Property Letting Business Financial Projection 3 Statement Model (Excel XLSX)

A Property Letting Financial Projection 3 Statement Excel Model is vital for real estate businesses. It forecasts income, expenses, and cash flows, enabling strategic planning, cost control, and performance assessment. It supports decision-making related to property acquisition, rental rates, and expense management. Accurate projections empower property letting businesses to adapt to market dynamics, secure financing, and ensure profitability. It enhances financial stability, attracts investors, and supports long-term growth by aligning financial strategies with business objectives. This model is indispensable for both established property letting firms and startups, ensuring their viability, competitiveness, and ability to capitalize on opportunities in the real estate market.

PURPOSE OF MODEL
Highly versatile and user-friendly Excel model for the preparation of a rolling 3 statement (Income Statement, Balance Sheet and Cash flow Statement) financial projection for a new or existing property letting business (e.g. letting a portfolio of properties via Airbnb).

The model follows best practice financial modelling principles and includes instructions, line item explanations, checks and input validations.

KEY OUTPUTS
The key outputs include:
•  Projected full financial statements (Income Statement, Balance Sheet and Cash flow Statement) for any of the 3 scenarios, presented on a quarterly basis across up to 5 years and summarised on an annual basis.
•  Projected Profitability by Property
•  Dashboard with:
Summarised projected Income Statement and Balance Sheet
Compounded Annual Growth rate (CAGR) for each summarised income statement and Balance Sheet line item
List of key ratios including average revenue growth, average profit margins, average return on assets and equity and average debt to equity ratio.
Bar charts summarising income statement and Balance Sheet projections
Rental income and profit by property.

KEY INPUTS
Inputs are split into Income Statement and Balance Sheet Inputs. Most inputs include user-friendly line item explanations and input validations to help users understand what the input is for and populate correctly.

Setup Inputs:
•  Name of business;
•  Currency;
•  First projection year and quarter;
•  Naming for properties, variable costs, fixed costs, fixed assets and borrowings;
•  Sales tax applicability for revenue and cost categories;

Actuals Inputs:
•  Opening balance sheet (for existing businesses);
•  Income Statement actuals (for trend analysis);

Projection Inputs:
•  Property portfolio inputs including
New/existing property distinction;
Purchase month, amount and transaction costs (for new properties);
Disposal month, amount and transaction costs (for new or existing properties);
Development / refurbishment costs by month.
•  Rental Income inputs including:
Occupancy rate per month;
Rate per night;
Seasonality discounts on rate by month;
Average day per stay;
•  Variable cost inputs based either on percentage of rental income (e.g. platform fee) or amount per stay (e.g. cleaning cost);
•  Fixed cost inputs per property and for total company;
•  Sales and corporate tax inputs including rate and payment periods;
•  Dividend inputs including amount or percentage of retained earnings and frequency;
•  Fixed Assets including addition amounts and useful life;
•  Borrowings including addition/redemption amounts and interest rate;
•  Share Capital additions.

MODEL STRUCTURE
The model comprises of 8 tabs split into input ('i_'), calculation ('c_'), output ('o_') and system tabs. The tabs to be populated by the user are the input tabs ('i_Setup', ‘i_Actuals' and 'i_Assumptions'). The calculation tab uses the user-defined inputs to calculate and produce the projection outputs which are presented in 'o_Fin Stats' and ‘o_Charts'.

System tabs include:
•  A 'Front Sheet' containing a disclaimer, instructions and contents;
•  A Checks dashboard containing a summary of checks by tab.

KEY FEATURES
Other key features of this model include the following:
•  The model follows best practice financial modelling guidelines and includes instructions, line item explanations, checks and input validations;
•  The model is not password protected and can be modified as required following download;
•  The model contains a dynamic timeline that allows for a mix of Actual and Forecast period across a 5-year period allowing projections to be rolled forward from month to month;
•  Timeline is split on a monthly basis and summarised on an annual basis;
•  The model allows the user to model 10 separate properties and their related revenues and costs;
•  Costs are split into: variable and fixed for better driver-based forecasting;
•  The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):
Properties – 10 separate properties;
Variable Cost – 10 categories;
Fixed Costs – 15 categories;
Fixed Assets – 3 categories;
Borrowings – 5 facilities;
•  Apart from projecting revenue and costs the model includes the possibility to model property movements and investments, fixed assets, borrowings, dividends, corporate tax and sales tax;
•  Business Name, currency, starting projection period are fully customisable;
•  Revenue, Cost, Fixed Asset and Borrowing category descriptions are fully customisable;
•  The model includes instructions, line item explanations, checks and input validations to help ensure input fields are populated accurately;
•  The model includes a checks dashboard which summarises all the checks included in the various tabs making it easier to identify any errors.