As an accountant for supported accommodation providers, we see this often. Adding a new property feels like progress. More placements, more income, more people supported. But many supported accommodation providers find out the hard way that growth and financial health are not the same thing. Income goes up, yet cash feels tighter. A local authority payment arrives late. Suddenly the next property looks like a risk instead of an opportunity.
If you are planning to grow, these are the seven numbers we would look at before you sign your next lease.
1. Occupancy rate, property by property
Every empty room still carries rent, utilities and often staffing costs. Track occupancy every month for each property, not just across the whole business. One property sitting at 70% can quietly drain the profit from two that are full. Know your break-even occupancy: the point at which a property covers its own costs.
2. Profit per property
A healthy overall profit can hide a struggling property. Work out income and direct costs (rent or mortgage, utilities, repairs, staffing and support costs) for each property separately. This tells you which properties are funding your growth and which need attention before you add another.
3. Staffing cost as a percentage of income
Staffing is usually the biggest cost in supported accommodation, and agency cover, overtime and sleep-in shifts can push it up quickly. Watching this percentage each month helps you spot problems early and price new contracts realistically.
4. Debtor days: how long you wait to be paid
Local authority and housing benefit payments do not always arrive on time. Debtor days measures the average time between sending an invoice and getting paid. If this number is creeping up, your cash is covering someone else’s delay, and that limits your ability to open new properties.
5. Cash runway
How many months could you cover your fixed costs if income paused? A new property brings deposits, furnishing, safety checks and set-up costs before the first placement arrives, so you need enough headroom to absorb a slow start. A rolling 13-week cash flow forecast is one of the most useful tools a growing provider can have.
6. Set-up cost and payback period
Calculate what it really costs to open a property: deposit, refurbishment, furniture, certificates, recruitment and the empty weeks before referrals come in. Then work out how many months of full occupancy it takes to earn that money back. If the payback period is longer than your lease or contract, rethink the deal.
7. How much you rely on one funder
If most of your income comes from one local authority or commissioner, a single contract change can hit hard. Track what share of your income each funder represents and plan to spread that risk as you grow.
Why these numbers matter at a contract or funding review
Commissioners and lenders want to see that providers are financially sustainable, not just compliant. Up-to-date management accounts that show these numbers make reviews smoother, strengthen tender applications, and give you confidence when the difficult questions come.
Related reading: why supported accommodation cash flow gets tight as you grow, and how our accountants for children’s homes and supported accommodation work with providers.
Do you need a full finance team, or just the right accountant for supported accommodation?
Not necessarily. Most growing providers do not need, or want, a full-time finance director. Credora’s management accounts and Virtual CFO service gives you monthly reporting on the numbers that matter, cash flow forecasting, and a finance partner to talk through your next property with, without the cost of building an in-house finance team.
Worried that switching accountants will disrupt you mid-year? We plan the handover around your reporting and audit timetable, so nothing falls through the gaps.
Planning your next property? As an accountant for supported accommodation providers, we can help. Book a free 15-minute consultation and we’ll talk through your numbers with you: Book a free 15 minute consultation