Managing Cash Flow in a Commission-Based Business

Real estate sales is a "feast or famine" cycle. You might have a record month in November and zero settlements in January. Managing this volatility is the key to survival.

The PM Buffer

The secret to a stable agency is Property Management (PM). Your PM income should ideally cover all your fixed costs (Rent, Admin wages, Leases). This means you aren't reliant on sales commissions to keep the lights on.

The 3-Month Rule

Because settlements can be delayed by 30-90 days, you must maintain a cash buffer of at least 3 months of operating expenses. Do not distribute all your profits as soon as a big commission lands.