RE Asset Management? Model & What to Look for?

few things going on here. I'll start at the top and walk you through what I think is important in each model. I'm sure there's many better ways to do it...but this was my approach..

1.) For MF, your front desk team is probably the most important. Because mostly all of the expenses are paid by the tenants in the building, I think the AM platform for residential is very revenue oriented. Since you're paying them a salary to bring people into the building and keep occupancy high with attractive rates, tracking your conversion ratio was always important to me. One thing to do is track this by market across your properties, assuming you have an in-house management platform. This helps create some friendly competition among the PM's at each property...

2) Tracking vacancy is equally as important. Looking at expiration, and where they are going/if they're renewing/etc. is important. This helps you determine if your pricing strategy is at the right point. Another report that I forgot to include is your market rent summary. If I find this one Ill attach later. there's a summary version attached below which ill get to..

3) the blue/orange/gray bar chart is for office properties. In Office, your capital expense is a huge item to be mindful of, as well as your overall controllable expenses, depending on the bldg recovery ratio. So here, I tracked our building's expenses across each region, since there are differences for each. I think it's important to track it on a "$/SF" basis to normalize out differing SF/$ allocations across markets. Obviously, if you have 10 blgs in the NE and 2 in the SE, you're going to have higher expenses on a $-$ basis when looking at both markets... The top right to me is the most important...This shows the variance in expenses compared to the budget for the year. It also shows the average recovery ratio for each region. The point of this is to say, okay...lets say the PM blew expenses compared to budget, but they're in a 95% recovery ratio building. I'd say ookkkkkkk, fine, doesn't hurt out bottom line as much...but tell me we at least got some new tenants for this. It's important to stay on PM's with high recovery ration buildings, because sometimes they might think it doesn't matter. But then you get a bunch of base year re sets or rollover, and you're left holding the bucket... Note that the particular graph I attached was for utilities, but I track all major expenses, especially controllable ones and Admin in this format to get a macro view of what regions are causing problems, and what properties in those regions are causing problems.

4.) Effective Rent / Total Revenue graph. This tracks a bldg/region/portfolio level performance vs budget and prior year. This removes any noise for vacancy, concessions etc. Shows NET RENT, and how we're trending vs budget and prior year. Most important I think it making sure there are no major differences compared to budget, especially in Q1/Q2.

5.) Income statement graph shows the whole story. Looking at NOI, where you are vs budget to me is very important. Not so much for PM's to see, but I think its necessary to tie the two together. be able to understand how HVAC replacements or revenue misses ultimately are effecting the asset/portfolio's NOI, and by how much..

Hope this helps...