Revenue Head

Revenue heads refer to various streams of income that a developer can generate from a property. These include unit cost, maintenance charges, and other related parameters where customers pay the developer for services provided. Properly planning and managing these revenue heads is crucial for the financial health and sustainability of real estate projects.

Key Revenue Heads in Real Estate

1. Unit Cost: This is the primary source of revenue for developers. It includes the price paid by buyers for purchasing a unit in the development, whether it's a residential apartment, commercial space, or any other type of property. The unit cost is determined based on factors like location, amenities, market demand, and construction quality.

2. Maintenance Charges: Maintenance charges are fees collected from property owners to cover the upkeep of common areas, facilities, and services. This includes landscaping, cleaning, security, repairs, and utilities for common spaces. Regular collection of maintenance charges ensures the property remains in good condition and services are consistently provided.

3. Parking Fees: In many real estate developments, especially in urban areas, parking spaces are limited and valuable. Developers can charge for parking spots, either as a one-time purchase or as a monthly rental fee. This provides an additional revenue stream and helps manage the allocation of parking spaces.

4. Amenities Fees: Developers often include various amenities like gyms, swimming pools, clubhouses, and recreational areas in their projects. Access to these amenities can be monetised through membership fees or usage charges. This not only generates extra income but also enhances the attractiveness of the property.

5. Utility Fees: Utility fees cover the cost of providing essential services like water, electricity, gas, and internet. These are either included in the maintenance charges or billed separately based on usage. Properly managing utility fees ensures that the costs are fairly distributed among the residents.

All types of costs to be received from customers are defined as revenue heads and to be created here. Examples of revenue heads may include Unit Cost, Land Cost, Vehicle Parking, Extra Charges Normal, Extra Charges Income, Late Payment Charges, Floor Rise Charges, Cancellation Charges, etc.

Alias: Enter short name of the revenue head

Description: Enter description of the revenue head

Revenue Head Type: Select revenue head type

Revenue Head Group: Select revenue head group

Calculation Basis: Select calculation basis

Rounding: Select rounding option to be considered (Mandatory)

Formula: Calculation formula can be set here

Is Billable: Check if the revenue head is billable. Then the following three fields will become off and inactive. If left unchecked then those fields will be enabled

Against Revenue Head
Parent Revenue Head
Billed Revenue Head

Tutorial: Creating Revenue Head