Real Estate Management Business Plan Example

Real Estate Management Business Plan

MSN Real Estate (MSN) is an Oregon-based real estate company that offers benchmarked rental units for the Eugene, Oregon community. MSN’s units balance safety, cutting edge features, and a positive atmosphere for all tenants.

Market

MSN targets three distinct customer segments. The largest segment they service is University of Oregon students, growing at 7% a year with 18,000 prospective customers. This segment is especially attractive since most local rental properties geared toward students are run down and poor quality. The second market segment is local professionals, increasing at 4% with 12,000 potential members. The last segment is faculty and staff of the University, with a 5% growth rate and 6,000 potential customers.

Competition

The market for high-quality, reasonably priced apartment units has been growing at a rate of 6.7%. Oregon’s rental rates have remained even, averaging $697, or $.79 per square foot, during the fourth quarter of this year. The Oregon market is experiencing rapid employment growth, fueling demand for apartments, but not many new units are emerging. Not only is MSN pioneering this particular niche of affordable quality living, but it is capitalizing on the strength of the current economic growth in Oregon.

Why Us?

MSN Real Estate provides high-quality, comfortable rental units in Eugene and other areas of Oregon. MSN’s apartment units offer state-of-the-art living conditions reflective of the rapid advancements in technology and a growing need for quality housing. Our company is dedicated to a hassle-free living environment where tenants can enjoy the benefits of safe, attractive, and inviting units. Unlike many other realty companies solely concerned with turning profits, our primary objective is to maintain the highest level of customer satisfaction. Tenant safety, happiness, and comfort are our main goals. MSN maintains competitive market prices while working toward expanding the number of owned units and increasing total profits earned. Within the company, we strive to work as a cohesive, harmonious unit focused on exemplifying our mission. Just as customer satisfaction is an intricate part of MSN’s success, so is employee satisfaction, the key to our longevity.

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Expectations

Forecast

By Year 2, the company will be profitable enough to purchase its second facility. It is currently in discussions with the owners of a 20-unit apartment building in downtown Portland, OR. It is difficult to predict changes in the building values over the long term, but it is estimated that we will be able to purchase this building for $570,000.

Financial Highlights by Year

Financing Needed

We will be receiving $1,250,000 from various sources to start, including an angel investment firm of $1,000,000, a loan of $200,000, and $50,000 from the two owners.

Opportunity

Problem & Solution

Our solution

MSN Real Estate provides high-quality, comfortable rental units in Eugene and other areas of Oregon. MSN’s apartment units offer state-of-the-art living conditions reflective of the rapid advancements in technology and a growing need for quality housing. Our company is dedicated to a hassle-free living environment where tenants can enjoy the benefits of safe, attractive, and inviting units. Unlike many other realty companies solely concerned with turning profits, our primary objective is to maintain the highest level of customer satisfaction. Tenant safety, happiness, and comfort are our main goals. MSN maintains competitive market prices while working toward expanding the number of owned units and increasing total profits earned. Within the company, we strive to work as a cohesive, harmonious unit focused on exemplifying our mission. Just as customer satisfaction is an intricate part of MSN’s success, so is employee satisfaction, the key to our longevity.

Target Market

Market Size & Segments

MSN Real Estate’s main consumer base will be primarily students at the University of Oregon who will benefit from the apartment’s unparalleled quality, location, and technological amenities. We will also be marketing to local area professionals and recent graduates, along with faculty and staff at the University. These customers will be looking for safe, high-quality environments that can foster the atmosphere needed for scholastic and professional success.

  1. MSN’s largest market segment in the Eugene area will be students of the local universities, the most likely to desire the technological amenities that our company offers. We expect this to be the largest growing segment with a growth rate of about 7%.
  2. Local professionals are another large segment. They will be attracted to the units because of the same technological needs, but will also be attracted to the comfortable, well-maintained living environment. MSN offers units that provide a quality "hub" between college graduation and home ownership. We expect this segment to grow at a rate of about 4% with a more frequent turnover.
  3. Local university faculty and staff represent the third and smallest identifiable segment, but contain the second highest growth rate. Proximity and quality will entice this segment, which we expect to grow at a rate of 5%.
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Competition

Our advantages

We start with a critical competitive edge: there are very few apartment units that offer the same level of quality and technological amenities as MSN properties. We also have a high regard for customer service, something unparalleled in this industry. MSN believes it is essential that the customer feels they are being treated with the utmost care and urgency. All staff and personnel go through a training program that teaches the skills needed for successful client relations and customer service.

Keys to Success

Keys To Success

Our Keys to Success:

  1. Safe, quality housing that provides state-of-the-art amenities at competitive prices.
  2. Maintaining open communication between MSN and its customers to ensure the highest level of customer satisfaction and long-lasting reputation within the community.
  3. To continue expanding the number of owned and maintained units while increasing profits for both MSN and its investors.

Execution

Marketing & Sales

Marketing Plan

Marketing in a highly competitive housing industry depends on recognizing excellence and displaying our units in an individualized light. MSN will build a reputation upon these components.

We will develop and provide a living environment of unmatched proportion. It starts with the commitment to customer satisfaction and fulfilling their demands. Our commitment to quality and comfort includes safety and 24-hour customer service. What differentiates MSN from all other real estate companies is our focus on maintaining the most advanced technological innovations on the market for our tenants.

Sales Plan

Sales in our business are based on providing customers with a living concept fitting their needs. We must be in touch with the needs and desires of our clientele to best attract a consistent flow of incoming residents.

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Operations

Locations & Facilities

MSN headquarters will be established in A-quality office space in the downtown area of Portland, Oregon. This will be the heart of our company, with satellite locations in Beaverton and Eugene, Oregon. We are also installing an in-house Internet server and 24-hour answering service to handle all customer or business communications. A representative of the company will be located within any living development with more than 32 units.

Technology

MSN real estate will have the most up-to-date technology provided to customers, subcontractors, and other clients.

  1. Ethernet ports and/or modem jacks will be installed in each unit developed by MSN.
  2. Access to a 24-hour copy/fax center located on the premises.
  3. Each unit will contain an emergency panic alert that will automatically go through to the manager and the local police department.

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