Tracking Overhead and Nesting Portfolios

Wishlist
1

I want to be able to classify expenses as Overhead or Admin WITHOUT having to assign all expenses to a Property or Portfolio. This could also potentially be solved by being able to nest portfolios. This will be helpful for me to be able to track my overhead expenses separately from my properties and make strategic and tactical business decisions. Thanks.

FAQ:
“Why don’t I just assign overhead to one of my existing portfolios?”

Because some overhead expenses apply to ALL properties and portfolios, and it takes too much time or effort to Split all of these transactions. And the process of Splitting transactions overly simplifies things and does not necessarily allocate costs appropriately… For example, should all overhead expenses be split evenly among all properties and portfolios based on the number of properties? Or should it be based on the value, revenue, or amount of time spent?

FAQ:
“Why don’t I just have 1 portfolio that includes all of my properties?”

Because I own properties in multiple States, and therefore I need to keep separate reports for when I file taxes (each State requires reports that include only the revenue/expenses for properties located in that State.

FAQ:
“Would adding the ability to “Nest” portfolios solve this problem?”

Maybe, depending on how it is implemented.
Requirements:

  1. I need to be able to run P&L reports at each portfolio level (including ‘umbrella’ portfolios of portfolios).
  2. It may be best to give the option of including categorized expenses from the parent Portfolio level when producing P&L reports at the lower portfolio/property level.
  3. When producing P&L reports at the lower portfolio/property level and if user chooses to include expenses from the parent Portfolio, then user would ideally be given the option to choose the basis on which the parent Portfolio overhead expenses are included: percentage of total portfolio value, percentage of total portfolio revenue, or percentage of total properties, as an example.

All of this complexity goes away if we simply have a single “Overhead” category available for overhead expenses in place of being forced to choose a Property or Portfolio.

1 Like
2

@russ.fru I like the suggestion. Unfortunately, don’t expect the support team to create it any time soon. They can’t keep up on more critical features. Since there’s no easy way to solve your problem, I can only suggest a bandaid. How about creating a separate portfolio called “Overhead”? It’s separate from everything else and you can allocate however you want.

Hope that helps.

-Tom

3

Indeed, this is exactly what I ended up doing for now. Cheers!