KPIs and Leading Indicators for Property Managers

[Darren Ruch]

Ask: do you maintain or can think of key performance indicators (KPI; https://www.investopedia.com/terms/k/kpi.asp) that take the focus away from lagging indicators and shifts emphasis to leading indicators?

Background: I have a few 3- & 4-unit residential properties that are under professional management. They are riddled either with vacant units or occupied with tenants not paying rent consistently. These buildings are located in mostly C neighborhoods. As expected, when they perform the cash flow is phenomenal. But, the inconsistency is killing my bottom line.

I am trying to think of a different approach to take with my property manager to align our expectations in 2023.

Thank you for your help!

[Nathan Gesner]

Quote from @Darren Ruch:

I doubt your PM will be receptive to tracking KPIs and reporting to you on a weekly/monthly basis.

Talk to your PM and create some solutions. Is there high vacancy across the market, is it just your neighborhoods, or is it just your PM? What's causing the high vacancy? Are you over-priced for a C-class property? Do you have broken down vehicles and neglected landscaping in front of your properties? High crime areas? Are you marketing in the right spots? Is your PM responding quickly to inquiries and showing requests?

People use KPIs to identify problems. You've already identified the problem of high vacancy, so it's time to focus on solutions.