September 19, 2012
Property Management Tips: Maintenance KPIs
As a property manager or executive are you monitoring your maintenance KPIs? With accurate data, the property management industry represents a rich and fertile ground for performance measurement. While property management companies understand the need to monitor their vacancy rates, one area that can sometimes be is overlooked are the smaller everyday tactical tasks that have a direct impact on the bottom line.
Why Maintenance KPIs Matter
One of the most important KPIs a REIT or property manager can monitor is maintenance. Customer service, particularly how maintenance requests are handled, is critical to tenant satisfaction.
A 2010 SatisFacts study found that 54% of residents choose not to renew leases based on controllable reasons. The main reasons that send tenants packing? Poor customer service, lack of responsiveness and dissatisfaction with maintenance requests.
How to Set Your Maintenance KPIs
Property managers and executives first must state the exact maintenance objectives, and then outline the expected outputs and outcomes. Only then can you establish a way to quantify them and then monitor them.
When measuring maintenance performance, property owners and managers must go beyond simple transactional maintenance work for tenants, and also look into how maintenance work can remove equipment failure. This provides a clear understanding of what is happening to the risk and performance of your operational assets through maintenance efforts.
For example, property managers may wish to review the number of rework work orders by 3rd party supplier to ensure the quality of the maintenance. They may also want to look at the percentage of emergency work orders. If that value rises, it may indicate that the need to review maintenance strategies to see what can be done to reduce operational risk.
Monitoring maintenance KPIs helps property managers reduce costs and improve their quality of service. Maintenance savings can be achieved by negotiating better arrangements with other providers or by reducing the number of emergency maintenance repairs, as well as cutting the number repetitive equipment failures.
Improving Maintenance Quality
The quality of maintenance service for residents – like the number of maintenance requests processed on time as well as tenant satisfaction with those repairs – can be a preemptive step in lowering future vacancy rates. Improved maintenance service as an outcome clearly demonstrates a genuine interest in the tenants’ welfare and quality of life.
You can use your KPIs to guide decisions made by employees on a daily basis – like your property managers, landlords and maintenance people. Too often maintenance goals are set, but then not shared with the on-site or 3rd party maintenance people.
When team members understand that the benchmark for an emergency repair is 1-3 hours, an urgent repair is 24 hours and routine maintenance is 48 hours, they can take the necessary steps to ensure these targets are met.
Of course, our PropertyVista property management solutions are geared toward improving tenant satisfaction and helping you monitor the goals that matter to your bottom line. When PortalVista is teamed with ViewVista you can monitor maintenance issues like response time to emergency repairs, priority repairs as well as everyday maintenance so you can view completion times as well as the tenants’ rating of the performed repair by property manager/employee, by building, or by 3rd party supplier company.
KPIs are used not just to keep track of objectives set at strategic level, at organizational level, but also at an operational context. In today’s competitive market, keeping tenants happy is, obviously, priority one. However, ensuring that REITs and property owners get value for money from suppliers and on-site repair people, improving the quality of your ongoing maintenance and looking at maintenance issues from a proactive, preventative, predictive and corrective point of view goes a long way in improving operations and reducing costs.
If you are interested in seeing a demo or finding out more about what PropertyVista can do for you, contact us.
(Free image courtesy of FreeDigitalPhotos.net)