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How to use the Quick Underwrite tool

The quick underwrite feature in Summer Forecast allows you to easily project a property’s potential revenue based on key metrics like occupancy, RevPAR, and fees. This guide will walk you through how to use this feature to create an annual pro forma for your property.

Watch now to get started, or keep reading for step-by-step instructions.

How to use the Quick Underwrite (Quick UW) tool in Forecast

Step 1: Access the quick underwrite tool

  1. Start by uploading your property and building a competitive set.
  2. Switch to the Quick UW (Quick Underwrite) tab from the sets view.

Step 2: Set your target metrics

  1. Adjust occupancy:
    • Use the occupancy toggle to set your desired occupancy rate.
    • Example: Set occupancy to 75% if you feel confident about achieving this rate in your market.
  2. Set target RevPAR:
    • Adjust the RevPAR (Revenue Per Available Room) slider to match your revenue goals.
    • Example: Toggle RevPAR to $315, corresponding to $115,000 in booking revenue at 75% occupancy.
  3. Update member days:
    • If the property will have owner or member stays, set the number of days using the member days toggle.
    • Example: Set member days to 22 if the property will be unavailable for those days.

Step 3: Refine additional inputs

  1. Adjust the cleaning fee:
    • Click the three-dot menu under the Quick Underwrite tab.
    • Update the cleaning fee to match market expectations.
    • Example: Set the cleaning fee to $300 based on the comp set’s average.
  2. Change the management fee:
    • Use the same menu to adjust the management fee percentage.
  3. Modify other factors:
    • Adjust average length of stay, escalations, and other variables to customize the pro forma.

Step 4: Review the pro forma

After setting your inputs, the tool automatically generates a detailed pro forma with:

  • Booking revenue: Your adjusted target revenue.
  • Cleaning and management fees: Updated based on your inputs.
  • Effective revenue: Total revenue minus fees and other costs.
  • Escalations and growth projections: View multi-year projections to estimate long-term performance.

Example: Projecting a property with upgrades

  • Current state: A four-bedroom property generating $92,000 annually.
  • Goal: Upgrades to boost revenue to $115,000.
  • Steps:
    • Set occupancy to 75%.
    • Set RevPAR to $315.
    • Adjust the cleaning fee to $300.
  • Result: A projected $117,000 in booking revenue (with a small growth adjustment for year two).

Key benefits

  • Fast adjustments: Quickly toggle occupancy, RevPAR, and fees to refine revenue projections.
  • Scenario testing: Test multiple scenarios like upgrades, price changes, or management adjustments.
  • Detailed insights: Access a multi-year pro forma to understand the property’s long-term potential.

The quick underwrite tool streamlines revenue forecasting, helping you make data-driven decisions for your short-term rental. Use it to test scenarios, refine inputs, and unlock the full earning potential of your property. Get started today in the Quick UW tab of Summer Forecast!