Reengineering a Property Management P&L to Drive Performance

The property management arm of a real estate company couldn’t isolate profitability or efficiency. Poor P&L structure obscured true performance, leaving management unable to make informed decisions.

Background

The property management group was a cost center within a broader real estate portfolio. Leadership couldn’t:

  • Benchmark performance by property or client
  • Identify operational inefficiencies
  • Track staff productivity

SMG’s Approach

1. Assessment & Stakeholder Alignment

  • Interviewed key staff to understand data flow and bottlenecks
  • Audited P&L structure and reporting logic

2. P&L Restructure

  • Built a new P&L structure reflecting controllable costs and true margins
  • Created visibility into contract-level performance

3. Operational Finance Layer

  • Introduced utilization and margin KPIs
  • Built dashboards and integrated into recurring reporting cycles

Outcomes

  • Management could see profitability by contract and client
  • Enabled headcount reallocation and improved team productivity
  • Empowered executives to identify underperforming properties and take action

SMG turned a confusing cost center into a performance engine.

Want to unlock profitability like this?