What Historical Data do You Use to Manage Your Business?

Question

What historical data do you keep, how long do you keep it and how do you use it?

I'm not asking what you keep for compliance with taxing or other government entities.

For example, do you keep details on repairs and use those to help project your contingency needs?

Do you keep details on your tenant experience to alter or adjust your rental or screening criteria?

Other?

J. Martin · Answer

As far as using the data for the future:

My handyman reports expenses, noting the unit, in a spreadsheet. If any one unit gets excessive, I start to look into what is going on.

I take a look at the master utility expenses now and then to see if anything spikes.. can be a good clue of an unseen water leak, or tenants tapping master power to grow weed (haven't had that problem yet!), etc. etc..

Also, I think it's nice to know what your average expenses are (however you want to look at them - per sqft, per unit, % of revenue, etc) in your area for your property type, so you have a good idea when you are purchasing more, for long-term estimates..

Michele Fischer · Answer

Three spreadsheets come to mind.

One with a tab for all tenants and one with a tab for all applicants, with pertinent info.  Then I have a one stop place to look at to field other landlord calls, see how much is owed, look up whether someone has applied before, etc.

Another has all the vital financials for each property, with a column for each year owned, so that the trend data is easy to see.  It also has the major items done to a property in what year, and what upcoming maintenance or projects we have identified.  I can use this to analyze other purchases, analyze when it is time sell current properties, to give to prospective buyers, and to give to appraisers.

And the third is my market research file, which lists the address and details whenever a property in my target neighborhood is advertised for rent, gathered every Thursday evening.  I have enough trend data now to see what's going on with other landlords - how long their tenants stayed, what upgrades they have done, how long their proeprties remain unrented, and how they are adjusting their price/deposits, etc.  I use it to calculate my market rents, analyze or reinforce purchasing decisions (there is one triplex I am so glad we lost the bidding war on!), and keep a pulse on the local rental market.

I am constantly tweaking my application and screening processes.  When we get bad tenants, we cycle back to see how we can adjust our tenant selection processes to exclude them but not exclude our better tenants.  It's a constant pendulum swing to try to find the sweet spot.