15-Factor Property Risk Scoring — Instantly
Stop relying on gut feel. Compass analyzes 15 quantitative risk factors to generate a composite risk score for every property in your portfolio — financial, occupancy, operational, and physical.
Why Quantitative Risk Scoring?
Without Risk Scoring
- • Subjective "this looks good" analysis
- • Blind spots in tenant concentration or WALT
- • No framework for comparing properties
- • Surprise refinance risk from short debt maturity
- • Break-even occupancy unknown until too late
With Compass Risk Scoring
- • Composite score (0-100) quantifies total risk
- • 15 weighted factors cover all risk dimensions
- • Side-by-side comparison across portfolio
- • Debt maturity and DSCR monitored automatically
- • Break-even occupancy calculated from live data
All 15 Risk Factors
Each factor is independently weighted and scored, then combined into a composite risk score
📊 Financial Factors
DSCR (Debt Service Coverage)
Can the property cover its debt payments? Below 1.0x means negative cash flow.
LTV (Loan-to-Value)
How leveraged is the property? Higher LTV means less equity cushion.
NOI Yield
Net operating income as a percentage of purchase price. Lower yield = higher risk.
Break-Even Occupancy
Minimum occupancy needed to cover expenses + debt. Higher = more fragile.
Cash-on-Cash Return
Annual pre-tax cash flow relative to equity invested.
Cap Rate
NOI divided by property value. Lower cap rates command higher prices.
Debt Maturity
Years until nearest loan matures. Short maturity = refinance risk.
🏢 Occupancy Factors
Current Occupancy
Percentage of rentable area currently leased. Vacancy erodes income.
WALT (Weighted Avg Lease Term)
Average remaining lease term weighted by rent. Short WALT = rollover risk.
Tenant Concentration
Largest tenant as % of total income. HBigh concentration = single-tenant risk.
⚙️ Operational Factors
Expense Ratio
Operating expenses as % of revenue. Higher ratio means thinner margins.
Recovery Ratio
How much of expenses are recovered from tenants via recoveries.
Revenue Growth
Expected revenue trajectory based on rent steps and market conditions.
🏗️ Physical Factors
Property Age
Older properties carry higher capex risk and potential obsolescence.
Building Size
Larger assets typically have better diversification and institutional appeal.
How the Composite Score Works
Enter Property Data
Input your property details, expenses, tenants, financing, and investment structure through Compass's guided workflow.
Automatic Calculation
Compass computes all 15 factors from your live data — NOI, DSCR, WALT, occupancy, break-even — no manual entry needed.
Visual Dashboard
See your composite score plus individual factor scores in the Reports dashboard. Click any KPI for a full timeline drill-down.
Risk Score Ranges
80–100
Low Risk
Strong DSCR, high occupancy, long WALT, diversified tenants
60–79
Moderate
Generally stable with some factors needing attention
40–59
Elevated
Multiple risk factors flagged — review recommended
0–39
High Risk
Critical factors (DSCR < 1.0, very low occupancy, near-term maturities)
Know Your Risk Before You Buy
Compass calculates risk scores automatically from your property data. No spreadsheets, no guesswork — just quantitative analysis in seconds.
No credit card required. Full access during beta.