When trying to progress a business, it can be easy to fall into the trap of being too abstract when laying out objectives or, conversely, setting too many unrealistic goals. The best way to avoid either is to set teams some Key Performance Indicators (KPIs) as a way of tracking how they’re doing. Here are five effective KPIs every property manager should consider:
The best indicator of an agency’s success is not the number of properties on its books, but the amount of revenue it brings in. Automating tasks like raising invoices or issuing repairs reports through repairs and maintenance management software will lower costs and overheads and increase revenue growth.
Frequency of inspections
The best way to service a property is to inspect it frequently, without intruding on the people living there. Inspections should be carried out three to four times a year to ensure a property is being kept in good working order and that a landlord feels as though he’s getting his money’s worth. This is one KPI that takes little resource to monitor, making it ideal for small businesses.
Poor communication is often cited as a reason why landlords seek alternative agencies to represent their properties. It makes sense - landlords want to be kept well-informed of matters pertaining to their property and tenants can become frustrated at not being able to contact their property managers with complaints or concerns. An important KPI is whether agency clients believe that communication is improving. Property managers looking to implement improvements in this area should look into repairs and maintenance software, which allows tenants to report a repair 24/7 and expect a swift response, while automatically informing the landlord of the issue and plans for its resolution.
Rent reviews and keeping up with the market
As businesses grow, it can be easy for property managers to lose track of the rent levels of their existing properties. Keeping up to date with market pricing and ensuring the rent levels or existing properties correlate is one way to boost revenue. Properties should have their rent reviewed at least once a year, a few weeks prior to renewal, to ensure adequate time for research and readjustment.
Properties won and lost
In addition to tracking how many new properties are being won (you can find out how to find landlords for your letting agency here), a vital KPI is how many properties have been lost. Monitoring the levels of property wastage (which can be 10-20% of an agency’s annual rent roll even in established agencies) and discovering exactly why they’ve been lost (sales/competition, etc.) will inform not just how the agency is doing, but also the areas in which it can do better – which is exactly what a KPI is all about.