April 24, 2018
Top Metrics Your Property Management Dashboard Should Be Tracking
When it comes to property management dashboards showing your top metrics are critical to see where there might be any problems. To be able to create targets, you must be able to see where you stand at any given moment.
To extract greater return from existing investments, property management teams need to access metrics on real-time performance. Here are some of the top metrics property managers should be showing.
While it seems obvious, you always want to monitor revenue. Cash flow drives the business, and at no point do you want to see revenue flat-line or decline. A year-to-year comparison will help you immediately see which of the two is happening. When creating these year-to-year comparison, factor in economic changes, otherwise, the data might paint the wrong picture.
Net Income Metrics
All property management firms keep close tabs on their most important revenue stream—income generated from property leases. However, keep metrics on ancillary income. These include: Wi-Fi services; and telecom programs, residential insurance, party rooms, parking spaces, storage units, coin-operated laundry and other facilities
Net Property Acquisition
The more you manage or own, the more rent and auxiliary income you can expect to generate. When determining net property acquisition, you need to assess properties won and properties lost. When losing or not retaining a property, always get feedback from the owner. If you are managing properties, it’s wise to keep a sharp eye on customer acquisition cost.
Every property manager should know the occupancy rate on a building-by-building basis and across their portfolio as a whole, as well as the average occupancy rate in the market you serve.
High turnover costs you money, as the acquisition process is far more expensive than lease renewal. In fact, it’s estimated to be three times as costly. So, how well are you faring at keeping tenants? Key metric to keep in mind here is average days-to-lease.
Closely tied to retention is tenant satisfaction. You should check in with tenants at least twice a year to see how they feel about their unit as well as the property as a whole. Your residents are your eyes and ears on the ground, and can give you invaluable insight into the good, the bad and the ugly of living in the building and their interactions with maintenance and property staff members. While you can’t please everyone all the time, you will get constructive criticism and insights into areas that need to be attended to so that you can improve retention and revenue.
Repairs & Maintenance Metrics
Maintenance metrics can help improve maintenance efficiency, reduce costs and provide excellent customer service to your tenants. Key metrics here are the repair and maintenance (R&M) costs by building or portfolio. You will want to see any rises over time, as well as how buildings compare to each other. The ability to also drill down to see the number of work orders (scheduled, completed and past due) by building or by portfolio is critical as well. You should also keep track of the proportion of expenses that is R&M, if it’s too low, the buildings could be run into the ground. You can use this information to evaluate the effectiveness of preventative maintenance plans, and make decisions on what repairs need to be prioritized. It can also help to monitor the quality of the repairs.
Cash flow is crucial to any business, and arrears impede money-to-the-bank. Ensure you have a dashboard that provides metrics on the number and dollar amount of arrears across your portfolio of properties.
Set metrics around total arrears, and arrears by X number of days, and by percentage of arrears per building or per portfolio. Monitoring this metric allows you to pinpoint exactly where and why arrears are happening to ensure they are managed and corrected. As a result, your team is in a better position to aim for 0% arrears and 100% income.
Property Vista’s Dashboard Solution
Property Vista offers online reporting and dashboard tools to help you make smart, informed decisions that will increase revenues across your portfolio. Our elegant dashboard solutions are configurable and accessible, making it easy for you to ensure that your business is as profitable as possible. To see pricing and arrange a demo, visit us at at PropertyVista.com/pricing.