Property managers need to understand property performance so they can quickly correct any negative trends. In this post, I give you the top 6 KPIs for property manager reporting in multifamily.
Also, you must check out this sample Power BI report that covers the top 6 KPIs for property manager reporting. It’s an attractive, easy-to-use dashboard for everyone from your executive team to your on-site management team. If you’re unfamiliar with dashboard tools, Power BI enables real estate professionals to seamlessly integrate and analyze large volumes of data.
A Quick Note on Detailed Data
Most property managers want to see current occupancy, delinquent tenants, exposure based on upcoming leases, renewals, maintenance quality and speed, and budget to actuals. These are the top 6 KPIs for property manager reporting in multifamily.
While executives prefer dashboard with visualizations, most managers will want to review that data in a table. I give you an example of how to do both in Power BI. To get a jump start on your reporting, you can purchase this Power BI template at the button below.
1. Occupancy
Occupancy allows you to quickly see how full the building or property is. You may have only 4 units, or perhaps you have 400. Having 2 available units will make a huge difference on a 4-unit property, but only a minor difference on a 400-unit property. Occupancy shows the percentage occupied. In the scenario of a 4-unit property with 2 units unoccupied, the property has a 50% occupancy rate. In the scenario of a 400-unit property with 2 units occupied has an amazing 99.5% occupancy rate.
2. Delinquencies
Your property could be 100% occupied, but if you don’t get paid the rent that you’re due, occupancy doesn’t matter. That’s where delinquencies come into play. You need to monitor how many tenants are delinquent on their payments, how much they still need to pay, and how overdue their payments are. Monitoring these metrics regularly empower you to quickly work with tenants to pay on time. You may also wish to monitor the collections rate to see how much rent and other payments you collect each month relative to what’s due.
3. Leasing
All good things must come to an end… including each lease on your property. Therefore, you must monitor what leases are ending and how quickly you’re backfilling them. You may also want to evaluate whether the rent you charged on a previous tenant is the same or higher for a new tenant.
4. Renewals
One way to keep recurring revenue high at a property is via renewing existing tenants. You can manage the quality of the management team by seeing how many tenants renewed divided by the total tenants who came up for renewal (this assumes that you’re not increasing rents significantly, thereby pushing tenants out).
5. Maintenance
Tenants are more likely to be happy in your building if any maintenance issues are addressed quickly and effectively. You can monitor maintenance by calculating the average number of days to complete a work order request. Another popular method is by sending tenant satisfaction surveys. With a survey, you can measure the effectiveness of the maintenance staff, i.e. how pleased were your tenants with the quality of the repair work.
6. Budget to Actuals
Preparing a budget to actual income statement empowers you to understand where you’re outperforming your budget and where you need to address areas of concern. By staying on top of your finances, you will ensure that your properties maintain high revenue for you and high net income for your owners.
Each property management firm (and even each property manager) may want to see slightly different metrics than the top 6 I outlined here. I encourage you to use this Power BI template for inspiration. Take it and make it your own! That’s the beauty of Power BI. It’s easy to mold a Power BI report to your own unique business model.
Hope you enjoyed this post on the top 6 KPIs for property manager reporting in multifamily. Good luck and happy data modeling!
