ARPM are the go-to company for outsourced tenancy administration and property management services for estate and letting agents. Providing a professional and quality service, white-labelled under your brand, their expert and dedicated property managers become an extension of your team without the overheads.
Whether you’re just looking for support with pre-tenancy administration, rent collection or property maintenance, or the complete management of your portfolio, ARPM offer flexible and cost-effective solutions tailored to your business. It's certainly a great way to cost-effectively grow your lettings portfolio.
Mission – to enable estate and letting agents to focus on increasing their income and growing their rental businesses by taking the hassle out of time-consuming back-office tenancy administration and property management,
We all know that certain business functions are quicker to achieve and more cost-effective than others.
By considering the services you provide for one rental property over a 12-month period, how much time is spent delivering these services and the staff cost associated with each activity, you can work out your Return on Time Invested (ROTI).
This could include everything from initial rental valuation and pre-tenancy administration to ongoing monthly management and renewals or check-out.
The table template below is designed to allow you to input the name of a staff member responsible for each activity, their hourly rate, the time they spend on that activity and the cost of this time.
In instances where you outsource and there is a one-off fee, just input the name of the supplier in place of the staff member and the cost to you in the cost column, leaving hourly rate and time taken blank.
You could complete the table for several different scenarios, such as tenant-find only, let only and full management.
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Service activity |
Staff member responsibility (or supplier) |
Hourly rate (£) |
Time taken (hours) |
Cost (£) (hourly rate x time taken) |
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Rental valuation |
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Inventories |
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Certificates and registrations |
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Advertising and marketing |
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Tenant viewings |
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Tenant referencing |
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Tenancy agreement |
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Deposit registration |
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Rent collection |
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Rent arrears management |
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Property inspections |
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Contractor management and vetting |
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Out of hours calls |
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Maintenance and repairs |
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Tenant enquiries |
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Landlord enquiries |
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Deposit dispute handling/negotiations/returns |
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Serving notices (e.g. Section 21) |
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Renewals |
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End of tenancy and check out reports |
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Quarterly/annual NRL statement and HMRC reports |
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Other |
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TOTAL |
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£ |
Once you’ve completed the table for as many scenarios as you wish, calculate the average annual income of one rental property versus how much it costs you to deliver the services.
Example
Your total annual charges to a landlord per property [£XXX] minus the total cost of providing the various services in above table [figure from ‘TOTAL’ field] equals your gross profit per property [£X].
That excludes any other direct costs, such as property portal advertising and software licenses, and tax. However, it will show you the direct cost of your time in relation to providing your services.
Your results
Of course, not every minute of your time will result in a financial return and some activities are necessary and unavoidable, but by completing this task, you should be able to work out your Return on Time Invested (ROTI) and:
Improve your Return on Time Invested
You can significantly improve the financial return on your time by outsourcing time-consuming tenancy administration, property management and maintenance to a reputable provider like ARPM.
If you’re ready to find out more, call the friendly team in Hertfordshire on 01923 775705.
Or if you want more help and advice, visit our Knowledge Hub and sign up to our newsletter here.
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