Executive Summary
Multifamily teams have no shortage of financial reports. The problem is that most portfolios still can’t answer the questions that matter at the deal level: Are we running this asset efficiently for this market and this unit mix?
BubbleGum BI solves this by tying your actual income statement expenses (GL-level, from your PMS/accounting system) to public market benchmarks. We standardize operator chart-of-accounts differences into a consistent set of expense categories and show each benchmark as lower / predicted / upper bounds—so your team can see what is normal, what is exceptional, and what requires action.
Why Expense Benchmarking Matters
Most owners and asset managers can tell you what they spent last month. Far fewer can quickly and confidently answer:
- Market context: Are our expenses high because we are inefficient, or because this is a high-cost market?
- Operator accountability: If we have multiple operators, are we seeing real operational differences or accounting differences?
- Budget realism: Is the budget anchored to reality for this asset’s characteristics?
- Underwriting validation: Are actuals tracking to the original underwriting assumptions, and if not, why?
Expense benchmarking turns your income statement from a retrospective report into a decision tool.
What BubbleGum BI Ingests (Internal Source of Truth)
BubbleGum BI ingests your property financials at the level required for serious asset management:
- Actuals: Income statement data down to the GL-account level
- Budgets: Budgeted revenue and expense lines aligned to the same categories
- Underwriting / pro forma: Client-specific underwriting models integrated for efficient loading
- In-year forecasts: Midyear forecast updates so leadership can see where the year is heading
This matters because benchmarking only works if your internal numbers are complete, consistent, and traceable.
Standardizing Operator Chart of Accounts (Apples-to-Apples)
In the real world, two operators can describe the same expense in different ways (or book it to different accounts). BubbleGum BI standardizes operator-specific charts of accounts into a consistent set of expense categories so that:
- Deals can be compared across operators within the same market
- Portfolio dashboards reflect operational reality, not accounting quirks
- Variance analysis rolls up cleanly while still preserving GL-level detail
Public Benchmarks (Market Context You Can Trust)
Expense benchmarks are only useful if they come from credible, transparent data sources. Through our partnership with HelloData, BubbleGum BI layers market context onto your deal using publicly available sources (including HUD, GSE/Agency, and CMBS disclosures).
How the Comparable Set Is Built (The 10 Most Similar Properties)
Benchmarks are calculated using the 10 most similar properties to your subject deal. Similarity is determined using criteria including:
- Physical proximity / location context
- Year built (vintage)
- Unit count
- Gross Potential Rent (GPR) per unit
How Benchmarks Are Calculated (Income → EGI → Expenses)
At a high level, the benchmark workflow follows a consistent financial logic:
- Benchmark income line items as a percentage of GPR using the comparable set.
- Use that to compute Estimated Gross Income (EGI).
- Benchmark expense line items as a percentage of EGI using the same comparable set.
BubbleGum BI then ties those market benchmarks directly to your actual income statement categories so your team can see where you are above, at, or below market—category by category.
How to Read BubbleGum’s Expense Benchmarks (Lower / Predicted / Upper)
For each expense category, BubbleGum BI displays three benchmark values:
- Lower: a conservative bound for the category’s expected expense level
- Predicted: the central estimate for the category
- Upper: an aggressive bound reflecting a higher-cost expectation
These bounds help your team interpret variance correctly. Being above “predicted” is not automatically a problem—what matters is whether you are outside the expected range and why.
What Categories Are Included?
Benchmarks are presented at the category level (not individual GL accounts). Common categories include:
- Real Estate Taxes
- Property Insurance
- Utilities
- Repairs & Maintenance
- Payroll & Benefits
- Advertising & Marketing
- Management Fees
- Professional Fees
- General & Administrative
- Total Operating Expenses
“Chunk” Numbers and Per-Unit Numbers
BubbleGum BI supports both ways of viewing expenses:
- Total dollars (chunk): the actual magnitude impacting NOI
- Per unit: a normalized view that enables fair comparison across assets of different sizes
Traceability: Category Variance to GL Detail
When you see a variance (for example, “Marketing is above market”), BubbleGum BI preserves traceability so you can validate and act:
- Category → GL accounts: see which accounts roll up to the category
- GL detail: identify which accounts (and timing) drive the variance
- Operator comparisons: distinguish operational differences from accounting differences
Where This Fits: Actuals, Budgets, and Underwriting
Expense benchmarking is not a standalone report. It becomes much more powerful when used as a consistent reference point across:
- Actuals: what happened
- Budgets: what you planned
- Underwriting / pro forma: what you assumed at acquisition
- Forecasts: what you now expect for the rest of the year
BubbleGum BI keeps these perspectives aligned so your team can diagnose variances faster and communicate clearly with operators, leadership, and investors.
Frequently Asked Questions
Do these benchmarks come from my internal data?
No. Your internal income statement data is your source of truth, and BubbleGum BI uses it to measure performance. The market benchmarks are derived from publicly available sources and a comparable-property methodology. BubbleGum BI’s value is tying the two together consistently at the category level.
How often are benchmarks refreshed?
Benchmarks are regularly refreshed to reflect the latest available public disclosures and market context.
Can BubbleGum BI support multiple operators?
Yes. BubbleGum BI standardizes operator chart-of-accounts differences into a consistent expense-category model so leadership can compare performance across operators on an apples-to-apples basis.
Important Notes
- Benchmarks are estimates: They are intended to provide market context, not replace property-level diligence.
- Consistency matters: Benchmark comparisons are most valuable when categories, periods, and normalization methods are aligned.
- This is not investment advice: Use benchmarks as one input to underwriting, budgeting, and operational decisions.
See Expense Benchmarks on Your Deals
In a short walkthrough, we’ll show how BubbleGum BI ties your GL-level income statement to public market benchmarks—so you can spot expense variance, validate budgets, and hold operators accountable.
Book a Portfolio Walkthrough