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Related Topics Organizing for CompliancePerformance TrackingYear 15
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Performance Tracking
Knowing the particulars of every housing project your organization has developed, and making sure that all the legal obligations are being met, is only part of being a good asset manager. (see the Compliance Section) The other big part of asset management is Performance Tracking. How’s the property DOING? Are rent collections OK? Are you losing too much money from vacancies? Are you spending too much on utilities? Not enough on maintenance? How do you know??
The answer is to set performance targets, then track performance data in such a way that you can routinely spot changes over time at a given property, and are easily able to compare one property with another. This is a collaborative effort between property management and the asset manager/owner; typically, the property manager supplies the numbers, the asset manager crunches them, though there may be some overlap…
Crunching numbers means Ratio Analysis. Don’t be alarmed, batting average, on-base percentage, earned run average are all ratios, right? And millions of people can talk that language. Asset management math is a lot more primitive.
Click here to download a simple introduction to performance tracking and ratio analysis: "Build your own tracking report.doc"
Click here to download a simple tracking spreadsheet: "Mini Tracking.xls"
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Operating Expenses - A Tool to Compare
Here is an Excel spreadsheet tool to compare line-by-line operating costs between projects in a portfolio. It uses a running twelve-month average and can be quickly updated by automated links to existing accounting data. Requires advanced Excel skills to adapt to your portfolio.
Reserves and Cash Flow Analysis
Recently, an affordable housing development in the North Bay was facing operating deficits and had deferred capital improvements. Take a look at an Excel workbook that lays out the current rent structure, operating expenses, and replacemnt needs in a way that allows the nonprofit owner to analyze its options and work out a solution.
Asset Management Report
How do you sort through the voluminous financial data generated by each property and pick out the numbers that are important to track? At one large Bay Area nonprofit, property supervisors track vacancy and delinquencies on a weekly basis. All senior staff track revenue and expenses monthly. A board committee tracks portfolio performance quarterly, looking at net cash flow compared to budget and compared to original projections.
2003 Operating Cost Database for Affordable Housing
LISC and the National Equity Fund compile an annual database of actual operating expenses for affordable housing developments throughout the Bay Area! One hundred eighty-eight properties are included in the 2003 Database.
2005 Operating Cost Database
Summer is coming to a close and budget season is nigh! LISC and the National Equity Fund are pleased to share the third annual Operating Cost Database, which includes 2005 audited expenses of over 17, 000 affordable housing units throughout the Bay Area. This user friendly Excel file contains data from 289 properties, and can be sorted by housing type, location and other important variables.
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