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Expense Review

Portersville – Key Takeaways

Expense Trends

Monthly expenses ranged from ~$4.5K to $13K.

Major spikes in April (due to $4.3K tax/license fee) and September (due to $9K property tax).

Normal months had consistent costs: management fees, staffing, and software.

Overages

YTD expenses were 42.7% over budget.

Biggest overages:

Advertising (195% of budget)

Legal/Professional Fees (174%)

Office Expenses (433%, due to tax/license)

Utilities and Software both >200% of budget

Expense to Revenue

Typically 40–50% of revenue.

Best month: July (~20%)

Worst: September (~88%)

Recommendations

Cut excess advertising (e.g., Sparefoot, PPC) unless ROI is proven.

Renegotiate or right-size software contracts.

Better plan for recurring property taxes and licenses.

Explore fixed-price seasonal maintenance contracts.

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Zelienople – Key Takeaways

Expense Trends

Costs peaked in August ($22.7K) and September ($29.3K) due to property tax and water bills.

Normal operating months cost between $5.8K–$9.2K.

Core spending on staffing, management, and software was steady.

Overages

YTD expenses were 197% of budget.

Major overruns in:

Property Tax (178%)

Advertising (240%)

Payroll/Contract Labor (217%)

Repairs & Maintenance (362%)

Software (281%)

Water/Trash Utilities (>1000% in some cases)

Expense to Revenue

Generally 20–40% of revenue (healthy).

Spiked to ~88% in September due to tax/water costs.

Recommendations

Audit marketing spend; cap PPC and reassess Sparefoot ROI.

Shop for better insurance and evaluate contract labor vs part-time hire.

Plan realistic budgets for taxes, maintenance, and utilities.

Consider software consolidation to reduce overlapping tools.

Financial Performance Analysis: Portersville & Zelienople Storage Facilities (2025 YTD)

Portersville Storage Point – Financial Summary (Jan–Sep 2025)

Monthly Expense Breakdown by Category

Jan 2025: Total Expenses $4,599. Key costs were Management Services ($1,500) and Staffing (wages $870), with remaining expenses spread across software, advertising, and utilities.

Feb 2025: Total $4,550. Similar to January, dominated by Management Services ($1,500) and minor Advertising and Staffing costs (wages $395).

Mar 2025: Total $5,341. Included seasonal Maintenance (ground care $280) and a one-time Office Supply purchase ($253). Core expenses (management fee, etc.) remained steady.

Apr 2025: Total $8,581. A sharp increase due to a $4,276 Taxes/Licenses expense (business or property-related) posted in Office Expenses. Excluding this unusual item, other expenses were in line with prior months.

May 2025: Total $6,032. Higher due to Advertising investments – notably $877 in signage – and continued lawn maintenance ($500).

Jun 2025: Total $5,713. Slightly above early-year levels, with ongoing Advertising (another ~$559 in signage) and Repairs (~$423) costs. Core fixed expenses continued (management fee, software).

Jul 2025: Total $5,284. Relatively low given high revenues this month. No major unusual costs; primary expenses were recurring items (management fee $1,500, software, etc.) and modest maintenance (~$657).

Aug 2025: Total $6,044. Moderate month; Advertising (~$1,277 total) picked up (social media $400) alongside standard expenses (management fee, software, utilities). No singular large expense.

Sep 2025: Total $13,151. Property Tax payment of $8,956 drove this peak, nearly doubling the month’s expenses. Other costs remained routine, but this large tax outlay made September the costliest month.

Significant Budget Overages (Actual vs. Budget)

Portersville’s expenses exceeded budget in several categories, particularly in certain months. Notable monthly overages included:

April: Actual expenses were ~85% above a typical month’s budget due to the unplanned $4.3K tax/license expense (no corresponding budget).

May–June: Advertising spend exceeded plan – e.g. May’s signage ($876) and June’s online marketing (Sparefoot $403) had no budget allocation, causing those months to run over in advertising.

September: Saw the largest overage; the $8.96K property tax bill was ~38% higher than budgeted ($6.48K), driving September far over its expense budget.

Over the YTD Jan–Sep 2025 period, Portersville’s total actual expenses were 42.7% above budget. Specific categories with major budget overruns included Advertising (195% of budget), Legal & Professional Fees (174% of budget) – largely due to higher management fees and unbudgeted accounting/auction costs – Office expenses (433% of budget, driven by that tax/license item), Software (208% of budget), and Utilities (225% of budget, particularly in trash removal and electricity). These variances indicate where actual spending vastly outpaced the plan.

Monthly Expense-to-Revenue Ratios

Portersville’s expense-to-revenue ratio averaged around 40–50% in most months, indicating that operating expenses were roughly half of revenues. However, this ratio fluctuated significantly month-to-month: it dropped to just ~20% in July (when a revenue spike from strong rentals drove income up while expenses stayed low) but climbed to ~88% in September due to the large tax expense (nearly erasing that month’s profit). For example, in September revenue was ~$14.9K against $13.15K in expenses (88.3% expense/revenue). In contrast, July’s ~$26.8K revenue vs. $5.28K expense yielded a low 19.7% ratio. Overall, through Q1–Q3 2025 the facility maintained a healthy profit margin in most months, aside from tax-impact periods.

Expense Reduction Recommendations

Based on the trends and variances observed for Portersville, the following are recommended to control or reduce expenses:

Advertising Costs: The facility spent $9.15K vs a $4.69K budget on marketing (particularly Pay-Per-Click ads). Review digital marketing ROI and set tighter monthly PPC budgets. Discretionary spends (e.g. Sparefoot listings and extra signage) should be evaluated for effectiveness – if occupancy is strong, these could be scaled back.

Professional Fees: Management fees and other professional services were ~74% over budget. Since management fees likely scale with revenue, ensure the budget accounts for higher income. Renegotiate management contracts if possible, and limit accounting or legal consulting to essential needs (the $3.18K in accounting fees was unbudgeted).

Office/Administrative: The unbudgeted $4.3K tax/license hit suggests better planning for known periodic costs. Allocate for annual business taxes or license renewals to avoid surprises. Aside from that, office supplies were minimal – continue to keep admin costs lean.

Repairs & Maintenance: R&M exceeded plan (176% of budget), mainly from lawn/snow services ($1.745K vs $1.05K bud) and unplanned site fixes. Consider contracting seasonal maintenance at a fixed rate or bidding out lawn care to reduce cost. Proactively address minor repairs to prevent costlier fixes. Ensure next year’s budget reflects realistic upkeep costs.

Software Subscriptions: Software expenses (management, storage, collection platforms) were double the budget (actual $4.11K vs $1.98K). Audit software usage – there may be overlapping systems. Negotiate licenses or eliminate redundant tools (e.g., if Storage and Management software are separate, explore integrations to use one system).

Utilities: Utilities ran ~2.25× budget, especially trash (actual $375 vs $105 budget) and higher electricity bills. Investigate if trash pickup frequency or provider can be optimized for cost – perhaps reduce pickups in off-peak times. For electricity, simple steps like LED lighting, timers, or ensuring units are powered down when not needed could trim usage. Adjust the budget upward for these basic utilities since prior estimates were too low.

Expense & Revenue Trends Visualization

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Portersville – Monthly Revenue vs. Expenses (Jan–Sep 2025). Expenses (red) were relatively steady early in the year (~$4–6K), with notable spikes in April and September from non-recurring charges. Revenue (blue) climbed mid-year, peaking in July, which helped offset expenses.

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Portersville – YTD Budget vs. Actual by Category. Key expense categories where actual spending far exceeded budget include Advertising, Legal/Professional (mgmt fees), Office (tax/license), Software, and Utilities. These areas offer opportunities for cost review.

Zelienople Storage Point – Financial Summary (Jan–Sep 2025)

Monthly Expense Breakdown by Category

Jan–Mar 2025: Expenses rose from $6,588 in January to $12,199 by March. Early months were driven by Management Fees (steady $~1,500 each month) and Payroll/Contract Labor costs (Jan ~$2.8K; Mar ~$3.6K). March saw a jump partly due to a $2.8K Contract Labor payment (in lieu of wages) and increased maintenance spend, bringing total expenses to $12.2K.

Apr–Jun 2025: Expenses subsided in April ($7,338) and May ($5,838) – both months lacked any large one-time hits. Insurance was paid in April (~$5.6K of the $7.3K total, likely annual liability insurance) and Advertising was moderate. June expenses ($9,192) ticked up with more Advertising (PPC and website costs ~$1.8K) and a $884 Gate software renewal.

Jul 2025: Total $7,510. This month was relatively low-cost given revenues. The facility benefited from reduced advertising outlays (no PPC spend in July) and only routine costs (management fee, payroll, utilities). It was a lull before later spikes.

Aug 2025: Expenses spiked to $22,756. The primary cause was a Property Tax payment (~$15K) – one installment of property taxes hit this month (the remainder in Sep). August also saw Repairs/Maintenance projects ($3.3K on landscaping/grounds) and an uptick in Advertising (~$3K, including PPC and Sparefoot). These pushed August expenses far above normal.

Sep 2025: Highest expenses at $29,278, due largely to the second (or full) Property Tax payment of ~$24.3K. This was nearly half of the year’s total expenses in one month. Aside from taxes, September also incurred high Utilities costs – notably $3.8K in water (potential one-off or cumulative bill). Excluding these, other expenses remained in typical ranges.

Significant Budget Overages (Actual vs. Budget)

Zelienople’s actual spending vastly exceeded budget projections in almost every category (total expenses were 197% of budget YTD). Key overages include:

Advertising: Spent $11.28K vs $4.69K budget (240% of plan). Aggressive marketing (PPC, Sparefoot, etc.) and unplanned hiring ads drove this overrun.

Insurance: Actual $14.47K vs $6.82K budget (212%). Likely the property/liability insurance premium was under-budgeted or an additional policy was added.

Professional Fees: Actual $20.42K vs $10.50K budget (194%). Management fees (which increased with higher revenue) and unbudgeted accounting/legal costs (over $5.4K in accounting alone) contributed here.

Payroll: Actual labor costs $10.95K vs $5.04K budget (217%). Notably, Contract Labor ($10.9K) was used instead of budgeted wages. This suggests an operational change (perhaps using a contractor or temp staff), causing overspend relative to the wage budget.

Property Tax: Actual $24.35K vs $13.65K budget (178%). The tax bill was significantly higher than anticipated – possibly due to higher assessed value or additional parcels. This is a major factor in the budget overshoot.

Repairs & Maintenance: Actual $5.69K vs $1.58K budget (362%). Extensive groundskeeping and site repairs (over $3.2K on landscaping, plus other unbudgeted fixes) caused this category to triple the expected amount.

Software: Actual $7.66K vs $2.73K budget (281%). The facility spent more on management and tenant software (e.g. storage software $4.54K vs $2.03K bud) and additional tools like collection and gate software that weren’t fully budgeted.

Utilities: Actual $5.83K vs $3.25K budget (180%). Water and trash far exceeded expectations – water bills totaled $3.83K (budget only $245) and trash $1.17K (budget $105). These huge percentage overages point to either budgeting errors or unexpected usage/billing issues.

Every month from March onward saw actual expenses higher than a prorated budget. The most dramatic were August and September, where large tax and maintenance costs blew past any monthly allocation. Even excluding one-time items, core operating costs (advertising, software, etc.) were consistently above plan in Zelienople.

Monthly Expense-to-Revenue Ratios

Despite Zelienople’s strong revenue performance (actual income was ~119.6% of budget), expenses grew faster. Through most of 2025, the facility’s expense-to-revenue ratio was around 20–40% (healthy) in months without big one-time costs. For instance, May’s $5.84K expense against $30.42K revenue was only ~19%【13†output】【15†output】. However, due to heavy spending in late Q3, the ratio spiked – about 67% in August and 88% in September – eroding profitability for those months. On a YTD basis, expenses equated to roughly 40% of revenues (108.9K of 271.6K). This is still a reasonable operating margin overall, but the volatility is high: most months the business was very profitable (over 60% margin), whereas September was nearly break-even. Smoother expense management would keep monthly margins more consistent.

Expense Reduction Recommendations

Zelienople’s cost overruns call for targeted expense control and better budgeting in these areas:

Marketing/Advertising: With spending at 2.4× the budget, marketing efforts should be scrutinized. Reduce PPC ad bids or set a firm cap aligned to the original budget unless a clear ROI justifies the extra ~$6.6K spent. The Sparefoot listing and extra signage (unbudgeted $1.46K and $1.34K, respectively) should be evaluated; if occupancy is near capacity, these can be cut back.

Insurance: The insurance expense overshot by ~$7.6K. It’s possible the policy was renewed at higher rates or a new coverage was added. Shop around for competitive quotes or higher deductibles to lower premiums. Ensure the budget reflects the actual insurance billing cycle (e.g., if this $14K includes multiple properties or annual pre-payments, allocate it appropriately).

Staffing (Payroll vs Contract): The facility relied on contract labor far more than planned, blowing the payroll budget. Consider hiring a part-time employee or assistant manager if feasible – a fixed wage might be cheaper than repeated contractor fees. If contract labor is necessary (e.g., for facility coverage or maintenance), negotiate a term contract to lock in rates and limit hours. Update the budget to realistically account for this labor strategy.

Property Taxes: Given actual taxes were nearly 1.8× the budget, investigate why. If the assessment increased, appeal it if possible to seek relief. At minimum, plan for the higher tax going forward (the next budget should use ~$24K as the expected annual tax). Setting aside funds monthly for taxes (escrowing) can also prevent cashflow crunches.

Repairs & Maintenance: R&M costs (especially landscaping/grounds at $3.3K) far exceeded the minimal budget. The low budget ($1,050) was unrealistic – going forward, allocate more based on actual needs (likely ~$4–5K/year). To reduce costs, explore seasonal contracts for lawn/snow or combine services with nearby facilities for a volume discount. Implement preventive maintenance (e.g., regular gate and building inspections) to avoid sudden large repair bills.

Software Expenses: Double-check software subscriptions and licenses. The fact that Storage software alone was ~$4.54K vs $2.03K budget suggests either an unplanned price increase or added features. Negotiate with software vendors, and assess if all modules are necessary. Additionally, the use of multiple platforms (collection, gate, management software) might be streamlined – some management software suites offer integrated solutions that could consolidate these fees. Eliminating redundant systems could save a few thousand annually.

Utilities (Water & Trash): The massive variance in water/trash costs (over 10× budget in cases) needs immediate attention. Verify if the water usage is accurate – a leak or irrigation issue could be inflating the bills, so have plumbing inspected. For trash, ensure the service level matches needs (e.g., was only one pickup per week budgeted but more were required?). Possibly renegotiate the trash contract or rightsizing the dumpster/pickup frequency. Future budgets must account for these baseline utilities more realistically (e.g., ~$1K+ for trash and $4K for water annually, if current usage continues).

Expense & Revenue Trends Visualization

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Zelienople – Monthly Revenue vs. Expenses (Jan–Sep 2025). Revenues (blue) were strong and steady (~$25–33K most months), but expenses (red) spiked dramatically in August and September. Those late-year expense surges correspond to large property tax and maintenance outlays, which compressed the profit margins in those months.

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Zelienople – YTD Budget vs. Actual by Category. Actual expenses in every major category exceeded budget (teal bars vs. grey bars). Particularly large gaps are seen in Property Tax, Legal/Professional, Advertising, Insurance, and Software. These deviations highlight where cost control or better forecasting is needed.

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