Operating Expenses - A Tool to Compare
One of the standards of good Asset Management practice is measurement and analysis of property performance in a consistent and rigorous manner. Line by line comparison of operating expenses between similar properties in a portfolio is part of this analysis, but the time required to manually update the information prevents most CDC's from having up to date cost comparisons ready at hand. An Excel spreadsheet tool, developed for Burbank Housing by consultant Chuck Gallo, automates the process of pulling the last twelve months cost data from your existing accounting records from CAMS or Fundware, and produces a report sorted by Senior or Family property and then by number of units. The cost numbers are Per Unit Per Month, averaged for the past twelve months, with shading to highlight unusual costs.
Once you have adapted the sample spreadsheet to your own portfolio, show it to your Project Developers. It provides a great shortcut to help them build their pro-forma operating budgets for future properties.
Someone experienced in working with the more sophisticated Excel formulas can adapt this spreadsheet to a new portfolio in five or six hours. If your organization does not have the on-staff capacity, consider hiring Chuck Gallo or another consultant for a fee, or enlist a computer savvy volunteer.
Click here to download the spreadsheet:"Cost Comparisons.xls"
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