Real Estate Rental Business Plan

A real estate rental business plan is the first step in establishing what your expectations and goals are for the rental business.3 min read

What You Need to Know About a Real Estate Rental Business Plan

Elements of a Business Plan

• Vision.
• Mission.
• Objectives.
• Strategies.
• High-Level Plans.
• Daily Plans.
• Finances.

Setting Passive Income Investing Goals

When creating the rental business plan, there are two questions that will need answering: How much passive income do you hope to earn on a monthly basis, and how much time and money are you in a position to invest?

As you consider the answers to these questions, keep in mind that your goals should be realistic in terms of the amount of time you have to invest and the money you hope to earn. If you plan to start out working part-time, your goals can be less ambitious as compared to having unlimited time to invest and financing is already in place. Keep the time frame realistic but don't be afraid to reach to make your dream of a successful business become reality.

Another question to consider is what type of rental property you want to focus on. Your options are:

• Residential
• Commercial
• Multi-family

Determine what you want the end result to be. Then, work backward to help guide you to the best result.

Choosing Your Market

Determining the area/region you plan to invest in is an even more important decision than how much experience or capital you have to offer. The questions you'll want to research before answering include:

• Is there a limit to the distance to the market you're investing in?
• Do you have a team in the market area to handle daily operations, or will it be necessary for you to commute back and forth?