Financial Insights – Benchmarking the Four Strategies Lisa Pentland & Craig Heath

Why Benchmark? ▪Property management is known to be a cash flow stabiliser - but is that the sum of it? ▪Do more managements = more profit in your business? ▪Is profit opportunity being lost? ▪Can Property Management be a profit centre in its own right?

Collecting Accurate Financial Data ▪Different revenue streams of the business ▪Understanding cost per management & water-levels ▪Staffing structures ▪Details around overheads

Business Profiles 130 Offices Number of Managements23 Avg Weekly Rent$214 Avg 400 $700 Management Fee4.75% Avg 6.82% 8.30%

Actual Data

Optimisation

Revenue Optimisation ▪Increase revenue by 14.3% ▪Average equivalent to $106,535 ▪Equivalent to the average annual income of 69 properties

What is our cost of business? Desk Costs - Premises Costs - Promotions & Marketing - Technology & Subscriptions - Professional Costs - Operating Costs Average cost per management $1,136

What do we know? ▪We now know the average cost for each property ▪We know what income is needed to make desired profit So... ▪Do we know if our business is profitable and when to say no to bad business?

Waterlevels

Staffing Structure – Avg 460 properties Total Headcount – 6 FTE’s Leadership Team – 0.8 Property Management Team – 3.5 Administration Team – 1.2 Business Development Team – 0.5

Staffing Structure - Business Strategies Data CollectedHyper GrowthMachineRun Lean No. of Managements Leadership Team Property Management Team Administration Team Business Development Team Total Number Staff Properties per person Properties per PM Team

Staff per management

Four Business Strategies – 500 Managements Hyper GrowthMachineRun LeanOther Priorities Revenue 100% Staff Costs65%55%35%20% - 60% Growth Costs12%5%2%0% - 10% Desk Costs32%30%28%30% Total Costs 109%90%65%100% - 50% Profit-9%10%35%0% - 50%

Regarding PM as an independent profit centre for your business Reviewing & monitoring your business vs benchmarks Losing Money