The year is almost over. And as we look forward to the celebrations and holidays, it is also important to look back and see what 2019 has brought. For landlords and property managers, this means understanding how their real estate investments have performed.
When evaluating the performance of a property, some key metrics should always be taken into consideration. Ajar Online provides you with the tools to easily track these metrics.
The occupancy rate refers to the percentage of real estate units rented out of all the units owned by the landlord.
This number is important because it provides insight into anticipated cash flow and enables the landlord to compare the actual occupancy with projected outcomes. If the occupancy for a certain year proves to be lower than expected, measures should be taken to identify the causes (quality of the unit, location, tenant turnover, unfulfilled maintenance requests, etc.).
Tenant turnover rate
The tenant turnover rate calculates the rate at which tenants vacate a property.
While tenant turnover is a natural part of the rental process, a high turnover rate can signal problems with the property or its management, and can be very costly. One statistic estimates that tenant turnover costs landlords between $1,000 to $5,000. Furthermore, the longer the property remains empty, the bigger the lost opportunity for the landlord.
Ajar Online helps reduce tenant turnover by providing tools and features that enhance the tenant experience. Through our property listing platform findajar.com, Ajar also helps property owners find suitable tenants for their vacant units faster.
Understanding how satisfied tenants are in their homes is essential not only to measure how well the property performed but also how well it will perform.
In fact, tenant satisfaction can be an indicator of how likely the tenants are to leave the unit, and of how desirable the property will be in the future. Alternatively, low satisfaction rates can be indicative of more serious issues related to maintenance, rent prices, common spaces, etc.
It is vital for property managers to maintain strong communication with tenants to identify and remedy any such issues as soon as possible.
It is important for landlords to consistently measure the revenue growth for all their properties to identify the variables affecting their income. Keeping track of revenue growth from one year to the next can help find proactive solutions to potential income stagnation or decline. It can also help accurately estimate future revenues for more efficient planning and budgeting.
Assessing real estate performance is multi-faceted and can be time consuming. Having an efficient system for keeping and analyzing all the relevant data is essential to streamline the process and obtain accurate and actionable insights.
Ajar Online offers landlords and property managers the ability to track these indices across numerous properties all in one place. It also facilitates assessments by generating automatic reports that cover the above-mentioned metrics, while also enabling landlords to improve the outcomes of these metrics through various features.