The Numbers That Run a Property Business

Management accounts, KPIs and cashflow forecasting

Most small property businesses are run on a feeling rather than a figure. This book gives you the numbers that show at a glance whether the whole business is healthy, where it leaks money and whether next month's obligations are covered: management accounts, key performance indicators and a cashflow forecast you can trust. It explains the core figures, the KPIs that judge them, return on capital and the rhythm of reviewing them, and where to find the data in your own records and in free tools. You will learn the difference between rent billed, earned and collected, cash and accrual accounting, and effective rent, then the operating costs, finance costs and forgotten costs that owners under-count. The forecast is stress-tested for a bad month, a void, a rate rise and the refinancing window, producing a reserve target. A worked example builds the numbers for a small portfolio, and the final chapter gives you a one-page monthly reporting pack. Next in this series: “Structure, Insurance and Protection”.

What’s inside

• The only numbers that actually matter
• Where to find reliable data for free
• Working out true income, not optimistic income
• The full cost stack nobody mentions
• Stress-testing for the bad month, the void, the rate rise
• A complete worked example, start to finish
• Your reporting pack, and the legal questions it cannot answer

Educational material only, not financial, legal or tax advice. Results are not typical and are not a guarantee of income. Freedom Property Academy LTD, registered in England and Wales.