Property management is no doubt challenging. With the increasing demands and hard-to-beat competitors on the realm, it is important to know how you’re performing relative to your peers. Monitoring performance is critical to get better business insight and forecast business growth, and KPI is one of the great ways to do that.
KPI stands for Key Performance Indicators which are business metrics used to evaluate measure and manage your property management business. Tracking the number of property management KPIs will show you how effectively objectives are being met and let you know if your business is on track to success.
Revenue growth
Watching the profit is one of the most apparent property management KPIs. It is important to note the revenue growth. Is it flatline or fall? This will help you to spot areas that need improvement or tack on additional to see continues revenue stream.
Your Management Fee Annualized Income indicates the total annualized income earned by your portfolios. With the increased number of properties under management and increased rental rates, the number fluctuates. So your target should be defined and monitored, and if the goals are not being achieved, it is important to implement effective measures to meet the overall business goals.
Instead of focusing on the number of properties you have and how big they are, consider whether you can fill the vacant properties with tenants. If you have properties with more vacancies than occupancies, you need to work on it. Utilize your resources to market your properties through advertising.
Determining the Average Arrears Percentage and Income will help you gauge how each team member is managing their portfolio. It also helps you monitor the impact of the arrears on your monthly income. Since most principals are focused on arrears percentage, many fail to consider the monthly income lost in management fees. The Average Arrears Percentage target should be 0% to save your bottom line. So, keeping an eye on this metric, therefore, allows you to determine where and why arrears are occurring.
Do your tenants appreciate your property? If you don’t have any idea, you should keep track of it with a survey at least once every quarter. The customer reviews will offer you important information regarding the positives and negatives of your property, and that can drive improvements and result in expanded revenue in the end.
Even if you are already at best capacity, you must leave standard listings on listing sites. The listing will allow you to generate interest in property if a sudden vacancy occurs. Monitor the engagement with your listings to ensure that it is worth the money that you are paying. Also, consider how much revenue it will bring to you.
Along with monitoring how many properties you successfully acquired within a year, it is also important to evaluate the number of properties lost. An average property manager usually sees 10-20% turnover in a year. So, it is essential to outweigh your losses. Gauge your customer acquisition costs to determine the effectiveness of your business development techniques.
Monitoring these critical KPIs will keep your business on track while helping your business to achieve its overall goals. To ease up the process of property management, you can use Bricks + Agent cloud-based property management platform.
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