Key performance indicators (KPI) are useful metrics to track and measure specific functions of your business. Used correctly, KPIs can help you identify and quantify problems and weak points in your operation. ValencePM makes tracking KPIs easy with data. A KPI is any metric that you want to measure in order to analyze the data. Key performance indicators can be lease turnover, customer satisfaction, rent price by unit, resident demographics, yearly maintenance costs and much more. Using a cohesive management system, such as property management software, will allow you to gather data in one convenient place to measure and plan your future strategy accordingly.
This is a useful set of property management KPIs to have if your property management business owns or manages multiple buildings. Large development companies use this to track the profitability of their total property asset amount. You have to set two types of KPIs in this case – the properties or developments that are entering your possession each year and those that are leaving it. ValencePM will allow you to track these with ease.
As property management KPIs go, this one is a pretty obvious pick. As the manager of an apartment building, you need to keep track of how many of your apartments are vacant and how many are occupied, at any one time. You also need to set a certain occupancy rate each year or month to call your success rate. Anything below this and you’re losing money, not making it. Setting this KPI allows you to keep track of your occupancy and figure out why you aren’t getting new tenants, or why more of your current tenants are leaving.
This KPI is important to set because it keeps your occupancy rate positive and your tenants happy. Having all the data you need in one dashboard will provide you the opportunity to visualize problems, and can help you better price your units and find out which floor plans are retaining tenants. This will allow you to better price your units and optimize for resident retention. This KPI will notify you if your current average rent exceeds these boundaries, allowing you to adjust according to the data.
You can use ValencePM’s apartment management suite to survey your tenants periodically. This allows you to get a metric value for their satisfaction level. You can then define a KPI for a value below which, if the satisfaction rate should fall, is a sign of reduced profits to come. With periodic satisfaction surveys, you ensure that your tenants are happy. They also allow you to take remedial action in the event anyone has a problem with the way things work in your building.
Along with your many properties entering and leaving your company, happiness indicators, average rent, and occupancy measurements, you need to set other KPIs, too. The key is to make sure they relate to your bottom line. For example, you could set an arrears KPI – if your current tenants’ arrears rise above a threshold, you’re notified and can remedy the issue. The ValencePM software allows you to easily set all the above KPIs and more. Use it in conjunction with these essential indicators for a more profitable property.