4 Essential Property Management KPIs Every Property Manager Should Track

As a property manager, tracking the right property management KPIs (Key Performance Indicators) is essential to not just surviving, but thriving in a competitive market. Whether you're managing 3 doors or 500, understanding the metrics that matter most will help you maintain occupancy, minimize costs, and increase profitability.

What is a KPI in Property Management: In property management, a KPI (Key Performance Indicator) is a measurable value used to track the performance and efficiency of key operations like tenant retention, occupancy rates, and maintenance. KPIs provide the data needed for informed decision-making to improve profitability and streamline processes.

These four KPIs are the blueprints of a well-run property management company. Let’s take a look at what they are, why they matter, and how you can use them to your advantage.

1. Door Count (Monthly Properties Under Management)

Monitoring your door count monthly gives you a snapshot of your portfolio’s growth or decline over time. This metric tells you how many properties you're managing and highlights whether your business is expanding or contracting. Are you adding new doors consistently, or is your churn rate higher than you’d like?

Expert Insight   "Having a process in place that allows you to gather feedback, the "why" behind why a client is leaving you on their way out is important. Better yet, have a process in place that can save the door before it's lost. This will take having a feedback loop in place that would allow you to know before they are unhappy." - Heather Park 

Also, assess why you’re keeping properties. Are you maintaining a lower vacancy rate, or providing services others don’t? Analyzing both sides can reveal opportunities to enhance your offering.

2. Revenue Per Door: Why it Matters and How to Track it

Tracking revenue per door helps you evaluate the profitability of each property you manage. Instead of only looking at total revenue, break it down per door to see where your efforts are paying off and where you might need to adjust.

For instance, if some doors are bringing in more revenue due to tenant amenities like resident benefit packages or enhanced community offerings, that’s a good sign that these features could be rolled out across your portfolio. Identifying trends like these enables you to make informed decisions on where to invest to drive higher returns. Here's why it's crucial and how you can use it effectively:

• Focus on Individual Property Performance

Breaking down revenue per door gives you a detailed look at the profitability of each property. Instead of relying solely on total revenue, this approach helps you pinpoint which properties are generating the most income and which may be falling behind. This level of detail is essential for making informed decisions about where to invest time and resources.

• Identify High-Performing Amenities

If some doors are generating more revenue than others, it could be due to amenities that tenants value—like:

• • Resident benefit packages
  • Fitness centers or pools
  • Enhanced community spaces (e.g., dog parks, co-working areas)

Recognizing these trends allows you to consider expanding these features across other properties in your portfolio, potentially driving up rent prices and tenant retention.

• Detect Underperforming Properties

Revenue per door also helps highlight properties that aren’t meeting expectations. If some units consistently bring in less revenue, it could indicate:

• • Poor property condition
  • A lack of desirable amenities
  • Ineffective marketing

By identifying these properties, you can strategize how to improve their performance—whether through property upgrades, better marketing, or enhanced tenant services.

• Adjust Pricing Based on Data

Analyzing revenue per door can also inform your pricing strategy. For instance:

• • If doors with premium amenities are performing well, it might be time to raise rents across similar units.
  • If some doors have lower occupancy or revenue despite competitive pricing, it may indicate the need for better amenities or services to match the price.

3. Expenses Per Door

Keeping a close eye on expenses per door can help you identify inefficiencies in your maintenance or operational costs. 

Is a particular property costing you more to maintain? Are your service costs too high, or are you undercharging for certain services?

For example, if you're spending too much on outsourced maintenance, it might be time to weigh the cost of hiring an in-house technician. Ensure that your pricing reflects all the services you provide, and adjust fees accordingly when service levels change. Proactively managing expenses ensures your properties remain profitable and helps maintain a high standard of service without unnecessary costs.

Property owners typically pay property management companies 6% to 12% of their monthly rental revenue. For example, if a property owner earns $8,000 a month from 10 units, they would likely pay around $800 a month in management fees. But is this rate aligned with the value you’re providing, and how does it compare to competitors?

Tracking expenses per door is essential for understanding how much each property costs to manage and when fee adjustments may be necessary. By evaluating each property individually, you can:

• Identify if a property is more expensive to manage than expected.
• Adjust fees when service levels or property conditions change (e.g., additional services like parking lot maintenance or new amenities).
• Ensure your management costs are in line with the services you provide and maintain profitability without sacrificing quality.

By keeping a close watch on these metrics, you can ensure your fees are competitive and reflective of the services you deliver, helping to improve client retention and attract new business.

4. Customer Acquisition Cost

Knowing your Customer Acquisition Cost (CAC) is crucial for evaluating how effectively your marketing efforts are bringing in new clients. CAC gives you a clear picture of how much you're spending to attract each new property owner to your portfolio, and breaking this down by different marketing channels can provide actionable insights into your overall strategy.

Here’s how tracking CAC helps optimize your marketing:

1. Break Down by Campaign:
   By analyzing CAC across different channels—whether it’s social media ads, SEO efforts, email campaigns, or referrals—you can identify which strategies are delivering the best results. For example, you might find that SEO and referral programs bring in high-quality leads at a lower cost than paid ads. This breakdown helps you see where your marketing dollars are being used most efficiently.
2. Measure Marketing ROI:
   A high CAC with little return indicates inefficiencies in your marketing. If certain campaigns cost more but result in fewer or lower-quality leads, it’s time to either refine or eliminate those efforts. Conversely, if you find that one channel consistently brings in more clients for less money, you can allocate more of your budget to that area.
3. Optimize Marketing Spend:
   By regularly tracking CAC, you can make data-driven decisions about where to allocate your marketing budget. Drop low-performing channels and double down on successful initiatives, ensuring that every dollar you spend is working to attract new clients effectively. This reduces wasted spend and increases your overall marketing efficiency.
4. Long-Term Strategy:
   Beyond just looking at short-term costs, tracking CAC over time allows you to see trends and shifts in the cost of client acquisition. If your CAC is steadily increasing, it may signal that the market is becoming more competitive, or that your existing marketing channels are becoming saturated. You can then adjust your strategy to maintain profitability and ensure sustainable growth.

By understanding and optimizing your CAC, you not only improve the effectiveness of your marketing campaigns but also ensure you're attracting clients in the most cost-efficient way possible, ultimately boosting your overall profitability.

5. Average Days on the Market (DOM)

The average days on market is a crucial metric for property managers as it impacts both revenue and client satisfaction. The longer a unit remains vacant, the more income is lost, along with potential carrying costs like utilities. Reducing this vacancy time is essential for maintaining healthy cash flow and client confidence.

Instead of lowering rent to attract tenants, explore alternative marketing channels:

• Use online listing platforms like Zillow or Apartments.com.
• Advertise locally through community boards or social media groups.
• Run targeted ads on platforms like Facebook to reach a more specific audience.

Streamlining the leasing process is equally important. Automating applications, offering virtual tours, and responding quickly to inquiries can help fill units faster.

By reducing vacancy time, you increase overall revenue, improve cash flow, and demonstrate value to property owners. This makes average days on the market a key indicator of both operational efficiency and profitability.

Ready to Grow Your Property Management Business?

By focusing on key metrics like door count, revenue, and customer acquisition, you’ll have the data-driven insights you need to streamline operations and increase profits. At Geekly Media, we help property managers like you make better decisions and optimize for growth.

Ready to take the next step? Schedule a consultation with Geekly Media today to learn how we can help you grow your property management business! Book a call here.'