rental property business plan in south africa

How to Start a Property Business in South Africa

In this article we detail how to start a property business in South Africa. Real estate is an attractive industry and one that is profitable for many. There are some requirements to get into real estate and we will explain what the all are.

But first, we have explain the different property businesses that you can get into.

Related: 12 High Paying Referral Programs in South Africa

Table of Contents

Different Types of Property Businesses

There are several different types of property business, including:

Residential rental property: Residential rental property business is one of the most traditional types of property business. This type of business involves buying properties such as single-family homes, apartments, and townhouses with the intention of renting them out to tenants. The goal is to generate a steady stream of rental income and to potentially see an appreciation in property value over time. Residential rental properties can be managed by the owner or by a property management company.

Commercial rental property

Commercial rental property business involves buying properties such as office buildings, retail spaces, and warehouses to rent out to businesses. The goal is to generate a steady stream of rental income, and to potentially see an appreciation in property value over time. Commercial rental properties can be more complex to manage compared to residential properties, and may require more specialized knowledge and experience.

Vacation rental property

Vacation rental property business involves buying properties such as beach houses, cabins, and apartments with the intention of renting them out to vacationers. The goal is to generate a steady stream of rental income during peak tourist seasons and to potentially see an appreciation in property value over time. Vacation rental properties can be managed by the owner or by a vacation rental management company.

Flipping properties

Flipping properties business involves buying properties with the intention of renovating and reselling them for a profit. The goal is to purchase properties at a lower price, make improvements, and then sell them at a higher price. This type of business can be risky, and requires a significant amount of knowledge, expertise and resources to be successful.

Property management

Property management business involves managing properties for landlords or property owners. This includes tasks such as finding tenants, collecting rent, and handling maintenance and repairs. The goal is to generate a steady stream of management income and to provide landlords with a professional management service.Real estate investment trusts (REITs): Real estate investment trusts (REITs) business involves buying shares of publicly traded companies that own and manage real estate properties. This type of business allows investors to invest in a diversified portfolio of properties without the need to directly buy and manage properties.

Real estate development

Real estate development business involves buying land and developing it into residential or commercial properties such as building houses or apartment buildings. The goal is to make a profit by developing and selling the properties. This type of business requires significant capital, expertise, and resources.

Real estate brokerage

Real estate brokerage business involves buying and selling of property by connecting buyers and sellers. Real estate agents and brokers act as intermediaries between buyers and sellers, and typically charge a commission for their services. The goal is to generate income through commissions on the sale of properties.

Each type of property business has its own unique set of challenges and opportunities, and it’s important to research and consider which type may be the best fit for your goals and resources. It’s also important to stay informed about the local laws and regulations related to each type of property business, to ensure compliance with the legal framework.

Starting a property business in South Africa can be a complex and challenging process, but with proper planning and execution, it can also be a rewarding and profitable venture.

How to start a Property Business in South Africa

Researching the market.

Research is crucial in determining the viability of your property business. You need to understand the local property market including demand for different types of properties, rental rates, and areas that are popular for investment. You should also study the trends in the market to know when to buy, sell or hold properties.

One of the best ways to learn about business is from people who have already done what you are trying to do. So seek out other property business owners and ask them questions about what it takes and what their experiences have been. The internet is also a treasure trove of information so you can find content from people in real estate that can give you insight into the business and some ideas as well.

Obtaining a Property Agent’s License

In South Africa, it is legally required to have a property agent’s license to operate as a real estate agent. The requirements for obtaining a property agent’s license vary depending on the province, but in general, you will need to complete a training course and pass an exam.

Developing a Business Plan

A business plan is a roadmap for your property business. It should include your business goals, target market, marketing strategies, and financial projections. Your plan should also include information about your management team, the properties you plan to acquire, and your funding sources.

Securing Funding

Starting a property business can be capital-intensive, and you will need to secure funding to purchase properties. This can be done through various means such as finding investors, taking out a loan, or using your own savings.

Building a Network

Building a network of contacts is essential for any property business. You should establish relationships with other property professionals, such as attorneys, accountants, and contractors, who can assist you with your business. They can help you with legal, financial and technical aspects of your business.

Finding and Managing Properties

Finding properties to buy or manage is one of the most important aspects of your property business. You will need to market your properties to potential tenants or buyers and manage the properties once they are occupied.

Staying Compliant

It is essential to stay compliant with all relevant laws and regulations, including those related to property management, taxes, and labor laws. You should consult with an attorney who specializes in property law to ensure that your business is operating within the legal framework.

Overall, starting a property business in South Africa requires a lot of hard work, dedication, and a solid plan. It’s important to be aware of the laws and regulations, as well as the local market conditions, to increase your chances of success.

Benefits of Starting Property Business in South Africa

Potential for long-term investment: One of the main benefits of starting a property business is the potential for long-term investment. Real estate is a tangible asset that can appreciate in value over time. Investing in properties that are located in areas with high demand, such as a growing population, or areas where there is a shortage of housing, can potentially provide a solid return on investment. Additionally, owning rental properties can provide a steady stream of rental income.
Potential for steady income: Renting out properties can provide a steady stream of rental income, which can be used to cover the expenses associated with owning the property, such as mortgage payments, property taxes, and maintenance costs. The income from rental properties can also be used to purchase additional properties, increasing the overall value of the property business.
Tax benefits: Owning and operating a property business can provide significant tax benefits. Many expenses related to owning and operating a property business, such as mortgage interest, property taxes, and depreciation, are tax-deductible. This can help to lower the overall cost of owning and operating a property business.
Diversification: Investing in real estate can diversify an investment portfolio, reducing risk and potentially increasing returns. Real estate investments can provide a hedge against inflation and can perform differently from stocks and bonds, which can help to reduce overall portfolio risk.
Flexibility: Property business owners have the flexibility to choose the type of properties they want to invest in and the level of involvement they want to have in managing the properties. Some property business owners choose to be hands-on and manage the properties themselves, while others hire property managers to handle the day-to-day operations.
Ability to leverage: Property business owners can leverage their investment by borrowing money to purchase properties, potentially increasing their returns. This can be done through a mortgage or a line of credit. However, it’s important to be aware of the risks associated with leverage and to have a solid plan for managing the properties and paying off the debt.
Job creation: Real estate development creates jobs for construction workers, architects, engineers, and other professionals. This can help to stimulate the local economy and create opportunities for employment.
Community development: Real estate development can also lead to community development, improving infrastructure and increasing property values in the surrounding area. This can lead to an overall improvement in the quality of life for residents, and can also attract new businesses and residents to the area.

Risks of a Property Business

There are several risks associated with starting a property business in South Africa, including:

Economic downturn: The property market can be affected by economic downturns, which can lead to decreased demand for rental properties, and a decrease in property values.
Political instability: Political instability can also have an impact on the property market, and can lead to uncertainty and decreased demand for properties.
Property market fluctuations: Property prices can fluctuate, which can make it difficult to predict the value of properties and can lead to potential financial losses.
Difficulty in finding tenants: Finding tenants for rental properties can be difficult, especially in areas with high vacancy rates.
Property maintenance and repair costs: Maintaining and repairing properties can be costly and can eat into profits.
Tenant management: Managing tenants can be challenging, and there is a risk of non-payment of rent or property damage.
Compliance with regulations: Property business owners are required to comply with a wide range of regulations, such as health and safety standards, building codes, and zoning laws, which can be complex and costly to comply with.
Legal disputes: Property business owners may face legal disputes with tenants, landlords, or other parties, which can be time-consuming and costly to resolve.
Property crime: South Africa has a high rate of property crime, which can increase the cost of insurance and security.
Limited access to finance: Access to finance can be limited, especially for small and medium enterprises and in low-income areas, which can make it difficult to secure funding for property purchases.

It’s important to be aware of these risks and to have a solid plan in place to mitigate them. It’s also essential to stay informed about the local laws and regulations related to property business, to ensure compliance with the legal framework. It’s recommended to consult with a property law attorney to understand the specific risks and regulations in South Africa.

How much do you need to start a real estate business in South Africa?

How much money you need to start a real estate business in South Africa depends on a multitude of factors. You can get into the real estate business for a little as R100,000. You can do this by buying a property in a low income area and renting it out. The more sophisticated you want to make your business, the more money it will require and there is no limit to how much you can invest in a real estate business.

How can I find properties to invest in for my property business?

Properties can be found through a variety of means such as online property listing websites, local newspapers, real estate agents, and through networking with other property professionals. It’s important to research the local property market and to have a clear understanding of the types of properties that are in demand.

What are the laws and regulations related to property business in South Africa?

Laws and regulations related to property business in South Africa can vary depending on the province and type of property business. Some of the key laws and regulations include the Estate Agency Affairs Act , the Rental Housing Act, and the National Building Regulations and Building Standards Act. It’s important to stay informed about these laws and regulations to ensure compliance with the legal framework.

Related Article: How to start a Construction Company

Property Business Plan

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rental property business plan in south africa

Advice Centre
Agent Advice

6 ways to build up your property rental business

Building up a rental “book” is a great way to increase and steady the cash flow in a real estate business.

However, many owners and principals don’t really know how to win more rental management contracts from landlords.

Here are some expert suggestions:

Tap into your existing network first. Probably the easiest and most cost-effective way to start building up your book is through the people you currently already have relationships with or come into contact with on a daily basis. “You should never be afraid to ask for new business or referrals to their friends or colleagues who may be struggling with a rental management problem,” says Shaun Rademeyer, CEO of SA’s biggest mortgage originator BetterLife Home Loans , “as you will often find it resolves a problem for them at the same time as it boosts your revenue.”

Put someone on the task full-time. If you want to increase your rental management book and thrive, you need a person who is permanently looking for new customers and keeping in touch with existing ones. The ideal person for this task is someone with sales and customer relations skills who is 100% dedicated to acquiring and retaining the rental business .

Build and maintain a database with the contact details of all your landlords, tenants, tradespeople, prospective investors, prospective tenants, past landlords, past tenants, and past home sellers and buyers. Communicate with all these people regularly, perhaps via a monthly newsletter, and increase business by offering incentives for landlords to transfer other properties to your agency, incentives for referrals that lead to new business, and incentives for tenants who purchase a new home through your agency.

Use proven rental property management software. Rademeyer notes that there are several excellent systems available that will enable you to easily keep track of your mandates, deposits, rental payments, lease details and renewal dates, maintenance requirements, and the profitability of your rental book. Some will even enable you to run credit and tenant history checks on potential tenants and generate standard lease and other documents that are regularly updated and fully legally compliant.

Reward any of your own team members who bring in the new 0 , such as an agent who has just sold an investment property to a landlord and persuaded him to let your company manage it. You should also ensure that your sales staff always have your rental management marketing material on hand.

Advertise your rental listings everywhere - including local noticeboards and smaller newspapers as well as the classifieds in bigger papers and online through all the major property portals. And, says Rademeyer, you should not forget to work on your own website so that when tenants (and landlords) visit, it is attractive and easy for them to find the information they require, including your contact details. “These days, it is also increasingly important to ensure that your site is mobile-friendly because most people now access the internet via their smartphones.”

Is your real estate agent too old school?

While certain marketing tactics will be completely lost on the younger generation, others will continue to resonate with buyers across the ages.

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Rental Properties Business Plan Template

Written by Dave Lavinsky

Rental Property Business Plan

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their rental property business. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a rental property business plan template step-by-step so you can create your plan today.

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What is a Rental Properties Business Plan?

A business plan provides a snapshot of your rental property business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Rental Properties Business

If you’re looking to purchase a rental property, multiple rental properties, or add to your existing rental properties business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your rental property business in order to improve your chances of success. Your rental property business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Rental Property Companies

With regards to funding, the main sources of funding for rental properties are personal savings, credit cards, mortgages, and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a rental property is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan. Venture capitalists will not fund a rental property company. They might consider funding a rental property company with a national presence, but never an individual location. This is because most venture capitalists are looking for millions of dollars in return when they make an investment, and an individual location could never achieve such results.

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How to write a business plan for a rental property company.

Your business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of rental property you are operating and the status; for example, are you a startup, or do you have a portfolio of existing rental properties that you would like to add to?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the rental properties industry. Discuss the type of rental property you are offering. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of rental properties you are offering.

For example, you might offer the following options:

Single family homes – This type of rental property is often owned by a single individual, rather than a company, who acts as both landlord and property manager.
Multi-family properties – These types of properties can be subcategorized by the number of units per site. Buildings with 2 – 4 units are the most common (17.5%), while multistory apartment complexes with more than 50 units represent the next-largest, at 12.6% of the industry.
Short-Term Rental properties – These are fully furnished properties that are rented for a short period of time – usually on a weekly basis for vacation purposes.

In addition to explaining the type of rental property you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

When and why did you start the business?
What milestones have you achieved to date? Milestones could include occupancy goals you’ve reached, number of property acquisitions, etc.
Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the rental properties industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the rental property industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your rental property business plan:

How big is the rental properties industry (in dollars)?
Is the market declining or increasing?
Who are the key competitors in the market?
Who are the key suppliers in the market?
What trends are affecting the industry?
What is the industry’s growth forecast over the next 5 – 10 years?
What is the relevant market size? That is, how big is the potential market for your rental property. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population or tourist arrivals.

Customer Analysis

The customer analysis section of your rental property business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: households, tourists, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of rental property you offer. Clearly, vacationers would want different amenities and services, and would respond to different marketing promotions than long-term tenants.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other rental property companies.

Indirect competitors are other options customers may use that aren’t direct competitors. This includes the housing market, or hotels. You need to mention such competition to show you understand that not everyone who needs housing or accommodation will seek out a rental property.

With regards to direct competition, you want to detail the other rental properties with which you compete. Most likely, your direct competitors will be rental properties in the vicinity.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

What types of customers do they serve?
What lease lengths or amenities do they offer?
What is their pricing (premium, low, etc.)?
What are they good at?
What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

Will you provide superior properties?
Will you provide services that your competitors don’t offer?
Will you make it easier or faster for customers to book the property or submit a lease application?
Will you provide better customer service?
Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a rental property business plan, your marketing plan should include the following:

Product : in the product section you should reiterate the type of rental property business that you documented in your Company Analysis. Then, detail the specific options you will be offering. For example, in addition to long-term tenancy, are you offering month-to-month, or short-term rental?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the properties and term options you offer and their prices.

Place : Place refers to the location of your rental property. Document your location and mention how the location will impact your success. For example, is your rental property located in a tourist destination, or in an urban area, etc. Discuss how your location might draw customer interest.

Promotions : the final part of your rental property marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

Advertising in local papers and magazines
Reaching out to local websites
Social media marketing
Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your rental property business, such as customer service, maintenance, processing applications, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect 100% occupancy, or when you hope to reach $X in sales. It could also be when you expect to acquire a new property.

Management Team

To demonstrate your rental property business’ ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in rental property management. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in real estate, and/or successfully running small businesses.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you have 1 rental unit or 10? And will revenue grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $200,000 on purchasing and renovating your rental property, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $200,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a rental property business:

Location build-out including design fees, construction, etc.
Cost of equipment like computers, software, etc.
Payroll or salaries paid to staff
Business insurance
Taxes and permits
Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your property blueprint or map.

Putting together a business plan for your rental properties company is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the rental property industry, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful rental properties business.

Rental Properties Business Plan FAQs

What is the easiest way to complete my rental properties business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Rental Properties Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of rental property business you are operating and the status; for example, are you a startup, do you have a rental properties business that you would like to grow, or are you operating multiple rental property businesses.

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Rental Property Business Plan

A rental property business is a great way of earning a passive income. It can help you have great finances if you go about it in the right way.

The rental property market stood at a size of 174.2 bn dollars in the US in 2021. And with the subsiding pandemic isn’t about to shrink any time soon.

Now, if you are planning to become a landlord, you might need just one thing before you start your business. A business plan.

A business plan would become a guide in your business journey. It would also make your journey a less difficult and more successful one. So, if you are ready to start your rental property business , read on to find out all about a rental property business plan.

How can a rental property business plan help you?

A rental property business plan can help you have a clear goal, a well-defined business model, and strategies that work. It can also help you navigate smoothly through roadblocks in your journey and steer clear of costly business mistakes.

Also, putting your idea on paper makes it look more real and clear. Moreover, a business plan also comes in handy while you explain your ideas to your collaborators and investors.

All in all a business plan will help you figure out your way around obstacles through rigorous analysis and strategic planning. This brings us to our next section, how to write a business plan.

Rental Property Business Plan Outline

This is the standard rental property business plan outline which will cover all important sections that you should include in your business plan.

Business Objectives
Mission Statement
Guiding Principles
Keys to Success
Start-Up Summary
Location and Facilities
Products/Services Descriptions
Competitive Comparison
Market Size
Industry Participants
Main Competitors
Market Segments
Market Tests
Market Needs
Market Trends
Market Growth
Positioning
SWOT Analysis
Strategy Pyramid
Unique Selling Proposition (USP)
Competitive Edge
Positioning Statement
Pricing Strategy
Promotion and Advertising Strategy
Marketing Programs
Sales Forecast
Sales Programs
Exit Strategy
Organizational Structure
Steve Rogers
Linda Rogers
Management Team Gaps
Personnel Plan
Important Assumptions
Start-Up Costs
Source and Use of Funds
Projected Profit and Loss
Projected Cash Flow
Projected Balance Sheet

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After getting started with Upmetrics , you can copy this rental property business plan example into your business plan and modify the required information and download your rental property business plan pdf and doc file. It’s the fastest and easiest way to start writing your business plan.

How to write a rental property business plan?

Before writing a business plan, it is always good to ask yourself a few questions. It would surely make the process shorter and easier.

You should think about the following questions:

What do you wish to achieve with your business?
Who is your target audience?
How would your business model work?
What are your sources of funding?
What would be your marketing strategy and so on?

All these questions would help you understand what you are getting yourself into. After that, you can start writing a business plan that focuses on all the different aspects of your business.

You can easily write such a plan either by using a premade template on the internet or through an online business plan software that’ll help you write a flexible and ever-changing plan.

What to include in a rental property business plan?

This section would give you a brief overview of the segments you can include in your business plan to make it a well-rounded one. They are as follows:

1. Executive Summary

The executive summary section contains a precise summary of all that your business stands for. If written well, it can help your business in getting funded. As it is mostly the only page an investor would read.

Professionals frequently suggest that this section should be written at the very end while writing your business plan, even if it is the first page. This helps you in summing up your business ideas properly.

2. Company Description

This section would consist of all the information about your business including its location, the services you offer, and your team.

It would also have information about your company’s history and its current position in the market. You can also include information about the projects you have worked on in the past.

3. Market Analysis

This is one of the chief sections of any business plan. It helps you understand what you are getting yourself into.

In this section, write down everything you can find out about the market. Include your target market, ways of reaching out to them, your market position, etc. Also, it is a good practice to include competitive analysis and take note of what your direct and indirect competitors are doing.

4. Marketing Strategy

While market analysis helps you in understanding the market, a marketing strategy helps you while getting into the market.

While formulating a marketing strategy, the most important thing is to have your target audience and market position in mind. Besides, keep in mind that your branding campaign should resonate with the client base you plan on serving.

5. Organization and management

This section includes information about the functioning aspects of your firm as well as about your team.

Include the roles and responsibilities of your team members as well as the progress they are making in their work.

If you write this section clearly and precisely, you’ll be able to identify the gaps you have in your team and your management system. This helps you in resolving those issues on time.

6. Financial Plan

This is one of the most crucial aspects of your business plan. More so in the rental property business. Planning your finances early on saves you from having financial troubles later on.

A financial plan section includes everything from your financial history, funding options, and requirements to projected cash flow and profits.

Download a sample rental property business plan

Need help writing your business plan from scratch? Here you go; download our free rental property business plan pdf to start.

It’s a modern business plan template specifically designed for your rental property business. Use the example business plan as a guide for writing your own.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Rental property business plan summary

In conclusion, a good business plan can help you have good finances, a proper marketing strategy, a well-managed company and team as well as clear business goals.

Especially, in the rental property business, planning the flow and structure of your business as well as your finances can take you a long way.

A rental property business depends highly upon well-managed finances and strategies. Planning your business is necessary to make it a good source of passive or primary income.

Moreover, it also makes the process of carrying out your business easier and smoother. So, if you are ready to start your rental property business, go ahead and start planning.

Party Rental Business Plan

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About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Real Estate

How to Start a Real Estate Business in South Africa?

27 June 2023
views 1,888

Are you considering starting a real estate business in South Africa? With its growing economy and diverse property market, South Africa offers excellent opportunities for real estate entrepreneurs. However, venturing into this industry requires careful planning, market understanding, and knowledge of legal and regulatory aspects. In this comprehensive guide, we will walk you through the essential steps to kickstart your real estate business in South Africa.

Introduction, 1.1 real estate trends, 1.2 market analysis, 2.1 business registration, 2.2 licenses and permits, 2.3 compliance and regulations, 3.1 networking opportunities, 3.2 collaborating with professionals, 4.1 investment options, 4.2 securing loans, 5.1 finding potential properties, 5.2 property evaluation, 6.1 developing a brand, 6.2 online marketing strategies, 7.1 hiring and managing employees, 7.2 expanding your portfolio, 8.1 economic factors, 8.2 competition, frequently asked questions.

Starting a real estate business is an exciting endeavor that can lead to financial success and personal fulfillment. However, it is essential to approach it with the right strategy and mindset. In this article, we will provide you with valuable insights and actionable steps to help you establish and grow your real estate business in South Africa.

1. Understanding the Market

Before diving into the real estate business, it’s crucial to familiarize yourself with the current market trends in South Africa. Stay updated on the demand for residential, commercial, and industrial properties, as well as emerging neighborhoods and investment hotspots.

Conduct a comprehensive market analysis to identify potential opportunities and assess competition. Analyze property prices, rental rates, vacancy rates, and other relevant data to make informed decisions about your investment strategy and target market.

2. Legal and Regulatory Considerations

To ensure a smooth and compliant operation, you need to understand the legal and regulatory framework for real estate businesses in South Africa.

Begin by registering your business with the Companies and Intellectual Property Commission (CIPC) in South Africa. Choose an appropriate business structure and consult with a legal professional to navigate the registration process smoothly.

Check the specific licenses and permits required to operate a real estate business in your target area. These may include estate agency licenses, fidelity fund certificates, and other regulatory requirements imposed by the Estate Agency Affairs Board (EAAB).

Familiarize yourself with the legal obligations and compliance regulations related to real estate transactions, property management, and financial reporting. This includes adhering to the Consumer Protection Act, the Financial Intelligence Centre Act, and other applicable laws.

3. Building a Strong Network

Success in the real estate industry heavily relies on building a robust network of professionals and potential clients.

Attend industry events, conferences, and seminars to meet fellow professionals, potential investors, and influential individuals in the real estate sector. Join local real estate associations and actively engage in networking activities to expand your connections.

Form strategic partnerships with professionals such as real estate agents, property developers, architects, and lawyers. Collaborating with experts in different areas of the industry can enhance your business’s credibility and open doors to valuable opportunities.

4. Financing Your Real Estate Business

Securing adequate funding is crucial for starting and growing your real estate business. Explore various financing options and determine the most suitable approach for your venture.

Consider different investment models, such as using your own capital, forming partnerships, seeking private investors, or applying for business loans. Each option has its pros and cons, so carefully evaluate the financial implications and align them with your business goals.

If you decide to seek financing through loans, approach banks and financial institutions specializing in real estate lending. Prepare a comprehensive business plan, including financial projections, to demonstrate the profitability and viability of your real estate business.

5. Property Sourcing and Evaluation

Finding and evaluating properties are vital aspects of running a successful real estate business.

Explore multiple channels to identify potential properties, such as online listings, auctions, real estate agents, and personal networks. Develop a keen eye for identifying properties with potential for growth and profitability.

Perform thorough due diligence on each property before making a purchase. Assess factors like location, market demand, potential return on investment, legal aspects, and property condition. Engage professionals, such as property inspectors and appraisers, to ensure accurate evaluations.

6. Marketing and Advertising

Effective marketing and advertising strategies play a pivotal role in attracting clients and growing your real estate business.

Create a compelling brand identity that resonates with your target audience. Develop a logo, website, and marketing materials that reflect your unique value proposition and professionalism. Consistently communicate your brand’s message across different marketing channels.

Leverage digital marketing techniques to reach a wider audience and generate leads. Establish a strong online presence through a well-designed website, search engine optimization (SEO), social media marketing, and targeted online advertising campaigns.

7. Managing and Growing Your Business

To ensure long-term success, focus on effective business management and continuous growth.

As your business expands, consider hiring a competent team to support various functions, such as property management, marketing, and administration. Implement efficient systems and processes to streamline operations and maintain high-quality service.

As you gain experience and build a solid foundation, aim to expand your real estate portfolio. Diversify your investments by exploring different property types, locations, and investment strategies. Continuously assess market conditions and adjust your portfolio accordingly.

8. Overcoming Challenges

The real estate industry is not without its challenges. Be prepared to overcome obstacles and adapt to changing market conditions.

Monitor economic trends and fluctuations that can impact the real estate market. Stay informed about interest rates, inflation rates, and government policies that may influence property prices and demand.

Competition in the real estate industry can be fierce. Differentiate your business by offering unique value propositions, exceptional customer service, and innovative solutions. Stay updated on industry trends and embrace technology to stay ahead of the competition.

Starting a real estate business in South Africa requires careful planning, market analysis, and compliance with legal regulations. By following the steps outlined in this guide, you can lay a solid foundation for success and navigate the challenges of the industry. Remember to continuously adapt, learn from experiences, and nurture relationships to thrive in the dynamic real estate market.

Can I start a real estate business without prior experience? Starting a real estate business without prior experience is possible but challenging. It’s beneficial to have a basic understanding of the industry, market trends, and legal requirements. Consider gaining experience by working with a real estate agency or partnering with experienced professionals to learn the ropes before starting your own venture.
How much capital do I need to start a real estate business in South Africa? The amount of capital required to start a real estate business in South Africa can vary depending on factors such as your business model, target market, and investment strategy. It’s important to create a detailed business plan that outlines your expenses, including licensing fees, marketing costs, office space, staff salaries, and initial property investments. It’s recommended to have a substantial amount of capital or access to financing to ensure a solid start.
What are the main factors to consider when evaluating a property? When evaluating a property, consider factors such as location, market demand, potential return on investment, property condition, and legal aspects. Assess the proximity to amenities, transportation, schools, and employment hubs. Conduct thorough research on market trends, property prices, and rental rates in the area. Additionally, evaluate the property’s structural integrity, maintenance requirements, and any legal issues that may affect its value.
Do I need a real estate license to operate in South Africa? Yes, you need a real estate license to operate legally in South Africa. The Estate Agency Affairs Board (EAAB) regulates the industry and requires real estate professionals to obtain valid estate agency licenses. To obtain a license, you must meet specific educational requirements, undergo training, and pass the required examinations. It’s essential to comply with these regulations to ensure a legitimate and reputable operation.
What are some effective marketing strategies for real estate businesses? Effective marketing strategies for real estate businesses include developing a strong online presence through a well-designed website, utilizing search engine optimization (SEO) techniques, and leveraging social media platforms to showcase properties and engage with potential clients. Networking, attending industry events, and collaborating with professionals can also help expand your reach. Additionally, traditional marketing methods such as print advertisements, direct mail campaigns, and signage can still be effective in reaching local audiences.
How do I find potential investors for my real estate business? Finding potential investors for your real estate business can be achieved through networking events, real estate forums, and industry conferences where you can connect with individuals interested in real estate investments. Join local business organizations, seek referrals from existing contacts, and consider utilizing online platforms specifically designed for connecting real estate entrepreneurs with investors. Develop a compelling business plan and pitch to showcase the potential returns and benefits of investing in your real estate business.
Are there any specific tax obligations for real estate businesses in South Africa? Yes, real estate businesses in South Africa have specific tax obligations. It’s crucial to consult with a tax professional or an accountant who specializes in real estate to ensure compliance with the tax regulations. Some tax considerations may include property tax, capital gains tax, rental income tax, and value-added tax (VAT). Keeping accurate financial records and submitting tax returns on time is essential to avoid any penalties or legal issues.
How long does it take to establish a profitable real estate business? The timeline to establish a profitable real estate business can vary based on several factors, such as the local market conditions, your business strategy, marketing efforts, and the economy. It typically takes time to build a client base, establish a solid reputation, and generate consistent revenue. It’s important to set realistic expectations and have a long-term perspective when starting a real estate business as success often comes with patience, perseverance, and continuous efforts.
What are the common challenges faced by real estate entrepreneurs? Real estate entrepreneurs often face challenges such as fierce competition, economic fluctuations, changing market conditions, and regulatory compliance. Finding suitable investment opportunities, securing financing, and managing cash flow can also be challenging. Additionally, staying updated on industry trends, maintaining a strong network, and adapting to technological advancements are crucial for long-term success in the real estate industry.
Can I invest in real estate with a limited budget? Yes, it is possible to invest in real estate with a limited budget. Consider options such as investing in smaller properties, starting with partnerships or joint ventures, or exploring crowdfunding platforms that allow fractional ownership. Additionally, you can explore creative financing options like seller financing or lease-to-own arrangements. Conduct thorough research, consult with professionals, and carefully assess the risks and potential returns associated with each investment opportunity.

Remember to seek professional advice and conduct thorough research before making any significant financial decisions related to starting a real estate business.

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How to Start a Property Business in South Africa

By: Author Tony Martins Ajaero

The demand for businesses in the general real estate industry in South Africa is growing massively due to the hiking prices of properties in the country. Reports show that 60% of all construction is centered within the Gauteng region, and this number will continue to rise in the next few years.

Real estate is without doubt one of the most exciting and lucrative businesses to be involved in, and South Africa is a fertile ground to invest your money. A lot of investors buy properties and bank them, and then sell the properties off once they have either served their purpose or have gained value.

Property business is not a simple business and not for the faint of heart, but the adrenaline rush when a major deal comes together would truly be worth it. In this age, property buying or selling is huge, and those that are good value for money can really bring substantial profits.

A lot of property business owners and investors buy run down shopping centers, commercial buildings and warehouses for the sole purpose of fixing them up and selling them off at a profit. These are some of the most sought-after real estate investments. Statistics has also shown that residential property is also big business if you are looking to start your own property business.

There are a handful of areas where you can buy houses in poor conditions but at excellent price, renovate them and then rent them out to tenants. This particular niche is lucrative, but can sometimes prove to be tricky if you are unfortunate to get poor tenants, but on the other hand, if the tenants are reliable and good payers, this can be a wonderful way to earn extra income.

When planning to start this business, you should first put an excellent business plan together. Buying properties at this point in time is a clever move if you have spare money to invest or if you want to get into the real estate business. A lot of property owners are willing sellers as the recession has taken its toll over the past couple of years.

With the real estate market climbing slowly back into recovery mode, it provides you a large opportunity to make more money. Read on as you are pointed towards the right direction on starting a successful property business.

17 Steps to Starting a Property Business in South Africa

1. understand the industry.

South Africa’s property market has since the year 2000 remained resilient, even with challenging macroeconomic conditions. Growing demand for affordable housing and a host of “new city” projects kicked off in the past year have kept the residential market steady, while A-grade commercial space which is on the verge of oversupply in some areas, is expected to experience strong growth.

Note that all segments of the real estate market have struggled with rising electricity prices, the country’s burgeoning e-commerce, transport and logistics segments.

Reports have it that the rising interest in real estate investment trusts (REITs), a robust retail segment, steady population growth and plans for billions in new infrastructure outlay have brought about a positive mid- to long-term forecast, although the sector will need to face near-term challenges, as slow headline growth, rising inflation, labour unrest, and an expected interest rate hike continue to affect consumer confidence and spending.

Reports have it that South Africa’s residential stock stood at 6.07m properties worth a total of R4.27trn ($368.93bn) in the Q4 of 2014 and in Q2 2015 Housing Review, 2.11m properties worth R2.25trn ($194.4bn) were bonded and 3.96m houses worth R2.02trn ($174.53bn) were non-condensing.

We also believe that the average nominal price of a middle segment home, offering between 80 and 400 sq. metres of space, and priced at less than R4.2m ($362,880), stood at roughly R1.32m ($112,320) during Q1 2015, and went up to 7.3% year-on-year, but then real price inflation in middle-segment housing stood at 3% in the same period, compared to a headline rate of 4.2%.

The report notes that its sample size for luxury properties is smaller than other segments, home prices in this category rose by a nominal 10.6% year-on-year (y-o-y) during Q1 2015 to average R5.77m ($498,528). Residential building activity was subdued in late 2014, however, and contracted further in early 2015, with approved building plans falling by 6.1% y-o-y to 8444 units in January and February 2015.

Reports have also shown that the residential segment is likely to face a number of serious challenges, more especially against rising inflation, falling consumer confidence, labour unrest, electricity shortages and a period of currency depreciation which saw the rand lose 7% of its value against the US dollar between January and July 2015.

2. Conduct Market Research and Feasibility Studies

Demographics and Psychographics

In this business, your target market will cut across people of different classes and this is why we advise you develop a business concept that will allow you work with highly placed people and at the same lowly placed people who are only interested in putting a roof under their head at an affordable price. You’re target market will include;

Foreign investors who are interested in owning properties in South Africa
The government of South Africa (Government contracts)
Managers of public facilities
Families who are interested in acquiring a home
Corporate organizations who are interested in acquiring their own property / properties
Home Owners who are interested in selling off their home
Properties Owners who are interested in selling off their properties

3. Decide Which Niche to Concentrate On

You need to understand that the property industry has different types of investment niches. Some of them might appeal to one type of person; some might appeal to another type of person. But you should know that each investment niche uses most of the same basic principles and fundamentals.

Here you simply buy or purchase property to rent it out to prospective clients with a view of generating rental income from the property.

Renovate to Sell

Renovate as we know means to buy a decommissioned building or a dilapidated house in order to fix it (flip it), and then sell it off for a profit.

Repossessed Property

If the owner of a property fails to make bond payments on the property, the issuer of the bond, usually a financial institution will then seize it. The sheriff of the High Court will then sell the property off at a sale price in order to recover losses from defaulting on the bond payment

Letting Agency

This agency facilitates an agreement to rent out property to tenants on behalf of the property owner. The letting agency, in turn takes administration fee.

Level of Competition in the Business

The South African property sector is valued at R5.8 trillion. The report reveals the property sector’s size is at R5.3 trillion with a further R520 billion land officially zoned for commercial and residential development.

Commercial Property carries a value of around R1.3 trillion, up from some R780 billion, with almost R790 billion held by corporates, R300 billion held by REITs, R130 billion by unlisted funds, and R50 billion by life and pension funds. Note that the retail property has the highest value at R534 billion followed by office properties at R357 billion (R228 billion) and industrial properties at R281 billion (R187 billion).

Hotels and other property accounted for R94 billion in value (R25 billion). We also believe that that formal residential property still accounts for nearly three-quarters of property owned in South Africa, and grew from an estimated R3.0 trillion at the end of 2010 to R3.9 trillion.

Note that underdeveloped urban land zoned for development remained unchanged around R520 billion (1.1% of total land in SA). But then the public sector contributed a total of R237 billion, of which around R102 billion is estimated to be in the hands of the Department of Public Works, R66 billion held by SA’s 19 largest state-owned enterprises, and R69 billion owned by metros and selected local municipalities.

The research is part of a larger project by the council, which provides a point of departure against which various transformation charter imperatives can be assessed.

Experts estimate the property sector’s contribution to GDP at a significant R191.4 billion in 2012 in terms of annual income and expenditure flows generated by the sector and a R46.5 billion contribution. By the end of 2015, the naysayers and the sorry folks who have avoided listed property investing in the past said the sector would struggle in 2016.

Even though it didn’t exactly shine, it beat other equities and remained a tenacious sector. Statistics has it that from January to December 13, equities achieved a return of 3% and were completely battered by property which managed 8.4%. Cash only mustered 7% but bonds reigned supreme with a 14.8% total return. The property sector was hurt by political uncertainty and slow economic growth. The economy has barely grown this year.

Indeed the industrial sector continues to be resilient with landlords achieving above-inflation rental growth and tenant retention on warehouse and logistics properties while the office sector is the laggard with rising vacancies on properties and the oversupply of rental space.

Industry remains the top-performing property sector in South Africa, with a total return of 13.6% delivered in 2016. At a sector level, industrial property was the top performing sector last year with a total return of 13.6%, outperforming retail at 12.6%. The office sector continues to struggle on the back of subdued capital growth and was particularly hard hit in 2016 with a total return of 7.6%.

At a property segment level, Inner City and decentralized offices counted among the worst performing segments for the year with total returns of 7.5% and 7.7% respectively. The top performing segments for the year were High Tech industrial property and Neighbourhood shopping centres which produced total returns of 18.1% and 20.3% respectively. Neighbourhood Centre returns should be seen in a longer term context, which suggests a return to trend growth in 2018 rather than continued outperformance.

4. Know Your Major Competitors in the Industry

Industry experts have speculated that 2016 was the worst performing year for residential property since at least 2012. It is believed that the socio-political landscape and economic climate have also done little to alleviate the pressure.

South Africans are looking for safe investments, and property remains one of the safest ways to grow money. Even though there has been a general slowdown in the property market over the last financial year, a lot of property businesses have managed to stay lucrative.

Property businesses no longer simply depend on traditional selling methods such as hanging ‘for sale’ boards outside houses or advertising in the newspaper. They have had to find more innovative ways to attract new clients. Below are seven property businesses that overcame the economic challenges and managed to not only sell the most property, but also made it artful.

Pam Golding
Just Property
Chas Everitt
Jawitz Properties

Economic Analysis

Experts strongly believe that population growth will ensure the residential sector is resilient. It is believed that South Africa’s population will rise to 72.9m by 2050, while 62% of its 53m residents will live in urban areas, with urbanization growing by 1.21% annually. This is why with urbanization and population growth rising, affordable housing and new city developments stand as the most high-potential growth drivers within the residential segment.

Reports have it that the price of affordable housing which includes homes of 40-79 sq. metres, priced up to R575,000 ($49,680) grew by 8.3% during Q1 2015 to hit R390,000 ($33,696), equivalent to real price inflation of 4%, compared to 1.9% during Q4 2014.

Note that new master-planned projects are sustaining their popularity among middle and upper income segments, providing self-sustaining, greenfield, mixed-use developments with heightened security and amenities. We believe that these developments have been a prominent feature of South Africa’s real estate market for years, and more projects are in the pipeline.

Although local banks have been increasingly involved in property lending, the size and scope of new cities entails much higher levels of financing. AIH’s finance agreement with Nedbank Corporate Property Group for the Waterfall Business Estate project was the largest of such deal ever concluded by the bank.

With billions in fresh investment and sustained construction efforts needed to deliver new projects, some stakeholders have questioned developers’ ability to maintain momentum and fully deliver all planned features and amenities.

Note that new cities will need significant investment in infrastructure before moving forward. Reports have it that one of the most significant risks to economic growth is the country’s ongoing energy challenges, which began in 2008 and became increasingly problematic over the subsequent 18 months. New city developers, meanwhile, have moved to build their own infrastructure, despite these adding significant costs to the projects’ total price tags.

5. Decide Whether to Buy a Franchise or Start from Scratch

It might seem like the ideal path to start small and grow bigger in the real estate industry, but this may not always be the best option for a property business. We believe that single unit properties and small single family homes are the most attractive to newbie investors, as they usually cost less to buy and renovate.

But the profit from these properties is often swallowed up by the renovation budget, and maintenance on the properties. The more reason buying a franchise is a better option in this business, and you can also partner with a wealthier individual or get more financing in order to purchase a more profitable property.

Note that we are not suggesting you over-extend yourself, but you should know that properties requiring small initial investments often offer small profit potential. It’s advisable that you research very extensively before you dive into a franchise.

6. Know the Possible Threats and Challenges You Will Face

The property business is an intense business where almost everyone works to do their own deals. All these and more makes the industry very interesting and competitive. There are many intelligent entrepreneurs out there who are very ready to do their own deals, however starting your own property business is incredibly challenging. Possible threats you should have at the back of your mind may include:

Low barrier to entry
Industrial unrest
High fatalities due to lack of health and safety compliance
Tender risks
Non-payment risks
Compliance with laws and regulations.
In the industry Investors have unlimited investment choices
Unlikely to experience a near-term capital event
Hard to be patient even though that may be the best course of action

7. Choose the Most Suitable Legal Entity

The first thing you need to consider when starting your own property business is the type of ownership to go with. In South Africa, a good option is to open a close corporation (CC). This we believe will make things easier to manage. In a CC, the owners of the company are referred to as members, and you need a minimum of one member and there’s a limit of ten members.

A CC is a legal entity in South Africa, which means the CC is responsible for paying taxes and not one individual. You then need to register your CC by completing a CK1 form (Close Corporation Founding Statement). You can complete this online or download a form to complete.

We suggest you have an accountant sorted out. You’ll need to include the details of your accountant and an original signed letter from him or her agreeing to act for your CC. You’ll also have to provide the letter you receive confirming the registration of your company name. This process takes about five days to complete and costs R100. Once your property business is registered, don’t forget to register with SARS.

8. Choose a Catchy Business Name

Universal housing
Wealth contractors
Target reality
Sheraton Ltd
Dream Home Real Estate Service
Castle Realty
Apartment Grey
Four Leaf Clover
Exquisite housing
Bumpy Housing services
Destiny Realty Solutions
Future estates
Affinity Investment Group
Winter suits
Housing giants
Integra estates
Numeric estate services
Liberty world
Tower Magnet
Pitch mantra

9. Discuss with an Agent to Know the Best Insurance Policies for You

You need to understand that the importance of insurance in all phase of our lives cannot be ignored. Even Long-term property investors will want to have iron-clad insurance policies in place that include stipulations about what’s covered by the insurance and what is the responsibility of the renter. Have it in mind that you cannot lock yourself down into a long-term contract if you’re going to offload the property very soon. Note that every type of insurance has its own exclusions.

General business liability insurance
Investment property insurance
Real estate finance insurance
Loss of rental money insurance
Equipment breakdown
Umbrella insurance

10. Protect your Intellectual Property With Trademark, Copyrights, Patents

Indeed no time or moment is too early to begin thinking of intellectual property protection. Have it in mind that keeping a vigilant eye on these assets is an important part of the success of your business. New entrants into the business world tend to face the issue of intellectual property protection while some entrepreneurs will mistakenly believe that a company name is synonymous with a trademark.

You need to understand that trade name is the legal name of a business entity, which appears on the articles of incorporation or bylaws. Also note that a clear search is not a guarantee that the desired name is available.

You also need to know how important it is to have a strong Internet presence to promote one’s business. It is advisable that you consider acquiring domain names with alternative extensions (.com, .NET, .biz, .us, etc.) as a defensive measure to prevent others from doing so.

Also depending on the budget, you should register hyphenated versions of the domain name, common typos or even “(insert business name).” It is called waste of energy when you have to invest time and resources developing your intellectual property and then fail to protect it. It’s important that you seek the help of an attorney who is versed in this field to help you out.

11. Get the Necessary Professional Certification

IREM Certified Property Manager certification
Certified Leasing Specialist
Certified Development Design and Construction Professional
Certified Retail Property Executive

12. Get the Necessary Legal Documents You Need to Operate

Starting a business in South Africa takes several steps, and it can take several weeks to get it formalized. Most requirements can be completed online, and they do take some time to process. Ensure you have enough time to go through all of the stages such as providing certified copies of the documents required to complete the registration with the CIPC.

Note there is a nominal minimum capital amount of ZAR 1 needed to open a business, but other fees for registration will also apply. You must provide certified copies of some documents which are used to prove the ID of directors, and expect to pay some legal fees too.

Visit the Companies and Intellectual Properties Registration Office (CIPRO) website and register as a user.
Register your company name. You’ll need to either download a CK7 (Application for Reservation of Name, or Translated Form, or Shortened Form) or complete it online. CIPRO will conduct checks to ensure the company name isn’t already in use. This process takes about seven days to complete once CIPRO receives the application and it costs R50.

13. Raise the Needed Startup Capital

Indeed the property business is a hub of wealth where large finance brings back large profits. Funding especially startup capital can be very hard to come by but what differentiates your business from others will be your ability to scale through hurdles like this. Note that there are various institution that provide funding to aspiring entrepreneurs in South Africa:

The NEF Imbewu Entrepreneurship Finance, which provides risk capital to new businesses in the property development space. Financial institutions also provide funding throughout the life span of a project, but then you have to provide a financing structure to potential financiers to give a clear and detailed picture of what you are proposing, and also provide reasons why they should take the risk of funding your business. When looking to finance your property business, you should look at the following attributes to boost your chances:

You should have a sizable down payment
Ask for owners financing
Think outside the box
You should be a strong borrower
Always shy away from big banks

14. Choose a Suitable Location for your Business

One of the best things that can happen to you in this business is to buy properties where conditions are favourable for renting/selling/lease. It is advisable that you focus on buying properties in areas where rental demand is growing faster than supply. It’s also advisable that you look at the demographics of the neighbourhood.

It is well known that the 25-34 age groups will increase by 1.1 million over the next three years. Also since the home-ownership rate among young adults has recently increased from 35.3% to 39.2% just within two years, places with high concentrations of this age group are favourable places to own properties.

You should also note that zoning regulations is very crucial in this business. In addition to zoning regulations, development is also controlled by conditions of title. These conditions are set out in the Title Deed of each property, and can restrict the way in which a property may be developed.

Note that any development of land that ignores this legislation can result in prosecution. Have it in mind that zoning regulations as well as the property description, and the size, orientation and other details can be obtained from the local municipally office and this department can also provide information regarding the National Building Regulations.

There are other costs to worry about as well. These include preparing the application, i.e. professional fees, the application fee charged by the council and the cost of drawing up plans.

Depending on the type of application, obtaining a decision may take as long as 12 months. After the application is submitted it is circulated to relevant Council departments and agencies for comment. Don’t also forget to find out who owns the land.

Every property in South Africa has to be registered with the Deeds Registries Office in South Africa. Note that the deed constitutes proof of who owns the property. The deeds office keeps a record of all property transactions. If a title deed is destroyed or lost, application can be made to the deeds office for a duplicate original of the deed.

15. Hire Employees for your Technical and Manpower Needs

It will indeed be tempting to reduce the number of processes or workforce so that you can be able to keep the lion’s share of the profits for yourself. We strongly advice you fall not into that temptation. No matter how much market research you do, you will not automatically become an expert the first time or two you purchase a property.

Also you have to know that realtors understand the market within a given geographic area better than you ever would, which is why you have to stage your vision towards finding the worst houses in the best neighbourhoods and pimp them up to reap the biggest rewards.

Also you will need to develop yourself as a business owner. You will need to equip yourself with the skills and knowledge needed to lead and manage this business in order to make it both sustainable and profitable. Note that this will need a substantial investment of time, effort and money from you. The more you commit to this journey of personal and professional development, the better your chances of success.

The Service Delivery Process of the Business

When trying or planning to invest in stocks and shares, a good financial advisor worth his salt would advise you to diversify your investment so that the risk is spread. This same theory or fact would be true for property investments. We strongly advice that you spread your property portfolio across different areas to minimize your risk.

You also need to have it in mind that there is little point in trying to spot a property bargain hundreds of kilometers away. You’re not an expert on the area and are not likely to be able to judge whether the location, price etc. are good or not. A bargain will be much easier to spot in your own backyard. It will also be much easier to keep an eye on your tenants if you live nearby. There are several steps for you to follow in this business.

Do your real estate research
Pay the Lowest Down Payment Possible
Move in and get busy
Take Action To Maximize Your Investment
Repeat the process
Move Up To Larger Properties

16. Write a Marketing Plan Packed with ideas & Strategies

marketing strategies for the Business

The world has been screaming marketing and the importance of business promotion. Marketing your business is very necessary to help attract customers and create a brand image and reputation. In a competitive environment, there are always several companies competing for the same business opportunities, which is why it is important to tell your potential clients why your service is better than that of your competitors.

Digital marketing

Never you underestimate the power of the internet for marketing. Clients in this industry are often attracted to businesses that have a website, making them appear more trustworthy than businesses which haven’t set up an online presence. Note that the internet is much cheaper as a marketing strategy than traditional forms of marketing, like print and radio.

Social media is also a strong driver for word-of-mouth marketing. Your website should have a contact form for clients to contact you for quotes. You should also include your credentials and a photo gallery of your work, a list of your building services and testimonials from satisfied clients.

Educational-based selling

We believe that customers look for information that will benefit them, which is why education-based selling can be quite effective. Instead of focusing on features and benefits, rather educate your customer about your specialized service and give them the information they need to be able to make better-informed decisions.

Word of mouth

A lot of entrepreneurs may think word-of-mouth marketing is out of their hands, but nothing could be further from the truth. The property industry is well known for unreliable realtors and agents who promise the earth to secure a job and then disappoint through sub-par workmanship, missed deadlines and extra cost.

We believe that this issue presents a powerful opportunity to create a competitive advantage. By giving clients a professional and reliable service and high quality outcomes, you’ll be able to set yourself apart and leverage word-of-mouth marketing.

Testimonials

Note that your reputation and track record in this business is the most important tool you have to get more business. This is why you have to do all you can to make sure your client’s experiences are positive and impressive. Gather testimonials from previous clients and create contactable references to verify your workmanship. Use these stories on your website, in your promotional material and include stories and references with the quotes you send out.

We strongly advice that you join associations and forums to build up a referral system. Note that by networking you can make your business more visible and attract further business. Create a solid contact list and develop relationships as you network. The aim is to build a relationship that will make sure your business name is thought of first when there is a need for services that you offer.

17. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity

Brand awareness and corporate identity in this business simply means that your local home buyers and sellers know who you are. It shows that you are on top of their mind anytime anything property crosses their mind. You need to understand that people start their property search online, which is why building your brand awareness with digital advertising is the best bang for your property business.

Have it in mind that a lot of businesses have to spend serious time, money and effort creating a brand that speaks their language. Note that as a property business, you have a particular advantage with brand awareness. Here are five secret weapons you already have to help you build brand awareness for your business:

Mould yourself into an expert
Know where your customers are
You are the face of your brand
You need to be a unique storyteller
Your business is a service

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PRE-WRITTEN BUSINESS PLANS FOR SOUTH AFRICA (PDF, WORD AND EXCEL): COMPREHENSIVE VERSION, SHORT FUNDING/BANK LOAN VERSION AND AUTOMATED FINANCIAL STATEMENTS

Posted by BizBolts | All Articles , Business Plans

We have several payment methods which you can use to buy the business plans.

Payment Method 1 (Visa card, Mastercard, Credit card, Debit Card) – R500

To purchase the business plans using Visa Card/Master Card click here: Business Plans Store . After you have purchased, you will instantly see the download link for the business plan package on the screen. We will also email you the download link. Click the button below to purchase business plans using Visa Card/ Mastercard.

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.

Payment Method 2 – (Instant EFT – FNB, Absa, Standard Bank, Nedbank, CapitecBank, Investec, TymeBank and African Bank. )

Other payment methods.

Cash deposit into our FNB Company Bank Account
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Call/Whatsapp us on +27606334830 for the other payment methods. (Whatsapp us by clicking the link https://wa.me/27606334830 ). Email: [email protected] .

Testimonial 6

It is with excitement and pleasure to inform you that I have been successful in securing a loan from my bank. This would not have been possible if not for the BizBolts Business Plan. Thank you for your help, my dreams are now coming true.

Testimonial 4

The business plan was very helpful, you did a great job of taking ideas and putting them into words as well as pointing out other aspects of the business plan I wouldn’t have thought of. I got funding using your business plan and it’s now 4 months since I started my poultry business, and everything is going well.

Testimonial 3

The business plan has a highly professional look and feel. The research really helps me look deep into the market that I am targeting, it’s well suited for the South African market. The business plan clearly outlined everything I need to start the business and the costs. It’s now easier to budget and plan. Thank you very much.

Testimonial 5

The BizBolts poultry business plan led us down the path from start to finish. Contact details of suppliers of key requirements were included in the business plan. It helped us crystallize our strategy, and the business plan was well received by the bank.

Testimonial 2

I am extremely pleased with the business plan and financial statements. The business plan is very detailed & it meets my requirements. I feel better equipped with tools that can help me secure funding. I would have no hesitation of recommending your business plans to other people.

Testimonial 1

Many thanks to the BizBolts team for putting together a fantastic business plan, I could not have done this business plan on my own. I managed to get funding from investors to start my butchery business using your business plan.

Testimonial 7

Thank you BizBolts for the business plan. I received the business plan immediately after payment, it was money well spent ! I was able to easily edit the business plan. After using the BizBolts business plan, I can wholeheartedly recommend their products and skills.

About the Business Plans

We decided to introduce the South African business plans after noting that many South Africans were venturing into businesses without a full understanding of the industry, market, how to run the businesses, the risks involved, profitability of the businesses and the costs involved, leading to a high failure rate of the start-ups.

Our business plans will make it easier for you to launch and run a business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as the business plans will lay out all the costs involved in setting up and running the business. They are designed uniquely for the South African market.

USES OF THE BUSINESS PLANS (PDF, WORD AND EXCEL)

These business plans can be used for many purposes including:

Raising capital from investors/friends/relatives
Applying for a bank loan
Start-up guide to launch your business
As a project proposal
Assessing profitability of the business
Finding a business partner
Assessing the initial start-up costs so that you know how much to save
Manual for current business owners to help in business and strategy formulation

CONTENTS OF THE SOUTH AFRICAN BUSINESS PLANS (PDF, WORD AND EXCEL)

All our pre-written plans include, but not limited to:

Market Analysis
Industry Analysis
5 Year Automated Financial Statements [ Income statements, cash flow statements, balance sheets, monthly cash flow projections (3 years monthly cash flow projections, the remaining two years annually),break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortisation]
Marketing Strategy
Risk Analysis
SWOT & PEST Analysis
Operational Requirements
Operational Strategy
Why some South Africans in that type of business fail, so that you can avoid their mistakes
Ways to raise capital to start your business in South Africa

All our agriculture pre-written business plans include technical aspects of how to keep and rear the animals / farm the crops. They also include a mini-directory with contacts which will prove to be helpful in launching and running the business. E.g. for broiler poultry we will provide the contact details for South African suppliers of feeds, equipment, day old chicks, abattoirs, training companies etc)

The Business plan package consist of 4 files

Business Plan – PDF file (Comprehensive – Between 70-105 pages)
Business Plan – Editable Word File (Comprehensive – Between 70-105 pages)
Business Plan Funding Version – Editable Word File (Short version for applying for a loan – between 35-50 pages)
Business Plan Automated Financial Statements – (Editable Excel file)

The financial statements are automated. This implies that you can change an item eg unit price, and all the other financial statements will automatically adjust to reflect the change.

About The Author

BizBolts (Pty) Ltd is a business research company based in Johannesburg, South Africa. We sell prewritten business plans for various industries including livestock production, crop farming and retail businesses. BizBolts also publishes articles on business ideas, business news, business tips, personal finance, and entrepreneur profiles.

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Career Advice

Apr 11, 2019

Starting your Own Property Development Business

The South African property market suffered a significant dip prior to mid-2017, however, it finally seems to be recovering. Since September 2017, property prices have gradually risen – reigniting the market after nearly a decade of weak performance, 1 providing opportunities for emerging developers in South Africa. But, as with the founding of any business, there are far more factors to consider than only the opportunity for growth. If you are thinking of starting a property development business, here are the necessary steps to implement to get you on your way.

1. Acquire the knowledge

It’s vital that educating yourself about the property market is your first step: read property development blogs , watch for property growth reports or past development statistics 2 and learn to identify investment opportunities .

Before embarking on the journey of beginning your own business, make sure you’re well equipped to manage and lead its development. Discover your local competition, understand legislation, property taxes, and your potential target markets. Without acquiring knowledge of the local property industry, its past and future, you will find it difficult to accurately build a business plan that is suitably aligned to your business objectives. 3

2. Build a business plan

Now that you understand your local market and industry, you are in a position to develop long-term goals. It’s important to consider the larger business outcomes when you create the initial foundation of the business plan. 4 Perhaps you want to introduce new affordable property investment options to lower-income brackets, or your business goals aim to create entirely “green” apartment blocks for the city. Whatever your long-term objectives, your business plan should be able to support you in reaching them. 5

Since September 2017, property prices have gradually risen – reigniting the market after nearly a decade of weak performance

Once you’ve settled on your position within the market, you can begin using market research (looking at competitors, and growth opportunities), financial projections (required budgets, cash flow projections, and available tenders) and knowledge of local property law to set your short-term goals. 6 The following steps will see you hiring a team to support the different roles required (property strategists, real estate agents, financial strategists, conveyancers, contractors, engineers, etc.), settling on the nature of your first projects, and giving yourself clear return-on-investments to reach. 7

Learn how to make intelligent investment decisions, conduct property management effectively, and navigate the landscape of property development and entrepreneurship with this online short course.

Entrepreneur Magazine aptly summarises it, “[w]ithout a sound business plan, you’ll be unable to find funding […] it’s also the blueprint of the business and the best way to test whether or not the business is feasible.” 8 Your business plan becomes that much more pertinent if you’re relying on investors to fund the capital growth for your business in its early stages.

The best way to learn is experience

Starting a business is exciting, but it is always going to require that you’re willing to learn and tweak your business’s goals/plan as you progress. As you look at your initial developments, keep the following in mind.

Location and timing: Property prices are heavily influenced by social, economic, political, and geographic factors. 9 Being aware of trends like the increased rate of commercial property developments in South African city centres will help guide you in making the right investment decisions. 10
Zoning and title deeds: Every property is zoned for a particular purpose, and being aware of such will help inform your investment and development decisions. 11 Property conditions differ depending on location and property type – these regulations are laid out in the title deed (which can be found in the Deed Registries Office in South Africa), 12 and decide whether or not the conditions fit in with your plans.
Building regulations: Changes and updates to building regulations require property developers to keep an eye on new legislation and policies as they are introduced. 13 The penalties for not following regulation can be hefty enough to sink young businesses. 14
Property management: You’ll need to continually reassess built environments according to new legislation, social issues (i.e. water restrictions are increasing the desire for water saving instalments in Western Cape dwellings), 15 and tenants’ needs. 16 However, property maintenance should be focused on longevity, rather than trends or frugality. 17
Grading levels: There are nine grading levels in South Africa, which limit the value of government tender (a public request for contracted services or products) that companies can apply for. 18 If you plan on applying for private or government tenders, it is vital you know which grading level you fall into (which is decided on according to annual turnover, track record, capability, and capital). 19

Adrien Goslett, CEO of RE/MAX, has recently stated that he anticipates “reinvestment (both local and foreign) in the country post-election if the fight against corruption continues and tough decisions are made”, and went on to say with hope that “[g]reater stability should lead to consumer confidence, and with that a more buoyant real estate market”. 20 While our economy has been slow and volatile in past years, there is optimism for the future, which provides a good foundation of opportunity for emerging property development businesses in South Africa.

Click here to view sources

1 (Feb, 2018). ‘South Africa’s housing market accelerates’. Retrieved from Global Property Guide .
2 Yardney, M. (Aug, 2018). ‘How to get started in property development’. Retrieved from Property Update .
3 Yardney, M. (Aug, 2018). ‘How to get started in property development’. Retrieved from Property Update .
4 Rampton, J. (Aug, 2016). ‘7 steps to a perfectly written business plan’. Retrieved from Entrepreneur .
5 (May, 2018). ‘How to start a property development business’. Retrieved from Entrepreneur Mag .
6 (May, 2018). ‘How to start a property development business’. Retrieved from Entrepreneur Mag .
7 Yardney, M. (Aug, 2018). ‘How to get started in property development’. Retrieved from Property Update .
8 (May, 2018). ‘How to start a property business’. Retrieved from Entrepreneur Mag .
9 (Jan, 2018). ‘The outlook for South Africa’s property market in 2018’. Retrieved from Private Property .
10 Smith, C. (Oct, 2017). ‘Increase in rate of commercial property development’. Retrieved from fin24 .
11 (May, 2018). ‘How to start a property development business’. Retrieved from Entrepreneur Mag .
12 (May, 2018). ‘How to start a property business’. Retrieved from Entrepreneur .
13 (Feb, 2018). ‘Building regulations and by-laws’. Retrieved from MBA North .
14 Talane, V. (June, 2013). ‘R1,5bn Construction fines’. Retrieved from Corruption Watch .
15 Stevens, P. (Jan, 2018). ‘The outlook for South Africa’s property market in 2018’. Retrieved from Private Property .
16 Yardney, M. (Aug, 2018). ‘How to get started in property development’. Retrieved from Property Update .
17 (Nd). ‘Regular property maintenance reduces long term costs’. Retrieved from Trafalgar . Accessed on 14 March 2019
18 (May, 2018). ‘How to start a property business’. Retrieved from Entrepreneur .
19 (May, 2018). ‘How to start a property business’. Retrieved from Entrepreneur .
20 (Dec, 2018). ‘SA’s property marketing in 2019: predictions and expectations’. Retrieved from Property 24 .

Filed under: Real estate

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How To Start Property Business In South Africa

In recent times where urbanization keeps increasing now and then, there’s the need to provide houses to accommodate residents. In this article, we will enlighten you with a piece of detailed information on how to start a property business in South Africa (SA).

So, we implore you to keep reading because the information you seek on how to start a property business in SA is discussed below in this article.

Property business is leasing a property for a profit, such as renting out part of your home, buy-to-sell, buy to let, property sourcing, and many other forms of a property business.

If you think you’re equipped with enough properties but cash poor, then leasing part of your property to earn a profit will be the best option to make a profit on your property.

Choose the buy to let property option if the location, cost, and the rental market of the property look lucrative to earn you more.

The buy to sell property option is a good venture for investors who are capital equipped to purchase a full property, add value to it and sell for a profit.

In property sourcing, you can make a profit from the property business without investing your money. The only thing you must do is to find a property that is ready for purchase and meets the conditions of a property business.

Also, partner with a company that can purchase, renovate and sell properties and present your findings to them, and receives your commission for your search done.

Table of Contents

What You Need To Start Property Business In SA

Below are some of the requirements to help establish a property business in SA:

1. Strategise a good business plan

2. Register your business with CIPC

3. Build a good brand

4. Advertisement is a key factor to your success

5. The location and situation of the property is important to find tenants with ease

6. Know your target market

7. Choose a place with a high property rental market

8. Buy properties from the right owners

How Much Does It Cost To Start Property Business In South Africa

The cost involved in establishing yourself in the property business in SA differs depending on the type of property business you wish to venture into.

Establishing yourself in the buy to let and buy to sell property business comes with a cost as low as R35,000 and over with extra capital for the property’s renovation.

Running a property sourcing business can be done with an R0.00 providing you partner with companies that are willing to purchase properties you’d discover.

So with property sourcing business, the first and vital step to make is to find a company or an investor who is willing to do business with you.

How Profitable Is The Property Business in South Africa

The property business is a long-term investment, so always be patient with the pace of the success of your business. Don’t rush to make mistakes that can make you lose every money you invested.

If you appreciate the pace of your property business with good managerial skills, you can gain more than expected when your business is at its peak.

What Are The Best Areas To Start Property Business In South Africa

Purchasing properties in fashionable areas are costly even though fashionable areas have good rental market demand. These areas should be chosen by investors who have the resources to buy and renovate properties to meet the rental conditions of tenants.

But choosing the unfashionable suburbs can also yield you a decent profit by saving enough on the cost of purchasing. Always choose close to business centers to help attract tenants as fast as you can think of.

How To Make A Property Business Successful In South Africa

Some key points are to be practiced to help establish a successful property business in SA, and they include:

1. Always remember to play the patience game

2. Diversify your business portfolio, avoid squeezing all your investment into one property

3. Learn how to spot good potential properties and locations

4. Partner with a new investor if there’s the need to seek assistance in managing your property

5. The cost of leasing out your property must always favor tenants to help attract more customers

6. Learn to be tax-efficient by consulting a tax advisor on how to save tax on your rental income

7. Add value to properties you intend to let or sell to help rebrand your product for a reasonable profit

8. Practice good customer relationship to help suggest your products and services to friends and families

9. Choose properties in locations you are familiar with to help know how to bargain with tenants and keep an eye on the situation of your property

10. Always have a plan for exiting, don’t hesitate to sell your property if you think it’s not fetching you enough income for a new one

What Are The Challenges In Running A Property Business In SA

Note that in every business, there are challenges. Some are caused by bad management of the business, and others are bound to happen, and they include:

1. Inexperienced management

2. The business long term pace of making a profit

3. The high cost of property management

4. Bad tenant behavior

Benefits Of Setting Up A Property Business In South Africa

The property business benefits the general population and the government in many ways, and some of these benefits include:

1. Provide financial benefit to investors

2. Create a wide variety of home for customers to choose from

3. Generates revenue to the government through paying of tax

That is the information we can provide on how to start a property business in South Africa.

What tenants want in a commercial property to rent

According to a recent report by Savills, while strong demand for top-quality spaces continues to underpin prime office markets around the world, in some markets landlords are having to work harder to attract and retain tenants, with concessions and incentives being used to help offset rising costs to occupiers.

READ: Exploring the basics of commercial property investment

Alex Oberholzer , head of the occupier services division of Swindon Property , Savills’ commercial property associate for in sub-Saharan Africa says: “Globally, as stated in Savills’ report, in recent years, concessions and incentives have become increasingly important to attract and retain tenants in a competitive office market. Work-from-home and pandemic-era trends such as hybrid working and hotdesking have made a lasting impact on the leasing environment.

“Demand for fully fitted turnkey space in prime locations has grown. This type of space is desirable to tenants for its ‘plug-and-play’ benefits, allowing quick move-in and set-up times for new tenants. Occupiers increasingly demand high-quality, fully built-out space without needing to invest time and money into planning and executing the design themselves, while astute landlords can also charge a premium for rent for these spaces.

“Increasing fit-out costs are rising due to a variety of factors, including a general increase in labour and material costs, as well as inflationary pressure, which is true in South Africa as well as internationally. This creates a challenge for both landlords and tenants – for landlords, it means that it will likely be harder to market undeveloped space and more expensive to commit to turnkey developments. Tenants, on the other hand, may be forced to account for these prices in their office footprint decision process.”

Adds Oberholzer : “Rent-free periods are another popular means of incentivising leasing activity in a building, especially in light of higher fit-out costs. Over the past five years, the global average duration of these rent-free periods has increased from approximately 7-10 months over the typical lease term, particularly in markets facing higher vacancy.

“In some markets, landlords are going above and beyond the standard amenity provision. In addition to gyms and conference centres, ESG (Environmental, Social & Governance) credential upgrades to buildings and even sports facilities such as basketball courts have become additions. Hong Kong is an example of this, and if the market space is at a premium and buildings can’t typically accommodate more amenities, landlords are becoming creative by providing tenant-exclusive apps that offer discounts to local shopping and food.”

READ: Landlords: A guide to finding the ideal rental candidates

So what are key factors and amenities which tenants look for today in a commercial property to rent?

According to Swindon Property, these are top of the list among commercial property tenants:

Location : Accessible and convenient locations with proximity to transportation hubs, major road networks and amenities such as restaurants, shops, and banks are highly desirable.

Safety and Security : Tenants prioritise properties with robust security measures, including access control systems, CCTV surveillance, security personnel, and well-lit parking areas, to ensure the safety of their employees. This is especially true of call centres which operate 24/7, among others.

Quality of Infrastructure : Modern and well-maintained buildings with reliable infrastructure, including electrical systems, HVAC (heating, ventilation, and air conditioning), telecommunications, and internet connectivity, are essential for smooth business operations, while back-up water is becoming another key imperative.

Flexible Space Design : Tenants look for flexible space layouts that can be easily adapted to their specific needs, whether it's open-plan offices, modular workstations, or customisable floor plans that accommodate future growth or changes in business requirements. A good amount of natural light and floor to ceiling heights, pleasant views.

Energy Efficiency and Sustainability: Increasingly, tenants prioritise environmentally sustainable buildings with energy-efficient features such as LED lighting, solar panels, green roofs, and water-saving fixtures. Green certifications like LEED (Leadership in Energy & Environmental Design) or Green Star are also attractive.

Mike van Schoor , KwaZulu-Natal director for Swindon Property : “Although these green initiatives come at a cost, landlords today need to understand the importance of the infrastructure to be in place to attract staff back to the office and achieve improved occupancy. Energy-efficient buildings typically have lower operating costs due to reduced energy consumption and maintenance requirements, so tenants benefit from lower utility bills, while property owners enjoy increased property value and reduced long-term operational expenses. Generally, however, tenants can expect to pay a slightly higher rental rate for space in Green-certified buildings compared to conventional buildings.”

Amenities and Facilities : Properties offering on-site amenities and facilities such as cafes, gyms, conference rooms, co-working spaces, childcare facilities, and outdoor recreational areas enhance the workplace experience and contribute to employee well-being and productivity.

Parking and Accessibility : Sufficient and secure parking facilities, including both on-site and off-site parking options, are important considerations for tenants, as well as accessibility for employees, clients, and visitors, including provisions for disabled access.

High-Speed Internet and Connectivity : In today's digital age, reliable high-speed internet connectivity is critical for business operations. Properties with access to fibre-optic networks and advanced telecommunications infrastructure are highly sought after.

Cost-Effectiveness : While tenants seek quality amenities and facilities, they also prioritise cost-effectiveness. Properties offering competitive rental rates, favourable lease terms, and value-added services that contribute to cost savings are attractive options.

Van Schoor says apart from the above factors, tenants are also advised to take into account the following when looking to lease space:

Lease terms and potential hidden or variable recovery charges, especially where these are based on pro-rata cost allocations, such as charges regarding common areas
Potential rates increases during the current term of the lease over and above rental escalations
Operating expenses
Potential maintenance issues due to the age and upkeep of the property
Office locations that are affected by severe traffic congestion or potential external security issues
Flexibility for future needs
Regulatory compliance and zoning
Understanding the nature of the other tenants in the building e.g. a business with high staff volumes per sqm will negatively impact access to lifts, common areas etc
Tenant rights and dispute resolution.

Van Schoor explains further: “Primary common areas are those that all the tenants have use of, with costs split on a pro-rata basis among all the tenants, while upper floors would also have a secondary common area such as a first-floor lobby, the costs of which are split between only the first-floor tenants. A professional occupier services broker would raise these costs to the tenant to ensure they are aware of these upfront and can make an informed decision.”

Adds Oberholzer: “As a tenant, sourcing and securing new premises can be challenging, as well as renegotiating and renewing existing agreements with landlords.

“The above key factors emphasise the need for tenants to appoint a professional and reputable firm with a proven track record to represent them and ensure cost reductions risk mitigation and enhanced efficiencies of their workspace.

“On renewal negotiations, we will conduct lease audits to ensure post billings are accurate and provide a detailed report of market conditions to ensure a strong position for negotiation. We also often include the service of a space planner to assess size requirements and ensure that the tenant understands what their usable vs rentable space is, as the common area percentage in buildings can differ substantially.

“Apart from the space requirement, one needs to understand the market values to ensure that the tenant secures fair terms and fully understands the lease agreement to avoid undesirable surprises later into the lease period.”

READ: Maximising market potential: Office technology investments for landlords to gain an edge

Why does a landlord need a watertight lease agreement? (read full article here )

Abrahams & Gross’s Litigation and Dispute Resolution attorney, Henno Bothma , says having a proper lease agreement is essential for landlords for several reasons. Firstly, it helps to establish a clear understanding between the landlord and the tenant about their respective rights and obligations. This can help to prevent misunderstandings or disputes that may arise during the tenancy.

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How to Start a Real Estate Business in South Africa

Updated on 21 April 2023

Starting a real estate business in South Africa is an excellent idea for ambitious entrepreneurs. It’s one of the best ways to get into the property industry, and real estate businesses offer a lot of room for making money.

South Africa is a buyers’ market, and there are always opportunities for new real estate businesses. However, it’s also a competitive market, so you need to take the right steps to strategically set up your business.

In this guide, we cover the main steps and processes you need to follow to start a real estate business.

Qualify as a Real Estate Agent

Before you can start a real estate business in South Africa, you’ll need to qualify as a real estate agency principal. This is essential if you plan on selling property under your own company.

Here are the three main steps you’ll take to do this.

Complete Your Internship

All new estate agents need to obtain their Fidelity Fund Certificate (FFC), which can be obtained through 12 months of work experience with an existing real estate agency.

The main purpose of this internship is to build up a portfolio of evidence (PoE) which you will submit to the EAAB.

Not only is this a necessary step in qualifying as a real estate agent, but it also helps you to gain valuable industry experience and knowledge. This is essential if you want to start a successful real estate business.

Complete Your Studies

Once you receive your Fidelity Fund Certificate (FFC), you will need to complete the following within two years:

National Qualification Forum Level 4 Real Estate (NQF4)
EAAB Professional Designated Exam Level 4 (PDE4)

These qualifications let you work as a full-status real estate agent.

Qualify as an Estate Agency Principal

You need to be qualified as an estate agency principal if you want to run your own real estate business. To achieve this, you’ll need to gain at least two years of work experience in a management role, or running a real estate agency.

You will also need to complete your NQF 5 course, gain a certificate of competency from SSETA, and submit your PoE to the EAAB. Once you have qualified as a real estate agency principal, you can now start your own real estate business.

Create a Business Plan

As is the case with starting any kind of business, you’ll need to have a solid business plan in place before you get started. This should outline all the details of how you will establish and operate your business.

Importantly, this should cover:

The area and market you plan to operate in
The type of real estate business you plan to run

For example, you could specialise in a certain geographic location, focus on residential or commercial properties, specialise in leasing, focus on property development, and so on. Your business plan will also need to cover detailed market research, your financial plan, business goals, and any other relevant information that will help get your business up and running.

Register Your Company

When your business plan is ready, you’ll need to register your real estate company. You need to do this through the CIPC and gain your official registration documents. The type of company structure you choose should depend on how many people are involved in the business and how your business plans to operate.

Market Your Business and Develop Strategic Partnerships

Once you have established your real estate business, you’ll need to get clients. This is why having a good marketing plan is so important. Figure out how people will discover your business, how you will attract clients, and how your business will grow.

It’s also important for real estate businesses to develop the right strategic partnerships. This could include partnerships with law firms, property developers, and other types of property-related businesses. The right relationships and partnerships can play a big role in how much new business you generate.

Starting a real estate business can be done relatively easily. With the right commitment, anyone can become a registered estate agent. Compared to other business models, you can also start a real estate business with minimal upfront capital.

The opportunities are also enormous. As long as people are buying and selling property, there are great possibilities to make money. If you’re interested in working with property, then getting into real estate is one of the best ways to enter the industry.

SEE ALSO: HOW TO START A PROPERTY BUSINESS.

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Home » Sample Business Plans » Real Estate

How to Write a Rental Property Business Plan (Sample Template)

Are you about starting a rental property business? If YES, here is a complete sample rental property business plan template & feasibility report you can use for FREE . The Apartment Rental industry is a very vast industry and there are loads of businesses opening up in the industry. There are several business opportunities an aspiring entrepreneur who has good capital base can start and one of such opportunities is a rental property business.

If you want to start a rental property business, then you need to write your own business plan. The essence of writing a business plan before starting any business is for you to have a blueprint of how you want to setup, manage and expand your business. Below is a sample rental property company business plan template that will help you to successfully write yours with little or no stress.

A Sample Rental Property Business Plan Template

1. industry overview.

Rental property business is grouped under the Apartment Rental industry and this industry is made up of companies that rent one-unit structures, two- to four-unit structures, five- to nine-unit structures, 10- to 19-unit structures, 20- to 49-unit structures and 50- or more unit structures.

In the united states, states such as Texas, New York, and Colorado, make it mandatory for rental property companies to be licensed real estate brokers if they are going to be involved in collecting rent, listing properties for rent, helping to negotiate leases and doing inspections as required by their business.

Although a property manager may be a licensed real estate salesperson but generally, they must be working under a licensed real estate broker. A few states such as Idaho, Maine, and Vermont do not require property managers to have real estate licenses.

Other states such as Montana, Oregon, and South Carolina, allow property managers to work under a property management license rather than a broker’s license. Washington State requires property rental companies to have a State Real Estate License if they do not own the property.

Landlords who manage their own property are not required by the law to have a real estate license in many states; however, they must at least have a business license to rent out their own home. It’s only landlords who do not live close to the rental property that may be required, by local government, to hire the services of a property management company.

Statistics has it that in the United States of America alone, there are about 518,271 licensed and registered apartment rental companies scattered all across the country and they are responsible for employing about 769,588 employees.

The industry rakes in a whooping sum of $154 billion annually with an annual growth rate projected at 2.4 percent within 2013 and 2018. Please note that the Apartment Rental industry has no companies with major market shares in the United States of America.

A recent research conducted by IBISWorld shows that operators in the Apartment Rental industry have performed strongly over the five years to 2018; however, industry performance softened in 2017 and 2018 as vacancy increased in those years.

Since the subprime mortgage crisis, the industry has undergone structural change. Leading up to the crisis, most investment in real estate was carried out by institutional investors (those who own 10 properties or more), whereas today, most properties for rent are single-investor owned and nonowner occupied.

Historic lows in homeownership, decreasing rental vacancy rates and surging demand for rental units have enabled landlords to increase rents, aiding revenue growth. Therefore, IBISWorld expects industry revenue to climb at an annualized 2.4 percent to $153.9 billion. In the same timeframe, the number of businesses has grown by 0.5% and the number of employees has grown by 0.4 percent.

No doubt, if an entrepreneur who intends starting his or her own property rental business has the right connections, networks, managerial skills, and takes delight in managing real estate for clients, then he or she is going to find property rental business very rewarding and lucrative.

2. Executive Summary

John Johnson & Co® Property Rental Agency, LLP is a real estate agency that will operate in all the West Coast of the United States of America but will be headquartered in San Diego – California. We intend to become specialists in owning, developing, acquiring, managing, selling and renting/leasing and disposing student accommodation, residential apartments, office apartments and hall facilities et al.

This can generally be summed up as clean, safe accommodation at an affordable price, and in our experience, the most consistent demand is for newly-built and pre-owned one and two-bedroom sectional title apartments with high tech security, parking and good access to shops and other amenities.

Part of our goal as a rental property company is to grow to become one of the top 5 largest real estate companies in the whole of West Coast in the United States of America and to rent/lease and manage properties across major cities in this region.

John Johnson & Co® Property Rental Agency, LLP will be committed when it comes to maintaining a diverse portfolio of quality apartments, office structures and hall facilities. We will also focus on providing a dynamic, proactive and vibrant work environment for all our employees such as mouthwatering bonus (commission) for every deal that comes through any of the staff member.

John Johnson & Co® Property Rental Agency, LLP is going to be a self-administered and a self-managed real estate investment trust (REIT). We will work towards becoming one of the largest rental property companies in The United States of America with active presence in major cities all across the West Coast in the United States of America.

As part of our plans to make our customers our number one priority and to become one of the leading rental property companies in the United States of America, we have perfected plans to adopt international best practices that can favorable compete with the best in the industry. John Johnson & Co® Property Rental Agency, LLP have overtime perfected plans that will help us to become a specialist in our area of business.

John Johnson & Co® Property Rental Agency, LLP will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

John Johnson & Co® Property Rental Agency, LLP is founded by John Johnson, Carson Reeves and Lance Taylor. John Johnson is the company’s president and CEO. John Johnson has over 15 years’ real estate experience in significant senior management positions in the areas of sales, marketing and new technologies in the United States of America.

3. Our Products and Services

John Johnson & Co® Property Rental Agency, LLP is going to offer varieties of services within the scope of the Apartment Rental industry. We are prepared to make profits from the industry and we will do all that is permitted by the law in The United States of America to achieve our business goals, aim and ambition.

Our business offerings are listed below;

Rental of one-unit accommodation structures
Rental of two- to four-unit accommodation structures
Rental of five- to nine-unit accommodation structures
Rental of 10- to 19-unit accommodation structures
Rental of 20- to 49-unit accommodation structures
Rental of 50- or more unit accommodation structures
Rental of manufactured homes, mobile homes or trailers
Real estate consultancy and advisory services

4. Our Mission and Vision Statement

Our vision is to become one of the top 5 rental property companies in the West Coast of the United States within the first 10 years of starting John Johnson & Co® Property Rental Agency, LLP.
Our mission of starting a rental property business is to grow the business beyond the city where we are going to be operating from to become a national and international brand by opening offices all across key cities in West Coast of the United States of America.

Our Business Structure

Our company’s structure is not entirely different from what is obtainable in the Apartment Rental industry. We have decided to create a structure that will allow for easy growth for all our employees and also, we have created platforms that will enable us attract some of the best hands in the industry.

We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more depending how fast we meet our set target.

John Johnson & Co® Property Rental Agency, LLP is fully aware of the modus operandi in the rental property business, hence adequate provision and competitive packages has been prepared for independent real estate agents. Our marketing department will be responsible for managing this aspect of our business structure.

Below is the business structure we will build John Johnson & Co® Property Rental Agency, LLP on;

Chief Executive Officer
Company’s Lawyer/Secretary

Admin and HR Manager

Real Estate Agents

Business Developer/Sales and Marketing
Customer Service Executive/Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (President):

Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
Accountable for fixing prices and signing business deals
Responsible for providing direction for the business
Accountable for signing checks and documents on behalf of the company
Evaluates the success of the organization

Company’s Lawyer/Secretary/Legal Counsel

Responsible for drawing up contracts and other legal documents for the company
Consults and handles all corporate legal processes (e.g. intellectual property, mergers & acquisitions, financial / securities offerings, compliance issues, transactions, agreements, lawsuits and patents et al)
Develops company policy and position on legal issues
Researches, anticipates and guards company against legal risks
Represents company in legal proceedings (administrative boards, court trials et al)
Plays a part in business deals negotiation and takes minutes of meetings
Responsible for analyzing legal documents on behalf of the company
Prepares annual reports for the company
Responsible for overseeing the smooth running of HR and administrative tasks for the organization
Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
Defines job positions for recruitment and managing interviewing process
Carries out induction for new team members
Responsible for training, evaluation and assessment of employees
Responsible for arranging travel, meetings and appointments
Oversees the smooth running of the daily office activities.
In charge of leasing and renting out accommodations and other properties under our to-let list
In charge of inspecting and reporting on the structural attributes of a building
Assesses compliance with building, electrical, plumbing and fire codes
Evaluates building plans and permits
Keeps daily logs, including photographs taken during inspection
Handles real estate consultancy and advisory services

Marketing and Sales Executive/Business Developer

Identifies, prioritized, and reach out to new partners, and business opportunities et al
Identifies development opportunities; follows up on development leads and contacts
Responsible for supervising implementation, advocate for the customer’s need , and communicate with clients
Documents all customer contact and information
Represents the company in strategic meetings
Helps to increase sales and growth for the company
Responsible for preparing financial reports, budgets, and financial statements for the organization
Provides managers with financial analyses, development budgets, and accounting reports
Responsible for financial forecasting and risks analysis.
Performs cash management, general ledger accounting, and financial reporting for one or more properties.
Responsible for developing and managing financial systems and policies
Responsible for administering payrolls
Ensures compliance with taxation legislation
Handles all financial transactions for the company
Serves as internal auditor for the company

Front Desk/Customer’s Service Officer

Receives Visitors/clients on behalf of the organization
Receives parcels/documents for the company
Handles enquiries via e-mail and phone calls for the organization
Distributes mails in the organization
Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
Manages administrative duties assigned by the line manager in an effective and timely manner
Consistently stays abreast of any new information on the company’s properties that are put up for sale, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

6. SWOT Analysis

Starting a rental property business in the United States of America comes with its own fair share of challenges, you would have to abide by the law and also compete with other entrepreneurs in the business value chain who also are interested in making a living and building a business in San Diego, California.

In order to compete favorably in the rental property line of business we hired the services of tested and trusted business and HR consultants to help us conduct critical SWOT analysis for us. Here is a summary from the result of the SWOT analysis that was conducted on behalf of John Johnson & Co® Property Rental Agency, LLP.

The strength that we will be bringing to the table in the Apartment Rental industry is our robust relations with accommodation owners and properties investment moguls. We have access to a pool of tenants and we equally have a team of experts who have cut their teeth in the Apartment Rental industry. Our commission structure and relationship with freelance real estate agents in San Diego, California will also count towards our advantage.

As a newbie in the Apartment Rental industry, we might have some challenges competing with big time realtors and other rental property companies that have been in the industry for many years; that perhaps is part of our weakness.

Opportunities:

As the economy of the United States of America began to grow and demand for rental apartments rose, industry revenue grew at a rapid pace hence opening vast opportunities for rental property companies. We are well – positioned to take advantage of any opportunity that comes our way.

Some of the threats that we are likely going to face as a rental property company in the United States of America are unfavorable government policies , global economic downturn and unreasonable tenants.

7. MARKET ANALYSIS

Market Trends

A close watch of happenings in the apartment rental industry shows that vacancy rates indicate the relationship between industry supply and demand. High rates represent an oversupply of residential rental property relative to demand.

These rates are also a good indicator of trends in industry revenue and profitability. Profit margins tend to shrink as vacancy rates grow because residential rentals are being underused. Rental vacancy rates are expected to increase in 2018, posing a potential threat to the industry.

As a matter of international best practices, the national unemployment rate is a benchmark for determining the overall health of the US economy and has had mixed effects on industry demand. As the unemployment rate falls, individuals tend to have more money to spend on living expenses and afford higher rent prices.

Simultaneously, with more money to spend, individuals may choose to purchase a home rather than rent, which can adversely affect industry demand. The national unemployment rate is expected to drop in 2018, representing a potential opportunity for the industry.

Another obvious trend that is common with rental property companies in the United States of America is that most of them are improvising on more means of making money in the Apartment Rental industry and as matter of fact they are also acting as property developers and home staging agents amongst many other functions that they are involved in.

One thing is certain for every rental property company; if they are hardworking, creative and proactive, they will always generate enough income to meet all their overhead and operational cost, keep their business going without struggle and make reasonable profits from all business deals that they are involved in.

8. Our Target Market

Our target market as a rental property company cuts across people of different class and people from all walks of life. Although finding tenants is relatively easy, but the truth is that finding qualified and law – abiding tenants can be somewhat challenging.

It is important to note that the target market for the rental property business goes beyond those who make use of the internet (Craigslist to search for properties; some of them only rely on the print media (local daily or weekly newspapers), some on word of mouth and others on street to street search. The bottom line is that the market trend for rental property business is indeed a dynamic one.

In other words, our target market is the whole of the United States of America and below is a list of the people and organizations that we have plans to do business with;

Families who are interested in renting/leasing or acquiring a property
Corporate organizations who are interested in renting/leasing or acquiring their own property/properties
Land Owners and landlords who are interested in renting/leasing out their properties
Corporate organizations (real estate agencies, property development companies et al) who are interested in renting/leasing out their properties
Foreign investors who are interested in owning properties or leasing properties in the United States of America
Managers of public facilities

Our competitive advantage

The availability of competent and reliable real estate agents under your payroll, our business process, the financial structure of the company, management of high-quality assets – portfolio, superior financial management and debt management and of course our pricing model et al are part of our competitive advantage.

Another possible competitive strategy for winning our competitors in this particular industry is to build a robust clientele base, and ensure that our properties cum apartments are top notch and trendy. Our organization is well positioned, key members of our team are highly competent and can favorably compete with the some of the best in the industry.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and objectives. We will also engage freelance marketing agents on a commission level to help us market our services.

9. SALES AND MARKETING STRATEGY

We quite mindful of the fact that there are stiff competitions in the rental property cum real estate market in The United States of America, hence we have been able to hire some of the best business developer to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to meet their targets and the overall goal of the organization. The training is not restricted to only our full – time employees but will include our freelance brokers.

John Johnson & Co® Property Rental Agency, LLP is set to make use of the following marketing and sales strategies;

Introduce our rental property company by sending introductory letters alongside your brochure to tenants, corporate organizations and other key stake holders throughout the city where our company is located.
Print out fliers (list of accommodations for rent/lease) and business cards and strategically drop them in offices, car parks, libraries, public facilities and train stations et al.
Use friends and family to spread word about our business
Post information about our company and the services we offer on bulletin boards in places like car parks, schools, libraries, and local coffee shops et al
Place a small or classified advertisement in the newspaper, or local publication about our company and the services we offer
Leverage on referral networks such as agencies that will attract clients (tenants) who need our properties cum apartments
Advertise our rental property company in relevant real estate magazines, newspapers, TV and radio stations.
Attend relevant real estate expos, seminars, and business fairs et al to market our services
Engage in direct marketing approach
Encourage the use of Word of mouth marketing from loyal and satisfied clients
Join local chambers of commerce and industry to market our product and services.

Sources of Income

John Johnson & Co® Property Rental Agency, LLP is established with the aim of maximizing profits in the industry. We have successfully built a vibrant real estate network that covers the whole of the West Coast in the United States of America so as to help us build a profitable business.

Below are the sources we intend exploring to generate income for John Johnson & Co® Property Rental Agency, LLP;

10. Sales Forecast

It is a known fact that as long as there are tenants in the United States of America, there will always be need to for them to hire the services of rental property companies from time to time.

We are well positioned to take on the challenges in the industry, and we are quite optimistic that we will meet out set target of generating enough income / profits from our first month of operation and grow the business beyond San Diego, California to other Provinces in the United States of America within record time.

We have been able to examine the rental property business, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.

Below are the sales projections (commissions generated) for John Johnson & Co® Property Rental Agency, LLP it is based on the location of our business and the rental property and related services within the Apartment Rental industry that we will be offering;

Rent / lease a minimum of 30 housing units to clients (flats, duplexes, studio apartment et al) within the first 6 months of operation
Rent / lease a minimum of 20 office facilities to clients within the first 6 months of operation

N.B: Please note that we cannot put a specific amount to the projection because the prices and commissions vary for different properties. Part of our business strategy is to work within the budget of our clients to deliver quality property / properties hence it will be difficult to project what we are likely going to make from such deals.

But the bottom line is that we are definitely going to make reasonable profits from any business deal that we execute since we work based on commissions.

11. Publicity and Advertising Strategy

We have been able to work with our consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to take the Apartment Rental industry by storm which is why we have made provisions for effective publicity and advertisement of our company.

Below are the platforms we intend to leverage on to promote and advertise our rental property business;

Place adverts on both print and electronic media platforms
Sponsor relevant TV shows so as to communicate our brand and what we do
Maximize our company’s website to promote our business
Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, LinkedIn, Google+ and other platforms (real estate online forums) to promote our business and list our properties for sale and for lease.
Install our billboards in strategic locations in and around the university community/campus in San Diego, California
Distribute our fliers and handbills in targeted areas from time to time
Attend landlord association meetings with the aim of networking and introducing our business.
Ensure that all our workers wear our branded shirts and all our vehicles and ambulances are well branded with our company’s logo et al.

12. Our Pricing Strategy

Part of our business strategy is to ensure that we work within the budget of our clients to deliver excellent properties to them. The real estate industry is based on commissions and properties are valued by professionals based on the area the facility is located, the type of facility and other factors.

Since we are not directly in control of the pricing system in the real estate industry, we can only abide by what is obtainable when it comes to pricing structure. Part of what we intended doing that will help us cut cost is to reduce to barest minimum all maintenance cost by renting/leasing any property under our care to responsible tenants who won’t cause damage to our facility.

Payment Options

At John Johnson & Co® Property Rental Agency, LLP our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them but at the same time, we will not accept payment by cash because of the volume of cash that will be involved in most of our transactions.

Here are the payment options that John Johnson & Co® Property Rental Agency, LLP will make available to her clients;

Payment by via bank transfer
Payment via online bank transfer
Payment via check
Payment via bank draft

In view of the above, we have chosen banking platforms that will help us achieve our plans without any hitches and we will also pay our freelance sales agents (real estate brokers) with same platforms. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our services.

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a detailed budget on achieving our aim of establishing a standard and highly competitive rental property company in San Diego, California and here are the key areas where we will spend our startup capital;

The total fee for registering the business in the United States of America – $750.
Legal expenses for obtaining licenses and permits – $1,500.
Marketing promotion expenses (8,000 flyers at $0.04 per copy) for the total amount of – $10,000.
The total cost for hiring Business Consultant – $5,000.
The amount needed for the purchase of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800.
The total cost for the purchase of accounting software, CRM software and Payroll Software – $3,000
The total cost for leasing facility for the business – $60,000.
The total cost for facility remodeling to fit into the type of jet ski rental business facility – $30,000
Other start-up expenses including stationery – $1000
Phone and utility deposits – $3,500
Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, tables and chairs et al) – $4,000.
The cost of launching a Website – $600
Miscellaneous – $5,000

Going by the report from the market research and feasibility studies conducted, we will need about two hundred and fifty thousand (250,000) U.S. dollars to successfully set up a medium scale but standard rental property business in the United States of America.

Generating Funds/Startup Capital for John Johnson & Co® Property Rental Agency, LLP

John Johnson & Co® Property Rental Agency, LLP is a business that will be owned and managed by John Johnson, Carson Reeves and Lance Taylor. They decided to restrict the sourcing of the startup capital for the business to just three major sources.

Generate part of the startup capital from personal savings and sale of stocks
Generate part of the startup capital from friends and other extended family members
Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $100,000 (Personal savings $80,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting John Johnson & Co® Property Rental Agency, LLP is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to rent out properties a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

John Johnson & Co® Property Rental Agency, LLP will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

Business Name Availability Check : Completed
Business Incorporation: Completed
Opening of Corporate Bank Accounts: Completed
Opening Online Payment Platforms: Completed
Application and Obtaining Tax Payer’s ID: In Progress
Application for business license and permit: Completed
Purchase of Insurance for the Business: Completed
Renting of Office Facility and remodeling the facility in San Diego, California: Completed
Conducting Feasibility Studies: Completed
Generating capital from the CEO / President and Business Partners: Completed
Applications for Loan from our Bankers: In Progress
Writing of Business Plan: Completed
Drafting of Employee’s Handbook: Completed
Drafting of Contract Documents and other relevant Legal Documents: In Progress
Design of The Company’s Logo: Completed
Printing of Promotional Materials: Completed
Recruitment of employees: In Progress
Purchase of furniture, office equipment, electronic appliances and facility facelift: In progress
Creating Official Website for the Company: In Progress
Creating Awareness for the business (Business PR): In Progress
Health and Safety and Fire Safety Arrangement: In Progress
Establishing business relationship with key players in the industry (networking and membership of relevant real estate bodies): In Progress

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Whoever wins the general election, one potential headache for the new administration will be Thames Water.

The current government has already drawn up contingency plans, known as Project Timber, for the possible collapse of a company currently saddled with debt of £15.4bn.

The scenario also features strongly on a dossier of potential crises compiled by Sue Gray, Sir Keir Starmer's chief of staff, that an incoming Labour government would face.

Talk of a potential collapse has moved up the agenda because Thames Water's owners, which include the Canadian pensions giant Omers, the Universities Superannuation Scheme, a unit of the Abu Dhabi Investment Authority and the China Investment Corporation, have declined to inject more equity into the business. They had previously offered to inject a further £3.25bn, on top of £500m last year, were Ofwat, the regulator, to support the company's plans.

But Ofwat is refusing to allow Thames to raise its levels of investment and customer bills to the extent that the company is proposing .

Thames had asked Ofwat to approve an £18.7bn investment which would have entailed a 44% average increase in customer bills over the next regulatory period due to run from 2025-30. It tweaked this submission in April to raise investment to £19.8bn during the period with no extra increase in bills.

Ofwat was due to publish its "final deliberation" on investment plans and customer bills for the entire water industry, including Thames, on 12 June but has moved it back to 11 July due to the general election.

The Guardian reported earlier this week that Ofwat is set to refuse the requests of most water companies, including Thames, with some operators being allowed to raise bills by as little as half of what they had asked for.

Such an approach is consistent with Ofwat's historic approach of keeping water bills low as its main priority rather than, for example, permitting higher investment to tackle sewage spills.

However, there are signs that Ofwat may be prepared to compromise, at least to an extent.

The Financial Times reports today that the regulator is drawing up plans for a special "recovery regime" for Thames and other financially stressed UK water companies in a bid to avoid nationalisation.

It suggests that companies with "recovery regime" status could receive fewer or no regulatory penalties to encourage them to invest in infrastructure improvements instead, as well as being given more "realistic" targets for reducing sewage and water leaks and outages.

The regulator finds itself with a dilemma. Ofwat does not want Thames to collapse, not least because such an event would intensify criticism that the regulator allowed Thames's previous owners – most notably the Australian investment bank Macquarie – to load the company with debt while extracting enormous dividends (the current investors have received no dividends since 2017).

Ofwat's ministerial overlords – of both parties – will also be aware that an administration of Thames would deter the very international investors the UK desperately needs to attract to pay for infrastructure improvements.

On the other hand, though, Ofwat does not want to face accusations that it is being unduly lenient on a company that has been badly behaved in the past.

Now, it is fair to say that Ofwat is offering an olive branch here. Only two weeks ago, it said it was "minded" to punish Thames for breaching licence conditions over a £37.5m dividend paid to shareholders in October last year (Thames points out the payment was made to Kemble Water, its parent holding company, and was necessary to maintain the latter's solvency). That could result in another fine worth tens of millions of pounds.

The big question is whether this compromise will be enough to shore up Thames's financial situation. Ofwat has fined Thames £175m during the last three years which, while being a large sum, is a relatively trifling amount set against Thames's debts.

So it probably would not be enough, of itself, to persuade Thames's owner to pump more equity into the business. Omers, the biggest single shareholder in Thames, has already written down the entire value of its 31.7% stake in the company to nothing. USS, which has more than half a million scheme members in British universities and which owns nearly 20% of Thames, has written down the value of its shareholding from £956m at the end of 2022 to just £364.4m as at the end of last year.

What today's news reveals is that there is a compromise to be reached here. The extra month before Ofwat is due to publish its draft deliberation has bought both sides a little more time.

But it feels as if, with Ofwat in no mood to back down with Thames over its proposed increase in investment and customer bills, the latter's shareholders have run out of patience.

A "special administration" of Thames – something neither Rishi Sunak or Sir Keir Starmer would want to see – still feels like the way to be betting.

NOW Broadband is raising prices by an average of £3 a month from 5 July.

The company, owned by Sky, didn't raise prices in line with inflation in April - making it somewhat of an outlier.

But the summer raise will add an average of £36 a year to customer bills.

However, the company offers a no-penalty exit option.

Sabrina Hoque, telecoms expert at Uswitch.com, said: "Another mid-contract price increase unfortunately means bigger bills for already cash-strapped consumers.

"However, it is encouraging that NOW Broadband customers have the option to leave penalty free if they don't want to accept this change."

By Sarah Taaffe-Maguire , business reporter

The pound reached a 19-month high against the euro this morning as £1 equalled €1.1784.

Not since late August 2022 was sterling so strong against the currency of Eurozone states.

So if you're going on holidays to somewhere using the euro, now would be a good time to exchange pounds as you'll be getting more for your money than you would have.

Rates have come down slightly this afternoon - though are still high at €1.1746.

The pound buying more euro will mean it's cheaper for UK importers to buy goods - so some prices could come down.

It's happening because the interest rate-setters at the European Central Bank (ECB) look set to bring rates down at their meeting next week.

Manchester United staff have reportedly been given a week to decide whether to resign under Sir Jim Ratcliffe's plans to end working from home.

The club's non-football staff were invited to take redundancy by next Wednesday in an email sent on Tuesday, The Daily Telegraph reports .

Sir Jim has taken over the day-to-day running of the club and is making it compulsory for staff to work from their offices in Manchester or London from 1 June, the paper says.

Staff who do not wish to do so can quit and are being offered early payment of an annual bonus, it added.

A United spokesman told The Daily Telegraph the move "isn't a voluntary redundancy programme".

They added: "The club recognises that not everyone wants to work from the office full-time so has provided options for staff who don't wish to return to the office to step away now."

Sky News has contacted Manchester United for comment.

Junior doctors in England are set to strike for five days starting next month - part of a long-running dispute over pay.

The strike is set to run from 7am on 27 June to 2 July.

It means the dispute clash with the general election campaign, with polling day on 4 July.

Read the full story here ...

Parents see personal finance as a more important life skill than maths for schoolchildren, according to new research.

A poll by Nationwide suggests the majority (89%) of parents of children aged eight to 13 think finance education would help their kids understand the value of money.

The survey of 2,000 UK adults found that personal finance even ranked above maths, digital skills and cooking as vital skills for children - coming second only to literacy.

More than eight in 10 parents (84%) said their child hadn't had any finance education at school, despite the vast majority saying it was important for children to understand money.

The top subjects parents value at school are:

Literacy (66%)
Personal finance (59%)
Maths (51%)
Cooking (41%)
Digital skills (26%)

Personal finance was deemed the most important subject for children and young people among parents polled in Brighton, Belfast and Newcastle.

Amanda Beech, director of retail services at Nationwide, said financial education can "help young people get to grips with the world of money".

By Daniel Binns, business reporter

One of the big gainers on the stock market this morning is International Distributions Services, the owner of Royal Mail.

Shares in the company are up more than 3% on the FTSE 250 index after the company's board announced it had agreed to a takeover by "Czech Sphinx" Daniel Kretinsky.

Whales Have an Alphabet

Until the 1960s, it was uncertain whether whales made any sounds at all..

This transcript was created using speech recognition software. While it has been reviewed by human transcribers, it may contain errors. Please review the episode audio before quoting from this transcript and email [email protected] with any questions.

[MUSIC PLAYING]

From “The New York Times,” I’m Michael Barbaro. This is “The Daily.”

Today, ever since the discovery that whales produce songs, scientists have been trying to find a way to decipher their lyrics. After 60 years, they may have finally done it. My colleague, Carl Zimmer, explains.

It’s Friday, May 24.

I have to say, after many years of working with you on everything from the pandemic to —

— CRISPR DNA technology, that it turns out your interests are even more varied than I had thought, and they include whales.

They do indeed.

And why? What is it about the whale that captures your imagination?

I don’t think I’ve ever met anybody who is not fascinated by whales. I mean, these are mammals like us, and they’re swimming around in the water. They have brains that are much bigger than ours. They can live maybe 200 years. These are incredible animals, and animals that we still don’t really understand.

Right. Well, it is this majestic creature that brings us together today, Carl, because you have been reporting on a big breakthrough in our understanding of how it is that whales communicate. But I think in order for that breakthrough to make sense, I think we’re going to have to start with what we have known up until now about how whales interact. So tell us about that.

Well, people knew that whales and dolphins traveled together in groups, but up until the 1960s, we didn’t really know that whales actually made any sounds at all. It was actually sort of an accident that we came across it. The American military was developing sophisticated microphones to put underwater. They wanted to listen for Russian submarines.

As one does. But there was an engineer in Bermuda, and he started hearing some weird stuff.

[WHALE SOUNDS]

And he wondered maybe if he was actually listening to whales.

What made him wonder if it was whales, of all things?

Well, this sound did not sound like something geological.

It didn’t sound like some underwater landslide or something like that. This sounded like a living animal making some kind of call. It has these incredible deep tones that rise up into these strange, almost falsetto type notes.

It was incredibly loud. And so it would have to be some really big animal. And so with humpback whales swimming around Bermuda, this engineer thought, well, maybe these are humpback whales.

And so he gets in touch with a husband and wife team of whale biologists, Roger and Katy Payne, and plays these recordings to them. And they’re pretty convinced that they’re hearing whales, too. And then they go on to go out and confirm that by putting microphones in the water, chasing after groups of whales and confirming, yes, indeed, that these sounds are coming from these humpback whales.

So once these scientists confirm in their minds that these are the sounds of a whale, what happens with this discovery?

Well, Roger and Katy Payne and their colleagues are astonished that this species of whale is swimming around singing all the time for hours on end. And it’s so inspirational to them that they actually help to produce a record that they release “The Song of the Humpback Whale” in 1970.

And so this is being sold in record stores, you know, along with Jimi Hendrix and Rolling Stones. And it is a huge hit.

Yeah, it sells like two million copies.

Well, at the time, it was a huge cultural event. This record, this became almost like an anthem of the environmental movement. And it led, for whales in particular, to a lot of protections for them because now people could appreciate that whales were a lot more marvelous and mysterious than they maybe had appreciated before.

And so you have legislation, like the Marine Mammal Act. The United States just agrees just to stop killing whales. It stops its whaling industry. And so you could argue that the discovery of these whale songs in Bermuda led to at least some species of whales escaping extinction.

Well, beyond the cultural impact of this discovery, which is quite meaningful, I wonder whether scientists and marine biologists are figuring out what these whale songs are actually communicating.

So the Paynes create a whole branch of science, the study of whale songs. It turns out that pretty much every species of whale that we know of sings in some way or another. And it turns out that within a species, different groups of whales in different parts of the world may sing with a different dialect. But the big question of what these whales are singing, what do these songs mean, that remains elusive into the 21st century. And things don’t really change until scientists decide to take a new look at the problem in a new way.

And what is that new way?

So in 2020, a group of whale biologists, including Roger Payne, come together with computer scientists from MIT. Instead of humpback whales, which were the whales where whale songs are first discovered, these scientists decide to study sperm whales in the Caribbean. And humpback whales and sperm whales have very, very different songs. So if you’re used to humpback whales with their crazy high and low singing voices —

Right, those best-selling sounds.

— those are rockin’ tunes of the humpback whales, that’s not what sperm whales do. Sperm whales have a totally different way of communicating with each other. And I actually have some recordings that were provided by the scientists who have been doing this research. And so we can take a listen to some of them.

Wow, It’s like a rhythmic clicking.

These are a group of sperm whales swimming together, communicating.

So whale biologists knew already that there was some structure to this sound. Those clicks that you hear, they come in little pulses. And each of those pulses is known as a coda. And whale biologists had given names to these different codas. So, for example, they call one coda, one plus one plus three —

— which is basically click, click, click, click, click, or four plus three, where you have four clicks in a row and a pause and then three clicks in a row.

Right. And the question would seem to be, is this decipherable communication, or is this just whale gibberish?

Well, this is where the computer scientists were able to come in and to help out. The whale biologists who were listening to the codas from the sperm whales in the Caribbean, they had identified about 21 types. And then that would seem to be about it.

But then, an MIT computer science graduate student named Prajusha Sharma was given the job of listening to them again.

And what does she hear?

In a way, it’s not so much what she heard, but what she saw.

Because when scientists record whale songs, you can look at it kind of like if you’re looking at an audio of a recording of your podcast, you will see the little squiggles of your voice.

And so whale biologists would just look at that ticker of whale songs going across the screen and try to compare them. And Sharma said, I don’t like this. I just — this is not how I look at data. And so what she decided to do is she decided to kind of just visualize the data differently. And essentially, she just kind of flipped these images on their side and saw something totally new.

And what she saw was that sperm whales were singing a whole bunch of things that nobody had actually been hearing.

One thing that she discovered was that you could have a whale that was producing a coda over and over and over again, but it was actually playing with it. It was actually stretching out the coda,

[CLICKING] So to get a little bit longer and a little bit longer, a little bit longer.

And then get shorter and shorter and shorter again. They could play with their codas in a way that nobody knew before. And she also started to see that a whale might throw in an extra click at the end of a coda. So it would be repeating a coda over and over again and then boom, add an extra one right at the end. What they would call an ornamentation. So now, you have yet another signal that these whales are using.

And if we just look at what the sperm whales are capable of producing in terms of different codas, we go from just 21 types that they had found in the Caribbean before to 156. So what the scientists are saying is that what we might be looking at is what they call a sperm whale phonetic alphabet.

Yeah, that’s a pretty big deal because the only species that we know of for sure that has a phonetic alphabet —

— is us, exactly. So the reason that we can use language is because we can make a huge range of sounds by just doing little things with our mouths. A little change in our lips can change a bah to a dah. And so we are able to produce a set of phonetic sounds. And we put those sounds together to make words.

So now, we have sperm whales, which have at least 150 of these different versions of sounds that they make just by making little adjustments to the existing way that they make sounds. And so you can make a chart of their phonetic alphabet, just like you make a chart of the human phonetic alphabet.

So then, that raises the question, do they combine their phonetic alphabet into words? Do they combine their words into sentences? In other words, do sperm whales have a language of their own?

Right. Are they talking to each other, really talking to each other?

If we could really show that whales had language on par with humans, that would be like finding intelligent life on another planet.

We’ll be right back.

So, Carl, how should we think about this phonetic alphabet and whether sperm whales are actually using it to talk to each other?

The scientists on this project are really careful to say that these results do not definitively prove what these sperm whale sounds are. There are a handful of possibilities here in terms of what this study could mean. And one of them is that the whales really are using full-blown language.

What they might be talking about, we don’t know. I mean, perhaps they like to talk about their travels over hundreds and thousands of miles. Maybe they’re talking about, you know, the giant squid that they caught last night. Maybe they’re gossiping about each other.

And you have to remember, sperm whales are incredibly social animals. They have relationships that last for decades. And they live in groups that are in clans of thousands of whales. I mean, imagine the opportunities for gossip.

These are all at least imaginable now. But it’s also possible that they are communicating with each other, but in a way that isn’t language as we know it. You know, maybe these sounds that they’re producing don’t add up to sentences. There’s no verb there. There’s no noun. There’s no structure to it in terms of how we think of language.

But maybe they’re still conveying information to each other. Maybe they’re somehow giving out who they are and what group they belong to. But it’s not in the form of language that we think of.

Right. Maybe it’s more kind of caveman like as in whale to whale, look, there, food.

It’s possible. But, you know, other species have evolved in other directions. And so you have to put yourself in the place of a sperm whale. You know, so think about this. They are communicating in the water. And actually, like sending sounds through water is a completely different experience than through the air like we do.

So a sperm whale might be communicating to the whale right next to it a few yards away, but it might be communicating with whales miles away, hundreds of miles away. They’re in the dark a lot of the time, so they don’t even see the whales right next to them. So it’s just this constant sound that they’re making because they’re in this dark water.

So we might want to imagine that such a species would talk the way we do, but there are just so many reasons to expect that whatever they’re communicating might be just profoundly different, so different that it’s actually hard for us to imagine. And so we need to really, you know, let ourselves be open to lots of possibilities.

And one possibility that some scientists have raised is that maybe language is just the wrong model to think about. Maybe we need to think about music. You know, maybe this strange typewriter, clickety clack is actually not like a Morse code message, but is actually a real song. It’s a kind of music that doesn’t necessarily convey information the way conversation does, but it brings the whales together.

In humans, like, when we humans sing together in choruses, it can be a very emotional experience. It’s a socially bonding experience, but it’s not really like the specific words that we’re singing that bring us together when we’re singing. It’s sharing the music together.

But at a certain point, we stop singing in the chorus, and we start asking each other questions like, hey, what are you doing for dinner? How are you going to get home? There’s a lot of traffic on the BQE. So we are really drawn to the possibility that whales are communicating in that same kind of a mode.

We’re exchanging information. We’re seeking out each other’s well-being and emotional state. And we’re building something together.

And I think that happens because, I mean, language is so fundamental to us as human beings. I mean, it’s like every moment of our waking life depends on language. We are talking to ourselves if we’re not talking to other people.

In our sleep, we dream, and there are words in our dreams. And we’re just stewing in language. And so it’s really, really hard for us to understand how other species might have a really complex communication system with hundreds of different little units of sound that they can use and they can deploy. And to think anything other than, well, they must be talking about traffic on the BQE. Like —

— we’re very human-centric. And we have to resist that.

So what we end up having here is a genuine breakthrough in our understanding of how whales interact. And that seems worth celebrating in and of itself. But it really kind of doubles as a lesson in humility for us humans when it comes to appreciating the idea that there are lots of non-human ways in which language can exist.

That’s right. Humility is always a good idea when we’re thinking about other animals.

So what now happens in this realm of research? And how is it that these scientists, these marine biologists and these computer scientists are going to try to figure out what exactly this alphabet amounts to and how it’s being used?

So what’s going to happen now is a real sea change in gathering data from whales.

So to speak.

So these scientists are now deploying a new generation of undersea microphones. They’re using drones to follow these whales. And what they want to do is they want to be recording sounds from the ocean where these whales live 24 hours a day, seven days a week. And so the hope is that instead of getting, say, a few 100 codas each year on recording, these scientists want to get several hundred million every year, maybe billions of codas every year.

And once you get that much data from whales, then you can start to do some really amazing stuff with artificial intelligence. So these scientists hope that they can use the same kind of artificial intelligence that is behind things like ChatGPT or these artificial intelligence systems that are able to take recordings of people talking and transcribing them into text. They want to use that on the whale communication.

They want to just grind through vast amounts of data, and maybe they will discover more phonetic letters in this alphabet. Who knows? Maybe they will actually find bigger structures, structures that could correspond to language.

If you go really far down this route of possibilities, the hope is that you would understand what sperm whales are saying to each other so well that you could actually create artificial sperm whale communication, and you could play it underwater. You could talk to the sperm whales. And they would talk back. They would react somehow in a way that you had predicted. If that happens, then maybe, indeed, sperm whales have something like language as we understand it.

And the only way we’re going to figure that out is if we figure out not just how they talk to themselves, but how we can perhaps talk to them, which, given everything we’ve been talking about here, Carl, is a little bit ironic because it’s pretty human-centric.

That’s right. This experiment could fail. It’s possible that sperm whales don’t do anything like language as we know it. Maybe they’re doing something that we can’t even imagine yet. But if sperm whales really are using codas in something like language, we are going to have to enter the conversation to really understand it.

Well, Carl, thank you very much. We appreciate it.

Thank you. Sorry. Can I say that again? My voice got really high all of a sudden.

A little bit like a whale’s. Ooh.

Yeah, exactly. Woot. Woot.

Thank yoooo. No. Thank you.

Here’s what else you need to know today.

We allege that Live Nation has illegally monopolized markets across the live concert industry in the United States for far too long. It is time to break it up.

On Thursday, the Justice Department sued the concert giant Live Nation Entertainment, which owns Ticketmaster, for violating federal antitrust laws and sought to break up the $23 billion conglomerate. During a news conference, Attorney General Merrick Garland said that Live Nation’s monopolistic tactics had hurt the entire industry of live events.

The result is that fans pay more in fees, artists have fewer opportunities to play concerts, smaller promoters get squeezed out, and venues have fewer real choices.

In a statement, Live Nation called the lawsuit baseless and vowed to fight it in court.

A reminder — tomorrow, we’ll be sharing the latest episode of our colleagues’ new show, “The Interview.” This week on “The Interview,” Lulu Garcia-Navarro talks with Ted Sarandos, the CEO of Netflix, about his plans to make the world’s largest streaming service even bigger.

I don’t agree with the premise that quantity and quality are somehow in conflict with each other. I think our content and our movie programming has been great, but it’s just not all for you.

Today’s episode was produced by Alex Stern, Stella Tan, Sydney Harper, and Nina Feldman. It was edited by MJ Davis, contains original music by Pat McCusker, Dan Powell, Elisheba Ittoop, Marion Lozano, and Sophia Lanman, and was engineered by Alyssa Moxley. Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly.

Special thanks to Project SETI for sharing their whale recordings.

That’s it for “The Daily.” I’m Michael Barbaro. See you on Tuesday after the holiday.

May 29, 2024 • 29:46 The Closing Arguments in the Trump Trial
May 28, 2024 • 25:56 The Alitos and Their Flags
May 24, 2024 • 25:18 Whales Have an Alphabet
May 23, 2024 • 34:24 I.C.C. Prosecutor Requests Warrants for Israeli and Hamas Leaders
May 22, 2024 • 23:20 Biden’s Open War on Hidden Fees
May 21, 2024 • 24:14 The Crypto Comeback
May 20, 2024 • 31:51 Was the 401(k) a Mistake?
May 19, 2024 • 33:23 The Sunday Read: ‘Why Did This Guy Put a Song About Me on Spotify?’
May 17, 2024 • 51:10 The Campus Protesters Explain Themselves
May 16, 2024 • 30:47 The Make-or-Break Testimony of Michael Cohen
May 15, 2024 • 27:03 The Possible Collapse of the U.S. Home Insurance System
May 14, 2024 • 35:20 Voters Want Change. In Our Poll, They See It in Trump.

Hosted by Michael Barbaro

Featuring Carl Zimmer

Produced by Alex Stern , Stella Tan , Sydney Harper and Nina Feldman

Edited by MJ Davis Lin

Original music by Elisheba Ittoop , Dan Powell , Marion Lozano , Sophia Lanman and Pat McCusker

Engineered by Alyssa Moxley

Listen and follow The Daily Apple Podcasts | Spotify | Amazon Music | YouTube

Ever since the discovery of whale songs almost 60 years ago, scientists have been trying to decipher the lyrics.

But sperm whales don’t produce the eerie melodies sung by humpback whales, sounds that became a sensation in the 1960s. Instead, sperm whales rattle off clicks that sound like a cross between Morse code and a creaking door. Carl Zimmer, a science reporter, explains why it’s possible that the whales are communicating in a complex language.

On today’s episode

Carl Zimmer , a science reporter for The New York Times who also writes the Origins column .

A diver, who appears minuscule, swims between a large sperm whale and her cub in blue waters.

Background reading

Scientists find an “alphabet” in whale songs.

These whales still use their vocal cords. But how?

There are a lot of ways to listen to The Daily. Here’s how.

We aim to make transcripts available the next workday after an episode’s publication. You can find them at the top of the page.

The Daily is made by Rachel Quester, Lynsea Garrison, Clare Toeniskoetter, Paige Cowett, Michael Simon Johnson, Brad Fisher, Chris Wood, Jessica Cheung, Stella Tan, Alexandra Leigh Young, Lisa Chow, Eric Krupke, Marc Georges, Luke Vander Ploeg, M.J. Davis Lin, Dan Powell, Sydney Harper, Mike Benoist, Liz O. Baylen, Asthaa Chaturvedi, Rachelle Bonja, Diana Nguyen, Marion Lozano, Corey Schreppel, Rob Szypko, Elisheba Ittoop, Mooj Zadie, Patricia Willens, Rowan Niemisto, Jody Becker, Rikki Novetsky, John Ketchum, Nina Feldman, Will Reid, Carlos Prieto, Ben Calhoun, Susan Lee, Lexie Diao, Mary Wilson, Alex Stern, Dan Farrell, Sophia Lanman, Shannon Lin, Diane Wong, Devon Taylor, Alyssa Moxley, Summer Thomad, Olivia Natt, Daniel Ramirez and Brendan Klinkenberg.

Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly. Special thanks to Sam Dolnick, Paula Szuchman, Lisa Tobin, Larissa Anderson, Julia Simon, Sofia Milan, Mahima Chablani, Elizabeth Davis-Moorer, Jeffrey Miranda, Renan Borelli, Maddy Masiello, Isabella Anderson and Nina Lassam.

Carl Zimmer covers news about science for The Times and writes the Origins column . More about Carl Zimmer

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Our Property Business Plan is for Start-Ups looking to apply for basic Funding, Tenders and Industry Regulators. Our Property Business Plan is focused on the Property and Real Estate Industry in South Africa. Included in this option is a Professional Business Plan layout and a 5-Year Financial Projection.
6 ways to build up your property rental business
Put someone on the task full-time. If you want to increase your rental management book and thrive, you need a person who is permanently looking for new customers and keeping in touch with existing ones. The ideal person for this task is someone with sales and customer relations skills who is 100% dedicated to acquiring and retaining the rental ...
How to Write a Rental Property Business Plan
Here's how to create a business plan for your rental property investment in five steps. 1. Identify the Main Goal of Your Rental Business. The first page of your rental property business plan typically consists of an executive summary, which briefly covers the different topics you'll be explaining in your document.
Rental Properties Business Plan Template [Updated 2024]
Traditionally, a marketing plan includes the four P's: Product, Price, Place, and Promotion. For a rental property business plan, your marketing plan should include the following: Product: in the product section you should reiterate the type of rental property business that you documented in your Company Analysis.
Rental Property Business Plan: Guide & Template (2024)
Download Template. Create a Business Plan. A rental property business is a great way of earning a passive income. It can help you have great finances if you go about it in the right way. The rental property market stood at a size of 174.2 bn dollars in the US in 2021. And with the subsiding pandemic isn't about to shrink any time soon.
How to Start a Real Estate Business in South Africa?
Conclusion. Starting a real estate business in South Africa requires careful planning, market analysis, and compliance with legal regulations. By following the steps outlined in this guide, you can lay a solid foundation for success and navigate the challenges of the industry. Remember to continuously adapt, learn from experiences, and nurture ...
How to Start a Property Business in South Africa
Reports have it that South Africa's residential stock stood at 6.07m properties worth a total of R4.27trn ($368.93bn) in the Q4 of 2014 and in Q2 2015 Housing Review, 2.11m properties worth R2.25trn ($194.4bn) were bonded and 3.96m houses worth R2.02trn ($174.53bn) were non-condensing.
PRE-WRITTEN BUSINESS PLANS FOR SOUTH AFRICA (PDF, WORD AND ...
Download comprehensive business plans for South Africa - PDF, Word and Excel. The business proposals include automated financial statements. 0 Items. Home; Business Plans; Business Ideas; ... Rental Property Business Plan - PDF, Word & Excel. R 500.00. Add to Cart. Security Company Business Plan - PDF, Word & Excel. R 500.00.
Starting Your Own Property Development Business
'The outlook for South Africa's property market in 2018'. Retrieved from Private Property . 10 Smith, C. (Oct, 2017). 'Increase in rate of commercial property development'. Retrieved from fin24 . 11 (May, 2018). 'How to start a property development business'. Retrieved from Entrepreneur Mag. 12 (May, 2018). 'How to start a ...
How To Start Property Business In South Africa
Below are some of the requirements to help establish a property business in SA: 1. Strategise a good business plan. 2. Register your business with CIPC. 3. Build a good brand. 4. Advertisement is a key factor to your success.
Business Plans
JPC's primary goal in supporting the vision and mission of the 2040 Growth and Development Strategy (GDS) is to recognize the emphasize its role as an economic and social property agency to achieve positive developmental outcomes. 2022/2023 Business Plan. 2019/2020 Business Plan. 2018 - 2019 Business Plan. 2017 - 2018 Business Plan.
What tenants want in a commercial property to rent
READ: Exploring the basics of commercial property investment Alex Oberholzer, head of the occupier services division of Swindon Property, Savills' commercial property associate for in sub-Saharan Africa says: "Globally, as stated in Savills' report, in recent years, concessions and incentives have become increasingly important to attract and retain tenants in a competitive office market.
How to Start a Real Estate Business in South Africa
Starting a real estate business in South Africa is an excellent idea for ambitious entrepreneurs. It's one of the best ways to get into the property industry, and real estate businesses offer a lot of room for making money. ... This is essential if you plan on selling property under your own company. Here are the three main steps you'll ...
Rental Property Business Plan (Sample Template for 2022)
The total cost for facility remodeling to fit into the type of jet ski rental business facility - $30,000. Other start-up expenses including stationery - $1000. Phone and utility deposits - $3,500. Operational cost for the first 3 months (salaries of employees, payments of bills et al) - $40,000.
PDF Business Plan
CITY OF JOBURG PROPERTY COMPANY (PTY) LTD BUSINESS PLAN 2011/2012 ----- 5 1.1. VISION AND MISSION 1.1.1. Vision To provide property management, property development, property asset management services, land strategy, acquisition and stewardship in order to maximise the social, economic and
Step-By-Step Airbnb Arbitrage in South Africa
1. In this article, we will explore through a the step-by-step guide Airbnb Arbitrage model, which allows investors to lease a property and then rent it out to guests on Airbnb, generating income and profit. The emergence of the sharing economy has revolutionized the way we think about the traditional business model.
PDF Johannesburg Property Company (SOC) Ltd 2021/2022 BUSINESS PLAN
Given the above context, the focal point for the Joburg Property Company SOC LTD (JPC) 2021/22 Business Plan (BP) is to contribute to economic growth through investment attraction, retention and expansion by utilising the City's property portfolio. This focal point seeks to
Business owner shares practical advice for aspiring entrepreneurs
Independent Online, popularly known as IOL, is one of South Africa's leading news and information websites bringing millions of readers breaking news and updates on Politics, Current Affairs ...
Cape Town's exorbitant property prices a ticking time bomb ...
A quick comparison of free standing houses shows that in uMhlanga, Durban, a three-bedroom house on average costs R5 million, while in Sea Point, Cape Town, the average cost of a three-bedroom ...
Money blog: Manchester United staff 'given week to resign' in WFH
By Sarah Taaffe-Maguire, business reporter. The pound reached a 19-month high against the euro this morning as £1 equalled €1.1784. Not since late August 2022 was sterling so strong against the ...
Whales Have an Alphabet
For more audio journalism and storytelling, download New York Times Audio, a new iOS app available for news subscribers.

How to Start a Property Business in South Africa

Different Types of Property Businesses

Commercial rental property

Vacation rental property

Flipping properties

Property management

Real estate development

Real estate brokerage

How to start a Property Business in South Africa

Obtaining a Property Agent’s License

Developing a Business Plan

Securing Funding

Building a Network

Finding and Managing Properties

Staying Compliant

Benefits of Starting Property Business in South Africa

Risks of a Property Business

How much do you need to start a real estate business in South Africa?

How can I find properties to invest in for my property business?

What are the laws and regulations related to property business in South Africa?

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Property Business Plan

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6 ways to build up your property rental business

Building up a rental “book” is a great way to increase and steady the cash flow in a real estate business.

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Executive Summary

Company Analysis

Industry Analysis

Customer Analysis

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Competitive Analysis

Marketing Plan

Operations Plan

Management Team

Financial Plan

Income Statement

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1. Executive Summary

2. Company Description

3. Market Analysis

4. Marketing Strategy

5. Organization and management

6. Financial Plan

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Rental property business plan summary

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