How to use your accounting to set effective property management KPIs: A step-by-step guide

If you only look at your accounting data at tax time, you could be leaving money on the table. Your accounting data holds key insights that can drive smarter business decisions and stronger portfolio performance—but only if you know how to put it to work.

Think of it as more than numbers on a balance sheet. Your books reveal patterns in cash flow, expenses, and tenant behavior that you can use to make better decisions and grow your business.

In this post, we’ll show you how to use accounting data you already collect to set useful key performance indicators (KPIs). With them, you can track your progress in achieving business goals such as scaling your portfolio or maximizing your returns.

Understanding Accounting Data in Property Management

Before we dive into KPIs, let’s define the main types of accounting data you likely already track. At the most basic level, these are transactions. On your bank account, these appear as deposits (money in) and withdrawals (money out).

In property management, deposits come from rent, late fees, and other income sources. Additionally, withdrawals come from operating expenses (e.g., maintenance, marketing, property taxes, utilities, and landlord insurance) and capital expenditures, such as major property improvements and upgrades.

Collecting quality accounting data is crucial. It’s the foundation for setting smart business goals and tracking your progress toward them. Without accurate data, you’re in the dark. That’s why it’s best to use property management accounting software. It syncs with your business bank account(s) to automatically track transactions in real time.

Understanding KPIs for Property Management

Key performance indicators are measurable data points that show progress toward business goals. In property management, these are commonly tied to return on investment targets and tenant satisfaction. For example, popular property management KPI metrics include:

• Net operating income (NOI): This is the income remaining after accounting for operating expenses. It’s a key measure of a property’s profitability.
• Occupancy rate: This is the percentage of available units currently leased. High occupancy signals strong demand and effective leasing.
• Turnover rate: This is the percentage of tenants who move out within a given period. Lower turnover reduces vacancy costs and leasing expenses.
• Average days to lease: This is the average number of days it takes to fill a vacant unit. Shorter leasing times mean you lose less potential income.
• Rent collection rate: This is the percentage of rent billed that is actually collected. A high rate reflects strong management and ensures steady cash flow.
• Delinquency rate: This is the percentage of tenants who are late on rent payments. The higher the rate, the lower your cash flow.
• Maintenance response times: This is the average time it takes to resolve work orders. Faster response times improve tenant satisfaction and retention.

How to Use Accounting Data to Define KPIs

To choose the right KPIs for your property management business, you must consider trends in your accounting data and your broader business goals.

#1: Identify the Most Relevant Data Metrics

Look for patterns in your financial data. For example, do you notice a lot of late payments, turnover, or unresolved maintenance issues? Each of these could signal deeper challenges in your business that could help inform what KPIs to focus on.

#2: Analyze Data Trends for Strategic Planning

It’s also worth looking at historical data trends. For example, compare your current business performance against past performance or industry benchmarks. Take notice of any seasonal patterns. Then use this information to anticipate future cash flow needs and plan for long-term growth.

#3: Align KPIs with Business Goals

Identify KPIs that align with your top business goals, such as reducing vacancies, increasing NOI, or improving tenant satisfaction. Avoid setting KPIs in isolation. Instead, always tie them back to a specific, measurable outcome.

A Step-by-Step Guide to Setting Property Management KPIs

Let’s break down how to set KPIs for your property management business in more detail:

Step 1: Determine Your Business Objectives

First, get clear on your business goals. Do you want to grow your portfolio? Expand into a new market? Or simply maximize cash flow or returns? Your business priorities will shape your KPIs.

It’s also helpful to distinguish between short-term and long-term goals. For instance, you might focus on lowering maintenance response times in the short term, which in turn can encourage higher tenant retention rates in the long term.

Step 2: Gather and Analyze Your Accounting Data

Your KPIs will only be as good as the accounting data behind them. So collect quality data. The easiest way to do this is to invest in a centralized property management software that can track, analyze, and report on your business’s financials. For example, Buildium includes real-time business performance and analytics dashboards that provide custom insights across:

• Resident center usage
• ePay adoption
• Maintenance metrics
• Task analytics
• Expenses
• Leasing performance
• Company revenue
• Association performance

This data can help you detect performance challenges before they turn into larger issues.

Step 3: Identify Key Metrics Aligned with Objectives

Once you’ve found an efficient way to gather accounting data, find metrics that align with your business goals. This keeps you from tracking irrelevant data.

For example, if your goal is to maximize your properties’ operational efficiency, track net operating income (a property’s gross income minus operating expenses) or operating expense ratio (the percentage of a property’s income spent on operating expenses).

Don’t bother tracking metrics that are irrelevant to your goals. For example, don’t focus on average days to lease if you’re operating in a high-demand market where vacancies fill fast.

Step 4: Establish SMART KPI Goals

Next, it’s time to set KPI goals for your business. Don’t let them be vague or unrealistic. Instead, make them SMART: specific, measurable, achievable, relevant, and time-bound. That way, they’ll challenge your team while remaining within reach.

For example, a strong KPI goal could be any of the following:

• Keep the rent collection rate above 98% each month.
• Lower average days to lease to 20 by the end of the year.
• Reach an annual NOI of at least $10,000 across all properties in 2025.

Pro tip: Create templates for KPI goals so you can quickly adapt them to each property while keeping formatting and tracking consistent across your portfolio.

Step 5: Implement Tracking and Reporting Systems

Finally, KPIs aren’t worth much if you don’t track them. Regular reporting keeps your team accountable and shows you exactly where you’ve improved and where there’s still work to do.

With Buildium’s analytics and insights features, you can view real-time KPI dashboards and share regular reports with clients and other stakeholders. You can also make sure they never miss an update by scheduling automatic reports to be shared weekly, monthly, quarterly, and annually.

Test Out Comprehensive Property Management Accounting and Measurement Tools for Yourself

By turning accounting data into clear KPIs, you can gain deeper insights into your business performance, identify areas for improvement, and stay on track toward your long-term goals.

The key steps are simple: gather accurate data, choose metrics that align with your business objectives, set SMART KPI goals, and track your progress with consistent reporting.

With Buildium, you get the tools to make this process seamless, from real-time accounting and reporting to customizable KPI dashboards. Explore how Buildium can help you reach your KPI goals today by starting your free 14-day, no-risk trial or scheduling a demo to see it in action.

Frequently Asked Questions

What are the top KPIs for property management?

Some of the most important KPIs include net operating income (NOI), occupancy rate, turnover rate, rent collection rate, delinquency rate, and maintenance response times. These metrics give property managers a clear view of profitability, operational efficiency, and tenant satisfaction. For instance, NOI reflects overall financial health, while occupancy and turnover rates measure how effectively units are being filled and retained. Rent collection and delinquency rates indicate the reliability of cash flow, and maintenance response times demonstrate how quickly resident needs are addressed.

What are KPIs in accounting?

In accounting, KPIs are financial metrics used to track and evaluate business performance over time. Common examples include cash flow, expense ratios, revenue growth, and profitability. These indicators help property managers and business owners measure financial stability, monitor efficiency, and identify trends that could impact long-term success. By consistently reviewing accounting KPIs, you gain a clearer picture of whether your operations are sustainable and where adjustments may be needed to strengthen your bottom line.

What are the key accounting metrics I should track for my property management business?

Important metrics include NOI, operating expense ratio, rent collection rate, delinquency rate, and vacancy costs. Together, these give you a clearer picture of your property portfolio’s financial health, efficiency, and overall performance. Monitoring them regularly helps you understand current profitability, spot patterns in expenses or collections, and make more informed decisions about where to cut costs or invest in growth.

How can accounting data help in setting effective KPIs for property management?

Accounting data can reveal important trends in income, expenses, and tenant behavior, giving you a factual basis for decision-making. By analyzing this information, you can identify areas that may need attention—such as rising maintenance costs, frequent late payments, or declining occupancy rates. These insights make it easier to select KPIs that directly align with your business goals, whether that means reducing vacancies, improving cash flow, increasing profitability, or boosting tenant satisfaction.

What tools or software can assist in analyzing accounting data for KPI development?

Property management software like Buildium automates accounting, syncs with your business bank accounts, and provides real-time dashboards to track KPIs. These tools centralize financial and operational data, making it easier to spot trends, compare performance, and generate reports for owners or stakeholders. With analytics and customizable reporting, platforms like Buildium help property managers turn accounting data into actionable strategies for growth.

How often should I review and adjust my property management KPIs based on accounting data?

You should review your KPIs at least monthly or quarterly to keep them relevant and actionable. Frequent check-ins allow you to catch issues early, such as rising expenses or slower rent collection, before they impact your bottom line. Regular reviews also give you the flexibility to adjust KPIs as your portfolio grows, market conditions shift, or your long-term business goals evolve.