6 Ways to Measure Your Property Management Business

It’s important to always measure the health of your property management company/department so that you know where you need to focus your attention.

To help you do this, consider the following ways you can keep you finger on the pulse of the company.

Arrears

A healthy property management company keeps their arrears at 0 percent. This is because doing this means you’re actively working to manage high-risk tenants. If arrears start to creep up, it means your business could have some holes in it you need to address, so make sure to keep an eye on this all-important metric.

Tenancy Expiry

The success of your business depends on your ability to manage your team’s workload. If you push them too hard, then their work will begin to suffer, and you may find it hard to stay focused on keys aspects of your company. As a result, pay attention to tenancy expiry to make sure you don’t have too many terms expiring in the same month, as this can overload your team and cause the business to suffer.

Tenancy Terms

There’s always a tendency to want to engage with six-month tenancy terms, as this reduces risk. But it also doubles your team’s workloads. As a result, a good thing to look at to measure the health of your business is how many of your lease agreements are for 12-month periods. The more long-term leases you have, the more productive your team can be, as they won’t need to stop every few months to work on a renewal.

Average Income

The goal of any business is to make money. As a result, it only makes sense that one of the key things to look at to measure your business’ health is average monthly income. Obviously, this number will fluctuate a little bit depending on the month, but it should never be too far away from your average. Make sure you know what this number is at all times. This way, if you’re off by quite a bit in any given month, you’ll find out quickly and be able to take the necessary steps for addressing whatever has gone wrong.

Incoming Calls and Emails

To keep your business as productive as possible, you need to implement a proactive communication style. This is where agents call clients to keep them informed. It’s the opposite of reactive communication, which means you wait until the client calls you.

Proactive styles are preferred since they help you deliver better customer service and also minimize the time you need to spend answering the phones; the ideal scenario is to only be on the phone when you want to be. Measuring the number of incoming calls and trying to keep it to no more than 20 percent of all calls to and from the office, will help you identify when you’re becoming too reactive and need to change.

Productivity

Just because you’re busy it doesn’t mean your productive. Keep track of both the number of tasks completed by your team as well as how long it takes to do them, as this will help you get a feel for how productive your business is, making it easier for you to identify areas of improvement.