5 Security Deposit Alternatives That Reduce Vacancies for Landlords

The traditional security deposit model is quickly becoming obsolete. With only 41% of renters expecting to get their full security deposit back and average deposits reaching thousands of dollars, it’s no surprise that property managers are seeking better solutions.

The bottom line: Properties implementing deposit alternatives have seen significant improvements in occupancy rates, while dramatically reducing administrative burdens. Here’s what every landlord needs to know about the five most effective security deposit alternatives that are transforming the rental industry.

The Traditional Deposit Problem: Why Change is Necessary

Traditional security deposits create significant barriers for both tenants and landlords. Many tenants don’t have that extra cash to cover the typical one to three months’ rent upfront, while landlords face complex administrative tasks and regulatory compliance requirements. Understanding how to improve tenant retention becomes crucial in this environment.

The numbers tell the story: Property managers using alternatives report significantly reduced time-to-lease compared to industry averages that can stretch weeks or months with traditional deposits.

What Are Security Deposit Alternatives?

Security deposit alternatives are innovative rental deposit replacements that allow tenants to move in without paying a large cash deposit upfront. Instead of requiring thousands of dollars upfront, these solutions provide landlords with the same or better protection through insurance, bonds, or other financial instruments.

The movement has gained significant regulatory support. Cincinnati, Ohio, passed the first “Renter’s Choice” law in the U.S., followed by many more municipalities across the country. The federal DEPOSIT Act has been introduced to help cover security deposit costs, showing government recognition of this barrier to housing access.

5 Proven Security Deposit Alternatives That Reduce Vacancies

1. Deposit Replacement Insurance

How it works: Tenants pay a small monthly premium (typically $10-30) instead of a large upfront deposit. The insurance covers damages and unpaid rent, often exceeding traditional deposit amounts.

Vacancy impact: Deposit alternatives can attract more applicants, especially those struggling with significant upfront costs. A larger pool of potential tenants increases the likelihood of filling vacancies quickly.

Key benefits:

  • Coverage often exceeds traditional deposits (up to $5,000 or more)
  • Monthly payments make rentals accessible to more tenants
  • No paperwork around managing deposit accounts

Best for: Multifamily properties with professional management systems, markets with high upfront costs relative to income. This approach works particularly well with multifamily property management software that can handle integrated payment processing.

Propertese Integration: Our platform connects directly with major deposit insurance providers, automatically updating tenant records when they enroll and tracking monthly payments alongside regular rent. You’ll get alerts if payments lapse and can see which properties benefit most from this approach.

2. Surety Bonds

How it works: As an alternative to a security deposit, you can offer a surety bond. An insurance company underwrites these bonds which are non-refundable. The cost is based on a small percentage of the security deposit.

Vacancy impact: By reducing upfront costs to just 10-18% of the traditional deposit amount, surety bonds dramatically expand the pool of qualified applicants.

Key benefits:

  • One-time fee instead of ongoing payments
  • Lower upfront cost for tenants
  • Same protection level as traditional deposits

Considerations: For tenants, the fact that they don’t get their bond fee back is a sticking point. Unlike a security deposit, they don’t get their money back, even if they leave the place spotless.

3. Installment Payment Plans

How it works: Traditional deposits are spread over 3-6 monthly installments, often combined with rent payments.

Vacancy impact: Lower financial barriers make properties more accessible to qualified applicants. Initial rental costs are lower, so more people will be interested.

Key benefits:

  • Maintains traditional deposit protections
  • No third-party involvement
  • Reduces upfront burden without additional costs
  • Simpler legal framework

Best for: Smaller landlords, single-family rentals, properties where traditional deposits work well, but upfront costs are the barrier. This approach integrates well with property management accounting systems that can track installment payments.

4. Billing Authorization Programs

How it works: Tenants pre-authorize landlords to charge their accounts for damages after move-out, similar to hotel authorization holds.

Vacancy impact: Zero upfront costs make properties immediately accessible to qualified tenants who lack savings for deposits.

Key benefits:

  • No upfront costs for tenants
  • Immediate reimbursement for landlords
  • Simplified administration
  • Charges only occur if damages happen

Considerations: Requires tenants to have available credit or bank account access for potential charges.

5. Hybrid Models

How it works: Combines reduced cash deposits (often 50% of traditional amount) with insurance or bond coverage for additional protection.

Vacancy impact: Offers the best of both worlds – lower barriers to entry while maintaining some traditional deposit benefits.

Key benefits:

  • Balances tenant accessibility with landlord comfort
  • Maintains partial cash security
  • Can be customized based on tenant creditworthiness
  • Flexible coverage options

Best for: Landlords transitioning from traditional deposits, properties with mixed tenant profiles, and markets with varying rental demand.

The Financial Impact: Real Numbers from Real Properties

The data on vacancy reduction is compelling. Revolution Rental Management has been sitting at an average of about ten days on the market over the last year. And as we all know, minimal vacancy equals increased ROI for investors.

But the benefits extend beyond just faster leasing:

  • Administrative Savings: Managing traditional deposits involves collecting funds, keeping records, and processing refunds, which takes time and costs money. Deposit alternatives make these tasks simpler, cutting down on paperwork and related expenses.
  • Broader Applicant Pool: High upfront costs prevent many qualified applicants from accessing rental housing. Alternative approaches can expand the tenant pool significantly.
  • Reduced Damage Claims: Industry reports suggest that some property managers experience fewer damage claims at move-out when using alternatives, as tenants know they’ll be directly billed for damages rather than losing part of a pre-paid deposit.

Implementation Strategy: Getting Started with Alternatives

Step 1: Choose Your Platform

Today’s property management works best with integrated tools. Platforms like Propertese offer complete leasing and rental management features that work well with security deposit alternatives.

The Propertese Advantage: With Propertese, you can manage multiple deposit alternatives across your portfolio from a single dashboard. Track which properties perform best with which alternatives, automate tenant communications about their options, and generate reports that show how these alternatives impact your bottom line.

What This Means for Your Business:

  • Compare performance across different properties and alternative types
  • Automatically generate lease documents with the correct alternative language
  • Track tenant enrollment and payment status in real-time
  • Generate owner reports showing how alternatives protect their investments

Step 2: Update Your Marketing

Advertising security deposit alternatives in your listings can differentiate your properties in competitive markets. Consider implementing creative rental property marketing ideas alongside these alternatives for maximum impact.

Propertese Marketing Tools: Our property listings and outreach features automatically include your deposit alternative options in listings, calculate and display total move-in costs, and help you track which marketing messages generate the most applications.

Step 3: Train Staff and Update Processes

Make sure your leasing team knows how to explain alternatives to potential tenants. Update your lease agreements and create clear procedures for each alternative type.

How Propertese Helps: Our platform includes built-in training materials and scripts for explaining deposit alternatives. Leasing agents can access comparison charts showing costs and benefits, while our document management system ensures they always use the most current lease templates.

Step 4: Monitor and Optimize

Track key metrics like days on market, application volume, and lease conversion rates. Use these insights to refine your approach and maximize results.

Propertese Analytics: Our comprehensive reporting system tracks vacancy rates by property type, alternative type, and market conditions. You’ll see exactly which approaches work best for your portfolio and can make data-driven decisions about expanding successful programs.

Choosing the Right Alternative for Your Portfolio

The best security deposit alternative depends on several factors:

  • Property Type: Multifamily properties typically see the best results with insurance-based alternatives, while single-family rentals may benefit from installment plans or hybrid approaches.
  • Market Conditions: In high-demand markets, focus on speed-to-lease benefits. In competitive markets, use alternatives as differentiators.
  • Tenant Demographics: Young professionals and mobility-focused renters respond well to low-barrier alternatives, while families may prefer installment options.
  • Administrative Capacity: Smaller landlords might prefer simple installment plans, while larger operators can benefit from third-party managed solutions.

Measuring Success: Key Performance Indicators

Track these metrics to measure the success of your security deposit alternative program:

  • Days on Market: Target 15-30% reduction
  • Application Volume: Expect 20-40% increase in qualified applications
  • Lease Conversion Rate: Monitor improvement from application to signed lease
  • Tenant Satisfaction: Survey tenants about their move-in experience
  • Administrative Time Savings: Quantify time saved on deposit management

For more detailed guidance on tracking performance, check out our article on property management KPIs you should be tracking.

Common Concerns and How to Address Them

“What if tenants don’t pay for damages?”
Most alternatives include collection services and maintain tenant liability. Insurance and bond providers handle collections, removing this burden from landlords.

“Are alternatives legally compliant?”
Reputable providers ensure compliance with local regulations. However, always consult with legal counsel and verify compliance in your jurisdiction.

“What happens if the provider goes out of business?”
Choose established providers with strong financial backing and clear contingency plans. Consider diversifying across multiple providers for large portfolios.

Getting Started: Your Next Steps

  1. Assess Your Current Vacancy Rates: Calculate the cost of each vacant day to understand potential ROI
  2. Research Providers: Compare options based on your property type and tenant demographics
  3. Start Small: Pilot alternatives on a portion of your portfolio
  4. Monitor Results: Track vacancy rates, application volume, and tenant satisfaction
  5. Scale Successful Programs: Expand alternatives that demonstrate clear benefits

Conclusion: The Future is Already Here

Security deposit alternatives aren’t just a trend; they’re becoming the new standard. Properties offering deposit-free renting are more attractive to prospective tenants, with government research showing significant barriers created by upfront deposit costs.

The question isn’t whether to implement security deposit alternatives, but which ones will work best for your portfolio. With proper implementation and the right property management software, these alternatives can significantly reduce vacancy rates while improving tenant satisfaction and operational efficiency.

Get started with Propertese today and discover how the right property management platform can make security deposit alternatives work for your business.

Frequently Asked Questions

What happens if a security deposit alternative company goes out of business?

This is a valid concern given the relative newness of the industry. Choose established providers with strong financial backing and insurance coverage. Many reputable companies maintain separate insurance funds or partner with major insurance carriers to protect against insolvency. For added protection, consider working with multiple providers across your portfolio rather than putting all properties under one program.

Are security deposit alternatives legal in all states?

Most states allow these alternatives, but regulations vary significantly. Some states have specific requirements for how alternatives must be structured or disclosed to tenants. California’s Assembly Bill 12 mandates that rental property owners cannot demand or receive a security deposit exceeding one month’s rent, which has accelerated alternative adoption. Always consult local housing laws and consider working with an attorney familiar with landlord-tenant regulations in your area.

Do security deposit alternatives actually reduce property damage?

Counterintuitively, many property managers report fewer damage claims after switching to alternatives. Birdy Properties reports this scenario playing out since they moved away from security deposits two and a half years ago. The theory is that tenants may be more careful when they know they’ll be directly billed for damages rather than losing part of a deposit they’ve already paid.

What if a tenant can’t qualify for deposit alternative programs?

Most alternative programs have their own underwriting criteria, which may exclude some applicants. However, many programs are designed to accept tenants who might not qualify for traditional rentals due to credit issues. If a tenant doesn’t qualify for alternatives, you can still offer traditional deposits or installment payment plans as backup options.

How do I market security deposit alternatives to potential tenants?

Advertising security deposit alternatives in your listings can differentiate your properties in competitive markets. Include specific dollar amounts in your marketing – “Move in for as little as $89” or “No security deposit required” – to grab attention. Be clear about how the alternatives work and what tenants can expect to pay monthly or annually. For more insights on effective marketing, read our guide on why rental listings aren’t converting and how to get more applications.

Are there tax implications for landlords using deposit alternatives?

Unlike traditional deposits, which are held in trust and don’t count as income, some alternative programs may have different tax treatments. Monthly fees paid by insurance companies might be considered income, while traditional deposits are not. Consult with a tax professional familiar with rental property accounting to understand the implications for your specific situation.

What’s the typical claims rate for security deposit alternatives?

Claims rates vary by provider and property type, but many report lower-than-expected damage claims. The exact rates depend on tenant screening, property condition, and local market factors. Reputable providers should be able to share their historical claims data and payout timelines to help you make informed decisions.

Can I use different alternatives for different properties?

Absolutely. Many landlords use different approaches based on property type, local market conditions, and tenant demographics. Luxury properties might use installment plans, while affordable housing might benefit from insurance-based alternatives. The key is matching the right solution to each property’s specific needs and tenant base.

How to Conduct an HOA Reserve Study: Complete Guide for Community Managers

As a community manager, you’ve likely encountered the challenge of planning for major repairs and replacements without burdening homeowners with surprise special assessments. This is where an HOA reserve study becomes your most valuable financial planning tool. Recent industry data reveals that as many as 70% of associations’ HOA reserves are underfunded, leading to costly emergency assessments and declining property values.

In this comprehensive guide, we’ll walk you through everything you need to know about conducting a practical reserve study, from legal requirements to implementation strategies that protect your community’s financial health.

What Is an HOA Reserve Study?

An HOA reserve study is a comprehensive financial planning document that analyzes your community’s common area components, estimates their remaining useful life, and projects the funding needed for future repairs and replacements. Think of it as a crystal ball for your community’s infrastructure needs, helping you anticipate expenses before they become financial emergencies.

The study serves three critical functions:

  • Component inventory and condition assessment of all major common elements
  • Financial projections for replacement costs and timing
  • Funding recommendations to avoid special assessments

According to the Community Associations Institute (CAI), a proper reserve study should follow their National Reserve Study Standards, which define specific procedures for component identification, financial analysis, and funding plan development.

Legal Requirements by State: What You Need to Know

Mandatory Reserve Study States

Following the devastating Surfside condominium collapse in 2021, many states have strengthened their reserve study requirements. The tragedy highlighted what happens when communities defer critical maintenance, and lawmakers took notice.

Florida now has some of the toughest rules in the country. Under House Bill 913 (2025), associations managing buildings three stories or higher must conduct a Structural Integrity Reserve Study (SIRS) every 10 years, with the initial SIRS deadline extended to December 31, 2025. What’s really changed is that starting January 1, 2025, condo owners can no longer vote to skip funding these critical reserves. The law clarifies that SIRS applies to buildings with “three habitable stories or more, “so parking garages don’t count toward that threshold.

New Jersey jumped on board in 2024 with Senate Bill S2760 and Assembly Bill A4384, requiring reserve studies for all condominium associations, cooperatives, and planned developments with at least $25,000 in common area assets.

California has been ahead of the curve for years, requiring associations to conduct reserve studies every three years with annual reviews and visual inspections of major components under Civil Code Section 5550.

Colorado tried to join this group in 2022 with HB22-1387, but Governor Polis vetoed the bill despite it passing both chambers. For now, Colorado HOAs aren’t legally required to do reserve studies.

Current State Requirements

Based on recent industry sources, the following states currently have reserve study mandates:

  • Nevada: Reserve studies are conducted every five years by a qualified professional
  • Virginia: Reserve studies must take place at least once every five years under Section 55-79.83.1
  • Washington: Strongly encourages associations to conduct reserve studies every three years
  • Hawaii: Reserve studies are conducted every five years by a qualified professional
  • Maryland: Reserve studies every five years for condominiums and cooperatives
  • Delaware: Reserve studies are conducted every five years by a qualified professional
  • Tennessee: Reserve studies are conducted at least every five years by a qualified professional
  • Utah: Reserve studies are conducted at least every six years by a qualified professional
  • Oregon: Reserve studies are conducted every three years by a qualified professional

Federal Lending Implications

Federal lending standards create significant consequences for communities without adequate reserves. FHA requirements state that condo associations must maintain at least 10% of their budget in cash reserves, with exceptions granted only when a professional reserve study demonstrates that less funding is adequate for long-term requirements.

Key FHA criteria include:

  • At least 85% of units must be current on dues
  • Reserve funds must meet the 10% threshold or be supported by a current reserve study
  • Properties must be recertified every three years

Understanding Reserve Study Components

The Four Pillars of Reserve Analysis

Every comprehensive HOA reserve study should include these essential elements:

1. Component Inventory: This involves cataloging all common area elements that meet the three-part test established by CAI:

  • The association has the obligation to maintain or replace the element
  • The need can be reasonably anticipated
  • The cost is material to the association

2. Condition Assessment: Professional evaluation of each component’s current state, considering factors like:

  • Age and usage patterns
  • Maintenance history
  • Climate impact and environmental exposure
  • Visual inspection findings

3. Life and Valuation Estimates: Determining remaining useful life and replacement costs for each component. According to industry standards, typical useful life ranges include:

  • HVAC systems: 10-15 years for air conditioning, 15-20 years for furnaces
  • Roofing: 15-30 years for asphalt shingles, 40-80 years for metal roofing
  • Building envelope components: 20-40 years for windows and doors

4. Funding Plan Development Creating a strategic approach to accumulate adequate reserves over time.

Component Categories by Property Type

Condominium Properties typically include:

  • Building envelope (exterior walls, windows, doors)
  • Roofing systems and waterproofing
  • Elevators and mechanical systems
  • Fire protection and safety systems

Townhome Communities focus on:

  • Individual or shared roofing systems
  • Exterior finishes and siding
  • Common landscaping and hardscaping
  • Recreational amenities

Single-Family HOAs emphasize:

  • Roads and sidewalks
  • Storm water management
  • Community amenities (pools, clubhouses)
  • Entry features and signage

Reserve Study Funding Methods: Choosing the Right Approach

Three Primary Funding Strategies

Baseline Funding establishes the minimum level that prevents reserve balances from falling below zero. While this approach minimizes immediate financial burden, it carries the highest risk of special assessments and isn’t recommended as a long-term strategy.

Threshold Funding maintains reserves above a specified percentage—typically 70% of the fully funded balance. This moderate-risk approach provides better protection against unexpected expenses while keeping contributions manageable.

Full Funding targets 100% of the fully funded balance, offering maximum protection against special assessments. Communities using this approach historically experience 35% lower subsequent special assessments when updating their reserve studies more frequently than once every five years.

The Percent Funded Calculation

The industry standard for measuring reserve health is the Percent Funded calculation:

(Reserve Account Balance ÷ Fully Funded Balance) × 100 = Percent Funded

According to CAI guidelines:

  • 70-100% funded: Low risk of special assessments
  • 31-70% funded: Moderate risk level
  • 0-30% funded: High risk of financial difficulties

How Propertese Simplifies HOA Reserve Study Management

Modern property management platforms have revolutionized the reserve study process, making it more accurate and efficient than ever before. Propertese combines cutting-edge technology with comprehensive community association management features to transform how community managers handle reserve studies.

Digital Data Collection and Analysis

Advanced property management software like Propertese enables community managers to:

  • Maintain comprehensive component databases with automated tracking of installation dates, warranty information, and maintenance history through integrated asset management
  • Generate detailed financial projections using integrated accounting data and budget planning tools that connect with platforms like Xero
  • Store and organize inspection photos with GPS tagging and condition scoring through document management capabilities
  • Create professional reports with customizable templates and automated calculations using advanced reporting features

Mobile Inspection and Real-Time Updates

Modern reserve study providers increasingly utilize mobile technology for on-site assessments. Propertese’s mobile capabilities allow for:

  • Real-time data entry during site visits with maintenance and work order management integration
  • Integrated photography with automatic asset tagging
  • Offline capability for areas with limited connectivity
  • Immediate synchronization with main databases

Predictive Analytics and AI Integration

Emerging technologies are beginning to impact reserve study accuracy through Propertese’s advanced features:

  • Predictive maintenance algorithms that adjust useful life estimates based on usage patterns tracked through the platform
  • Climate modeling that accounts for regional weather impacts on component longevity
  • Cost escalation forecasting using real-time market data and vendor pricing history

Integrated Financial Management

Automated Reserve Fund Accounting: Propertese provides separate tracking for different component categories, eliminating manual errors that plague traditional spreadsheet management. The platform automatically calculates monthly contributions, tracks spending against budgeted amounts, and provides real-time balance updates.

Budget Variance Analysis: The system continuously monitors actual expenses versus projected costs from your reserve study, identifying trends that may require adjustments to future funding plans. This analysis integrates seamlessly with your portfolio management oversight.

30-Year Cash Flow Integration: Model different funding scenarios and see how various contribution levels affect your community’s long-term financial health, with projections that support best practices for managing HOA reserve funds.

Component Asset Management Excellence

Digital Asset Database: Store detailed information about every reserve component, including installation dates, warranty information, maintenance history, and photos. This centralized approach ensures accurate data for reserve study updates.

Automated Maintenance Scheduling: Extend component useful life through preventive maintenance tracked via the platform’s comprehensive maintenance management system, directly impacting reserve funding requirements.

Vendor Management Tools: Maintain detailed records of contractor performance and pricing history, invaluable when reserve study providers need current cost estimates for component replacements.

Advanced Reporting and Communication

Board-Ready Reports: Generate professional reserve fund status reports through customizable reporting tools that translate complex financial data into homeowner-friendly formats, automatically calculating percent funded ratios and highlighting upcoming expenditures.

Owner Portal Integration: Through the owner portal, homeowners can access reserve study summaries, understand how their dues are invested in community assets, and view upcoming projects, building transparency and reducing resistance to necessary dues increases.

Automated Compliance Tracking: For communities in states with mandatory reserve study requirements, Propertese tracks update deadlines and sends automated reminders to ensure compliance with state-specific regulations.

Specialized HOA Features

As a platform designed specifically for HOA management, Propertese includes features particularly relevant to reserve studies:

Common Area Maintenance Tracking: The common area maintenance module helps track expenses that affect reserve component longevity, providing data that can justify extending useful life estimates in future studies.

Community Communication: Keep residents informed about reserve-funded projects through automated notifications and email communication tools. When homeowners understand how reserves are being used, they’re more likely to support adequate funding levels.

Multi-Property Management: For companies overseeing multiple HOAs, Propertese enables comparison of reserve funding levels across communities, identifying best practices and ensuring consistent compliance across entire portfolios.

Future Trends and Emerging Considerations

Climate Change Impact on Reserve Planning

Climate change is fundamentally altering traditional valid life assumptions. The buildings and construction sector accounts for 37% of global greenhouse gas emissions, while extreme weather events are becoming more frequent and severe.

Reserve studies must now consider:

  • Increased storm intensity requiring more robust building materials
  • Rising temperatures that accelerate component deterioration
  • Changing precipitation patterns affecting drainage and waterproofing systems

Sustainable Building Materials

The trend toward sustainability is influencing component selection and reserve planning:

  • Cross-laminated timber (CLT) offers carbon storage benefits with an extended useful life
  • Smart glass technology provides energy efficiency advantages
  • Climate-resilient materials like steel and aluminum offer better extreme weather resistance

Regulatory Evolution

Following the Surfside tragedy, expect continued expansion of reserve study requirements across additional states. Current trends include:

  • Mandatory structural inspections integrated with reserve planning
  • Enhanced disclosure requirements for buyers and lenders
  • Increased board liability for inadequate reserve management

Conclusion: Protecting Your Community’s Financial Future

Conducting a proper HOA reserve study isn’t just about regulatory compliance, it’s about protecting your community’s financial stability and property values. Communities that maintain well-funded reserves supported by professional studies avoid the disruption and financial hardship of large special assessments while preserving their appeal to potential buyers and lenders.

The key to success lies in understanding your state’s requirements, choosing qualified professionals, implementing appropriate funding strategies, and maintaining regular updates to reflect changing conditions and costs. With proper planning and the right tools, your community can build a strong financial foundation that serves homeowners well for decades to come.

Remember, if a condo or HOA updates its reserve study more often than once in 5 years, its average subsequent special assessments are 35% lower. This statistic alone demonstrates the clear return on investment that professional reserve planning provides.

With the right technology and industry best practices, reserve studies become powerful tools for long-term community success rather than mere compliance requirements. 

Contact our team to learn how Propertese can enhance your HOA reserve study management.

How to Simplify Property Management Tenant Chargebacks in 2025

If you’re a property manager, few things disrupt your operations more than tenant chargebacks. Imagine collecting rent, fees, or security deposits only to see the funds reversed weeks later after a tenant disputes the payment. Not only does this cut into your revenue, but it also adds administrative stress, legal concerns, and wasted time.

In 2025, with increasing digital payments, stronger consumer protection legislation, and increasingly technology-aware tenants, property management tenant chargebacks occur more often and are more challenging to deal with. The good news? There are more efficient means of streamlining and preventing them.

Key Takeaways 

  • Tenant chargebacks are increasing in 2025 with digital payments and economic strains.
  • They cost property managers in lost income, time, and reputation.
  • Simplify management with ERP tools, reminders, agreements, and professional assistance.
  • Prevention, openness, documentation, and communication are the property manager’s best defenses.

For additional context on how customer service practices impact tenant retention, check out this guide on resolving issues and retaining residents.

What Are Tenant Chargebacks in Property Management?

A tenant chargeback occurs when a renter objects to a charge on their credit card or bank account. The bank reverses the payment and withdraws money from the property manager or landlord until the objection is resolved.

In simpler words, tenant chargebacks in real estate management are payment disputes when tenants request their bank to reverse charges such as rent, application fees, or deposits. These disputes can lead to loss of revenue and additional admin work for landlords and property managers.

Typical Types of Tenant Chargebacks:

  • Rent Payments: Unauthorized or duplicate charges claimed by tenants.
  • Application Fees: Disputes upon rejection of applications.
  • Security Deposits: Tenants protest unfair deductions.
  • Utility Bills or Service Fees: Disputes on unclear bills.
  • Short-term Rental Stays: Chargebacks for cancellation or no-shows.

For more insights into tenant communications, see how smart solutions for efficient tenant communication can reduce disputes.

Why Are Tenant Chargebacks Rising in 2025?

The property management landscape is changing. Multiple factors contribute to increasing tenant chargebacks:

  • Digital-first payments: Renters and deposits are paid online in most cases. (Learn how online rent payments benefit managers.)
  • Friendly fraud: Tenants willfully dispute legitimate charges, expecting to prevail.
  • Tighter consumer protection: Banks usually favor tenants initially.
  • Third-party booking sites: Airbnb, Vrbo, or rental apps heighten risk.
  • Economic pressure: When there is inflation and tighter budgets, tenants seek loopholes.
  • Reality: Friendly fraud makes up more than 60% of disputes in sectors such as property management and hospitality, Chargeback Gurus reports.

The Cost of Tenant Chargebacks for Property Managers

Chargebacks affect more than your bottom line. Here’s how:

  • Direct revenue loss: Money is withdrawn immediately.
  • Chargeback fees: Fees per dispute imposed by banks.
  • Operational delays: Time waiting for evidence and documentation collection.
  • Reputation risk: High chargeback percentages result in payment processors marking your business.
  • Cash flow issues: Irregular reversals interfere with monthly planning.

For strategies on improving revenue resilience, read this article on effective tactics to elevate property management revenue.

How to Simplify Tenant Chargebacks in 2025

Let’s come to the practical part to simplify tenant chargebacks:

1. Define Clear Payment Policies

  • Set clear rental contracts.
  • Include specific terms for application fees and deposits.
  • Clearly communicate refund policies.

If you want to make leasing more efficient, check out these leasing email templates designed for tenant communications.

2. Use Tenant Portals with Built-in Tracking

Tools such as Propertese enable:

  • Automated rent collection
  • Easy, clear billing histories
  • Electronic receipts for all transactions

This makes it more difficult for tenants to dispute unauthorized charges.

3. Document Everything

  • Store digital copies of applications, leases, and invoices.
  • Save proof of contact (email, text, signed contracts).
  • Document the property condition before/after tenancy.

Also, explore best practices on property management trust accounts to maintain credibility in disputes.

4. Automate Chargeback Alerts

Property management solutions can share alerts with you in real time when a tenant contests a charge. This allows you to act quicker and possibly prevent the reversal.

5. Partner with Chargeback Management Experts

Businesses such as Chargeback Gurus and Chargeflow are experts in representment (battling disputes with evidence). Collaborating with them minimizes the admin load.

6. Leverage ERP Systems for Centralized Control

An ERP such as NetSuite (official site) combines finance, tenant management, and reporting. You’ll get:

  • Unified dashboards for disputes
  • Automated reports for bank evidence
  • Reduced risk of data errors

For additional efficiency tips, explore how advanced property management software solutions simplify daily tasks.

How to Prevent Tenant Chargebacks Before They Happen

Prevention is always better than dispute management. Here’s how property managers can get ahead:

  • Be transparent: Always display rent breakdowns, deposits, and additional charges.
  • Communicate: Send reminders to tenants about due dates and policies. (Tips for effective communication here)
  • Provide more payment options: Tenants prefer systems with flexibility.
  • Inform tenants: Share information about refunds, deposits, and billing. (Check out this tenant satisfaction survey guide here)
  • Leverage fraud detection tools: Catch suspicious payments before they lead to chargebacks.

Conclusion

Tenant chargebacks will always exist in property management, but property managers in 2025 don’t have to battle them by themselves. Implement open policies, document everything, and use software like Propertese that is specifically designed for property management to simplify chargebacks, safeguard your income, and forge better tenant relationships.

You can schedule a discovery call with us to understand how Propertese works to make your life as a property manager easier. 

3 Must-Track Leasing KPIs for Property Managers: A Complete Performance Guide

If you’re in charge of a property, you already know this: unoccupied units cost money. A lot of turnover means wasted time. Not renewing hurts your bottom line. Tracking performance is the only way to stay alive in a business where every day of vacancy means lost rent.

This is where leasing KPIs, or Key Performance Indicators, come in. These data, which you can measure, tell you just how well your leasing funnel is doing. They are more than simply spreadsheets or reports; they show you what is working, what is broken, and where money is going.

If you’re new to KPIs in property management, this comprehensive guide on property management KPIs explains why they’re crucial for profitability.

What Are KPIs for Leasing?

3 Must-Track Leasing KPIs for Property Managers

Leasing KPIs show how well you handle your leasing cycle, from getting leads to turning units to keeping renters. Leasing performance, turn performance, and renewal performance are the three most essential leasing KPIs for property managers. They measure how well they convert leads, prepare units, and keep tenants. KPIs can: 

  • Locate leasing funnel bottlenecks.
  • Calculate the return on investment for marketing.
  • Boost budgeting and forecasting.
  • Boost NOI, or net operating income.

For example, converting leads to leases with digital marketing is one area where tracking KPIs helps property managers see which campaigns are paying off.

KPI #1: Leasing Performance (Lead-to-Lease Conversion Rate)

Leasing performance tells you how well you’re turning enquiries into signed leases. It’s the best way to tell how well marketing and sales work. Leasing Performance is significant for the following reasons:

  • Shows how well your marketing strategies are working.
  • Shows if people are leaving during showings or applications.
  • Helps guess what the future occupancy rates will be.

Property managers can enhance leasing performance by tracking lead sources, using online portals, automating follow-ups, and training leasing teams to improve communication and speed up conversions.

Struggling with ads not bringing results? Here’s how effective property management advertising can maximize occupancy.

This formula will help you figure out Leasing Performance:

Leasing Conversion Rate = (Number of Leases ÷ Number of Leads) × 100

For example: If you got 200 leads and signed 20 leases in a month, your leasing conversion rate is 20 ÷ 200 × 100 = 10%.

KPI #2: Turn Performance (Unit Turnover Time)

Turn performance tells you how long it takes to prepare a unit for a new tenant after the current one moves out. The clock starts when the old tenant moves out and stops when the unit is ready for a new tenant. It is critical because:

  • Each additional day of vacancy results in lost revenue. 
  • Faster turnover leads to higher occupancy and improved cash flow. 
  • It affects tenant satisfaction; nobody likes delays when moving in.

You can improve the turn performance by:

  • Checking units before the lease ends to see what needs fixing.
  • Making a checklist so that you don’t forget anything.
  • Book supplies earlier to avoid delays. 

For practical support, many managers use move-out checklists or even smooth move-out process tips to cut delays. 

KPI #3: Renewal Performance (Tenant Retention Rate)

Renewal performance shows how many tenants stay in their flat instead of moving out. Different industries have different averages, although many markets consider a renewal rate of 70–80% high. It’s cheaper to renew than to recruit new tenants. Stable tenants mean steady income. A high retention rate means that tenants are happy. You can improve Renewal Performance by:

  • Early communication. Contact them 90 days before the lease ends.
  • Give people the choice of month-to-month, 12-month, or multi-year plans.
  • Offer incentives for renewals, like upgrades, tiny rent cuts, and rewards for being a loyal customer.
  • Pay attention to your tenants. Surveys can help you fix problems before it’s time to renew.

For deeper insights, check out our blog on the best tenant retention strategies.

You can calculate renewal performance with this formula:

Renewal Rate = (Number of Renewals ÷ Total Expiring Leases) × 100

Example: Your renewal rate is 80% if 80 out of 100 tenants with leases about to end renew.

What do these three leasing KPIs do together?

According to the National Apartment Association (NAA), turnover costs average $1,000 per unit when you include the expense of cleaning, marketing, and losing a tenant. A reasonable rental conversion rate is between 8% and 15%, which varies by market and property type. Most managers want to turn over a unit in 5 to 7 days, but older properties often take more than 10 days. 

A healthy tenant renewal rate is between 70 and 80%, but metropolitan markets tend to have lower rates because people move around more. Monitoring these leasing KPIs is important since they give managers clear performance goals, help them avoid losing money, and help them make better predictions.

Leasing, turning, and renewing performance are integral components of a property’s leasing cycle. They ensure sufficient new renters and reduce turnover and marketing costs.

If retention or customer satisfaction is a challenge, read our blog on resolving issues and retaining residents.

Leasing Made Easy with Propertese

To help you manage all these KPIs more effectively, Propertese has a comprehensive leasing and rental management solution. With Propertese, you can track leads, prepare leases, work on tenant renewals, and manage unit turnovers in one place. You get tools and dashboards that are specifically designed for property managers who want fewer vacancies, faster turnovers, and happier tenants.

Conclusion 

Managing property is both a science and an art. You can only guess if you don’t have numbers to help you. By keeping track of leasing, turnover, and renewal performance, you can see where you’re doing well and losing money. Monitor these three leasing KPIs constantly, compare them to benchmarks, and make tiny changes to improve them over time. This will lead to fewer empty units, happier tenants, and more money for the property.

Propertese may help you get the most out of your leasing cycle by giving you the information and automation you need to track KPIs, take action, and make money easily.

Bonus Depreciation Tax Benefits for Property Management Companies: How to Save Money in 2025

Running a property management company in today’s economy is challenging. Increased maintenance expenses, inflation stress, and the never-ending battle of retaining tenants can leave little profit margin at all. That is why tax savings have become a survival mechanism. One of the strongest methods for property management companies to decrease tax liabilities in 2025 is bonus depreciation. But few property managers know about it or take full advantage of it. 

In this blog, we’ll explain exactly how bonus depreciation tax benefits for property management companies work, why they’re important in 2025, and what practical ways you can implement to save you thousands of dollars.

What Is Bonus Depreciation and Why Should Property Managers Care?

It permits businesses to deduct a significant portion of the cost of qualifying assets in the same year they are acquired, instead of spreading the deduction over numerous years.

For property management companies, this can translate into:

  • Faster tax write-offs.
  • Immediate cash flow perks.
  • Additional reinvestment funds.

Example:

If your business purchases $100,000 of new HVAC equipment, you would be able to write off a substantial amount of that expense in 2025 rather than spreading it over 10–15 years. That’s money back in your pocket much earlier.

How Does Bonus Depreciation Change in 2025?

This is the question most property managers are currently asking. Here’s a brief timeline for the depreciation rates:

  • 2017–2022: 100% bonus depreciation (thanks to the Tax Cuts and Jobs Act).
  • 2023: Reduced to 80%.
  • 2024: Reduced to 60%.
  • 2025: Drops further to 40%.
  • 2026 onward: Phase out entirely unless a new law reverses it.

What does this mean?

In 2025, you can still deduct 40% of qualifying purchases upfront, which is a big deal when applied to expensive property management assets such as building improvements, security systems, or appliances.

Bonus Depreciation vs. Section 179: What’s the Difference?

These two tax tools are frequently confused by property managers. Here’s the difference in simple terms:

Bonus Depreciation:

  • No limit on spending per year.
  • Can make or increase a loss.
  • Automatically applies unless you choose to opt out.

Section 179 Deduction:

  • There are spending limits per year.
  • Will not create a loss (limited by taxable income).
  • You need to elect it specifically.

Important takeaway for property managers:

If you’re purchasing significant assets, bonus depreciation provides more freedom. But combining it with Section 179 sometimes maximizes your tax benefit.

What Assets Can Property Management Companies Write Off with Bonus Depreciation?

This is where bonus depreciation excels for property management. A lot of the assets you’re already spending money on might be eligible.

Here are the best eligible assets:

  1. Appliances for rental property (refrigerators, stoves, dishwashers).
  2. HVAC systems and air conditioning equipment.
  3. Security technology and access control systems.
  4. Landscaping enhancements (fencing, sidewalks, parking lots).
  5. Furniture for rental units or shared spaces.
  6. Computer hardware and software for property management activities. 

When investing in property management software, think about how it relates to efficiency. Solutions such as Propertese have already demonstrated how cloud-based real estate management software can change the game. When combined with tax-saving opportunities, the ROI definitely multiplies.

Read more: The significance of cloud-based real estate management software for property professionals.

Step-by-Step: How Property Managers Can Use Bonus Depreciation in 2025

How Property Managers Can Maximize Bonus Depreciation in 2025

To qualify and maximize your savings, here’s the process:

Identify Eligible Assets

Review planned purchases for 2025 (equipment, systems, renovations).

Confirm the In-Service Date

Assets must be placed in service during the tax year (not just purchased).

Work with a Tax Professional

Ensure you’re combining bonus depreciation with Section 179 effectively.

Keep Documentation Ready

Save contracts, installation records, and invoices for audit purposes.

Calculate Your Savings

If you purchase $50,000 worth of new equipment in 2025, bonus depreciation lets you deduct $20,000 (40%) right away.

Why Is Bonus Depreciation Especially Valuable for Property Management Companies?

Property management is a capital-intensive business, with ongoing investments needed to maintain properties’ operational and competitive performance. Bonus depreciation tax savings can be reinvested in:

This makes a profitability cycle: reduced taxes → greater reinvestment → improved tenant satisfaction → increased revenue.

How Bonus Depreciation Supports Long-Term Growth

Although the percentage is dwindling, bonus depreciation remains a massive victory in 2025. Property management businesses that move quickly can secure savings before the phase-out becomes faster. Combine these savings with:

Final Thoughts

The 2025 bonus depreciation tax incentives for property management companies are too good to ignore. Although the percentage decreases, the window of opportunity is still large enough for those who plan ahead.

If you know what qualifies, make strategic purchases, and consult with your accountant, you can save on taxes and reinvest savings in growth initiatives that maintain your competitiveness.

Energy Management System in Property Management: ROI Analysis and Best Practices

If you’re a rental property manager, you’re already aware that increasing utility expenses and wasted energy quietly devour profits. Tenants expect comfort, investors desire increased returns, and regulators insist on sustainability. What’s missing? An Energy Management System (EMS) that reduces waste, saves costs, and delivers results with quantifiable ROI.

Here in this blog, we’ll dissect:

  • What is an Energy Management System for property management?
  • Why EMS achieves high ROI in real-life scenarios.
  • Optimal practices for increasing energy efficiency.
  • Evaluating ROI step by step.
  • How systems like maintenance request management can scale savings.

As a landlord, property manager, or real estate investor, this guide shows you how EMS changes property performance.

What is an Energy Management System (EMS) in Property Management?

An Energy Management System (EMS) is a software-based solution that tracks, controls, and optimizes energy consumption throughout a property or portfolio. Imagine it as the “brain” of a building’s utilities, which monitors electricity, HVAC, water, and lighting in real-time.

Some of the most essential EMS features are:

  • Smart meters and IoT sensors.
  • Real-time dashboards with analytics.
  • Automated HVAC and lighting control.
  • Predictive maintenance alerts.
  • Insights into tenant energy consumption.

In plain terms, EMS allows you to save money on energy and keep the tenants happy.

Why Should Property Managers Care About EMS ROI?

Energy costs usually constitute 25–30% of all operating costs in residential and commercial buildings. Properly executed EMS will help save those expenses by 15–25% within the first year.

ROI Gains You Can Anticipate:

  • Smaller utility bills → Immediate cost savings.
  • Rapid maintenance and fewer failures → Reduced emergency repair cost.
  • Happier tenants → Comfortable, well-managed environments.
  • Increased property value → Energy-efficient buildings command premium rents.
  • Regulatory compliance → No fines, future-proofing your assets.
  • Sustainability branding → Strong appeal to green-conscious renters.

Example: A 100-unit apartment complex with EMS saved $40,000 a year on electricity with HVAC schedule automation.

How to Calculate ROI for Energy Management Systems

Property managers usually wonder: “Is the investment really worthwhile?” Here’s a simple ROI formula for EMS:

ROI (%) = (Annual Savings – EMS Cost) / EMS Cost × 100

Example:

  • EMS setup cost: $50,000
  • Annual energy savings: $20,000
  • ROI Year 1 = (20,000 – 50,000) / 50,000 × 100 = -60%
  • But in Year 3, cumulative savings amount to $60,000 → ROI = +20%

This illustrates that EMS is a long-term investment. Payback period is usually 2–4 years based on building size and usage.

Best Practices for Maximizing ROI with EMS

Best Practices for Maximizing ROI with Energy Management Systems

To make your EMS deliver optimum value, use the following strategies:

1. Begin with an Energy Audit

  • Pinpoint energy hotspots (HVAC, lighting, water heaters).
  • Prioritize where energy is consumed the most.

2. Establish Clear ROI Goals

  • Establish benchmarks (e.g., 20% in electricity savings in 12 months).
  • Align goals with tenant satisfaction and owner expectations.

3. Incorporate EMS into Property Management Software

When EMS integrates with your property management system, you have one dashboard for energy + rent + maintenance. See how platforms like Propertese improve property management efficiency.

4. Use Automation for HVAC and Lighting

  • Smart thermostats regulate temperatures when units are unoccupied.
  • Motion-sensor lighting eliminates waste in shared spaces.

5. Monitor Tenant Behavior

  • Provide energy reports to tenants to promote conservation.
  • Reward sustainable behavior (e.g., discounts or incentives).

6. Invest in Predictive Maintenance

  • EMS can identify abnormal energy surges → indicates problematic equipment.
  • Repairing upfront prevents costly repairs and tenant complaints.

7. Combine EMS with Sustainability Programs

  • Solar panels + EMS = higher ROI.
  • Green certifications (LEED, Energy Star) attract premium tenants.

The Overlooked Factor: Support & Maintenance Request Management

Even the finest EMS cannot provide maximum ROI if maintenance problems remain unresolved. A leaky HVAC unit, damaged insulation, or malfunctioning lighting fixture can negate months of energy savings. The actual difference lies in how quickly you address issues.

That’s where a specialized Support & Maintenance Request Management Software becomes essential. With streamlined request processing, property managers can:

  • Catch inefficiencies early – Tenants report issues before they turn into significant problems.
  • Track and prioritize work – Schedule maintenance quickly.
  • Reduce operational expenses – Avoid costly breakdowns.
  • Improve tenant experience – Quick repairs foster trust and loyalty.

Propertese offers an advanced feature to optimize support and maintenance request management. By linking this to your EMS, you not only decrease wasted energy but also create a responsive property ecosystem in which cost savings and tenant satisfaction go hand in hand.

Key Metrics (KPIs) to Track in EMS ROI

To gauge success and demonstrate value, monitor these:

  • Energy Cost Savings (%) – What % decrease versus baseline.
  • Payback Period (years or months) – How many years or months until the savings pay back the cost.
  • Carbon Emissions Reduction (tons CO₂) – Eco-impact.
  • Tenant Satisfaction / Comfort Scores – Survey feedback.
  • Maintenance Response Time – Time to fix problems.
  • Equipment Downtime – More uptime = increased efficiency.
  • Utility Bills vs. Benchmark Costs – Comparison with similar buildings or time periods.

ROI Examples

Example 1: Office Complex in Dubai

EMS cost: $120,000

Annual savings: $45,000

Payback: ~2.7 years

Additional benefit: Fewer tenant complaints regarding temperature.

Example 2: Multifamily Housing in Texas

EMS cost: $75,000

Annual savings: $22,500

Payback: ~3.3 years

Maintenance expenditures fell 15% after being paired with robust request-management procedures.

Example 3: UK Student Housing

EMS + Installation of Solar: $200,000

Yearly savings: $65,000

Payback: ~3 years

Enhanced occupancy rate through sustainability branding.

Common Mistakes Property Managers Make with EMS

MistakeWhy It Hurts ROIHow to Avoid It
Not training staff properlySystem underutilized; energy savings lowConduct workshops; use clear SOPs.
Ignoring maintenance requestsFaulty equipment wastes energyEmploy support & maintenance tools; see below.
Choosing the cheapest system without scalabilityHidden upgrade costs; poor data integrationEvaluate long-term features and support.
Overlooking tenant engagementTenants leave lights on; misuse appliancesEducate; share data; offer incentives.
Failing to monitor performance regularlyDrift in savings; unnoticed issuesUse dashboards; set monthly/quarterly reviews.

How EMS Supports Occupancy and Marketing

Modern renters, especially Gen Z and millennials, look for eco-friendly housing. Properties with EMS can advertise:

  • Lower utility bills for tenants.
  • Green certifications.
  • Smart building features.

This boosts occupancy rates, which we’ve also covered in our guide on effective property advertising.

The Role of AI in Energy Management

AI-powered EMS goes beyond monitoring—it predicts patterns.

AI benefits include:

  • Forecasting peak energy loads.
  • Adjusting HVAC based on weather predictions.
  • Learning tenant preferences for optimal comfort.

For deeper insights, check out how AI is reshaping property management software.

Emerging Trends & Future Value

IoT & Smart Sensors → greater accuracy in energy consumption control.

Machine Learning for Predictive Diagnostics → prevent breakdowns & inefficiency.

Renewables & Off-Grid Power → integrated solar, battery storage with EMS.

ESG (Environmental, Social, Governance) Reporting Requirements → growing landlord/tenant demand.

Regulations on Energy Efficiency → government regulations are trending tighter.

Final Thoughts

Energy Management Systems are no longer a thing of luxury, but a necessity in contemporary property management. When combined with robust support tools such as request-management software, EMS becomes more than just a cost-saving tool. It becomes a system that guarantees long-term savings, tenant satisfaction, and increased property value.

If you are looking to integrate EMS with intelligent property management software, Propertese offers solutions that simplify your operations, accelerate them, and make them more profitable. From support and maintenance request management to full-scale property management efficiency, Propertese helps you build a sustainable future while improving ROI today.

HOA Special Assessments Explained: A Community Manager’s Guide to Implementation

Let’s assume your HOA has recently found a leaky roof over a clubhouse, and the reserve fund is not enough to pay for repairs. Homeowners are turning to you, the community manager, for solutions. Regular dues aren’t going to do the trick. You need to have a means of raising funds quickly without causing long-term financial hardship. That’s where HOA special assessments come in. But here’s the catch! Homeowners don’t often welcome unexpected expenditures. Poor communication can cause frustration, pushback, or even litigation (legal disputes).

This guide lays out everything you need to know about what a special assessment is and how to successfully implement it while keeping the trust of residents intact.

What Is an HOA Special Assessment?

An HOA special assessment is a one-time payment charged to homeowners when the regular HOA fees and reserve accounts cannot cover unexpected expenses, extensive repairs, or urgent projects.

Key Aspects of a Special Assessment:

  • Charged in addition to normal HOA fees.
  • Typically associated with particular expenses such as a new roof, storm damage repairs, or road upgrades.
  • Must be approved by the board of directors and, in most states, voted on by the homeowners.
  • Can be one-time or distributed over installments.

Example: When an HOA has a $50,000 bill to repair the roof but only has $20,000 in reserves, a special assessment can require every homeowner to pay their portion of the $30,000 deficit.

To understand how reserves are managed effectively, see our guide on best practices for managing HOA reserve funds

Why Do HOAs Levy Special Assessments?

Special assessments occur when budgets are inadequate. Typical causes include:

  • Emergency Repairs: storm damage, plumbing breakdowns, or fire mitigation.
  • Major Capital Improvements: elevator upgrades, road resurfacing, or replacing a pool.
  • Reserve Fund Shortfalls: when savings are not enough.
  • Legal Expenses: surprise lawsuits or compliance fees.
  • Rising Costs: inflation or shortages affecting construction.

If resident satisfaction is a concern, check out our blog on resolving issues and retaining residents with better property management practices.

HOA Special Assessments vs. HOA Dues: What’s the Difference?

HOA dues are ongoing monthly or quarterly fees that cover regular expenses such as landscaping, utilities, personnel, and general maintenance. On the other hand, HOA special assessments are one-time payments for unforeseen or extraordinary expenses not covered by dues or reserves.

Fact: About 70% of HOAs have a reserve fund, but almost half say their funds are not adequately funded, because of which the need for special assessments arises when crises hit.

For more on financial strategies, read our guide on organizing your finances with the ideal property management chart of accounts.

Who Decides on a Special Assessment?

Usually, the HOA board of directors presents the assessment. Depending on local ordinances and governing documents:

  • Small assessments can be approved by some boards directly.
  • Bigger assessments usually must have a majority of homeowners’ approval.
  • State laws can cap how much can be charged without homeowner approval. 

For managers starting out, our blueprint to success for becoming a property manager covers how governance and decision-making typically work in HOAs.

Step-by-Step: How to Implement an HOA Special Assessment

How to Implement an HOA Special Assessment

Identify the Expense

  • Verify the deficit or surprise repair.
  • Get cost quotes and backup information.

Check Governing Documents & State Laws

  • Consult the HOA bylaws for approval clauses.
  • Check any state limits or notice periods.

Develop a Proposal

  • Outline the cost, use, and homeowner effect.
  • Offer several options (e.g., lump sum vs installment).

Board Review & Approval

  • Submit proposal to the board for initial approval.

Homeowner Communication

  • Send clear notices indicating the reasons for the assessment.
  • Provide Q&A sessions, FAQs, and transparent breakdowns.

Voting (if necessary)

  • Conduct the vote as per the governing rules.
  • Document results for compliance with the law.

Billing & Collection

  • Issue invoices with clear timeframes.
  • Provide installment plans to lower the burden on homeowners.

Fund Allocation & Tracking

  • Make deposits to a designated account.
  • Track expenses transparently and share updates with homeowners.

Want to improve process efficiency? Explore how advanced property management software streamlines complex workflows.

How to Communicate a Special Assessment Without Conflict

This is where most community managers get it wrong. Homeowners don’t like surprises, so a communication strategy makes all the difference.

Best Practices:

  • Be Transparent: Share the exact cost and explain why reserves wouldn’t cover it.
  • Use Multiple Channels: Emails, meetings, community portals, even text messages.
  • Empathize: Understand the financial burden and offer flexible options.
  • Provide Context: Compare assessment expense with property value protection.

Example: If today replacing the roof costs $1,200 per home, it might inflate to $5,000+ to repair the same roof in the future.

If communication is a weak spot, you might benefit from our guide on smart solutions for efficient tenant communication.

Can Homeowners Refuse to Pay an HOA Special Assessment?

No. Homeowners are legally obliged to pay the approved HOA special assessment. Non-payment can lead to late charges, liens, or even foreclosure, as dictated by state law and HOA regulations.

That’s why transparent communication, installment plans, and advance disclosure are essential to reduce conflict.

See how property managers balance compliance and trust with best practices for managing a property management trust account.

How to Avoid HOA Special Assessments

Whereas it may not always be possible to avoid assessments, preemptive planning and management can minimize the risk:

  • Keep Adequate Reserves: Regular reserve studies are essential.
  • Budget Conservatively: Budget for inflation and increasing expenses.
  • Plan Preventive Maintenance: Minor repairs today prevent larger expenditures later.
  • Insurance Coverage: Renew policies each year for gaps.
  • Transparent Financial Reporting: Establish homeowner trust before emergencies.

Final Thoughts

Your role as a community manager is to create and maintain a perfect balance between the financial stability of the HOA homeowner trust.

Special assessments might be unpopular, but with open bookkeeping, compassion, and policy, they can protect the community without long-term fallout.

Pro tip: The best strategy isn’t necessarily knowing how to implement a special assessment; it is essential to understand how to build solid budgeting routines and minimize the need in the first place.

How to Expand Your Property Management Portfolio into New Markets: A Complete Guide

Why do many property managers struggle to grow? Most property management businesses come to the point where they stop growing locally. You can have an excellent client base in your current area, but expansion slows when you’ve tapped out the potential of that marketplace. Tenants, landlords, and investors are moving rapidly into new markets, but without any plan, growing your property management portfolio in new markets feels daunting and risky.

If you’re asking yourself questions like:

“How do I know a new market is profitable?”

“What do I need to do before I expand?”

“How do I compete with local property managers who already have local knowledge?”

This guide is for you. By the end, you’ll have a clear step-by-step process to grow your property management portfolio with confidence, with minimum risks and more opportunities.

Steps to Expand Your Property Management Portfolio Into New Markets

Steps to Expand Your Property Management Portfolio Into New Markets

Here is a quick answer for you:

1. Conduct market research for demand and demographics

2. Assess local real estate laws and landlord legislation

3. Review competitors and the saturation of the market

4. Establish expansion objectives and KPIs

5. Develop a financial and operating plan

6. Form local alliances and recruit on-the-ground assistance

7. Diversify property types to manage risk

8. Utilize technology and automation tools

9. Develop a marketing strategy for the new market

10. Monitor, measure, and adjust regularly

We’ll now break each step down in detail with examples and strategies.

Why Expand Your Property Management Portfolio Into New Markets?

Before diving into the how, let’s talk about the why.

  • Increased revenue streams: More markets mean more units under management, boosting income potential.
  • Diversification of risk: Dependence on a single area or city exposes you to regional economic decline or changes in local legislation. Diversification spreads your risk.
  • Authority of the brand: Having a presence in multiple markets conveys power and legitimacy to investors and landlords.
  • Emerging market opportunities: Growing cities with new construction and good rental conditions tend to yield higher returns.

Step 1: How Do You Research Market Demand and Demographics?

Market research is the cornerstone of expansion. You have to know where demand is expanding prior to investing resources.

Key factors to analyze:

  • Population growth trends (young professionals, families, retirees)
  • Job market strength and employer presence
  • Vacancy rates for rentals
  • Average rent and affordability index
  • New development projects (new homes, commercial areas)

Example: If you see an increase in tech employment in Austin, Texas, and a younger population relocating there, that’s an indication the rental market will remain on fire.

If you’re evaluating new markets, pair demographic research with technology-driven tools. Our guide on the significance of cloud-based real estate management software explains how software can enhance visibility and decision-making.

Step 2: What Local Laws and Regulations Should You Know?

Each city and state has its own landlord-tenant laws, licensing laws, and tax laws. Venturing into a new market without preparation may result in expensive legal missteps.

Areas to research:

  • Permits and licenses for property managers
  • Rent control laws
  • Security deposit caps and regulations
  • Eviction statutes and tenant protections
  • Tax on property variations

Example: Expanding from Texas (landlord-friendly) to California (tenant-protective) requires adjusting your lease agreements, eviction processes, and compliance strategy. For more on compliance readiness, check our guide to navigating legal and operational requirements for property management startups.

Step 3: How Do You Analyze Competitors in a New Market?

Competitor analysis informs you how crowded the market is and helps you determine your competitive advantage.

Questions to ask:

  • How many property management companies already exist here?
  • What kind of services and pricing structures do they use?
  • Are they single-family, multifamily, or commercial focused?
  • What do their customers say about them in reviews?

Pro Tip: Search “property management in [city name]” on Google Maps. Review top firms, check their websites, and analyze their value propositions.

Step 4: How Do You Define Expansion Goals and KPIs?

Without measurable goals, expansion is a shot in the dark. Establish success before you start.

Examples of KPIs:

  • Units under management in Year 1
  • Target occupancy rate
  • Growth in net operating income
  • Cost of acquiring customers
  • Client satisfaction ratings

Example: A property management firm entering Denver may set a Year 1 goal of 200 units under management with at least 90% occupancy. For a deep dive, explore how understanding KPIs in property management helps you track success effectively.

Step 5: How Do You Create a Financial and Operational Plan?

Expanding a business takes money. You must budget realistically and operate carefully.

Key costs to factor in:

  • Advertising and marketing in the new market
  • Legal fees and licensing
  • Office or coworking space
  • Staffing and training
  • Technology tools (CRM, property management software)

Pro Tip: Consider starting lean with a virtual office setup and local contractors, then expand as your portfolio grows. You can also learn more about organizing your finances with a property management chart of accounts.

Step 6: How Do You Build Local Partnerships?

Local knowledge is essential. Establishing relationships on the ground enables you to move into new markets quickly.

Partnerships to seek out:

  • Real estate agents and brokers
  • Contractors and maintenance firms
  • Legal advisors who know local landlord legislation
  • Local marketing agencies
  • Community associations

Example: Partnering with a local broker can give you early access to off-market rental properties. To strengthen your credibility, review our guide on essential steps to join a property management vendor list.

Step 7: Why Should You Diversify Property Types?

Diversification mitigates risk and creates new revenue streams.

Ways to diversify:

  • Manage both single-family and multifamily units
  • Enter commercial real estate management
  • Add short-term rental management (Airbnb, vacation homes)

Example: If student housing demand dips, multifamily rentals may keep cash flow stable. If you’re focusing on niche strategies, see our post on best practices for single-family property management.

Step 8: How Can Technology Help You Expand?

Technology is your friend when it comes to expanding economically. Cloud-based software enables you to serve several markets without losing control.

Essential tools:

  • Property management platforms (such as Propertese)
  • Virtual leasing tools (video tours, electronic signatures)
  • Automated maintenance request systems
  • Tenant communication apps
  • Financial dashboards and reporting tools

Pro Tip: Learn how generative AI is helpful for property management software and discover ways it can streamline processes while supporting expansion.

Step 9: How Do You Market in a New Market?

Your brand could be robust locally, but it’s nowhere to be found in a new city until you create awareness.

Marketing strategies to use:

  • Local SEO: Optimize your site for “property management in \[city]”
  • Paid advertising: Google Ads and Facebook ads targeting local landlords
  • Social proof: Publish case studies, testimonials, and success stories
  • Networking: Sponsor local real estate conferences

Example: If expanding into Orlando, running PPC ads with “Orlando property management services” will capture local landlord leads. For more advertising strategies, check our blog on maximizing occupancy rates through effective property management advertising.

Step 10: How Do You Monitor and Adjust After Expansion?

The job doesn’t end once you’ve expanded into a new market. There’s constant monitoring and tweaking.

Metrics to follow:

  • Growth of the portfolio (units under management)
  • Retention rate of clients
  • Trends in occupancy
  • Operating expenses vs. revenue

Pro Tip: Explore property management KPIs you should be tracking to stay ahead of potential setbacks and fine-tune your expansion strategy.

Common Challenges When Expanding Property Management Portfolios

Despite preparation, expect roadblocks:

  • Regulatory barriers: Licensing delays or surprise compliance problems
  • Cultural differences: Tenant expectations differ by city (e.g., communication styles, service expectations)
  • Competition: Local players with entrenched customers
  • Financial stress: Expansion expenses can exceed revenue unless managed diligently

Solution: Start with pilot programs in one new market, test strategies, then scale.

FAQs

Q1: What’s the best city to expand into?

It depends on your portfolio. You should seek out cities with strong rental demand, population growth, and ease of regulations. Secondary markets can also provide better ROI than fat metros.

Q2: How much money do I need to expand?

There is no one-size-fits-all budget. Some companies begin lean with $50,000 for marketing and local operations, and others spend $500,000+ on larger market entries.

Q3: Can small property management firms expand successfully?

Yes. Begin in one market, develop local alliances, and grow slowly. Technology enables even the smallest businesses to match the greatest of competitors. 

Q4: How long does it take to establish in a new market?

Generally, 12–24 months to make headway, depending on resources and competition.

Final Thoughts 

Expanding your property management business into new markets with diversified operations across a variety of areas, you reduce risk, open up more revenue streams, and set your business up for long-term prosperity. Begin small, conduct your due diligence, rely on technology, and create solid local relationships. 

Whether you’re handling 100 or 1,000 units, the steps here will provide you with a guide to grow with confidence. By applying the steps above, you’ll not only grow your portfolio but also strengthen your reputation as a trusted property management leader.

How To Write A Lease Agreement For An Apartment: A Simple Guide For Property Managers

Ever had a tenant conflict that ended up with you losing time, money, and sleepless nights?

Most property managers have. And in nearly every instance, the reason is a poorly drafted lease agreement.

A lease is not something to be taken lightly. It is the foundation of your formal relationship with tenants. Done correctly, it avoids disputes, guarantees on-time rent, and safeguards your property. Done incorrectly, it creates loopholes for confusion and even lawsuits.

This guide explains how to draft a lease agreement for an apartment in an easy step-by-step process for busy property managers. Whether you oversee 1 unit or 1,000, this will assist you in preparing professional, enforceable, and tenant-friendly leases.

What Is a Lease Agreement? (And Why Property Managers Can’t Afford to Get It Wrong)

A lease agreement, also referred to as a rental contract, is a legally enforceable contract between a landlord (or property manager) and tenant.

It addresses important information such as:

  • How much rent
  • When it’s due
  • Who maintains the property
  • Pet, guest, and subleasing rules

Think of it as the “rulebook” for your property. Without it, both sides are left unprotected. According to the National Multifamily Housing Council, nearly 44 million U.S. households rent their homes. 

Why Is a Lease Agreement Important for Property Managers?

A good lease agreement is important for property managers because:

  • Prevents conflicts: Crystal-clear terms leave no room for misunderstanding.
  • Guarantees regular income: Rent schedule, late charges, and payment options are set in stone.
  • Protects your property: Damage, smoking, and modification rules protect your investment.
  • Ensures compliance with the law: Assists you in complying with state, federal, and local housing regulations.

Strong lease agreements also improve tenant satisfaction and retention, which is a core goal for property managers. As covered in best practices for customer service in property management, happy tenants are more likely to renew and respect the property.

If you’ve ever had problems with tenants, you understand how important a solid lease is. Now, let’s learn how to write one step-by-step.

Step 1: Gather Key Information Before Writing the Lease

Before you begin the draft, gather the facts you’ll require:

  • Full names of all tenants (and co-signers, if any)
  • Property address and unit number
  • Lease start and end dates
  • Rent amount and due date
  • Security deposit terms
  • Utilities and services included

If you’re looking to optimize your leasing funnel from leads to signed agreements, explore digital marketing strategies for property managers.

Step 2: Decide on the Type of Lease Agreement

Not all leases are created equal. Property managers typically use one of these:

  • Fixed-term lease: Typically 12 months. Predictable income, but less flexible.
  • Month-to-month lease: Flexible for both parties, but less stable.
  • Sublease agreement: Permits a tenant to sublease the unit to another person. Riskier, but sometimes unavoidable.

Each type has trade-offs. For instance, fixed-term offers stability, while month-to-month provides adaptability. As highlighted in the importance of efficient rental leasing, the right choice depends on balancing occupancy goals with flexibility.

Step 3: Write the Essential Clauses Every Apartment Lease Needs

To safeguard yourself and your tenants, include the following must-haves:

  • Rent & due date: Exact dates of payments and means of payment accepted.
  • Security deposit: Amount, terms of refund, and conditions for deductions.
  • Maintenance responsibilities: Who repairs what—landlord vs. tenant responsibilities.
  • Occupancy limits: Who can occupy the apartment?
  • Pet policy: Acceptance of pets, breed/size restrictions, and pet deposit.
  • Termination conditions: When and how the lease may be terminated.

Want to improve tenant communication around these clauses? Check out smart solutions for efficient tenant communication.

Step 4: Add Optional Clauses That Avoid Future Problems

Solid leases are more than basic. Consider including:

  • Parking regulations
  • Guest policies
  • Smoking/vaping prohibitions
  • Noise and nuisance provisions
  • Subletting permissions
  • Insurance mandates

These clauses also tie into financial record-keeping. For example, deposits and additional fees should align with your accounting setup. Learn how to set up the ideal property management chart of accounts.

Step 5: Ensure Compliance With Local & State Laws

Every state has its own landlord-tenant laws. For example:

  • Some states limit security deposits (usually 1–2 months’ rent).
  • Others make landlords give certain disclosures (such as lead paint on older buildings).

For details on state-by-state property management requirements, see this comprehensive guide.

Step 6: Write in Simple, Clear, Tenant-Friendly Language

Legalese leads to confusion. Rather, write in plain English that’s simple and easy to comprehend.

  • Replace “heretofore” with “from now on.”
  • Keep sentences short.
  • Instructions step by step.

Clear language not only reduces confusion but also improves communication across emails, notices, and digital reminders. See examples in essential elements for property management emails.

Step 7: Review, Customize, and Standardize

Prior to handing a lease to tenants:

  • Review with counsel (particularly if handling multiple units).
  • Customize by property type (single apartment versus condo versus multi-family).
  • Standardize across your portfolio so tenants receive uniform terms.

Standardization saves time and creates efficiency, as highlighted in enhancing property management efficiency with Propertese.

Step 8: Use Digital Lease Agreements for Efficiency

With modern property management, digital solutions save time and minimize errors. Platforms such as Propertese allow you to:

  • Develop and save lease templates
  • Send contracts for electronic signature
  • Monitor renewals and expirations
  • Retrieve tenant documents in an instant

Propertese makes this process easy. Learn how DocuSign integration improves lease signing compliance and explore how to create a paperless leasing process tenants prefer.

FAQs

Q: What should a lease agreement always include?

At a minimum: rent, due date, security deposit, rules of maintenance, occupancy limits, pet policy, and termination conditions.

Q: Can I write my own lease agreement without a lawyer?

Yes, but do it using a template and with a legal review. Nolo.com is a good source for DIY legal forms.

Q: How long should a lease agreement be?

Most are 5–10 pages, depending on clauses and state requirements.

Final Thoughts

A well-drafted lease agreement is your best protection against costly tenant disputes and property damage. By following these eight steps, you’ll create professional, enforceable agreements that set clear expectations and protect your investment.

Want to streamline your lease process? Propertese eliminates the complexity with legally compliant templates, digital signing, and automated tracking. Join thousands of property managers who’ve transformed their lease management from time-consuming paperwork to efficient, professional processes.

Get a demo today and see how the right platform can save you hours while protecting your properties.

How To Create A Property Management Business Plan

Why do most property management startups fail? Here’s a hard truth: most new property management companies don’t fail because of a lack of demand; they fail because they start without a clear plan. Jumping in without a business plan means you’ll likely struggle with:

  • No clarity on who your clients are
  • Confusion over pricing and services
  • Cash flow challenges in the first year
  • Difficulty scaling or competing with established firms

A property management business plan is your roadmap to survival. It tells you: What services will you provide? How will you differentiate? How will you gain and retain customers?

In this blog, we’re going to guide you through a step-by-step template to develop a property management business plan that is functional, investor-worthy, and scalable.

Whether you’re dealing with a handful of rental properties or looking to start a full-fledged property management company, this guide provides the blueprint you need.

Steps to Create A Property Management Business Plan

Steps-to-Create-A-Property-Management-Business-Plan

You can follow these steps to create a property management business plan:

  • Identify your mission, vision, and objectives
  • Examine your target audience and industry players
  • Select your business model and offerings
  • Organize your legal structure and licensing
  • Construct your financial projections and pricing scheme
  • Create your marketing and sales plan
  • Define operations and technology requirements
  • Create staffing and hiring plans
  • Establish compliance and risk management
  • Pen down your executive summary

(All the above steps are explained in detail below)

What Is a Property Management Business Plan?

A property management business plan is a professional document that describes your strategy to expand and run your property management business. It serves as:

  • A roadmap – directing your daily decisions
  • A pitch deck – handy when looking for investors or seeking a loan
  • A growth strategy – assisting you to expand and track progress

As per the Small Business Administration (SBA), those businesses with a formal business plan grow 30% more than those that don’t have one. That’s a lot in the real estate business, which is highly competitive.

For those still exploring the basics, our blog on laying the foundation for starting a property management business breaks down the essentials before you dive into planning.

Why Do You Need a Property Management Business Plan?

1. To Stand Out in a Crowded Market

The U.S. has over 300,000 property management companies (IBISWorld, 2024). Without a unique value proposition, you’ll blend in with the crowd. If you’re not sure what differentiates successful firms, see our guide on understanding the property management business model.

2. To Attract Clients and Investors

Owners and investors want to trust that you’re organized, reliable, and capable of managing their assets. A professional business plan shows them you’re serious.

3. To Avoid Costly Mistakes

Without forecasting expenses, pricing, and growth, it’s easy to mismanage cash flow, one of the biggest reasons small businesses fail. For financial structure, check out our resource on organizing your property management chart of accounts.

4. To Scale Efficiently

With a plan in writing, you can add staff, technology, and properties methodically, rather than randomly.

Step 1: Define Your Mission, Vision, and Goals

Ask yourself:

  • Why am I launching this property management business?
  • What am I solving for property owners and renters?
  • What’s my 5-year vision?

Example:

  • Mission: “To make rental ownership easier through transparent, technology-driven property management services.”
  • Vision: “To be the most trusted property management firm for mid-sized landlords in Chicago by 2028.”
  • Goal: “Manage 200 units in 24 months with a 90% tenant satisfaction rating.”

For inspiration, see our blog on essential steps and requirements for becoming a property manager.

Step 2: Research Your Target Market and Competitors

You should establish your market dynamics before you determine pricing or services.

Key Research Areas:

  • Local demand: How many rental properties are in your city?
  • Target clients: Individual landlords, real estate investors, HOAs, or commercial property owners?
  • Competitors: Who are the top 5 property managers in your area? What do they charge?

Example:

If you’re in Austin, TX, with a booming rental market, competition will be high. You’ll need to highlight specialization, maybe short-term rentals or student housing.

Related Reading: Learn how strong service helps in retaining residents and resolving issues.

Step 3: Choose Your Business Model and Services

Your business plan must clearly state what services you’ll offer.

Common Property Management Services:

  • Tenant screening and leasing
  • Rent collection and accounting
  • Maintenance coordination
  • Marketing vacant units
  • Eviction management
  • HOA or community association management

Want to go deeper? Our blog on the importance of efficient rental leasing explains how leasing efficiency impacts profitability.

Step 4: Structure Your Legal Entity and Licensing

You need to decide on your business structure:

  • LLC: popular for liability protection
  • S-Corp: tax benefits for small teams
  • C-Corp: superior for raising outside money

Also, check state licensing regulations:

  • Certain states (such as Nevada, Oregon, and South Carolina) have a real estate broker’s license requirement.
  • Others might require only a property management license.

For more details, see our guide on property management requirements by state.

Step 5: Build Financial Projections and Pricing

This is the section investors examine first.

Important Financial Aspects:

  • Startup expenses (licenses, software, office, marketing)
  • Monthly costs (payroll, insurance, tech subscriptions)
  • Revenue model:
  • Flat monthly rate per unit
  • Proportion of monthly rent (usually 8–12%)
  • Leasing or initial setup fees

Sample estimate for 50 units at $1,500 rent:

  • 10% management fee → $150 per unit
  • $150 × 50 units = $7,500 per month revenue

For accuracy, learn how to manage bank accounts for property management and track profitability.

Step 6: Create Your Marketing and Sales Strategy

Even the best property manager can’t expand without clients.

What to include in your plan:

  • Branding: Company name, logo, and positioning
  • Website: Professional, mobile-friendly, SEO-optimized
  • Digital Marketing: Google Ads, social media, email campaigns
  • Local Outreach: Networking with realtors, investor clubs, and HOA boards

Use digital campaigns to fill vacancies. See our blog on creative rental property marketing ideas for actionable tactics.

Step 7: Outline Operations and Technology Needs

Property management is operations-intensive. Technology saves time and minimizes mistakes.

Essential tools:

  • Property management software (accounting, leasing, tenant portal)
  • Maintenance request system
  • Online rent collection platform
  • CRM for client communication

You can explore how generative AI is helpful for property management software to see where the industry is headed.

Step 8: Develop Staffing and Hiring Plans

Your business plan should detail when and how you’ll add staff.

Key Roles:

  • Property manager (you, initially)
  • Leasing agent
  • Maintenance coordinator
  • Bookkeeper/accountant
  • Marketing manager

Scaling example:

  • First 50 units: solo + part-time bookkeeper
  • 50–200 units: hire maintenance and leasing support
  • 200+ units: build a full in-house team

For staffing inspiration, read about skills and qualifications for entry-level property management jobs.

Step 9: Set Up Compliance and Risk Management

Property management involves legal risks.

  • Keep current on fair housing laws
  • Have clear contracts with owners and tenants
  • Have sufficient insurance (general liability, errors & omissions)
  • Take data security precautions for tenant/owner data

Learn about credibility in compliance with best practices for managing a property management trust account.

Step 10: Write Your Executive Summary

Although it comes first in your plan, write it last. The executive summary is a one-page overview of everything:

  • Mission & vision
  • Services provided
  • Market opportunity
  • Financial projections
  • Growth roadmap

Consider it the elevator pitch for your business.

Sample Outline for Property Management Business Plan 

Here’s a basic outline you can use:

  • Executive Summary
  • Company Overview
  • Mission, Vision & Goals
  • Market Analysis
  • Competitor Analysis
  • Services & Business Model
  • Legal & Licensing Structure
  • Financial Plan & Projections
  • Marketing & Sales Plan
  • Operations & Technology
  • Staffing & Hiring
  • Risk Management & Compliance

Common Mistakes to Avoid

Being too generic: “We manage properties” won’t work. You have to specify your niche. For instance, check out our post on best practices for single-family property management.

Overestimating revenue: Project lower occupancy and increased costs in your projections.

Disregarding technology: Manual work doesn’t scale. Look into streamlining property management with modern software.

Bypassing compliance: Fines from the law can drown your business prematurely.

FAQs About Property Management Business Plans

Q1. How much does it cost to start a property management company?

Startup costs range from $2,000 to $10,000, depending on licensing, office establishment, and software subscription.

Q2. Do I need a license to start a property management business?

In most states, yes. Some require a real estate broker’s license, others require a property management license. Always refer to local laws.

Q3. How do property management companies make money?

Primarily through percentage fees (8–12% of rent received), as well as leasing/setup fees and markups on maintenance.

Final Thoughts

Writing a property management business plan is not just a courtesy, it’s the key to your company’s success. Having a solid plan in place will:

  • Prevent expensive errors
  • Bring in more clients and investors
  • Grow more efficiently and effectively

Whether you’re just beginning or optimizing your growth strategy, the time you invest to develop a solid business plan today will prevent years of trial and error tomorrow.

Next up: Explore our guide on navigating legal and operational requirements for property management startups to ensure your launch is compliant from day one.