Real estate & rental
Property Management Revenue Calculator
Projects management revenue, where the recurring base is the asset.
Result
Service lines rarely carry the same margin. Splitting them is the only way to see which part of the business is paying for the rest, which is frequently not the part that looks busiest.
Get a Free Business AuditHow the calculation works
Units under management times the average monthly fee, plus expected leasing and ancillary revenue, giving monthly and annual revenue. The recurring base is the valuable part, since it continues without resale effort, and the projection should separate it from the transactional leasing income that depends on turnover.
What moves the number
- Units under management and the average fee per unit.
- Retention of owners, which compounds the base.
- Turnover rate, which drives leasing revenue.
- New units won per month.
Where this one goes wrong
Leasing revenue depends on turnover, which means it rises when the portfolio is churning, and a manager who treats it as growth can be reading instability as success. Separate it from the recurring base in any projection. Owner retention is what compounds, and a business adding units while losing owners at a similar rate is working hard to stand still, which the gross figures conceal.
Before you quote
- Separate recurring fees from transactional leasing revenue.
- Track owner retention alongside units won.
- Model the base net of churn, not gross of it.
Questions
About this calculator
Is leasing revenue a sign of growth?
Not necessarily, since it rises when the portfolio is churning. A manager reading it as growth may be reading instability as success, which is why it should be separated from the recurring management fee base in any projection.
What makes a management business valuable?
The recurring base of units under management, because it continues without resale effort. That is what compounds and what a buyer would pay for, which makes owner retention the central metric rather than units won.
Why track retention alongside new units?
Because a business adding units while losing owners at a similar rate is working hard to stand still, and gross figures conceal that entirely. Net growth is the number that tells you whether the effort is accumulating anything.
The formula
revenue = transactions x average value; gross profit = revenue x margin
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How to use this calculator
- Transactions per month. Enter your own figure; the page starts at 28.
- Average value ($). Enter your own figure; the page starts at $9,400.
- Gross margin on this work (%). Enter your own figure; the page starts at 62%.
- Share of total revenue (%). Used to show what the whole business turns over.
The result updates as you type, so you can try a figure, see what it does to commission revenue per month, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Transactions per month | 28 |
| Average value | $9,400 |
| Gross margin on this work | 62% |
| Share of total revenue | 40% |
What comes out
| Result | Value |
|---|---|
| Commission revenue per month main result | $263,200 |
| Per year | $3,158,400 |
| Gross profit per year | $1,958,208 |
| Implied total business revenue | $7,896,000 |
The repair line brings in $3,158,400 a year and earns $1,958,208 of gross profit on it.
How sensitive the answer is
Holding everything else steady and changing only average value, this is what happens to commission revenue per month. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Average value ($) | Commission revenue per month |
|---|---|
| $4,700 | $131,600 |
| $7,050 | $197,400 |
| $9,400 example above | $263,200 |
| $14,100 | $394,800 |
| $18,800 | $526,400 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Transactions per month
- A number, between 0 and 10000, starting at 28.
- Average value ($)
- A money amount, starting at $9,400.
- Gross margin on this work (%)
- A percentage, between 0 and 95, starting at 62%.
- Share of total revenue (%)
- Used to show what the whole business turns over.
What the results tell you
| Result | What it is |
|---|---|
| Commission revenue per month | The headline result. A money figure. |
| Per year | A money figure. |
| Gross profit per year | A money figure. |
| Implied total business revenue | A money figure. |
What is not in this number
Property figures here exclude the costs that decide whether a deal works: vacancy, maintenance, management, capital expenditure and the transaction costs at both ends. A return that looks strong before those frequently does not survive them.
Estimating is the easy part
The jobs you never hear about cost more than the ones you mis-measure. BDEVY builds the marketing, systems and automation that bring them in.