Divide up your residential and commercial properties and allocate these, and any other, important KPIs to each. This will help you understand the direction you’re taking and start raising the roof financially.
1. Properties lost and won: This KPI is an effective indicator of how your business measures up in the industry, against local and/or national competitors. It’s essentially stock control. If you’re losing them, why?
2. Vacancies and occupancies: Measuring this KPI allows you to see how well your managed properties are doing. There’s no point keeping a property on your system if you can’t fill it. If you can’t find a long term let or sale, it might be worth advising renovation or auction.
3. Arrears: It’s to be expected to have a handful of tenants in arrears. Payments from sales won’t always clear immediately either, especially if there are external parties involved. But you must be measuring what proportion of your customers are, and by how long.
4. Price reviews: Conducting price reviews is a surefire way of increasing your profits. Keep a close eye on your competitors’ prices – average them out for a benchmark figure to work from. Keep it in mind and you’ll stay ahead of the game.
5. Tenant/buyer satisfaction: Ask customers to provide you with a feedback review. Put your non-financial data into your forecast, then use your results as a learning curve and implement changes where needed.
Have a look through our KPI Library for more inspiration.
Properties lost and won should be a headline metric in your forecast.
Get a handle on your rental durations here.
Find out more about arrears and how to measure them here.
Calculate your revenue per rental here to see if you’re due to review.
Learn to calculate satisfaction here.