It is important to measure the performance of your real estate agency's rental management for several reasons:
Evaluate profitability
Measuring the performance of your real estate agency makes it possible to determine whether it is profitable or not. Indeed, if the costs related to rental management or the trustee are greater than the income generated, it may be time to review the processes and implement actions to improve profitability.
Improving client satisfaction
By measuring the performance of your real estate agency, you can identify weaknesses and areas for improvement to optimize client satisfaction. If clients are happy, they are more likely to stay loyal and recommend the agency to others.
Monitor the quality of service
Measuring the performance of your real estate agency also makes it possible to monitor the quality of the service provided to clients. By evaluating the results, you can determine whether the agency is meeting the commitments made in terms of customer service.
In short, measuring the performance of your real estate agency in rental management allows you to better understand how the agency is running and to take the necessary steps to improve its efficiency and profitability.
We present you with a series of key performance indicators that are essential to follow to optimize the management of your rental real estate portfolio.
KPI for rental management
- The rental vacancy rate: This is the percentage of unrented housing concerning the total number of units managed by the agency. This KPI makes it possible to measure the quality of the agency's rental management and its ability to maintain properties in good condition to attract tenants.
- Occupancy rate: This is the percentage of rented homes in relation to the total number of homes managed by the agency. This KPI makes it possible to measure the agency's ability to quickly find tenants for the properties it manages.
- The relocation period: This is the time that elapses between the moment when a tenant leaves a home, and when the landlord rents it again. The idea here is to avoid a rental vacation period that is too long.
- The number of active leases/leases that have expired.
- The number of created/active/lost mandates.
- The number of lots managed.
- The percentage of unpaid rent is calculated using the following ratio: Total number of homes/Number of rents paid.
- The number of candidates who submit a rental application.
- The number of candidates who sign a rental lease.
- Average rental time: This is the average time required to rent a property managed by the agency. This KPI makes it possible to assess the speed and efficiency of the agency in finding tenants.
- Rent recovery rate: This is the percentage of unpaid rent about the total rent due. This KPI makes it possible to measure the quality of unpaid invoices management and the agency's ability to recover the amounts due.
- Client satisfaction rate: This is the percentage of satisfied clients out of the total number of clients. This KPI makes it possible to assess the overall quality of the service provided by the rental management agency.
- Management cost per unit: This is the total management cost (charges, fees, etc.) per managed unit. This KPI makes it possible to measure the profitability of the rental management agency and to identify the most important expenditure items.
