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 e.g. via Airbnb or booking.co).
 
The model follows good practice financial modelling principles and includes instructions, line item explanations, checks and input validations and incorporates a discounted cash flow valuation calculation using the projected cash flows.
 
 
KEY OUTPUTS
Projected full financial statements (Income Statement, Balance Sheet and Cash flow Statement) for any of the 3 scenarios, presented on a monthly 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
Number by properties and average revenue per property type.
Charts and graphs showing: cash balance by month, free cash flow generation, cash flow statement breakdown, profit margins, income statement breakdown, net cash vs net income, working capital, valuation and capital structure.
Discounted cash flow valuation using the projected cash flow output.
IRR and NPV
Breakeven analysis
 
 
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, capital expenditure, direct costs, marketing costs, administration 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:
Rental Income inputs including:
Occupancy rate per month;
Rate per night;
Seasonality discounts on rate by month;
Average day per stay;
Property capital expenditure costs by month
Direct cost inputs based either on percentage of rental income (e.g. platform fee) or amount per stay (e.g. cleaning cost) or costs per property;
Other costs inputs including marketing costs and other operating costs;
Sales and corporate tax inputs including rate and payment periods;
Dividend inputs including amount (percentage of retained earnings) and frequency;
Fixed assets including addition amounts and useful life;
Borrowings including addition amounts, interest rate and maturity date;
Share capital additions;
Discount rate inputs (for valuation calculation).
 
 
MODEL STRUCTURE
 
The model comprises of 9 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', 'o_DCF' and ‘o_Dashboard.
 
 
KEY FEATURES
 
The model contains a flexible timeline that allows for a mix of actual and forecast periods across a 5-year period. This allows projections to be easily rolled forward as forecast periods become actual period;
Timeline is split on a monthly basis and summarised on an annual basis; 
The model allows the user to model the management of any number of properties for up to 10 different types of properties each with their own volumes, revenues and direct costs.
The model is not password protected and can be modified as required following download;
The model is reviewed using specialised model audit software to help reduce risk of formula inconsistencies;
The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):
Types of properties  – 10 types;
Direct capital expenses – 5 categories;
Direct operating expenses – 15 categories;
Staff costs – 8 categories
Marketing costs – 5 categories;
Other expenses – 15 categories;
Fixed assets – 5 categories;
Borrowings – 3 facilities
Apart from projecting revenue and costs the model includes the possibility to model fixed assets, borrowings (amortising), dividends and corporate tax;
Business name, currency, starting projection period are fully customisable;
Revenue, cost and fixed asset descriptions are fully customisable;
The model included an integrated discounted cash flow valuation using the projected cash flow outputs;
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. 
 
 
SUPPORT / MODIFICATIONS
 
We are keen to ensure our customers are satisfied and find the models useful for their financial projection needs. Our models are developed with the user in mind and include instructions, line-item explanations, checks and input validations to ensure they are as user-friendly and easy to use as possible without requiring extensive knowledge of Microsoft Excel, finance or accounting. If any questions do arise, we are more than happy to assist. We are also happy to support with any be-spoke modifications you may require to the models to better suit your business needs. To get in touch, please send us a message through the website or contact us on: hello@useprojectify.com
 
We are also always keen to receive feedback so please do let us know what you think of our models by sending us a message or submitting a review.