Non-Circular Property Management Fees Calculation

Version 0.1 -- Released September 2, 2025

The Problem: 

Property management fees (PMF) often create circular references in models. Teams hack around it with macros or iterative calc settings. 

The result? Fragile workbooks that break.

The Fix:

We set up recoveries differently:

1. Anchor recoveries (CAM, taxes, insurance) to a stable base.

2. Calculate PMF only on EGI before PMF recovery

3. Add PMF recovery back later as its own line item

This keeps the model clean, auditable, and fast -- no macros, no circulars.

Why this matters to Executives

- Valuation Integrity: NOI is stable, transparent, and defensible.

- Saves Time: Avoids explaining broken models to lenders or LPs.

- Reduced Risk: Eliminates hidden errors that could cost millions.

- Investor Confidence: Simple structures are easier to audit and trust.