Property Management KPI's (Key Performance Indicators) What Great Companies Track.

[Chris Clothier]

This thread comes out of another forum discussion where I was asked about the KPIs (Key Performance Indicators) that my families' property management companies track.  We have a management company in Memphis, TN. that manages 2,421 properties and growing as of this posting.  In Dallas / Ft. Worth and Houston, we have a management company managing 572 properties and growing as of this posting.  

We use very basic KPIs to manage and track the daily, weekly, monthly and yearly success of our business.  Here is the previous thread that I listed questions an investor should ask before buying from a Turnkey company.  Many of the questions pertained to these KPIs.

http://www.biggerpockets.com/forums/311/topics/200...

Here are the KPI that we track:

How many properties do you manage?

What is the average rent per property? (also per zip code)

What is the average deposit per property? (also per zip code)

How many vacancies on the first day of each month?

What is your monthly vacancy rate on the first day of each month?

What % of signed leases fulfill their full term?

What % of full term leases will renew their lease each month?

What is your average # of months occupancy per property?

What % of properties have a maintenance call 30, 60 and 90 days after move-in?

What is the average number of days a property is vacant: 

     -  Original purchase to first tenant, or purchase to occupancy?

     -   After a tenant moves out, or move out to move in?

What is the cost of an average repair bill after move-out?

What percentage of billed rent is collected each month?

What percentage of collected rent goes to yearly maintenance on average?

How many dollars per property, per month are spent on maintenance?

These are just property management KPIs and they vary in importance.  We also have KPIs for our purchase team buying properties in the three markets and our renovation teams in all three markets.  

I am going to give my dad, Kent Clothier, Sr a lot of credit here when I write that he has always instructed the company leaders that leadership of a business is easy.  You only have to track a handful of numbers to know if your business is healthy or not.  By tracking them, you will know well before the danger signs arrive that you need to change course.  Of course, the hard part is knowing which number to track....

Feel free to add which KPIs that you track in your business.  Even small landlords with a handful of properties should operate like a business and have a set of KPI that they track.  Would love to read what others track in their businesses.

[Jay Hinrichs]

@Chris Clothier

  Thanks for sharing... I suspect that many investors over time have no clue..

Others who are number crunchers probably have it down to the penny.

Maintenance and cost to do turn over is the killer to cash flow when I had our 300 plus SFR portfolio... Whether it came from the original rehab not being up to snuff ( which happens to all of us at some point something is missed we can't all be perfect everytime) to the most likely issue and that is tenant wear and tear. So if tenant is rough.. and then moves out and it takes a couple weeks to coordinate turn over then a few weeks to get rented up again you lost a month of rent... staying on top of the turn over is key.