Managing rental properties requires more than just collecting rent. Whether overseeing residential or commercial units, property management companies must track key performance metrics to ensure profitability, tenant satisfaction, and operational efficiency. The right Key Performance Indicators (KPIs) provide actionable insights, helping landlords and property managers optimise revenue, reduce vacancies, and streamline maintenance.
Occupancy Rate
A high occupancy rate is critical for maximizing rental income. This metric measures the percentage of occupied units versus the total available.
Formula: (Occupied Units / Total Units) × 100
A consistently low occupancy rate may indicate pricing issues, poor tenant retention, or ineffective marketing.
Vacancy Rate
The inverse of occupancy rate, vacancy rate highlights how many units remain unoccupied at any given time.
Formula: (Vacant Units / Total Units) × 100
High vacancy rates can signal poor demand, excessive rental prices, or ineffective leasing strategies.
Average Days to Lease
This metric tracks how long it takes to fill a vacant unit after a previous tenant moves out.
A longer leasing period means lost rental income and indicates a need for better marketing, pricing adjustments, or streamlined application processes.
Tenant Retention Rate
Retaining tenants reduces turnover costs, including advertising, tenant screening, and unit preparation.
Formula: (Number of Renewed Leases / Total Expiring Leases) × 100
A high retention rate means satisfied tenants and steady cash flow.
Rent Collection Rate
This KPI measures the percentage of total rent collected within the expected timeframe.
Formula: (Total Rent Collected / Total Rent Due) × 100
A low rent collection rate suggests tenant financial struggles, ineffective rent policies, or inefficient collection processes.
Net Operating Income (NOI)
NOI measures the profitability of rental properties by subtracting operating expenses from rental income.
Formula: Total Revenue – Operating Expenses
A healthy NOI indicates strong revenue generation and cost control.
Maintenance Cost per Unit
Tracking maintenance expenses helps ensure costs remain manageable and don’t erode profits.
Formula: Total Maintenance Expenses / Number of Units Managed
Unexpected spikes in maintenance costs may signal aging properties or inefficient repair processes.
Cost per Tenant Acquisition
This KPI measures how much it costs to acquire a new tenant, including marketing, advertising, and agent fees.
Formula: Total Marketing & Leasing Costs / Number of New Tenants
A high cost per acquisition suggests inefficiencies in the leasing process or ineffective marketing efforts.
Debt Service Coverage Ratio (DSCR)
For property managers handling financed properties, DSCR helps determine if rental income is sufficient to cover debt obligations.
Formula: Net Operating Income / Total Debt Service
A DSCR below 1.0 indicates that rental income isn’t enough to cover debt payments, raising financial risk.
Work Order Completion Time
Speed and efficiency in resolving maintenance requests contribute to tenant satisfaction.
This KPI tracks the average time taken to complete maintenance requests. A slow completion time can lead to tenant dissatisfaction and impact retention rates.
Rental property management is a balance between profitability, efficiency, and tenant experience. Tracking these KPIs provides data-driven insights that help property managers make informed decisions, optimise operations, and ensure long-term success.
For those looking for a streamlined way to monitor rental property performance, a tool like KPI Tracker makes it easier to centralise these metrics, track trends, and refine management strategies.
Successful property management isn’t just about collecting rent—it’s about building a sustainable, high-performing portfolio that maximises revenue while keeping tenants happy.