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Managing with Metrics – What Numbers Can Tell You About Your Business Eric Wetherington Director/Broker Carolina One Property Management.

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Presentation on theme: "Managing with Metrics – What Numbers Can Tell You About Your Business Eric Wetherington Director/Broker Carolina One Property Management."— Presentation transcript:

1 Managing with Metrics – What Numbers Can Tell You About Your Business Eric Wetherington Director/Broker Carolina One Property Management

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3 Are You Measuring Your Business? Budget Basic Tracking Advanced Tracking

4 “The great majority of people are ‘wandering generalities’ rather than ‘meaningful specifics’. The fact is that you can't hit a target that you can't see. If you don't know where you are going, you will probably end up somewhere else. You have to have goals.” ― Zig ZiglarZig Ziglar

5 Objectives 1.What Are Metrics? 2.Why Should I Measure Anything in My Business? 3.What Should I Measure in My Business? 4.What Can I Do With Numbers Once I Am Measuring?

6 What Are Metrics? Standards of measurement by which efficiency, performance and progress can be assessed. Businessdictionary.com

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8 Performance

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11 Progress

12 Why Measure?

13 “Measuring business performance will keep you focused on the strengths and weaknesses of your business. When you know where to focus your attention, you can use specific problem solving techniques and decision making tips to help minimize areas of weakness.” Kris Bovay

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15 What Should I Measure? Actionable AccessibleAuditable

16 The Basics Applications Received Applications Approved Move Ins Move Outs New Managed Units Total Units Occupied Units Occupancy Rate Vacant Units Rent Collected Average Rent

17 What Can I Do With Basic Numbers?

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20 Simplify menu Drop low-selling items Give more regional control to add menu items

21 Big City Property Management Rent Collected 2013

22 The Basics Applications Received Applications Approved Move Ins Move Outs New Managed Units Total Units Occupied Units Occupancy Rate Vacant Units Rent Collected Average Rent

23 Avg. Monthly Rent $1, Total Monthly Rent $1,461, Portfolio NameUnit Name Dogwood Rd 183 Decatur LLC183 Decatur Drive 186 Smith Street LLC186B Smith Street 186 Smith Street LLC186A Smith St 186 Smith Street LLC186C Smith Street 197 Decatur LLC197 Decatur Drive 233 Little Oak LLC c/o Michael Oshaughnessy L Folly Rd 318 Deep River, LLC.318 Deep River Road 414 Decatur Dr LLC414 Decatur Dr 6794 Amberlake Dr LLC6794 Amberlake Dr Showing Rows: 1-10 of 1117 Edit Del Go to ReportGo to Report

24 Advanced Revenue Per Unit Compensation Per Unit FTE’s Per Unit Marketing Expenses Per New Unit Operating Expenses Per Unit Profit Per Unit

25 What Can I Do With Advanced Numbers?

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27 Project Big City Property Management has an opportunity to take on a new customer and add 100 units to its portfolio. Should you take on this new customer? Why or Why Not?

28 Project Average Metrics of Big City Property Management 400 Units Managed Rent $1,000 Revenue per unit $150 Compensation per unit $75 Operating Cost per unit $65 Profit per unit $10 Big Name Investor, Inc 100 units (avg rent $750) 25% discount off management fee Expect weekly calls and daily reports Maintenance performed by their crew only

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32 01/1402/1403/1404/1405/1406/1407/1408/1409/1410/1411/1412/14TOTAL Gross Real Estate Commission Total Income192, , , , , , , , , , , ,452 Commission Paid to Associates Total Commission Expense34,316 36,026 39,025 40,023 40,906 41,521 42,389 43,263 40,550 39,654 38,137 39, ,103 Company Dollar158, , , , , , , , , , , ,161 Office Marketing Subtotal: Office Marketing ,040 Company Marketing (Allocated) Subtotal: Company Marketing1,761 21,132 Total Marketing2,931 35,172 Information Technology Total Information Technology2,018 2,068 2,118 2,168 25,117 Compensation Total Compensation85,841 87,485 90,466 92,028 93,963 94,652 96,423 97,237 95,761 95,691 95,278 96,899 Operating Costs Total Operating19,648 21,665 20,086 20,162 22,725 21,094 21,218 20,703 20,043 20,923 21,066 20, ,391 Total Selling & Operating110, , , , , , , , , , , ,057 1,431,403 Preliminary NOI47,957 51,411 59,722 62,146 66,135 66,111 70,894 70,534 61,365 57,900 53,468 57, ,745 Admin Allocation9, ,345 Profit / (Loss)38,095 41,548 49,860 52,284 56,273 56,249 61,032 60,672 51,503 48,038 43,606 47,242 Net Earning19.8%20.6%23.3%23.8%24.6% 25.9%25.6%23.1%21.9%20.5%21.6% Total Units Occupied Units Move Ins Applications New Units Budget Worksheet

33 A Wandering Generality or a Meaningful Specific?

34 As a result of attending this session… What are two things I am going to start doing or stop doing when I get back to the office?

35 Contact Me Eric Wetherington Carolina One Property Management 4024 Salt Pointe Parkway Charleston, SC


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