Property management is a notoriously tricky area of a real estate business but when done well it can deliver a stable income and steady growth.
If your rent roll is going around in circles and has a revolving door of staff and clients, setting KPIs can be a good way to get things on the right track.
Here are some sample KPIs for property managers to get you started:
Engagement and retention
For property management executives, having a goal which is focused on retention will encourage them to hang on to the staff they have.
Reducing staff turnover is a great way to reduce costs. It has a flow on effect of improving client satisfaction because renters and property owners know they will always speak with the same person.
Offering performance reviews, goal setting support and incentives ways to boost engagement.
In terms of clients, reducing turnover should be a KPI for your entire team. Having a minimum turnover target will inspire them to go the extra mile and pay attention to detail so their property owners and tenants have a better experience.
Feedback may be another area where you can set KPIs. For example, have your team send an annual survey to their property owners and measure the results. There should be a minimum score when it comes to things like service, friendliness, reliability and effectiveness.
New business
The ideal rent roll is continually growing but to achieve this you need everybody’s help.
Small things like offering incentives to existing rental property owners for successful referrals is one way for your team to achieve this KPI.
Those referrals will come based on quality service so train your team to:
Deliver consistently reliable customer care
Use templates and systems to streamline onboarding and day to day property management
Update their clients on changes to legislation
Make the most of software so services can be delivered electronically
Improved cash flow
Making the financial side of the business everyone’s responsibility can be an effective way to improve it.
For example, ask your team to limit overdue accounts as part of their KPIs. It may cause them to let go of difficult rental property owners who take up people’s time but prove difficult to pin down when they are asked for money. If you can replace them with more motivated, proactive property owners, your agency will be ahead.
Minimising vacancy can be another annual target. Set your team a goal of having vacancy rates below industry standards. Ask them to work together or think outside the square to ensure the properties they work with are rented year round. There may be a welcoming incentive for new tenants or an AirBnb-style arrangement to have properties earning money between long-term tenants.
Another KPI could be to reduce the cost of acquisition and the average number of days to lease. There may be a way to automate responses to enquiries or to streamline the shortlisting process. Both can save money and time.
Why have KPIs?
Most people respond well to having some form of goal to work towards. When you have KPIs, you can identify the areas where your rent roll needs to improve and set concrete targets to improve them. Your staff will understand what their priorities are and (providing they have the right tools and training) be more motivated to reach their milestones.
Consider a reward system for achieving KPIs. This could be a scaled bonus payment, an advance in pay grade or something fun like a team outing. There may be a special reward for your top-performing property manager or a team reward based on everyone’s collective performance.
Make things trackable so evidence of achieving KPIs is not anecdotal and you can review actual data during your catch ups.
BDH Solutions are rent-roll agents with over 40 years experience in connecting the right vendor with the right purchaser. Download our information booklet on the new Victorian Minimum Living Standards Legislation