, we believe that our value proposition of providing quality serviced apartments with additional services will set us apart from our competitors. Our customers can enjoy the comfort and privacy of a home-like setting while receiving the benefits of hotel-like services such as housekeeping and concierge services.

Our customers can benefit from our personalized support and regular communication, ensuring a high level of customer service. Additionally, to make the booking process easy and effortless for our customers, we utilize online booking platforms, social media, advertising, and referral networks.

We believe that our product and services will provide immense benefits to our customers, allowing them to have a comfortable and convenient short-term housing solution in New York City.

Roadmap - Products & Services

At Luxury Living, our core business is to offer short-term serviced apartment rentals with flexible lease terms and amenities such as housekeeping and concierge services. To establish and grow our business, we have taken the following steps:

In the future, our roadmap for products and services includes:

• Expanding our serviced apartment portfolio to cater to the growing demand.
• Introducing new value-added services such as transportation, ticket bookings, and tours to enhance our customers' experiences.
• Investing in sustainability practices and eco-friendly technologies to reduce our environmental impact and attract socially responsible customers.

We believe that by following this roadmap, we will establish Luxury Living as a premier provider of serviced apartments in New York City and achieve our financial and funding goals.

Market Segmentation

The potential customer segments for our serviced apartment business can be divided as follows:

By segmenting our audience, we can tailor our marketing efforts and services to meet the specific needs of each group.

Target Market Segment Strategy

Key customers.

Our ideal customer archetype is the busy business professional who travels frequently and requires temporary housing with flexible lease terms and convenient amenities. This customer is willing to pay a premium for a comfortable and hassle-free experience, and values personalized support and communication throughout their stay. We aim to turn these customers into advocates for our business through exceptional service and a focus on meeting their unique needs.

Future Markets

Based on the market analysis, the potential market for our serviced apartments business includes travelers, business professionals, and individuals seeking temporary housing solutions. As our business expands, we plan on targeting new markets such as students studying abroad and families in the process of relocating.

To cater to these new markets, we will leverage our existing partnerships with housekeeping and concierge service providers to offer customized packages that suit their specific needs. With a focus on providing exceptional customer service and flexibility, we are confident in our ability to tap into these future markets and stay ahead of the competition.

A thorough market analysis has identified several potential competitors in the serviced apartment industry. The following table highlights some of the key players in the market:

Overall, competition in the serviced apartment industry is intense. However, by offering convenient, flexible, and high-quality accommodation with personalized support services, our business can carve out a unique positioning in the market and attract a loyal customer base.

Marketing and Sales Plan

Our marketing strategy is focused on reaching potential customers in need of short-term accommodation solutions through various channels. We will allocate a significant portion of our budget to online advertising through popular platforms such as Google Ads and social media ads. Referral networks will also be utilized to reach a wider audience through partnerships with local businesses and travel agents.

In addition, we will also invest in search engine optimization (SEO) and content marketing to improve our online presence and attract organic traffic to our website. We aim to provide informative and helpful content for our potential customers through blog articles and social media posts.

Our advertising budget will be primarily divided into pay-per-click (PPC) campaigns, social media advertising, and referral partnerships. Our main goal is to increase brand awareness and attract potential customers to our website where they can easily book their short-term serviced apartment rental.

As a new start-up, we anticipate a slow start in terms of sales during the first few months of operations. However, based on the current market conditions, we expect our sales to increase steadily as word of mouth spreads and our reputation for providing high-quality short-term serviced apartment rentals with additional services grows.

Our capacity will be limited initially, with a total of 20 serviced apartments available for rental. We understand that pricing is a major factor in the decision-making process for customers, and we have developed a pricing strategy that is competitive with other similar properties in the area. Our goal is to provide affordable and attractive pricing options that provide value for our customers while ensuring profitability for our business.

We will also consider offering promotions and discounts during our initial launch phase to attract new customers and incentivize repeat business. Additionally, we will explore partnerships with local companies and organizations to offer exclusive rates for their employees and members.

In terms of revenue, we anticipate generating income through rental fees for our serviced apartments and additional revenue from concierge services. We will closely monitor our sales and revenue streams to ensure that we remain profitable and exceed our financial goals. As demand for our services grows, we plan to expand our capacity and extend our reach into new markets.

Location and Facilities

At Luxury Living, we understand the importance of technology in today's business landscape. That's why we have invested in the latest technology for managing bookings and payments, ensuring a seamless and hassle-free experience for our customers.

Our online booking platform is user-friendly, intuitive, and responsive, allowing customers to book and manage their stays with ease. We have also implemented a secure payment system, giving customers peace of mind when paying for their bookings.

In addition, we have partnered with leading property management software providers to streamline our operations and optimize our workflow. This allows us to manage our facilities, staff, and resources more efficiently, ultimately leading to a better customer experience.

Overall, our technology infrastructure is a key enabler of our business, allowing us to provide a high-quality and convenient service to our customers, while also improving our internal processes and operations.

Equipment and Tools

Our marketing and sales plan requires the use of various equipment and tools to effectively advertise and promote our serviced apartment business. Below is an outline of the required equipment and their associated costs:

Investing in these equipment and tools will ensure that we have the resources necessary to effectively market and sell our serviced apartments to our target customer segments. We will also regularly evaluate and adjust our marketing and sales strategies to maximize revenue streams and ensure a high occupancy rate for our apartments.

Management and Organization

Organizational structure.

At our serviced apartments business, we have a flat organizational structure with clear roles and responsibilities for each employee. The flow of information is efficient and direct, promoting effective decision-making and timely action.

Management Team

Management team gaps.

Currently, our management team does not have candidates to fill the roles of marketing manager or technology manager. We are actively seeking individuals with expertise in these areas to join our team and help us achieve our business goals. In the meantime, we are relying on outsourced marketing and technology services to bridge the gap.

Personnel Plan

To effectively manage and run the Serviced Apartments business, we anticipate hiring skilled and experienced personnel for the following positions:

We believe that our personnel will be the backbone of our business, and we plan to invest in their training and development to provide exceptional services to our guests.

Company History and Ownership

Luxury Living is a newly established start-up in the US, specifically in New York City, founded with the goal of providing short-term serviced apartment rentals with flexible lease terms and amenities such as housekeeping and concierge services to a variety of customer segments. The company founders recognized the growing need for convenient and comfortable temporary housing solutions that cater to the modern lifestyle of travelers and business professionals.

As a privately-owned company, Luxury Living is committed to delivering exceptional customer service and developing a solid reputation in the serviced apartment industry. The management team has extensive experience in the hospitality and real estate industries and is dedicated to ensuring the success of the company through hard work, innovation, and strategic planning.

The decision to enter the US serviced apartment market was based on market research and analysis, identifying a gap in the industry that Luxury Living can fill with its unique value proposition. With a clear business plan and a strong foundation in place, the company is poised for success and growth in the years to come.

As part of our management and organization strategy, we have developed a detailed roadmap of specific goals and objectives that we plan to achieve to manage and steer our business towards success. This roadmap is presented in the table below:

Key Metrics

In order to gauge the overall performance and health of our serviced apartments business, we will track the following KPIs: occupancy rate, average daily rate (ADR), revenue per available room (RevPAR), customer satisfaction scores, employee turnover rate, and marketing ROI. These metrics will help us understand how well we are attracting and retaining customers, managing our costs, and driving profitability. By regularly monitoring and analyzing these KPIs, we will be able to make data-driven decisions and continually improve our operations and services.

Financial Plan and Metrics

Sales forecast.

Projected sales for the three years (2023, 2024, 2025) in form of HTML table, where the very first column is for Sales Forecast broken down by product categories with the Total at the bottom, all the rest columns - for years.

The projected sales for the next three years show a steady increase in revenue, with a total projected revenue of $2,300,000 in 2023, $4,000,000 in 2024, and $5,750,000 in 2025. The primary revenue stream will be from serviced apartment rentals, with an expected growth rate primarily driven by customer demand. Revenue from concierge services is expected to grow at a slower pace due to the nature of this auxiliary service.

Starting and operating a serviced apartments business involves several expenses. Below are the estimated costs for both startup and operational expenses:

These expenses will be regularly monitored and optimized to ensure profitability and sustainability of the business.

Projected Profit and Loss

Our financial plan for Luxury Living includes a three-year profit and loss statement, outlining our projected revenue, expenses, and profits. We anticipate generating revenue primarily through our rental fees for serviced apartments and additional revenue from concierge services.

We anticipate investing in staff expenses, facility maintenance costs, technology infrastructure, and marketing expenses, which will be reflected in our expenses list. We aim to generate a profit of 25% of our revenue each year, with the goal of attracting investors to support our growth and expansion plans.

Projected Cash Flow

The following table presents the projected cash flow statement for the first three years (2023, 2024, 2025) of operation:

The projected cash flow statement indicates that our business will experience positive cash flow in all three years of operation. We will focus on reinvesting a portion of our net cash flow in the business to support our growth and expansion plans. This will enable us to continue offering high-quality serviced apartments and value-added services to our customers, while also generating profit and attracting investors for future funding opportunities.

Projected Balance Sheet

This balance sheet shows the expected financial standing of the serviced apartments business for the next three years. The assets include the value of the serviced apartment facilities and other business investments, while liabilities represent any outstanding debts or financial obligations. Equity represents the difference between assets and liabilities, showing the value of the business. This balance sheet suggests a strong, stable business with steady growth and increasing equity.

In order to provide top-notch service to our customers, we intend to hire experienced and qualified staff members for various roles such as housekeeping, concierge, and management. We will prioritize individuals who are customer-focused, detail-oriented, and have a strong work ethic.

The compensation for our staff will be based on industry standards and will vary based on their position and level of experience. Our employees will be an integral part of our business operations and will work together cohesively to ensure a smooth and enjoyable experience for our customers.

Use of Funds

Below is an explanation of how the funds will be used to launch and grow our Serviced Apartments business:

We will use the funds to establish our serviced apartment facilities, hire staff, build out our technology infrastructure, and execute our marketing plan. The contingency fund will be used for unexpected expenses or as a reserve for future growth opportunities.

Exit Strategy

Our exit strategy for this business involves exploring the possibility of acquisition or merger with a larger real estate firm once we have established a strong reputation and solid customer base. Alternatively, we may consider selling the business to interested investors or passing it along to a family member or employee who has shown interest and capability in running the business successfully. Ultimately, our goal is to ensure a smooth transition that maximizes value for both ourselves and any future stakeholders.

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As an experienced specialist facade contractor, Mimsa and their group companies today has its headquarters and factory in Istanbul, office and a second factory in Moscow, office and a workshop in London (since 2016) and have expanded with an office in New York (in 2018).

This year share of exports accounts for more than 80% of the total work done. Our ability to adopt ourselves to International Standards & Building Regulations and working together with our clients to satisfy their highest requirements, have given us this opportunity. An example of this was our recently achieved “Secured by Design” Accreditation for the UK Market.

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40 facts about elektrostal.

Written by Lanette Mayes

Modified & Updated: 02 Mar 2024

Reviewed by Jessica Corbett

Elektrostal is a vibrant city located in the Moscow Oblast region of Russia. With a rich history, stunning architecture, and a thriving community, Elektrostal is a city that has much to offer. Whether you are a history buff, nature enthusiast, or simply curious about different cultures, Elektrostal is sure to captivate you.

This article will provide you with 40 fascinating facts about Elektrostal, giving you a better understanding of why this city is worth exploring. From its origins as an industrial hub to its modern-day charm, we will delve into the various aspects that make Elektrostal a unique and must-visit destination.

So, join us as we uncover the hidden treasures of Elektrostal and discover what makes this city a true gem in the heart of Russia.

Key Takeaways:

• Elektrostal, known as the “Motor City of Russia,” is a vibrant and growing city with a rich industrial history, offering diverse cultural experiences and a strong commitment to environmental sustainability.
• With its convenient location near Moscow, Elektrostal provides a picturesque landscape, vibrant nightlife, and a range of recreational activities, making it an ideal destination for residents and visitors alike.

Known as the “Motor City of Russia.”

Elektrostal, a city located in the Moscow Oblast region of Russia, earned the nickname “Motor City” due to its significant involvement in the automotive industry.

Home to the Elektrostal Metallurgical Plant.

Elektrostal is renowned for its metallurgical plant, which has been producing high-quality steel and alloys since its establishment in 1916.

Boasts a rich industrial heritage.

Elektrostal has a long history of industrial development, contributing to the growth and progress of the region.

Founded in 1916.

The city of Elektrostal was founded in 1916 as a result of the construction of the Elektrostal Metallurgical Plant.

Located approximately 50 kilometers east of Moscow.

Elektrostal is situated in close proximity to the Russian capital, making it easily accessible for both residents and visitors.

Known for its vibrant cultural scene.

Elektrostal is home to several cultural institutions, including museums, theaters, and art galleries that showcase the city’s rich artistic heritage.

A popular destination for nature lovers.

Surrounded by picturesque landscapes and forests, Elektrostal offers ample opportunities for outdoor activities such as hiking, camping, and birdwatching.

Hosts the annual Elektrostal City Day celebrations.

Every year, Elektrostal organizes festive events and activities to celebrate its founding, bringing together residents and visitors in a spirit of unity and joy.

Has a population of approximately 160,000 people.

Elektrostal is home to a diverse and vibrant community of around 160,000 residents, contributing to its dynamic atmosphere.

Boasts excellent education facilities.

The city is known for its well-established educational institutions, providing quality education to students of all ages.

A center for scientific research and innovation.

Elektrostal serves as an important hub for scientific research, particularly in the fields of metallurgy, materials science, and engineering.

Surrounded by picturesque lakes.

The city is blessed with numerous beautiful lakes, offering scenic views and recreational opportunities for locals and visitors alike.

Well-connected transportation system.

Elektrostal benefits from an efficient transportation network, including highways, railways, and public transportation options, ensuring convenient travel within and beyond the city.

Famous for its traditional Russian cuisine.

Food enthusiasts can indulge in authentic Russian dishes at numerous restaurants and cafes scattered throughout Elektrostal.

Home to notable architectural landmarks.

Elektrostal boasts impressive architecture, including the Church of the Transfiguration of the Lord and the Elektrostal Palace of Culture.

Offers a wide range of recreational facilities.

Residents and visitors can enjoy various recreational activities, such as sports complexes, swimming pools, and fitness centers, enhancing the overall quality of life.

Provides a high standard of healthcare.

Elektrostal is equipped with modern medical facilities, ensuring residents have access to quality healthcare services.

Home to the Elektrostal History Museum.

The Elektrostal History Museum showcases the city’s fascinating past through exhibitions and displays.

A hub for sports enthusiasts.

Elektrostal is passionate about sports, with numerous stadiums, arenas, and sports clubs offering opportunities for athletes and spectators.

Celebrates diverse cultural festivals.

Throughout the year, Elektrostal hosts a variety of cultural festivals, celebrating different ethnicities, traditions, and art forms.

Electric power played a significant role in its early development.

Elektrostal owes its name and initial growth to the establishment of electric power stations and the utilization of electricity in the industrial sector.

Boasts a thriving economy.

The city’s strong industrial base, coupled with its strategic location near Moscow, has contributed to Elektrostal’s prosperous economic status.

Houses the Elektrostal Drama Theater.

The Elektrostal Drama Theater is a cultural centerpiece, attracting theater enthusiasts from far and wide.

Popular destination for winter sports.

Elektrostal’s proximity to ski resorts and winter sport facilities makes it a favorite destination for skiing, snowboarding, and other winter activities.

Promotes environmental sustainability.

Elektrostal prioritizes environmental protection and sustainability, implementing initiatives to reduce pollution and preserve natural resources.

Home to renowned educational institutions.

Elektrostal is known for its prestigious schools and universities, offering a wide range of academic programs to students.

Committed to cultural preservation.

The city values its cultural heritage and takes active steps to preserve and promote traditional customs, crafts, and arts.

Hosts an annual International Film Festival.

The Elektrostal International Film Festival attracts filmmakers and cinema enthusiasts from around the world, showcasing a diverse range of films.

Encourages entrepreneurship and innovation.

Elektrostal supports aspiring entrepreneurs and fosters a culture of innovation, providing opportunities for startups and business development.

Offers a range of housing options.

Elektrostal provides diverse housing options, including apartments, houses, and residential complexes, catering to different lifestyles and budgets.

Home to notable sports teams.

Elektrostal is proud of its sports legacy, with several successful sports teams competing at regional and national levels.

Boasts a vibrant nightlife scene.

Residents and visitors can enjoy a lively nightlife in Elektrostal, with numerous bars, clubs, and entertainment venues.

Promotes cultural exchange and international relations.

Elektrostal actively engages in international partnerships, cultural exchanges, and diplomatic collaborations to foster global connections.

Surrounded by beautiful nature reserves.

Nearby nature reserves, such as the Barybino Forest and Luchinskoye Lake, offer opportunities for nature enthusiasts to explore and appreciate the region’s biodiversity.

Commemorates historical events.

The city pays tribute to significant historical events through memorials, monuments, and exhibitions, ensuring the preservation of collective memory.

Promotes sports and youth development.

Elektrostal invests in sports infrastructure and programs to encourage youth participation, health, and physical fitness.

Hosts annual cultural and artistic festivals.

Throughout the year, Elektrostal celebrates its cultural diversity through festivals dedicated to music, dance, art, and theater.

Provides a picturesque landscape for photography enthusiasts.

The city’s scenic beauty, architectural landmarks, and natural surroundings make it a paradise for photographers.

Connects to Moscow via a direct train line.

The convenient train connection between Elektrostal and Moscow makes commuting between the two cities effortless.

A city with a bright future.

Elektrostal continues to grow and develop, aiming to become a model city in terms of infrastructure, sustainability, and quality of life for its residents.

In conclusion, Elektrostal is a fascinating city with a rich history and a vibrant present. From its origins as a center of steel production to its modern-day status as a hub for education and industry, Elektrostal has plenty to offer both residents and visitors. With its beautiful parks, cultural attractions, and proximity to Moscow, there is no shortage of things to see and do in this dynamic city. Whether you’re interested in exploring its historical landmarks, enjoying outdoor activities, or immersing yourself in the local culture, Elektrostal has something for everyone. So, next time you find yourself in the Moscow region, don’t miss the opportunity to discover the hidden gems of Elektrostal.

Q: What is the population of Elektrostal?

A: As of the latest data, the population of Elektrostal is approximately XXXX.

Q: How far is Elektrostal from Moscow?

A: Elektrostal is located approximately XX kilometers away from Moscow.

Q: Are there any famous landmarks in Elektrostal?

A: Yes, Elektrostal is home to several notable landmarks, including XXXX and XXXX.

Q: What industries are prominent in Elektrostal?

A: Elektrostal is known for its steel production industry and is also a center for engineering and manufacturing.

Q: Are there any universities or educational institutions in Elektrostal?

A: Yes, Elektrostal is home to XXXX University and several other educational institutions.

Q: What are some popular outdoor activities in Elektrostal?

A: Elektrostal offers several outdoor activities, such as hiking, cycling, and picnicking in its beautiful parks.

Q: Is Elektrostal well-connected in terms of transportation?

A: Yes, Elektrostal has good transportation links, including trains and buses, making it easily accessible from nearby cities.

Q: Are there any annual events or festivals in Elektrostal?

A: Yes, Elektrostal hosts various events and festivals throughout the year, including XXXX and XXXX.

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Our commitment to delivering trustworthy and engaging content is at the heart of what we do. Each fact on our site is contributed by real users like you, bringing a wealth of diverse insights and information. To ensure the highest standards of accuracy and reliability, our dedicated editors meticulously review each submission. This process guarantees that the facts we share are not only fascinating but also credible. Trust in our commitment to quality and authenticity as you explore and learn with us.

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Price (per night).

• 0 US$ - 50 US$ 52
• 50 US$ - 100 US$ 11

Star Rating

Guest rating.

• Air Conditioning 7
• Restaurant 7
• Swimming Pool 2
• Bathtub/Shower 4

Property Type

• Apartment 43
• Guesthouse 2
• Condo Hotel 1

Sights in Elektrostal'

Central Air Force Museum 17 km.

Saturn Stadium 28 km.

Ramenskoye Bus Station 29 km.

Ramenskoye Train Station 29 km.

Balashikha Arena 31 km.

Airports in Elektrostal'

Zhukovsky International Airport 33 km.

Moscow Domodedovo Airport 54 km.

Na Ulitse Yalagina 15 Apartments Apartment

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Available Rooms

ac_unit Air conditioning balcony Balcony bathroom Private bathroom yard Beautiful view hearing Soundproofing

bathtub Bathtub Bedsheets blinds Blackout blinds dinner_dining Dining area mode_fan Fan kitchen Fridge airwave Hairdryer heat_pump Heating network_check High speed internet access iron Ironing facilities cooking Kitchen soup_kitchen Kitchenware microwave_gen Microwave Mirror door_front Private entrance emoji_food_beverage Tea self_care Toiletries checkroom Wardrobe local_laundry_service Washing machine

1 Bedroom Apartment with balcony and with view

You can take a walk and explore the neighbourhood area of the apartment. Places nearby: ZIL Culture Center, Saint Basil's Cathedral and Red Square.

A great option for family vacation: apartment «Na Ulitse Yalagina 15 Apartments» is located in Elektrostal . This apartment is located in 3 km from the city center.

If you travel by car, there’s a free parking zone. If you travel by car, there’s a parking zone.

Free Wi-Fi is available on the territory. Ask for more information when checking in.

Sports fans will be able to enjoy a fitness center. Accessible for guests with disabilities: the elevator helps them to go to the highest floors.

The following services are also available for the guests: a massage room, a sauna and a solarium.

In the room, there is a TV. Please note that the listed services may not be available in all the rooms.

Additional services that the apartment offers to its guests: a bank, an ATM, ironing and a concierge. The staff of the apartment speaks Russian .

Nightly rates from $58

Address: Russia, Moscow Region, Elektrostal, ulitsa Yalagina, 15, Elektrostal

Reviews of Na Ulitse Yalagina 15 Apartments

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• Pets Not Allowed
• Shopping on site
• Smoking areas
• Washing machine
• Express check-in/check-out
• Early check-in
• Late check-out
• Elevator/lift
• Upper floors accessible by elevator
• Iron and board
• Concierge services
• Children's playground
• Family/Kid Friendly

Room Amenities

• Non-smoking rooms
• Family room

Food & Drink

• Coffee/tea for guests
• Microwave oven
• Fitness facilities
• Beauty services
• Free Parking on Premises

Languages Spoken

Policies of na ulitse yalagina 15 apartments, accepted credit card payments:.

Visa, Maestro, Mastercard, Cash

Information about the type of meals included in the price is indicated in the rate details.

A deposit of 5,000.00 RUB per stay will be required at check-in to cover any potential damages.

Russian citizens must have an original Russian passport upon arrival.

Check-in takes place with a passport or driver's license.

The apartment is not rented for a day:

- persons under 24 years of age;

- persons without documents confirming their legal presence on the territory of the Russian Federation;

- persons under the influence of alcohol or other intoxication;

- Smoking in the apartment is strictly prohibited.

- Pets are not allowed.

- Noisy and entertainment events are not allowed.

- Loud listening to music or other noise is not allowed during the hours established by the legislation of the Russian Federation.

Early check-in and late check-out is possible - you need to clarify this possibility.

Na Ulitse Yalagina 15 Apartments on map

Search and book hotels, nearby attractions.

Saturn Stadium 24 km.

Ramenskoye Bus Station 26 km.

Ramenskoye Train Station 26 km.

Balashikha Arena 30 km.

Gorenki Train Station 32 km.

Sklon NPP Zvezda 34 km.

Lyubertsy Train Station 34 km.

Sklon TSAGI 34 km.

Triumph Sport Hall 35 km.

Reutov City Park 35 km.

Closest Airports

Zhukovsky International Airport 30 km.

Moscow Domodedovo Airport 51 km.