Victorian Renovations

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Rental Remodeling Business Plan

Strategy and Implementation Summary

Our strategy is based on the fact that there is a large portion of people in the Portland area who value comfortable, vintage living with all the modern conveniences.  The homes that we develop will be targeted towards people who are in the market for a rental property and are willing to spend more on their homes to have authentic, classic surroundings.  These people are willing to pay more for this unique property.

5.1 Competitive Edge

The company's competitive edge is the expertise of the two owners in renovating and restoring older homes.  Both currently own vintage homs and have done much of the renovation themselves, only bringing contractors in to do very large jobs.  In addition, both have strong business backgrounds, one in marketing and one in finance and accounting.

5.2 Marketing Strategy

The marketing for VR will be limited, since the company simply needs to rent out two apartments for one year leases.  A full color leaflet will be developed that will be posted outside the property near the end of the restoring process.  In addition, newspaper advertisements will be placed in local newspapers and on rental websites.

5.3 Sales Strategy

Because these apartments will be high quality, VR will be choosy about who they will accept as tenants.  References and proof of employment or ability to pay the rent will be needed.  Also, one month's rent will be requested as a deposit on signing of the lease.

5.3.1 Sales Forecast

The following is the sales forecast for VR's first apartment building on Fifth and Pearl. 

Sales Forecast
Year 1 Year 2 Year 3
Rental Revenue $21,600 $23,760 $26,136
Other $0 $0 $0
Total Sales $21,600 $23,760 $26,136
Direct Cost of Sales Year 1 Year 2 Year 3
Rental Costs $2,160 $2,376 $2,614
Other $0 $0 $0
Subtotal Direct Cost of Sales $2,160 $2,376 $2,614

5.4 Milestones

The following Milestones table illustrate the key steps that Victorian Renovations must achieve in order to ensure the success of this venture.

Milestone Start Date End Date Budget Manager Department
Complete Sale on House 6/1/2001 6/15/2001 $2,000 Doug Machen Owner
Wall repairs 6/15/2001 6/30/2001 $3,000 Contractor Admin
Plumbing Repairs 6/15/2001 6/30/2001 $2,000 Doug Machen Owner
Floor Refinishing 6/30/2001 7/10/2001 $3,000 Renner/Machen Owners
Decorating 7/12/2001 8/30/2001 $5,000 Renner/Machen Owners
Advertise the House for Rent 8/25/2001 9/15/2001 $200 Sarah Renner Owner
Totals $15,200