Having a strong property management proposal at the ready is key to closing deals and bringing on new clients. But what many property managers don’t consider is that the proposal goes far beyond that.
In many ways, it sets the tone for how your whole professional relationship will be conducted. A well-structured, carefully crafted proposal sets clear expectations for your client-to-be, illustrates your company’s professionalism, and builds trust in your ability to execute. That’s why we’ve put together this property management proposal template that you can use to take your pitch to the next level.
A property management proposal is a document used in the sales process to outline the key terms of the property management agreement, your management fees, the contract duration, insurance provisions, obligations, termination conditions, and more. It’s a simple, straightforward way to give your potential client all the details they need to make the decision to hire you.
A strong proposal document is essential for every property management company looking to expand their portfolio. It’s a key tool in the sales cycle when trying to close deals with new investors, and can also be useful if you’re looking at acquiring or being acquired by another management company.
For many single-family property management companies, the proposal also includes information on why clients should hire professional management services in general, rather than trying to self-manage.
A property management proposal should include all of the information that a potential client needs to make an informed decision. That includes information about your company, your team, your policies, and the contractual agreement you’re entering into. Here are some of the key areas you should be sure to include:
Your proposal should open with a short, friendly cover letter introducing yourself and your company. This section should summarize the purpose of the proposal and outline its contents, while also highlighting key value that you provide or differentiators for your company.
Just like a cover letter you write when applying for a job, this section should highlight why you feel you’re a particularly good fit for this client. We recommend customizing at least part of the cover letter for the specific investor you’re pitching to, highlighting why their company in particular would benefit from your services.
This section should highlight the key points about your company, but don’t write too much here. The client isn’t interested in knowing every single detail of your history, but you should convey some key points that will help build trust:
This is your opportunity to call out key staff, especially those that this client will be working closely with. Add headshots to make it feel personal, and include short bios and job titles. Where applicable, include certifications that your team has and the length of their industry experience.
This section is sometimes folded into the section about your company, but it doesn’t hurt to call it out separately, especially if you have a unique process, mindset, or methodology. Write a few sentences about how you manage properties, like your approach to communication, your commitment to transparency, or how you leverage technology. This not only helps differentiate you from your competitors, but also establishes what the client should expect from you moving forward.
This section gets a little bit more technical, and typically includes a comprehensive list of services that your company will provide:
Make it very clear to the client what you offer (and what you don’t).
Next you’ll want to outline your expense structure, including whether you charge a flat management fee, a percentage-based fee, or a combination of the two. Include standard fees and optional add-ons that you offer. If you have multiple plan tiers, this is the place to outline them, including a personalized recommendation for the client based on their property or properties.
Now it’s time to get deeper into the details. This section is where you want to outline your approach to compliance and how you stay on top of landlord/tenant laws. Include details on how you mitigate risk and liability, and how that benefits property owners. This is also a great area to highlight your property insurance and renters insurance requirements, with a focus on how you enforce compliance.
You always want to tell great customer stories in your proposal. Be sure to showcase two or three properties that you currently manage, especially if they’ve undergone significant transformation or you’ve increased the property value well. Try to curate this section to match the portfolio of the prospective client. For example, if they own a mix of residential and commercial properties, or a mix of multi-family and single-family homes, make sure the proposal is representative of that.
You should also include overall statistics about the number of properties you manage, what geographies you serve, and what types of properties they are.
Be sure to highlight current clients who are happy with you, especially if they’re willing to serve as references. This should go without saying, but always make sure you have explicit permission before listing someone as a reference or having a prospective client contact them.
This section can also include testimonial quotes, online reviews, or links to case studies. If you have video case studies, include screenshots with a link to watch the full video. If you’re delivering your proposal as a website or slide deck, you may even be able to embed video clips directly in the proposal.
Remember, the whole purpose of the proposal is to try to close the deal with a new client, so don’t hold back if you have unique value propositions that differentiate you. Include a dedicated section on unique services that investors may not find elsewhere.
If your company takes a sustainable approach to property management, be sure to describe it. You may use eco-friendly vendors for maintenance, landscaping, or pest control. You may also offer green upgrades like smart thermostats or clean energy utility providers. Include those here to stand out.
Resident benefits packages are a great way to stand out. If you offer an RBP like Second Nature’s, outline the various benefits that are included. Be sure to focus on how these add value for the property owner, including increasing resident satisfaction and retention. Make sure that the client understands the impacts of the experience economy and why it’s important to deliver the best possible resident experience as a property manager.
If your prospective client is doing their due diligence, they’re probably receiving proposals from multiple PMCs. You need a clean, well-constructed proposal that’s going to stand out from the crowd.
Use bullet points, white space, and clear headings that can help the reader quickly navigate and understand the content. Where relevant, consider adding imagery, charts, and graphs to highlight key points.
You want your proposal to be anything but generic. If a client feels that you’re just handing them the same proposal you give to everyone, they’re going to be less than impressed. Make sure that the proposal you’re putting in front of them is customized to their company, property type, and pain points so that they feel personally catered to.
Don’t overwhelm your clients with too much information. Include enough to inform them without becoming burdensome. We typically find four to six pages to be the right length for most property owners to digest.
Make sure that your proposal ends with a clear call to action. Depending on where in the sales process you are, this might be to:
You can also follow up on your proposal with a courteous, professional email. Your goal is to keep the conversation going without making the investor feel like you’re demanding a response. Give them an opportunity to ask questions while also reinforcing your value.
Remember, a professional, detailed property management proposal will help you win better clients and grow your business.
Want to enhance your company’s offering? Second Nature’s Resident Benefits Package can help you deliver more value to owners and residents alike while also growing your business.
Join our upcoming RBP Workshop to learn more about RBPs and hear from actual property managers about how they’ve worked with clients to implement new benefits.