Key Performance Indicators

3 Replies

I am working on some key performance indicators that I can apply to my property management company, who manages a portfolio of homes for me...  I would love some thoughts on what exactly to track from a profitability and managing the management company perspective...  From a timing perspective, I think I will do most of the exercise monthly, but look back on the previous month and at those vacancies that rented and the units that renewed...

Here is what I'm thinking, but would love to hear if you have other thoughts!

Monthly

Income

Gross Potential Rent vs. Amount Collected

Average Rent

Vacancies

Number of Showings (for vacant, rent ready homes)

Average Days Vacant Between Tenants (day to day - measuring from tenant move out to tenant move in) 

Cost to turn property

Vacancy Rate (do evictions count as a vacant?)

Renewals

% of one year renewals

% of two year renewals

% of three+ year renewals

% Rent increase for renewals

Costs

Average Maintenance Cost Per Unit

Annual (Quarterly?)

Overall portfolio profitability

Total cost paid to management company

What are you going to benchmark your statistics against to evaluate your PM's performance?  For example, if you get a 8.9% rent increase at renewals, how will that be meaningful information unless you know the average rent increase for your location was 12.3%?  

Originally posted by @Bettina F. :

What are you going to benchmark your statistics against to evaluate your PM's performance?  For example, if you get a 8.9% rent increase at renewals, how will that be meaningful information unless you know the average rent increase for your location was 12.3%?  

I have two management companies that I use.

Not many replies here... is there a better place to post this question and get more of a discussion going?  Thanks!

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