Rent and Cost Structure
Ratio 11. Average Weekly Rental Income / Unit (£)
Total rents received from all lettings divided by
total units managed, expressed as a "per week" rent.
Primarily useful for tracking changes over time or for comparisons across similar
associations. To be used with care because of differences in mix of housing
units, regional differences etc.
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Ratio 12. Average Weekly Service Income/Unit (£)
Total service charges received
from all lettings per unit per week.
Same issues as for average rents but this is aimed at identifying service charge
differences.
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Ratio 13. Average Weekly Charges for Support Services/Unit (£)
Total charges for support services
expressed as per unit per week.
Same issues and caveats as all per unit items regarding housing mix and regional
differences, but this is aimed at identifying and monitoring support service
charge differences.
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Ratio 14. Average Management Costs/Unit (£)
Total annual management costs expressed
as per unit.
Same issues and caveats as for all per unit items regarding housing mix and
regional differences, but the need to understand management costs to identify
any inefficiencies is important.
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Ratio 15. Average Service Costs/Unit (£)
Total annual service costs expressed as per unit.
Same issues and caveats as for all per unit items regarding housing mix and
regional differences, but the need to understand service costs to identify any
inefficiencies is important.
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Ratio 16. Average Care/Support Costs/ Unit (£)
Total amount care/support costs expressed as per
unit.
Same issues and caveats as for all per unit items regarding housing mix and
regional differences, but the need to understand care/support costs to identify
any inefficiencies is important.
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Ratio 17. Average Total Repairs and Maintenance Costs/Unit (£)
Total annual expenditure on repairs and maintenance,
irrespective of category, and including capitalised costs expressed as per unit.
This is even more difficult to compare across different associations but this
remains a key issue on which to attempt comparisons, to identify under-spend
or over-spend. This is because of the big impact on surplus and on cash flow
and because of the inherent cyclicality.
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Ratio 18. Average Capex/New Units (£000's)
Purchase less sale of properties but before deducting
capital grants received, divided by the increase in number of units managed
during the year.
Quantifies the average gross investment per housing unit added. May be distorted
from year to year by time-lag effects.
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Ratio 19. Bad Debts and Voids % Operating Surplus
Expresses the losses from bad debts and voids as
a percentage of the operating surplus before deduction of those losses.
Quantifies the impact on operating surplus. There are key deductions from the
surplus so they need to be monitored and minimised.
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Ratio 20. Bad Debts and Voids % Gross Rent Receivable
Losses from bad debts and voids as a percentage of
the gross rent receivable.
Shows the percentage of rental income that is eroded due to voids or bad debts.
Also a good indicator of the efficiency of rental collection and occupancy rates
of the properties owned.
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