Property Management firms that want to become more efficient need to track key performance indicators.
In the dynamic world of property management, tracking Key Performance Indicators (KPIs) a.k.a. “metrics” is crucial for gauging performance, making informed decisions, and driving growth. While there are numerous sophisticated tools available for tracking KPIs, beginners can start with something as simple and accessible as a spreadsheet.
Why should we track KPIs?
KPIs serve as a quantifiable measure of performance against strategic and operational goals. In property management, KPIs could range from financial metrics like revenue growth and profitability to operational metrics like occupancy rates and resident satisfaction.
Aargh Software helps with resident service KPIs; we discuss 14 different KPIs in our blog post: https://aarghsoftware.com/blog/14-resident-service-metrics/
Tracking these indicators helps property management firms identify trends, make informed decisions, and ultimately drive their business forward.
Include the whole team in the discussion, the tracking, and the resolutions.
How often should we track KPIs?
The frequency of tracking KPIs depends on their nature and importance. For highly operational KPIs like the number of open service tickets, daily monitoring is advisable to stay on top of the firm’s activities.
Most data with respect to resident service would make sense to deal with in weekly reviews with the team will help you understand trends.
As a leader, updating your KPI spreadsheet BEFORE weekly meetings allows you to understand the data and provide direction to your team; and it lets you direct the meeting using your data. I used to do it at the end of the day before the morning meeting every Tuesday.
For metrics like Google Review performance, a monthly or quarterly review might be sufficient, as these strategies often take time to show results.
Which KPIs should I track?
The KPIs you track should align with your specific goals and priorities. Start by measuring the metrics that matter most to you and your business. Remember, you don’t need to be perfect—just begin with what you care about and want to impact.
Again, include the whole team when discussing metrics to track; many people have great insight into what’s required to improve a firm.
How do I know if my KPIs are right or wrong? How do I benchmark them?
The best benchmark of your own KPIs is you. Track your KPIs over time, and as long as you see improvement (more or less), you’re going in the right direction.
If you have property-level KPIs (such as Service Tickets Per Unit) and each property has enough units, then you can have a benchmark “report card” for each property. That’s sometimes useful for allocating resources internally.
The Power of Spreadsheets for Tracking KPIs
For those new to tracking KPIs, spreadsheets offer an easy-to-set-up, straightforward solution. They allow for direct and quick updates, making them ideal tools for basic tracking.
It’s very important that the spreadsheet is collaborative; i.e. in the cloud. Anyone can enter data at any time and view the data whenever they need to.
This eliminates the need for sending Excel files as attachments, streamlining the process significantly.
Google Sheets is the easiest approach. It’s free, cloud-based, and allows for real-time collaboration. If you’re a Microsoft Office 365 user, an Excel spreadsheet would be the way to go, but be careful not to use a local file (and use one on the office server).
Like Google Sheets, Excel files stored in the cloud (OneDrive or SharePoint) are inherently collaborative.
Setting Up Your Spreadsheet
Setting up your spreadsheet for KPI tracking involves identifying the KPIs that matter most to your property management firm and structuring the spreadsheet to capture this data effectively.
Each KPI should have its own row, and each column could represent a different time period (e.g., week, month, quarter).
This setup lets you easily input new data and track changes over time.
Beyond Spreadsheets: Advanced Dashboards
As your property management firm grows and your needs become more complex, you might find that spreadsheets no longer suffice. At this point, you might consider transitioning to more advanced tools.
One such tool is Google Data Studio, a free reporting tool used by many consultants when building property management firm reports. It allows for more sophisticated data visualization and can pull in data from various sources, providing a more comprehensive view of your KPIs.
KPIs are essential for efficiency
Tracking KPIs is an essential practice for any property management firm, regardless of its size or level of sophistication. Starting with a simple tool like a spreadsheet can set the foundation for a robust performance-tracking system. As your firm grows, you can explore more advanced tools to meet your evolving needs.
Remember, the goal is not just to track KPIs, but to use them as a guide for strategic decision-making and continuous improvement.