Measuring Property Health by Leveraging MRCs and KPIs
Looks can be deceiving, whether from a prospective resident’s perspective while viewing a community for the first time or an accountant who is glancing at spreadsheets trying to understand the financial property health.
A freshly painted exterior may suggest to a prospect that the apartments inside are clean and function flawlessly. To a financial analyst, a property that’s operating in the black may appear to be hitting its financial goals.
But are either really living up to their full billing?
The apartment may have old, outdated appliances that are operating on a shoe string. And the community may not be meeting occupancy goals. In fact, 25 percent of the units are vacant.
The only way the prospect and analyst will discover these issues is by doing their homework.
For the resident, that means doing some research that may include checking reviews and taking a tour. For the analyst, a deeper look into financial performance is necessary.
The analyst can only get a full view of property health– inside and out – by looking at key performance indicators (KPIs), quantifiable values that, together, determine if the property is realizing its potential and meeting financial goals.
A property management accounting system that provides operational visibility using month-over-month comparisons and exponential reporting for trending KPIs will tell the whole story, to not just the analyst but all stakeholders.
Providing operational visibility in the financial system
Backed by dashboard functionality, RealPage’s Accounting is giving multifamily analysts and stakeholders deeper visibility into the performance of the assets they own and operate. The system, which provides transparency into metrics important to internal and external stakeholders, has broadened the scope of reporting so operators can drill down into KPIs using management reporting codes (MRCs).
The system merges financial reports with operational data to give a holistic view of the community or portfolio through reports that are diced and sliced into varying levels of granularity so that analysts gain further operational visibility.
MRCs, which are created within the system, are used to classify assets and tailor KPI reporting. Codes break down financial information by region, asset type and class, fund managers, funding source and others to offer visibility into which assets are performing well or not meeting expectations.
Reports that include month-over-month comparisons can be generated quickly, saving time and money and allow stakeholders from the chief executive officer to an investor to easily see property or portfolio performance.
Use Exponential Reporting for trending with KPIs
RealPage Exponential Reporting, a feature of the system, can be used to check how KPIs are trending.
Exponential Reporting is a pre-built connection to all property reporting, including financial and non-financial data. That means operational data is also available to be incorporated into property and portfolio reports.
Thus, an organization can utilize one source of truth in a single accounting workbook. With a direct connection there is no longer the required steps of repeated manual input of imports and exports which increase efficiency and productivity. Data is leveraged to compile reports in any format necessary for internal and external stakeholders in a spreadsheet platform.
Learn more about empowering an accounting system that digs deep into operational and financial performance by clicking here now.