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

2. 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?

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

4. Business Profiles 130 Offices Number of Managements23 Avg 460 2000 Weekly Rent$214 Avg 400 $700 Management Fee4.75% Avg 6.82% 8.30%

5. Actual Data

6. Optimisation

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

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

9. 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?

10. Waterlevels

11. 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

12. Staffing Structure - Business Strategies Data CollectedHyper GrowthMachineRun Lean No. of Managements 460500 Leadership Team 0.80.51.50.3 Property Management Team3.5544 Administration Team 1.2222 Business Development Team 0.5420 Total Number Staff 611.59.56.3 Properties per person77435379 Properties per PM Team131100125

13. Staff per management

14. 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%

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