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Property funds and services

Real estate agency financial model, built free.

A three-statement Excel model for a residential real estate agency and property manager, built from your own figures and checked to balance.

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  • No card
  • Usually ready within the hour

We use generative AI in parts of our process, so mistakes can occur. Every model should be checked by a person before it is relied on. Read more

The business

Sells homes for vendors on commission and manages rental properties for landlords (the rent roll), paying sales agents a commission split; franchise networks also earn fees from franchisee offices.

See the sampleHow the model works

In short

  • 01

    Three linked statements

    Income statement, balance sheet and cash flow, linked in every period.

  • 02

    Valued two ways

    Discounted cash flow and trading multiples, side by side.

  • 03

    Monthly to annual

    Monthly, quarterly, half-yearly or annual periods, for up to 30 years.

  • 04

    Checked every period

    A Checks sheet shows the balance sheet balances and the cash reconciles.

The sample

The sample, as Excel draws it.

Built by the same system and checks as yours, on illustrative figures: every sheet as Excel draws it, or live.

Annual · 10 years · Low detail
Real estate agency sample model.xlsx
The Summary sheet of the sample real estate agency model

Illustrative figures: the sample describes no real business. The live preview shows values; your model’s Excel file has every formula.

How it works

How the model works for a real estate agency.

  1. How it earns revenue3 formulas
    Sales commission income · The business
    Sales commission incomeCommission incomeMarketing and auction fees kept
    Sales commission income · The business
    Value of properties soldProperties soldAverage sale price
    Property management fees (the rent roll) · The business
    Property management feesManagement feesLetting feesInspection, renewal and admin fees
  2. What drives its costs3 formulas
    Agent and property manager costs · The business
    Commission earned by agentsTop-performer commissionEstablished-agent commissionJunior-agent commission
    Agent and property manager costs · The business
    Agent costsAgent paySuperannuation and payroll tax
    Agent and property manager costs · The business
    Gross commission income shared with agentsSales commission incomefrom sales commission incomeShare of the income that is agents' GCI
  3. What it invests in3 formulas
    Acquired rent rolls, strata books and management rights · The business
    Price paid for books acquiredAnnual fees of books acquiredPurchase multiple of annual fees
    Acquired rent rolls, strata books and management rights · The business
    Amortisation of management rightsAmortisation of opening management rightsAmortisation of books acquired (from mid-period)from from mid-period
    Acquired rent rolls, strata books and management rights · The business
    Closing management rightsOpening management rightsPrice paid for books acquiredAmortisation of management rights
  4. How it is funded3 formulas
    Debt
    Closing balanceOpening balanceDrawdownsRepayments
    Debt
    Interest expenseOpening balanceAll-in interest rateshare of the year
    Dividends and distributions
    Closing dividends payableOpening dividends payableDividends declaredDividends paid
  5. How profit becomes cash3 formulas
    Working capital
    Trade receivablesRevenuefrom statementsDebtor daysDays in period
    Working capital
    InventoryDirect costs (positive)from statementsInventory daysDays in period
    Working capital
    Trade payablesCash operating costs (positive)from statementsCreditor daysDays in period
What it covers

17 parts, each one tested.

Every part is a tested building block with its own checks: yours is put together from the ones your business needs.

  • CPI forecastCPI glide path
  • Operating expensesOperating expenses as % of revenue
  • Corporate costsFixed cost base indexed to CPI
  • Working capitalDays-based working capital
  • Income taxCorporate rate with tax losses
  • DebtSingle debt facility
  • Dividends and distributionsPayout of net profit
  • Discounted cash flow valuationDCF on free cash flow to the firm
  • Multiples valuationEV / EBITDA multiple
  • LeasesLease register
  • Key-metric summaryStandard growth, margin and leverage metrics
  • Discount rate (WACC)CAPM at target gearing
  • Sales commission incomeSales × average price × commission rateCommission earned selling property for vendors, plus marketing and auction fees.
  • Property management fees (the rent roll)Managed properties × rent × management feeFees for managing rental properties on behalf of landlords, and the size of the managed book.
  • Franchise network feesOffice joins, exits and rampFees a real estate franchisor earns from franchisee offices.
  • Agent and property manager costsCommission split by agent tierThe direct cost of fee-earners — sales agents' commission splits, salaried agents and property managers, and franchise fees paid by franchisee offices.
  • Acquired rent rolls, strata books and management rightsPrice as a multiple of annual feesBuying management books from other agencies or strata managers, capitalised as intangibles and amortised.
Key numbers

The numbers it tracks.

  1. 01sales volume and GCI
  2. 02average commission rate
  3. 03properties under management
  4. 04fee per managed property
  5. 05agent split
  6. 06EBITDA margin
  7. 07rent roll value
Used for

What it is used for.

Also used for
  • Scenarios and sensitivities
Related models

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Every real estate model

Looking for a real estate agency financial model template? Ours arrives built for your business, with your figures in it.

See a finished model, sheet by sheet

The sample is built on illustrative figures and describes no real business. Models are calculations prepared from the information you provide. They are not financial advice and must be independently verified. See our terms.