The KPI shows the administrative costs for property management during the selected period. This includes costs for financial administration, IT systems, legal services, auditing, and other management-related overhead costs.
Administrative costs are part of operating costs that cannot be directly linked to the physical operation of the property but are necessary for effective management.
How is it calculated?
Includes selected accounts in economic settings.
Why is it important to follow?
The following are some reasons why it is important to follow the KPI:
- Cost efficiency:Provides insight into management overhead costs and opportunities for streamlining.
- Operating net impact:Administrative costs directly burden the operating net and should be kept in proportion to revenue.
- Economies of scale:Enables analysis of whether administrative costs scale proportionally as the portfolio grows.
- Benchmarking:Facilitates comparison with industry averages for administrative overhead costs.
- Management evaluation:Provides the basis for assessing management effectiveness and resource utilization.
Example of data source
Vitec Hyra & Teknisk förvaltning
Portfolio
Integrated module for rental administration and technical property management, handling lease contracts, work orders, maintenance, and day-to-day operations.
No permission to link.
Definition
Metric
Administrative costs
Shows administrative costs (for selected accounts) during specified period.
Includes selected accounts in economic settings.
Example of data source
Vitec Hyra & Teknisk förvaltning
Visma Ekonomisystem
Fortnox
Akribi
