Revenue Scaling

5 Real Estate Metrics Property Managers Should Be Tracking 

Published 20th March 2023Updated 6th June 2023

Agency Principals discussing data driven strategies

In the world of real estate, relationships play a vital role. Success depends on the quality of experience and services, from referrals to retention. However, quantifying the effectiveness of these relationships can be challenging. 

The solution lies in real estate metrics.

Real estate data and analytics in the property industry hold valuable insights. By identifying the right real estate metrics to measure and analyse, it becomes possible to identify patterns that may negatively impact client relationships.

Numerous real estate metrics exist, but it can be overwhelming to know which ones to track. So, here are five critical metrics that property managers and real estate agents should monitor.

Trackable real estate agent performance metrics

Tenant Turnover Rate

Tenant Turnover Rate tells you how often people are moving out of a rental property. It's calculated by taking the number of units that were vacated and dividing that by the total number of units in the property over a certain period of time.

On average, tenant turnover costs property managers a whopping $1,825 during the vacant period. Plus, a vacant property can strain your relationship with your owners, especially if it takes a long time to release their property.

This metric is extremely helpful because it gives you an idea of how things are going with their tenants. If the turnover rate is high, it could mean there are problems like high rent or maintenance issues that need to be addressed. 

On the other hand, if the turnover rate is low, it's a good sign that tenants are happy and the property is well-maintained.

Occupancy Rate

Occupancy Rate means how many of your properties are currently being rented out or ‘occupied’.

The "ideal" occupancy rate can vary depending on what kind of property you have and where it's located. The average occupancy rate for residential rental properties is usually around 95%, but this can change depending on what's going on in the market.

Having a high occupancy rate is generally a good thing - it means your property is in demand, and you're making money from rent. Ideally, you want to aim for a rate above 90%. However, if your occupancy rate is at 100%, that could be a sign that your rent is too low or that you need more properties to meet the demand.

On the other hand, if your occupancy rate is low - say, below 80% - that's not so great either. It could mean that you're losing out on rental income and paying more for vacancies. This could be a sign that you need to work on marketing your property better, adjusting your pricing, or improving the condition of your property.

Net Operating Income (NOI)

Net Operating Income (NOI) represents the total income generated by a property, less operating expenses, but before deducting debt service, income taxes, and other non-operating expenses. 

In simpler terms, NOI is the profit that a property generates from its rental income after accounting for its day-to-day operating expenses. It is a crucial metric for real estate investors and lenders as it helps determine the property's cash flow and its potential profitability. 

The formula for calculating NOI is:  Total Rental Income - Operating Expenses = NOI.

Furthermore, NOI is a way to compare how well different properties and investment opportunities are doing financially. It's helpful for people looking to invest in real estate or lend money for real estate ventures. 

With NOI, you can make informed decisions and know what you're getting into.

Average Days to Lease

Average Days to Lease tells you how long it takes for a property to get leased once it's on the market. 

The way you calculate it is by taking the total number of days a property was listed before it got leased, and dividing that number by the total number of properties that got leased during that time.

Why is this important?  It gives you an idea of what the rental market is like right now. If the average days to lease is low, that means it's a pretty active and competitive market, which could lead to higher rental rates and shorter vacancies for landlords.

But if it's high, that means things might be a bit slower, and landlords may need to adjust their pricing or marketing strategies to get tenants interested.

If you keep track of this metric over time, it can also help you spot trends and make smarter decisions about when to list your property, how to price it, and how to get it seen by potential tenants.

Percentage of Rentals in Arrears

The Percentage of Rentals in Arrears measures the percentage of rental properties with tenants who are behind on their rent payments. 

To calculate this, you can divide the number of tenants who are late on their rent by the total number of tenants in the property, then multiply by 100 to get the percentage.

This metric is important because, as an agency principal, knowing the percentage of rentals in arrears can give you a good idea of the financial health of your properties.

A high percentage could mean trouble with cash flow or even foreclosure, while a low percentage shows that things are financially stable and tenants are paying on time.

By keeping track of this metric, you can catch payment issues early on and take steps to address them. 

How to analyse real estate data

As an agency principal, analysing real estate data is essential for making informed decisions about managing properties and maximizing profits.

There are several key steps you need to follow when analysing real estate data:

  • Gather relevant data: Collect data on recent sales, current listings, and market trends in the area you are interested in. This can be done through online research, working with a real estate agent, using specialised real estate data tools, or leveraging the expertise of a data analytics company.

  • Clean and organize the data: Once you have collected the data, it is important that you clean and organises it. This involves removing any duplicates, errors, or irrelevant information and structuring the data in a way that makes it easy to analyse.

  • Identify trends and patterns: Use data analysis techniques to identify trends and patterns in the real estate market. This can include looking at average sales prices, days on market, and other key indicators.

  • Compare and contrast: Compare the data you have collected to previous periods, as well as to other neighbourhoods or cities. This can help you identify opportunities and make informed decisions.

  • Draw conclusions and make recommendations: Use your analysis to draw conclusions and make recommendations about the current state of the market and the best course of action for your specific real estate needs.


To sum it up, real estate metrics are like GPS for property investors. They help you navigate through the sea of information and make wise investment decisions by showing you exactly where your company stands.

By looking at data on Turnover Rate, Occupancy Rate, NOI, Percentage of Rentals in Arrears, and Average Days to Lease, you can get a clearer picture of the market.

Whether you're a newbie or a seasoned pro, knowing how to use these metrics is the key to success in the real estate game. So if you're looking to make some serious cash in this field, start crunching those numbers and watch your investments work wonders!

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Disclaimer: The information provided on this blog is for general informational purposes only. All information is provided in good faith; however, we do not account for specific situations, facts or circumstances. As such, we make no representation or warranty of any kind whatsoever, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information presented.

This blog may also contain links to other sites or content belonging to or originating from third parties. We do not investigate or monitor such external links for accuracy, adequacy, validity, reliability, availability or completeness, and therefore, we shall not be liable and/or held responsible for any information contained therein.

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