The success and failure of a property management business today may depend entirely on the data. A property manager that doesn’t regularly manage and measure critical key performances of their business is already getting left behind competitors.
Performance indicators are more like quantifiable data, which property managers can use as a benchmark to measure strategic operations and goals. Property managers, who understand the importance of data is in-tune with how the things work and when you need to take action to take protective measures. From texts to audios, videos, log files, clickstreams and more, data can come from everywhere.
Here are five different ways how property managers can harness the power of data and its benefits:
1. Data offers transparency
Transparency is more like the truth for any property business; it’s something that gives power to your operations, applications, dashboarding and more. It will also give you the opportunity to gauge upon your competitors and competition without putting your financial cycle at risk.
2. Data allows you to make better financial decisions
Data gives you a statistical analysis to check whether the company is making profits or not. It will provide you with insights into potential problems and will help you bring your company on track. Whether you have a SME or a large organisation, tracking a company's metrics and data will help you achieve your future goals. Evaluating statistics regularly will help you prioritise activity to generate higher revenue. Besides, you can also use data to eliminate programs or activities that are not useful and not cost-effective for the business.
3. Data allows you to experiment to achieve better outcomes
With the variability of statistics, identifying the best solution for what will work and what will fail from a property manager standpoint is quite revealing. Gauging upon metrics is more like testing different values and refining your practice based on what you will learn from those statistics. So, drilling down to these metrics will give you a more realistic view about how to manage your property management portfolio with ease.
4. Key performance indicators give you relevant insights
With statistics, you will be able to identify which key performance indicators are important and when to adjust the process and more. Some of the common KPI’s that you will engage are:
- Occupancy rate
- Net property acquisition cost
- Annual contract value
- Maintenance cost
- Property management fee
- Net operating income
- Occupancy rate
- Number of showings and more
5. Identify net income
For property managers, it is very important to keep track of net revenue that is generated from a lease. Keep track of your revenue generated from renting the property, leasing vacant spaces and any fees charged for other things. Further, rents are very important and are one of the most important revenue streams; but property managers should also keep track of other elements to evaluate the cash flow.
Data provides insights of everything, be it the success of the business, areas for improvement or something else, so keep track of it and take your business to new heights. As a property manager, it should be the main component of your everyday operation and business.
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