Are you ready to map your business’ path to success? Watch the final session of our three-part educational series focused on improving profitability. Daniel Craig, Founder & CEO of ProfitCoach, reveals how to put together a complete property management financial game plan — including the model, the framework, and the ongoing processes needed — to help you hit your goals in 2023.

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2. How to build
a financial
game plan
Presented by: Daniel Craig
Hosted by: Matthew Kaddatz
July 18, 2023
ProfitCoach

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Panelist
Special guest Daniel
Craig joining us today.
Chat and Q & A
Send us your questions
via the Q&A box found in
your Zoom controls.
Survey
Let us know
what you think!
This is an interactive session

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Enable data-driven
decisions with
robust accounting

5. 5 2023 © AppFolio, Inc. Confidential
Founder and CEO,
ProfitCoach
Daniel Craig
Presenter

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[ProfitCoach Slides]

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How to build a
financial game plan

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Where are you
tuning in from?

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Daniel Craig
Author, NARPM Accounting Standards
CEO, ProfitCoach
We help PMs expand their entrepreneurial
freedom by building highly-profitable,
self-managing companies.

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How to:
Establish the right metrics & KPIs to
drive profitability

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Questions?
Drop them in the Q&A box

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How to build a
financial game plan

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What would
going from
average to
benchmark
mean for you?

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From average to
benchmark
$192K $766K
250 Units 1000 Units
$383K
500 Units
$575K
750 Units
Annual PM Profit increase based on an average rent of $1500 (with an RPU
shift from $222 to $276) and a profitability increase from 11% to 32%.

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Are you ready?

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About the study:
● 153 companies
● Financial + property data
● 12 analysts contributed
● ~2,000 hours
2022 NARPM
Financial
Benchmark
Study

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A major shift has
occurred in PM financial
performance.

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The profitability shift
6% 11%
2017 average 2021 average
6%
2019 average
8%
2020 average

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The profitability shift
25% 32%
2017 Benchmark 2021 Benchmark
25%
2019 Benchmark
30%
2020 Benchmark

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How much financial clarity do you have
today?

26. Are you operating in financial
fog?

27. Are you operating in financial
fog?

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Are you owning the financial
outcome of your business?

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Poll: What level of profit
are you committed to for
2023 (after owner salary)?

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Poll: Are you currently
forecasting on a regular
basis?

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Are you owning the financial
outcome of your business?

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3 steps to 3X profits
Source: xxxxx.com
01
Get clear. 0
2
Define your
target.
0
3
Stay on
track.

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Owning the
financial outcome
● Setting realistic targets for the future, based
on past performance.
● Creating a monthly gameplan (forecast) for
how you’re going to hit those targets.
● Holding yourself accountable to the monthly
gameplan throughout the year.

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The Power of forecasting
● Clarify the “Why?”
● Bridge the gap between aspiration and reality
● Simplify business decision-making
● Move from reactive to proactive
○ Prepare for the “Unprecedented”

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Forecasting
provides the clarity
you need to own
the financial outcome
of the business.

36. Are you operating in financial
fog?

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Forecasting
Essentials
● Simple
● Realistic
● Dynamic
● Ongoing

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PM Forecast Model with Tutorial
Videos
Grab it at: pmprofitcoach.com/forecast
(or use the link in chat)

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Forecasting
Inputs:
● Growth Metrics
○ Churn
○ UAC
○ Conversion
Ratio
○ Units Per New
Owner

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Forecasting
Inputs:
● Leasing Metrics
○ Occupancy (pull from PMS)
○ Renewal Rate (pull from PMS)
○ % of New Units that come Occupied
○ Leases Ending (next 12 months - pull from PMS)
○ Applications received per vacancy (paying only)

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Forecasting
Inputs:
● Revenue Metrics
○ Management Fees Per Unit
○ Average Leasing Fee
○ Renewal Fee
○ Net Application Fee
○ Other Ancillary Fees Per Unit (all fees not listed
above)

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Forecasting
Inputs:
● Expense Metrics
○ Facilities % of Revenue
○ Other OpEx % of Revenue
○ Payroll Taxes & Benefits % of Revenue
○ New Owner Advertising % of Revenue

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Closing the Gap
● Closing the productivity gap
● Closing the talent gap
● Closing the Revenue Per Unit gap
● Closing the growth gap
● Closing the expense gap

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02Direct Labor Efficiency
Ratio (DLER)
3.42 3.96
2018 benchmark 2022 benchmark
How many $ of revenue do we generate for every $ we spend on
direct labor?
Average DLER of the top
25% most profitable
companies
Average DLER of the top
25% most efficient
companies

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Revenue Per Unit (RPU)
03
$317
2022 Benchmark
Average RPU of the top 25% of
companies with the highest
RPU
$238
2018 Benchmark

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of AVG rents over $2,000 of AVG rents $1,000-$2,000
10-14% 15-19%
RPU: Rule of thumb
of AVG rents under $1,000
19-24%

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Unit Acquisition Costs
(UAC)
04
2022 Benchmark
$769

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Expenses
as % of
revenue
2018 Benchmarks
7%
Other operating expense
as % of revenue
5%
Payroll taxes & benefits
as % of revenue
11%
Facilities expenses
as % of revenue
2022 Benchmarks
10%
Other operating expense
as % of revenue
5%
Payroll taxes & benefits
as % of revenue
7%
Facilities expenses
as % of revenue

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DO YOU
STAND??
WHERE

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Get your copy 2022 NARPM Financial
Performance Guide (now available!)

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Accounting Standards
1. Get converted! Get in the game of
financial performance.
2. See how you stack up to the 2022
NARPM Benchmarks

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Compare yourself to the new NARPM
Benchmarks!
NEW Metrics Calculation Tool

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PM Forecast Model with Tutorial
Videos
Grab it at: pmprofitcoach.com/forecast
(or use the link in chat)

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Need some input on dialing in
your 2022 financial forecast?

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What is the ONE THING
that can have the
highest impact on my
bottom line?

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● Discover how you stack up to the 2022 NARPM Benchmarks
● Discover your profit potential
● Get input on how to create a financial game plan to achieve
your goals
Schedule a Financial Review Call with
our coaching team to:

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1. You send us your Profit & Loss
Statement for the last 12 months

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● Help you calculate your key metrics compared to the
2022 NARPM Benchmarks
● Help you determine if you should convert to the NARPM
Accounting Standards
● Provide you with 2-3 next steps you can take to eliminate
financial fog from your business and dramatically improve
your bottom line, typically by at least $50,000/year
2. On the Financial Review Call, we
will:

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3. Did we say that it’s totally FREE?
(Zero strings attached.)

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Poll: Would you like to have a Financial
Review Call to see how you stack up to
the 2022 NARPM Benchmarks and get
input on dialing in your 2023 forecast?

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#BeatTheBenchmark

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Gratitude drives
(lasting) profit.

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Thank…YOU for attending and working
every day to build a beautiful business.

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Thank you
Visit us at
www.PMProfitCoach.com
Contact me at
daniel@PMProfitCoach.com

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Ask us anything.

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Thank you 󰜵