For Wentworth Students, By Wentworth Students

TMMP Property Management

Table of Contents
# Section Page 3 4 5 9 10

1.0 Executive Summary.. 2.0 The Business.... 3.0 Market Analysis and Summary 4.0 Strategy and Implementation Summary . 5.0 Financial Summary and Plan. 6.0 Appendix

1.0 Executive Summary

TMMP is a property management company, based in Boston, MA, that specializes in rental units for the upper education sector, specifically at Wentworth Institute of Technology. TMMP is going to focus on the refurbishment of abandoned properties, foreclosed properties, short sales and custom property management options for students and alumni in the Wentworth Community. TMMP was founded by two Wentworth students Tyler Monteros and Michael Paglino.

The Market
The market indicates that individuals need a management team that is able to cope with dynamic market conditions and help them maintain, locate, and even transport clients to various units. Wentworth, alone, has a student body of roughly 3,500 students, in which 51% of these students live off campus. Tyler and Michael, being Wentworth students themselves, understand the need for a strong client relationship and want to help that 51% find affordable and convenient living arrangement that will best fit their desired atmosphere for successful studies during their years at Wentworth

Strategy
TMMPs main office will be in Boston, MA near Wentworth Institute of Technology, with future options and ambition to expand into downtown Boston and beyond. There are many property management businesses in the city of Boston, but few will have the understanding that TMMP does when it comes to associating the business with the target demographic, which is the student body of Wentworth. Being close to Wentworth students and creating a web based portal to build a loyal client base is TMMPs main strategy. Strategy and implementation is further explained in section (4.0).

Management Team
TMMP will be led by Michael Paglino and Tyler Monteros. TMMP will also have an in-house construction management team led by Casey Shade. Michael is a senior at Wentworth Institute of Technology, majoring in Management with a concentration in Communications. He has held two internship and freelance positions over the past 2.5 years at two of Bostons most prestigious ad agencies, Arnold Worldwide, and Digitas. His experience in back end analytics and market research will give him the experience he needs for a part owner. The experience he has gained in strategy and analysis of market conditions, paid search, and aided and un-aided awareness will allow TMMP to have an edge in data implementation. Tyler Monteros is also a senior at Wentworth Institute and is also studying Management with a concentration in Communications. Tyler has had two internships over has time at Wentworth where he has worked on search engine optimization and account management at 451-Marketing, as well as an internship in sales at a marketing firm. His experience in client relations will allow TMMP to be an attractive management team with great interpersonal skills. Casey Shade will be contributing his construction management skills into helping Tyler and Michael maintain and develop units for sale. TMMP is a limited liability Partnership with both Tyler and Michael splitting 80% of the business and sharing all risks involved. Casey Shade and his construction team will have a 4% stake in the company, and the other 16% of the company will be held by silent investors.

1.1 Mission
TMMPs mission is to provide high-quality, comfortable units for upper education clients, with a focus on Wentworth Institute of Technology, with future ambitions of expanding into greater Boston.

1.2 Objectives
1. 2. 3. 4. 5. Encouragingly substantial sales in year one and growing steadily with expansion in year two Seek funds in the amount of $650,000 from private investors to enter market Gross margin moderate and improving over the span of the business plan and coming years Have low crime and complaint rates among all clients/residents Build a strong client relationship within the Wentworth community to get TMMP of the ground

1.3 Keys to Success

State of the art technological processes In house construction partner and cohesiveness Close relationship with Wentworth and its student body for convenience, location, and access to student body Customer satisfaction

2.0 The Business

TMMP will be comprised of two departments; one focusing on real estate end of the business and the other focusing on property management and services. Property management and services will be handled by our in-house construction management partnership with Casey Shade and Company. Services include maintenance of all occupied properties, mechanical, electrical, landscaping, and any other repairs our tenants may need. The second division of TMMP will focus on the real estate side of the business. This side of the business, ran by Tyler and Michael, will require real estate licensing to fulfill Massachusetts law of education requirements, application procedures, examinations, proof of surety bonds, and one year of practice. Tyler and Michael are also going to lease, rent, list, procure prospects or negotiate, and/or offer to perform any of these acts while working as a broker and manager to TMMPs business.

2.1 Startup Summary

The total start-up expenses will include legal, architecture, insurance, utilities, rent, construction, equipment, transportation, first building purchased, and consultants. Tyler and Michael will also be investing $50,000 of their own money to start TMMP. Start-up expenses and funding required and, therefore, TMMP is seeking $650,000 to cover sales costs and expenses. Further details of finances are highlighted in the Financial Summary (5.1).

2.2 Property Management Services

2.2 (A) TMMP and its services, under the division of property management and maintenance, will be having close association with Casey Shade and Company. These services will run on a 24 hour basis providing the following services to its clients: Interior and Exterior Maintenance Electrical and Mechanical Equipment Maintenance Office Cleaning Landscaping Snow Removal Sanitation Collection and coordination 4

2.2 (B) Along with the basic amenities and services that a typical property management company would provide, TMMP will be creating a web-based portal that will be compatible with LConnect the Wentworth based web portal that students can go on to connect with TMMP. This will be a great way to allow students and potential customers to voice opinions, concerns, connect with TMMPs management, locate potential properties, and talk to other students who have rented with TMMP before. The TMMP portal will also be providing Hi-Definition footage of each unit, allowing potential clients to view our property completely to see if it fits their needs. The TMMP Portal will provide the following services to its Wentworth customers: Focus groups Transportation inquiries Video layouts for viewing units online Personal profile, login, and interests pages

2.3 Company Ownership and Management Team

TMMP will be owned and operated by Tyler Monteros and Michael Paglino, who will assume all risks and control 90% of the company. The other 10% of the company will be owned by private investors, in which Tyler and Michael are seeking to get TMMP off the ground. Tyler Monteros Co-founder and Chief Operations Officer. In charge of the detailed operations day to day of TMMP. This includes the structure of the company, financial aspects, and client relations and contacts. This also includes sales and managing specific relationships with the Wentworth community. Michael Paglino Co-founder and Chief Executive Officer. Michael, as CEO, will be in charge of managing the entire team, implementing goals and direction, new business, and strategy and analytics.

2.4 Company Locations and Facilities

TMMP headquarters will be in Mission Hill and is our current building will be the heart of our company. At our headquarters, we will be installing additional phone lines for customer service needs as well as new business acquisitions. The building will be small, to fit within budget, in hopes of further expansion into larger offices after a couple years. TMMP is in the final stages of locating the first property for purchase on Mission Hill near the campus of Wentworth. The address for the property is going to be located at 11 Sachem Street, Boston MA 02120. It is a 100 year old building and has a lot size of 3,439 square feet. The total price of the building is $600,000. The building is a triplex and offers 3 separate units that include 12 bedrooms, and 4.5 bathrooms. Each unit has 4 bedrooms and an average price per unit of roughly $3,600 a month, which is about $850 per person.

3.0 Market Analysis and Summary

TMMPs target market will be the students of Wentworth seeking convenient and affordable off campus living. Wentworth consists of 3,721 students with 51.0% of them living in off-campus housing. These off-campus students will be in search of units that are safe, close to campus, easily accessible to public transportation, and a top quality service and atmosphere essential for professional and scholarly success.

3.1 Competitive comparison

TMMPs competition will be the surrounding property management companies near Wentworths campus. Currently, no property management company specifically caters towards Wentworth students. Therefore, TMMPs competition cannot provide the empathetic services and the ability to relate to the living needs of Wentworth students/clients like TMMP will be able to do.

3.2 Market Conditions

Average renting prices growth and decline rate Mission Hill Neighborhood Img (3.2ii)

4 Bedrooms Any baths 4 Bedrooms

2004 Price: Responses: % change: $2,941 6 -2.46%

2005 $3,600 2 28.15%

2006 $3,600 3

2007 $3,100 2

2008 $3,416 3 12.64%

2009 $3,490 4 2.63%

2010 $3,614 1 3.81%

2011 $3,468 6 -4.4%

2012 $3,933 3 16.21%

0% -16.67%

3.2i
The image of the graph and the information below shows the average renting price per month projected in the past 8 years included the current year of 2012. This research shows that in 2012 the average renting rate will be around $3,933.00 in the Mission Hill area. The graph proves TMMP will have a competitive edge over the market with their low projected renting cost being $3,200.00 a month for a 4 bedroom unit, all while still maintaining a high-quality modern look.

Property Values Growth and Decline Mission Hill Img (3.2ii)

3.2ii
This graph shows the average sales price and property values from the year 2000-2012. As shown, the property value follows similar trends. The graph indicates a long period of growth from 2000 till the large drop off in 2007/2008. If trends repeat themselves, and the market is at its all-time-low, then now would be the perfect time to buy properties in anticipation for the housing market to have another similar long period of growth.

Percentage of WIT students who live off-campus; out of 3,721

This graph indicated that 1,898 students live off campus at Wentworth who can be potential clients of TMMP.

3.2 (A) Market Trends

The property management industry, because of the real estate aspect, is an industry that is ever evolving. One of the major trends in TMMPs market is the advancement and upkeep of technological innovation in order to stay up to date with their modern potential clients. It is also essential to stay up to date with the fluctuating property values in and surrounding the Wentworth community. With TMMPs empathetic approach to understanding the students at Wentworth, it will be imperative to stay closely involved and interested in Wentworth students and faculty. *This process is previously described in section 2.2b Property Management Services.*

3.2 (B) Market Growths

The market for high quality, reasonably priced apartments has had quite a decline since 2007 however there has been a 6.7% average increase in the housing market around the Wentworth community area since 2011. In the past month alone, the average listing price in Mission Hill went up from $247,000 to $257,000 showing the potential growth in this community. In 2008, Wentworths community neighborhood was named one of the top 25 Best Zip Codes in Massachusetts by the Boston Globe, citing increasing value in single-family homes, wide array of restaurants and shopping, a marked racial diversity and that 65% of residents walk, bike or take transit to work and school.

3.3 Market Needs

Each of our clients is in need of modern high quality services geared towards high convenience, safety, service, technological amenities, and a personal understanding of the challenges they meet while searching for an off-campus living space. 1. The student segment will be consisting of only Wentworth students who will be seeking special living arrangements that which make all around living and going to school as easy and convenient as possible. They will be looking for convenience in the location, property

amenities, modern layout, a proper learning atmosphere for scholastic studies, and for it also to be safe enough to feel comfortable leaving the house whenever needed. 2. The alumni professionals segments are going to be looking for a similar living arrangement. Being Wentworth Graduates ourselves we know that these professionals are going to want a modern more spacious living environment with convenient public transportation access as well as a professional atmosphere for business work. This professional will also need to be ensured that the living space is safe and has the latest technological amenities available for professional business use.

4.0 Strategy and Implementation Summary

Since our target market is primarily revolving around the higher education at Wentworth and young professionals who just recently graduated, TMMP will build a strategy that revolves around becoming part of the Wentworth community. Residents in our target demographic are looking for high quality, but very low cost living units. They are also looking for convenience and compatibility of location when they are looking to rent a unit. As Wentworth students, Tyler and Michael understand this and have created a marketing strategy to cater to the students specific needs.

4.1 Competitive Edge

Being the only company to work with, and focus on Wentworth students, TMMP will already have an advantage. This advantage is part of TMMPs strategy into obtaining a loyal client base of WIT students.

4.2 Marketing Strategy

Marketing to college students who, primarily, want affordable living units, in an industry with hundreds of property management companies, is not an easy task. Smaller companies can very easily get suffocated within the industry of large real estate giants. Thus, the only true way to get noticed and build a portfolio of loyal clients is to provide un-matched quality and a user experience that is generated through word of mouth and a sense of community. Our marketing strategy is going to rely, heavily, on the Wentworth community and with the help of the faculty and staff at Wentworth. The idea is to create trust between TMMP and the students so it makes it easy for first time renters to locate housing, access information and talk to fellow renters to make the process easier and more convenient. To make the process of looking for off campus housing easier, TMMP will have its portal that is easily accessible through Lconnect, which was previously described in the services section. 2.2(B)

5.0 Financial Summary

Startup expenses include legal, stationery, architect, brochures, consultants, insurance, rent, construction, expensed equipment, etc. Additional cash is needed to pay for our first building, and cost of sales.

5.1 Projected Income Statement

The projected income statement has sales increasing for the first four years and then leveling off in year 5. Sales for TMMP will be accumulated through rent charged to our tenants at an increase of $25 per year per tenant.

Pro Forma Profit and Loss

Sales Building Purchased Other cost of sales (maintanence) Total Cost of Sales Gross Margin Expenses Payroll Marketing/Promotion Insurance Transportation Legal Home Office Overhead Rent Utilities Supplies Total Operating Expenses Net Profit Year 1 $ 115,200 $ 600,000 $ $ $ $ $ $ $ $ $ $ $ $ $ 5,000 605,000 (489,800) 50,000 1,500 3,000 750 300 1,600 200 450 57,800 (547,600) Year 2 $ 118,800 $0 $ $ $ $ $ $ $ $ $ $ $ $ $ 5,000 5,000 113,800 50,000 1,500 3,000 750 300 1,600 200 450 57,800 56,000 Year 3 $ 122,400 $0 $ $ $ $ $ $ $ $ $ $ $ $ $ 5,000 5,000 117,400 50,000 1,100 3,000 750 300 1,600 200 450 57,400 60,000 Year 4 $ 126,000 $0 $ $ $ $ $ $ $ $ $ $ $ $ $ 5,000 5,000 121,000 50,000 1,100 3,500 750 300 1,600 200 450 57,900 63,100 Year 5 $ 126,000 $0 $ $ $ $ $ $ $ $ $ $ $ $ $ 5,000 5,000 121,000 50,000 1,000 3,500 750 300 1,600 200 450 57,800 63,200

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5.4 Projected sales

Projected sales for TMMP will increase at an expected rate of about 3% a year with TMMP increasing rent prices at $25 per year.

Sales
$128,000 $126,000 $124,000 $122,000 $120,000 $118,000 $116,000 $114,000 $112,000 $110,000 $108,000 Year 1 Year 2 Year 3 Year 4 Year 5

Sales

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