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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