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What is RMR
May 22, 2019
What is RMR
What is RMR?  We bill annually for EVERYONE.
Are you looking for a Gross number or Net? 
Name withheld
       RMR is recurring monthly revenue.   Sometimes [because some people need to do things their way] it’s expressed as MRR, monthly recurring revenue.  It doesn’t matter if you bill your subscribers monthly, quarter annually or annually [or any other way]; the calculation is based on the charge computed by the month.  So $120 billed annually translates to $10 a month.
       If you are in the alarm business you should know your RMR at all times, just like your temperature [98.6] and your pulse [72].  Sure it fluctuates by you need to know approximately what it is.  And, unlike your blood pressure, it’s good when the RMR goes up; that’s the goal.
       There’s more to RMR than the arithmetic computation.  The term RMR is really incomplete without the additional words “under contract”.  So it’s RMR under contract that you need to be mindful of.  If you know your RMR then can guess your company’s value because value is based on a multiple of the RMR.   The multiple of course changes, and is affected by many factors.  Some of those factors involve the categories of RMR.  Generally the categories include residential, commercial, intrusion, fire, monitoring, service and inspection.  Two other factors which can move the multiple 5 points in either direction are the contracts and whether you have your own line at the central station for the monitoring accounts.  
       It can be confusing.  What you really need is to join the K&K Concierge Program and make sure you use updated Standard Form Agreements.  We will take care of the rest so you can keep your blood pressure down.

You can check out the program and sign up here: or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304.

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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301