Q: I know I need to start tracking numbers in my property management business, but I don’t know where to start?
A: In all areas of business, what gets measured gets done, and of course property management is no exception.
But with so many areas, it can be difficult to know what to measure.
Whether you love or hate numbers, knowing the position of your business and the metrics for success is imperative. Of course, these numbers are essential to providing a clear picture of how well your property management business is operating.
It is important to ensure you know what’s happening in your business on a weekly, fortnightly, monthly and annual basis. Weekly reports from your team can provide a snapshot on key activities, and your monthly reporting can then allow for more detailed information.
To ensure that you (and your team) are not overwhelmed by reporting every day, here’s a quick overview of some of the keys areas to monitor:
1. Properties under management, which includes a detailed report of gained and lost properties, including reasons for the gains and losses. (This would have to be the most common area that is overlooked, or not exact, simply due to lost properties not being archived correctly.)
2. Activity on arrears, overdue maintenance, lease renewals, rent reviews, routine inspections completed and overdue and compliance.
3. New business reporting on prospecting calls, appraisals, gained management and leased properties.
4. Average rents, fees and income generated.
5. Vacancy and days on market. These reports can also provide a platform in which you can begin to measure KPIs and assist with keeping your finger on the pulse of the business.
How can you easily track these numbers? Use the reporting that’s available in your trust account system as your first step. However, a single simple spreadsheet can be just as useful to track all of the metrics you need.