Whose money is whose: operating models

Every unit you operate posts its money under an operating model. The model is set per property (with a per-listing override when one unit in a building runs on different terms), and every report, statement, and payout respects it. The portfolio-wide view is the read-only Operating Models register; the model itself is changed on the property’s Finance tab.

The five models

Owned - your unit, your revenue. A night’s gross is your income, your costs are your expenses, and the P&L is the whole story. Example: your own apartment earns 60,000 for the month; all 60,000 is your revenue.

Leased - you pay the landlord rent and keep the upside. The rent (and CAM, if the lease carries it) is your cost; everything above it is yours. Example: rent is 100,000; the unit grosses 160,000. Your revenue is 160,000, your rent expense 100,000 - the 60,000 spread is your margin, and a bad month is your loss too.

Profit-share - a lease with a twist: on top of rent, the landlord takes an agreed percentage of the net. Under the hood it is the same lease agreement with a non-zero profit-share percentage rather than a third kind of contract. Example: rent 100,000 plus a 50% net split. The unit nets 40,000 after rent and costs; the landlord’s share is 20,000 more, leaving you 20,000.

Managed - the owner’s unit and the owner’s revenue. The gross a managed unit earns is money you are holding, recorded as a liability owed to the owner. Your management fee - charged on net, on gross, or as a revenue split, per the agreement - is your only income from that unit. The agreement can also withhold a small reserve float from payouts. Example: a managed unit grosses 200,000 with 50,000 of costs and a 25% fee on net. Fee: 25% of 150,000 = 37,500 - that is your revenue. The rest is the owner’s, paid out on the agreed schedule.

Investor - a capital pool funded the unit; returns flow to investors by their pro-rata share under the pool’s terms. Every capital line is tagged with who funded it, so an owner-funded renovation can never inflate your own capital deployed. Example: two investors funded a unit 60/40; the month’s distributable return splits 60/40, and each sees their own position in their portal.

Managed gross is never operator profit

This is an enforced invariant, not a reporting convention. A managed unit’s gross enters the books as a liability to the owner. No report, KPI, or export counts it as your income - only the fee. If a managed unit seems to be “missing” from your revenue, it isn’t missing; it was never yours.

Model changes never rewrite history

The model history is effective-dated: switching a property’s model closes the old row and opens a new one from the switch date. Nights already recognized keep the economics that were in force when they happened - a change today never restates last month’s statements. When a report joins a night to a model, it uses the model in force on that night.

Why the register exists

The Operating Models page answers one dangerous question early: is there a unit with a live agreement but no model row? Such a unit posts as owned by default - a plausible, wrong number. The register makes the gap visible on every plan; the fix (assigning the model) lives on the property’s Finance tab.

Related

How money moves explains when a night’s revenue counts; Owners & investors covers the statements and payouts built on top of these models.