NOI and yield per property
Work out net operating income for each property over any dates: rent and charges billed, less repair bills. See the yield on the value you enter.
PLANSScale only
The problem it solves
- Each property's net income is put together from the ledger and a repair spreadsheet before every review.
- You cannot compare buildings, because each was worked out differently.
- The yield on the last valuation is a guess, so decisions to sell or refit wait.
How it works
- On each property, enter Value for Yield (the last valuation) and Valued On.
- Open Lease > Reporting > Leases and Rent > NOI and Yield. The dates start at the last twelve months; change From and Until if you need another period.
- Leave Only These Properties empty for all properties of the Entity, or pick some.
- Press Work Out. Each property gets a line: rent and charges billed, operating costs, NOI, NOI a year, value and yield.
- Sort by NOI or yield, and repeat for another period to compare.
Everything it does
Income
- Rent and charges billed on the property's leases in the dates, before tax
- Only posted bills; credit notes are taken off
- Service charges billed on account and turnover rent count as charges billed
Operating costs
- Posted vendor bills of the property's work orders, dated in the period, before tax
- Work orders whose request is paid by the tenant are left out
- Other costs (insurance, property tax, utilities, management fees, service charge pool costs) are not counted today
Results
- NOI: income less operating costs
- NOI a year: NOI scaled to 365 days from the period's length
- Yield (%): NOI a year divided by Value for Yield; 0 when no value is entered
- Totals of income, costs and NOI for the Entity
Access
- Lease Managers only
- One Entity at a time, in that Entity's currency
Who uses it
Lease Manager or asset managerEnters valuations and works out NOI and yield for reviews.
Owner or directorCompares properties by yield before deciding to sell, refit or raise rents.
Where you use it
- Web: Lease > Reporting > Leases and Rent > NOI and Yield
- Web: Value for Yield and Valued On on each property
- Not in the apps
What you control
Settings
- Value for Yield and Valued On per property
- Period: the last twelve months to start with
Questions
Which costs are taken off?
Today, the posted repair and maintenance bills of the property's work orders, except those the tenant pays. Insurance, property tax, utilities and other costs are not taken off yet, so add them yourself if your review needs them.Does income include service charges?
Yes. Income is everything billed on the property's leases in the dates, before tax, so service charges on account and turnover rent are in it.Can I work out NOI for part of a year?
Yes. Pick any From and Until. NOI a year scales the result to twelve months so periods of different lengths compare.Where does the value come from?
You enter it on the property as Value for Yield, with the date of the valuation. It is not looked up from anywhere.Related features
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See your buildings on it.
Tell us how many properties and units you have, whether you let your own or manage for owners, and how rent is paid today. We will set up your portfolio with you on SmartMy Lease.