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Executive Summary
Era Living is a rental accommodation company in Los Angeles. Our target market is students and young professionals in Los Angeles. We have properties in Westwood, close to the UCLA campus, and in North Hollywood. We aim to open two new buildings next year, one in Westwood and one on the outskirts of downtown Los Angeles. Tenants can choose from unfurnished, semi-furnished, and fully furnished units. The rental market for students and young professionals has ample opportunity for growth. Growth of 8% is expected over the next three years. Market trends include a demand for high-quality, affordable housing, proximity to businesses and learning institutions. We were founded in 2015 by Sarah Coltman, Jesse Kreef, and Jac Dennings. They are the principal investors and owners. Era Living has taken the market by storm and is one of the top preferred accommodations by students and young professionals alike. We grew from one property in 2015 to five by 2024. Our mission is to change the rental market. Tenants are being taken advantage of under the guise of high demand. Rental units are grossly overcharged. Era Living aims to provide an accommodation solution for any budget without sacrificing a good quality of life. Our varied offerings, along with our all-inclusive services, continue to attract people like bees to honey.
Era Living is seeking $500,000 in owner equity, alongside a $6,200,000 construction loan, to complete and lease up its two new buildings in the first 12 months.
Financial highlights:
| Metric | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue | $6,512,780 | $8,164,395 | $9,638,470 |
| Gross margin | 66.2% | 63.2% | 65.5% |
| Net profit / (loss) | ($280,528) | $260,689 | $1,046,998 |
Company Overview
Era Living - entering the best era of your rental life. Our mission is to make renting feel like a luxury experience. If you opt for our fully furnished unit, you can experience the full extent of that mission. Sarah Coltman, Jesse Kreef, and Jac Dennings are the founders and primary investors of this limited liability company based in Los Angeles, California. Era Living is a rental company serving students and working professionals in proximity to the UCLA campus. We also have a building in North Hollywood. The company started as an accommodation solution for students, but quickly turned into more. The first Era Living building was established in 2015 around the corner from the UCLA campus in Westwood, Los Angeles. It came at a time when off-campus student living was a grim affair. We presented a modern alternative amongst outdated buildings. Our selling point is how customizable everything is. You choose your unit, term of stay, how furnished you want it and you can even choose who your neighbor is if you book at the same time as them. Staying in an Era Living building is meant to feel like you’re in a hotel - without needing to go home the next morning. This concept is what skyrocketed Era Living’s success. We expanded to include the graduates who loved their Era Living student lodgings and wished for something similar in their young professional lives. More than ten years later, we have buildings across Los Angeles filled to the brim with happy tenants. We are approved by most major scholarship programs and are a preferred partner for student lodging.
Legal structure: LLC
Mission: To deliver exceptional residential rental company services to clients in Los Angeles, California, USA, building long-term relationships through quality, reliability, and deep expertise.
Objectives:
- Year 1: Complete and open the two new buildings, reach revenue of $6,512,780, and keep occupancy at 85%
- Year 2: Expand service capacity, grow revenue to $8,164,395, and hire additional staff
- Year 3: Grow net profit to $1,046,998, strengthen market position, and evaluate expansion opportunities
Market & Customer Analysis
Los Angeles is a prime city for the rental market. The rental market has grown by 2.1% over the past five years. There is a disparity between the demand and supply for rental units, allowing lessors to charge high rates because people are desperate. Most residents are not native and find themselves renting when they move to the city. The housing market is of such a nature that buying is impossible for most middle-class people. The market for high-quality yet affordable rental units has grown by 8% in the last year alone. Many rental properties are run down, and landlords take advantage of people’s need to stay close to the university or their workplaces in the city. Additionally, the entertainment industry is picking up again, and more people are moving to Los Angeles, but they are stuck choosing between bad and worse accommodations— the noise of downtown at an affordable price or a cottage in the suburbs far from everything. Era Living is capitalizing on this situation and has two new buildings opening next year. One is just on the outskirts of downtown. This means it is still affordable but away from chaos. The other, in Westwood, is a gated cluster-home development for young families and people looking to downsize.
Customer analysis:
Era Living’s primary customer segment is students from UCLA and other tertiary institutions in the city. They actively seek out our buildings because they are technologically advanced, aesthetically pleasing, safe, and affordable. The university has a larger intake each year, so we expect this customer segment to keep growing. Furthermore, we have seen an increase in the number of working professionals interested in our apartments. It makes sense because our units are priced similarly to apartments with unconventional building setups but offer so much more. “A furnished one-bedroom apartment for the same price as an unfurnished small studio is a sweet deal,” one new tenant said. Since our launch in 2015, we have shifted our customer base to include young professionals, too. They are individuals who have been out of college for less than five years and identify more with the lifestyles of college students than homeowners. We offer everything a young professional could need: security, internet access, utility bill included in rent, and an aesthetically pleasing apartment. Our customer base is segmented as follows: College students aged 19-22 are the consumers of the student accommodations. There are outliers, but the vast majority of the customer group falls within this age range. Our other properties serve recent graduates and young professionals between the ages of 22 and 30. Students and young professionals make up a large portion of the rental customers in Los Angeles. The customer segments have their own demographics, housing preferences, budget considerations, neighborhood preferences, lifestyle and amenity preferences, and challenges and pain points.
Competitor analysis:
| Competitor | Strengths | Weaknesses |
|---|---|---|
| Essex Property Trust | Large West Coast apartment portfolio | Standard leases; not focused on students |
| Aimco | Large national owner and developer | Not focused on student or furnished housing |
| Equity Residential | Large urban apartment portfolio | Standard lease terms; less customizable units |
Era Living’s competitive edge: Specialist expertise, personalized service, and a clear focus on the underserved segment of the market set us apart from the established players listed above.
SWOT analysis:
| Positive | Negative | |
|---|---|---|
| Internal | Strengths: Trading since 2015 with five buildings; three experienced co-founders; 85% occupancy; customizable furnished units; scholarship-program partnerships | Weaknesses: Four of five buildings in one area; heavy debt during the build-out; Year 1 loss while new buildings lease up |
| External | Opportunities: Growing UCLA intake; demand from young professionals; family and downsizer market for the Westwood cluster homes | Threats: Large landlords with greater resources; construction or permit delays; rent regulation changes and rising interest rates |
Sales & Marketing Plan
Era Living has five operating apartment buildings and two new ones opening in a year. Four out of the five open buildings are in the Westwood area. One building is in North Hollywood. The new buildings are in Westwood and Downtown, respectively. The existing buildings are all charming mid-rise buildings. They have five floors each and about eight units per floor. The units range from bachelor units to four-bedroom units. Bachelor units start at $1,800 a month, and the multi-bedroom units range between $3,200 and $6,500 a month. The new building in Westwood will follow a cluster living layout. The inspiration was taken from South African estates. It features houses next to one another in a gated community setup. It’s more of a complex than an apartment building - much different than what we’ve been doing. We will be marketing this building to young and small families or people looking to downsize. Our sales plan is letting the business talk for itself. We have reached a point where our buildings are constantly at 85% occupancy. This is because we laid the groundwork years ago when we launched Era Living.
Pricing strategy: Pricing is set to be competitive within the Los Angeles, California, USA market while reflecting the quality and specialist nature of the services delivered. All pricing is reviewed annually against market benchmarks.
Marketing channels:
- Digital presence (website + SEO) — professional website with content marketing to attract organic search traffic from clients searching for residential rental company services in Los Angeles, California, USA
- Social media — active presence on relevant platforms to build brand awareness and engage prospective clients
- Referral program — incentivized referral program for existing clients; target 30% of new clients via referral by end of Year 2
- Local networking and partnerships — attendance at industry events and partnerships with complementary businesses in Los Angeles, California, USA
- Google Ads — targeted paid search campaigns for high-intent keywords during launch phase
Marketing budget Year 1: $115,100 (1.8% of projected revenue)
Additional marketing notes:
Since our launch in 2015, social media has been our only marketing tool. Our target market at the time, exclusively university students, used social media to do all their research anyway. Utilizing marketing methods that our target market didn’t find valuable wasn’t worth it to us. Outside our social media pages, we have a website so that we can be found via a web browser search. Era Living has Twitter, TikTok, Instagram and Pinterest pages. The first three are for publishing short and long-form content about our buildings and doing customer service queries. The Pinterest page features a collection of submissions from our tenants. An aesthetically pleasing space is a major part of our marketing, and the Pinterest pages drive that home. Potential residents are able to envision their lives in our buildings.
Operating Plan
The main goal we are focusing on in Year 1 is the launch of our two new buildings. All organizational activities outside day-to-day operations will be directed to ensure that the launches are successful. This business plan is being designed for those buildings, so the operating plan will focus on them. Quarter one is dedicated to finalizing all the permits related to the two buildings. Leah LeBlanc will be responsible for that. Quarter two is just waiting for the marketing cycle to begin as construction will be complete at this point. In quarter three, the marketing campaign for the buildings will begin. We’ll send emails informing current residents of Era Living and offering them extra benefits if they sign a lease or refer a friend before the official launch date. The marketing team is responsible for this. The sales team along with the leasing department will then process any applications that come in before quarter four ends.
Staffing plan:
| Role | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Sarah Coltman, Jesse Kreef, (Owner / Director) | Full-time | Full-time | Full-time |
| Operations / Senior Staff | Full-time | Full-time | Full-time |
| Support / Junior Staff | Full-time | Full-time | Full-time |
Legal & compliance:
- All required licenses and permits for residential rental company operations in Los Angeles, California, USA
- Professional liability and general liability insurance
- Data protection compliance in accordance with applicable laws
- Health & safety policies and risk assessments in place before each new building opens
Management Team
Sarah Coltman, Jesse Kreef, and Jac Dennings met at Harvard Business School. They each have degrees in business management. Sarah went on to get her real estate license and has been in the industry for 12 years. The three founders and principal investors have a large investment portfolio, featuring international stocks and some of the biggest businesses in America. Management work that they cannot do themselves is handled by our operations team or outsourced.
Sarah Coltman, Jesse Kreef and Jac Dennings — Founders & Directors
Advisory support: The business works with an experienced accountant and outside property advisers, who provide financial oversight and strategic guidance as the two new buildings open.
Financial Plan
Projected Profit or Loss Statement (in USD):
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Sales | $6,512,780 | $8,164,395 | $9,638,470 |
| Direct Cost of Sales | $1,402,650 | $1,863,170 | $2,128,940 |
| Production Payroll | $798,400 | $1,141,300 | $1,198,700 |
| Total Cost of Sales | $2,201,050 | $3,004,470 | $3,327,640 |
| Gross Margin | $4,311,730 | $5,159,925 | $6,310,830 |
| Gross Margin % | 66.2% | 63.2% | 65.5% |
| Operating Expenses | |||
| Sales and Marketing Expenses | |||
| Sales and Marketing Payroll | $412,600 | $468,900 | $482,300 |
| Advertising/Promotion | $96,400 | $71,800 | $64,300 |
| Other Sales and Marketing Expenses | $18,700 | $21,400 | $23,100 |
| Total Sales and Marketing Expenses | $527,700 | $562,100 | $569,700 |
| General and Administrative Expenses | |||
| General and Administrative Payroll | $618,400 | $641,200 | $664,800 |
| Depreciation | $1,467,042 | $1,472,368 | $1,478,502 |
| Dues and Subscriptions | $6,800 | $7,100 | $7,400 |
| Professional Fees | $148,600 | $96,300 | $101,200 |
| Software Purchases | $32,400 | $44,700 | $46,900 |
| Insurance | $186,300 | $254,800 | $268,100 |
| Telephone and Internet Access | $11,200 | $13,600 | $14,100 |
| Miscellaneous | $42,600 | $51,300 | $54,800 |
| Payroll Taxes | $173,793 | $213,883 | $222,851 |
| Total General and Administrative Expenses | $2,687,135 | $2,795,251 | $2,858,653 |
| Total Operating Expenses | $3,214,835 | $3,357,351 | $3,428,353 |
| Profit Before Interest and Taxes | $1,096,895 | $1,802,574 | $2,882,477 |
| EBITDA | $2,563,937 | $3,274,942 | $4,360,979 |
| Interest Expense | $1,377,423 | $1,541,885 | $1,511,113 |
| Taxes Incurred | $0 | $0 | $324,366 |
| Net Profit | ($280,528) | $260,689 | $1,046,998 |
| Net Profit/Sales | (4.3%) | 3.2% | 10.9% |
Projected Cash Flow Statement (in USD):
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Cash Received | |||
| Cash from Operations | |||
| Cash Sales | $6,317,397 | $7,919,463 | $9,349,316 |
| Cash from Receivables | $191,430 | $225,112 | $271,465 |
| Subtotal Cash from Operations | $6,508,827 | $8,144,575 | $9,620,781 |
| Additional Cash Received | |||
| New Long-term Liabilities | $6,200,000 | $0 | $0 |
| New Investment Received | $500,000 | $0 | $0 |
| Subtotal Cash Received | $13,208,827 | $8,144,575 | $9,620,781 |
| Expenditures | |||
| Expenditures from Operations | |||
| Cash Spending | $2,003,193 | $2,465,283 | $2,568,651 |
| Bill Payments | $3,353,821 | $3,927,773 | $4,521,546 |
| Subtotal Spent on Operations | $5,357,014 | $6,393,056 | $7,090,197 |
| Additional Cash Spent | |||
| Long-term Liabilities Principal Repayment | $318,600 | $489,200 | $519,700 |
| Purchase Long-term Assets | $7,926,500 | $186,400 | $214,700 |
| Dividends | $0 | $0 | $400,000 |
| Subtotal Cash Spent | $13,602,114 | $7,068,656 | $8,224,597 |
| Net Cash Flow | ($393,287) | $1,075,919 | $1,396,184 |
| Cash Balance | $1,453,013 | $2,528,932 | $3,925,116 |
Projected Balance Sheet (in USD):
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Assets | |||
| Current Assets | |||
| Cash | $1,453,013 | $2,528,932 | $3,925,116 |
| Accounts Receivable | $78,153 | $97,973 | $115,662 |
| Total Current Assets | $1,531,166 | $2,626,905 | $4,040,778 |
| Long-term Assets | |||
| Long-term Assets | $51,346,500 | $51,532,900 | $51,747,600 |
| Accumulated Depreciation | ($7,575,042) | ($9,047,410) | ($10,525,912) |
| Total Long-term Assets | $43,771,458 | $42,485,490 | $41,221,688 |
| Total Assets | $45,302,624 | $45,112,395 | $45,262,466 |
| Liabilities and Capital | |||
| Current Liabilities | |||
| Accounts Payable | $155,652 | $193,934 | $216,707 |
| Subtotal Current Liabilities | $155,652 | $193,934 | $216,707 |
| Long-term Liabilities | $25,521,400 | $25,032,200 | $24,512,500 |
| Total Liabilities | $25,677,052 | $25,226,134 | $24,729,207 |
| Paid-in Capital | $14,700,000 | $14,700,000 | $14,700,000 |
| Retained Earnings | $5,206,100 | $4,925,572 | $4,786,261 |
| Earnings | ($280,528) | $260,689 | $1,046,998 |
| Total Capital | $19,625,572 | $19,886,261 | $20,533,259 |
| Total Liabilities and Capital | $45,302,624 | $45,112,395 | $45,262,466 |
| Net Worth | $19,625,572 | $19,886,261 | $20,533,259 |
3-year profit & loss projection:
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $6,512,780 | $8,164,395 | $9,638,470 |
| Property maintenance and management costs | $2,201,050 | $3,004,470 | $3,327,640 |
| Gross profit | $4,311,730 | $5,159,925 | $6,310,830 |
| Gross margin | 66.2% | 63.2% | 65.5% |
| Salaries and wages | $1,204,793 | $1,323,983 | $1,369,951 |
| Marketing and advertising | $115,100 | $93,200 | $87,400 |
| Other operating costs (incl. depreciation) | $1,894,942 | $1,940,168 | $1,971,002 |
| Total operating expenses | $3,214,835 | $3,357,351 | $3,428,353 |
| Interest and income tax | $1,377,423 | $1,541,885 | $1,835,479 |
| Net profit / (loss) | ($280,528) | $260,689 | $1,046,998 |
Break-even analysis:
- Estimated fixed monthly costs: $267,900
- To cover fixed costs, Era Living needs to generate approximately $404,700 in monthly revenue
- Break-even is projected to be reached in Year 2, once the two new buildings are leasing
Key financial assumptions:
- Revenue growth of 25% in Year 2 and 18% in Year 3 based on planned capacity expansion and marketing investment
- Property maintenance and management costs estimated at 33-37% of revenue throughout the forecast period, consistent with industry benchmarks
- Staffing costs, including property and maintenance staff, set at about 27-31% of revenue, scaling incrementally with new hires in Year 2 and Year 3
- Marketing budget set at about 0.9-1.8% of revenue; reviewed quarterly and adjusted based on channel performance
- No bad debt assumed; payment terms enforced from day one
Funding requirements:
Era Living is seeking $500,000 in owner equity and a $6,200,000 construction loan to fund the following:
| Use of funds | Amount |
|---|---|
| Completion and fit-out of two new buildings | $6,450,000 |
| Lease-up working capital | $135,000 |
| Marketing launch | $75,000 |
| Legal, permits, and professional fees | $40,000 |
| Total | $6,700,000 |
The remaining Year 1 building costs are met from existing cash reserves.
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