Worked example: what one damage report costs a year

Worked example

One damage report,
costed out in full

The market advertises “up to 80 per cent less manual work” and never shows the arithmetic. Here is some, with every assumption in the open. It is smaller than any advertising claim, and it can be checked.

Important: this is a worked example, not a client case. The business below is invented, the figures are plausible assumptions and not a measurement. What comes out for you follows from your own three numbers in the free check.

The model business

What we are assuming

A property management firm with nine people in the office and around 1,400 units under management. Damage reports come in by phone, by email and through the tenant portal. There is a management application, an accounting package and a folder of tradespeople. None of them talk to each other.

Units
around 1,400
Office
9 people
Channels
phone, email, portal
Office hourly rate
€45 fully loaded

How it runs today

Six steps, 25 minutes

This is how a single damage report runs, from first contact to filing. The minutes are assumptions, but they are not flattering ones: interruptions and follow-up questions are included, because they happen in reality too.

  1. 01

    Take the report and write it down

    Taking notes on the phone, or reading the email and pulling out what matters.

    4 min
  2. 02

    Find the property, the unit and the party

    Callers rarely quote a unit number. You search by name, by address, or you call back.

    5 min
  3. 03

    Check responsibility and whether it is an insurance matter

    Tenant, owner, common property, insurer. The answer sits in four different documents.

    3 min
  4. 04

    Pick a tradesperson and place the order

    Who covers it, who has capacity, who was at that property last time.

    6 min
  5. 05

    Tell the tenant about the appointment

    Call or write, often twice, because nobody picks up the first time.

    3 min
  6. 06

    Chase the response and file it

    Did they turn up, is it done, has the invoice arrived, is it all filed against the right property.

    4 min
  7. 25 minutes per report

The arithmetic

What this workflow costs today

Three numbers, one multiplication. Nothing is being claimed yet: this is arithmetic from the assumptions above, and you can replace any of them with your own.

Frequency

90 reports a month

A conservative assumption at 1,400 units.

Duration

25 minutes per report

The sum of the six steps above.

Total time

37.5 hours a month

90 × 25 minutes, divided by 60.

Per year

450 hours

About eleven working weeks of one full-time person.

In euros

€1,688 a month, €20,250 a year

At an office rate of €45 fully loaded.

The standard share

How much of it runs the same way every time?

This is the third of the three numbers and the only one you have to estimate. In this model it is 60 per cent: steps 1, 2, 3 and 6 largely follow the same pattern, while steps 4 and 5 are judgement and human contact.

22.5 hours a month, €12,150 a year

60 per cent of 37.5 hours. That is the ceiling on what there is to talk about at all.

From here on it is an assumption

What actually goes away

Automation does not take the whole standard share. Checking remains, exceptions remain, and so does rework on the cases the rule set could not match with confidence. In this model we assume a quarter of the standard share stays as checking and exception time.

around 17 hours a month, around €9,100 a year

This last figure is an assumption, not a measurement. It is the only step in this calculation we cannot evidence, which is why we say so plainly instead of letting it disappear into a percentage. What is left over at your end only shows once it is running.

What stays

What a person keeps doing

  • Choosing the tradesperson. Who suits which property is something your administrator knows and no rule set does.
  • Every sign-off that costs money or creates a legal obligation. For a manager handling other people's money that goes double.
  • The cases the rule set could not match with confidence. They land in a list of their own instead of being guessed.
  • The conversation with the tenant when it escalates. What gets automated is the administrative route, not dealing with people.
Now your numbers

This calculation is invented.
Yours would not be.

The model above shows how the calculation is built, not what comes out for you. Your frequency is different, your minutes are different, and your standard share most of all. The free check records exactly those three numbers for one of your workflows, and if the calculation comes out against automating, we say so.