11 property management KPIs you should be tracking

No matter the size of your property management business size or your plans to scale, it’s important to stay on top of the health of your business. You should always know how you’re stacking up against past years’ performances as well as those of your peers. The best way to do that is by tracking a number of property management KPIs, or key performance indicators.

Keep reading to better understand the property management KPIs that you should follow and evaluate on a consistent basis—along with some tech solutions to help you do it.

#1: Revenue Growth

Revenue growth measures the percentage increase in your total business income from one period to the next. This KPI shows whether your property management company is expanding or declining financially. Use this metric alongside other KPIs to identify specific areas driving revenue changes. The other property management KPIs outlined here can be used to look at that picture in greater detail.

For instance, if revenue has declined, you can use these KPIs to discover why that might be the case. Maybe rents haven’t kept pace with inflation; or maybe you faced a one-time cost, like moving to a new office or investing in a whole new IT structure. In any event, revenue growth should be at the top of a PM’s list of metrics to measure.

#2: Properties Won vs. Properties Lost

An effective property manager monitors their business development efforts. It’s a two-sided coin: On one side is the number of properties won. Property managers need to track how many properties they acquired successfully within a year to ensure a consistent stream of revenue and to create an accurate budget for client acquisition.

On the other side is the number of properties lost. Client turnover is never good, nevertheless it’s inevitable. The average property manager sees 10 to 20 percent turnover in any given year. Knowing how many properties you’re losing and why you’ve lost them helps you modify your business practices to improve customer retention.

Obviously, you want your wins to outweigh your losses but remember that strategic growth should be your goal. Sheer volume and adding new services are not the be-all-end-all—you need to deliver on your promises and grow in the directions that will benefit your ideal customer.

You can analyze your new business and churn by creating a simple spreadsheet with the name of your client, the date they signed, amount charged for services, the date they left, and the reason why.

You can also use a property management software solution to create custom reports that help you analyze wins and losses and plan for growth in the future.

Pro tip: If after pitching a potential client your business development efforts are unsuccessful, don’t be afraid to follow up and ask for feedback so you can improve your approach down the line. And if you lose a client, follow up to understand their reasons for leaving.

#3: Net Income

Property managers often track net revenue from leases, but you should evaluate all income streams:

• Primary income: Monthly rent payments
• Amenity fees: Coin-operated washers, dryers, and parking spaces
• Additional services: Storage lockers and community space rentals

Regularly assess opportunities to add new revenue streams to increase cash flow.

This is a good opportunity to assess where you can bring in additional revenue streams. According to Buildium’s Industry Report, over the last year, property sales, construction and renovation, insurance services, legal advice, and investment advice were the most popular services property managers added.

#4: Property Acquisition Costs

Monitor your customer acquisition costs using this simple calculation:

Property Acquisition Cost = Total Sales & Marketing Budget ÷ New Units Acquired

This formula shows exactly how much you spend to acquire each new property under management.

Calculate the customer acquisition costs per unit to see how you stack up year over year. This will give you an insight into how effective your business development techniques are, and whether there’s room for improvement in order to drive those costs down without missing out on new opportunities.

#5: Occupancy and Vacancy Rates

Every property manager should know the occupancy rate of their portfolio at any given time. In a strong rental market, particularly in urban areas, occupancy rates should be around 95 to 96 percent at any given time. This might be lower in suburban or rural areas where rentals tend to be in lower demand. (But as we’ve seen in the last few years, that isn’t always the case.)

According to the 2026 Property Management Industry Report, dealing with longer vacancies is a top challenge that property managers across the country are facing. They’re spending more time looking for the right tenants to fill their units to avoid high turnover, or even evictions, down the line.

That said, monitoring your occupancy rates is only as useful as your ability to compare your numbers with the market average. For instance, you may think that an 80 percent occupancy rate is good until you realize that nearby units are 90 percent occupied or more.

If you’re beating the market average, this is a great selling point when pitching to new prospects. Every property owner wants to know that you can keep their units occupied at a healthy rent.

If you’re significantly higher than the market average, however, this begs another question: Are you charging enough for rent? Be sure to evaluate occupancy rates in the context of other property management KPIs.

Pro tip: Property management software with analytics built in an help you stay on top of your vacancy and occupancy rates—and allow you to compare your leasing performance to your peers.

#6: Average Arrears

You should always be trying to minimize arrears. Having a lot of arrears (outstanding debt owed to you) on your books can really affect your company’s cash flow. This is particularly true if you’re paid a percentage of revenue collected as opposed to a flat monthly fee.

Moreover, companies can learn a lot about the performance of individual property managers by monitoring arrears: Who is most successful in collecting rent? Who seems to be having trouble? Look into any situation where payments are consistently 7+ days late.

Pro tip: You can see how many residents have paid in full by their due date and also the percentage of people who didn’t pay on time each month with property management software that offers online payment analytics.

#7: Tenant Turnover

Unless you’re managing rent-controlled properties, it’s common for tenants to turn over every year or two. The average is 12 to 24 months in urban markets, and 24 to 48 months in suburban or rural areas. Smaller units tend to turn over more frequently, as residents grow out of the space; subsequently, larger units tend to turn over less frequently.

But, if your turnover rates are higher than average, this could be an indication that the property is being mismanaged. Are repairs and maintenance overdue? Are you missing rental amenities that are standard for your area? Are you charging too much for rent? Are you unresponsive to residents’ concerns? As residents leave, don’t be afraid to ask why they’ve decided to move elsewhere.

#8: Rent-Ready Costs

When a unit turns over, do you know how much it will cost to get the unit in rent-ready condition? This is an important property management KPI that most companies overlook. Most will use supplies and materials that they have on hand (open cans of paint, previously used locks, etc.), and they don’t bother calculating the costs associated with turning over a unit, especially if the work is done in-house.

Keep track of your rent-ready costs, including labor, to determine whether there are any opportunities to increase efficiency and lower expenses without negatively affecting other property management KPIs.

#9: Average Days-to-Lease

Each day that passes without a resident occupying a unit is money that you’re forgoing. The same is true for property owners, so keeping an eye on how long it takes to lease a unit is critical.

Now, anyone can lease a unit in just a few days—all you need to do is lower the rent enough. Of course, that’s not really a strategy you want to rely. The average days-to-lease should be compared to the market average (usually less than two weeks in a hot market). It should then be evaluated against other KPIs, like market rents, to see how well your property management business is performing.

If it seems to be taking a while for a unit to lease, take a hard look at where and how a unit is being advertised. Consider alternative listing channels or boost your marketing budget to lease units faster.

You may also want to evaluate your lead-to-lease process. According to Buildium’s Industry Report, renters are looking for detailed listings and transparency throughout the application process. They also want property managers to be up front with them about renter expectations before they sign.

Leasing technology can help property managers meet those expectations by providing listing templates that are easy to publish across listing sites and an applicant portal to share updates and information.

The renters we surveyed told us that they’ve appreciated their property managers’ efforts to allow them to communicate, pay rent, sign documents, and take care of other rental processes online. At the same time, property managers have unlocked new efficiencies using leasing tech solutions.

#10: Property Management Fees to Owners

Property management fees to owners usually run anywhere from 8 to 12 percent of monthly revenue, depending on the level of service provided. How do you stack up against your competitors? How often are you looking into what others are charging, and for which services?

Based on the market average, you may find that you’re discounting your services too heavily. Some property managers discount their fees to get clients in the beginning, and then they never raise their prices.

Even if you start out by charging rates that are toward the lower end of the market, don’t be afraid to increase prices if you adopt new technologies or tools to improve an owner’s overall ROI. Conversely, you may be putting yourself at risk of losing customers if you’re charging too much, or if the level of service that you provide has declined.

#11: Repair and Maintenance Costs

If a toilet is leaking, do you rely solely on the opinion of your long-time plumber? This is often the case for property managers, particularly those who work independently, or for small shops that need to subcontract some of their repairs and maintenance.

While it’s a must to find property maintenance service providers that you trust, how often do you consider whether a repair or replacement is actually needed? How often do you shop around for vendors to compare pricing? Do you conduct market research to understand how much a specific project should cost, such as the average cost to renovate a bathroom?

Repairs and maintenance are usually the biggest line item for property management companies. Most property managers will be able to find cost savings to improve the company’s revenue if they look critically enough at their R&M expenses.

Building a Data-Driven Property Management Business

You can’t monitor what you can’t measure. Data collection may seem burdensome, but it’s highly critical to the success of your business. Collect data; benchmark your performance against your company’s previous years and your competitors; and then make adjustments as needed to improve the overall value of your business.

Key Takeaways:

• Property managers track 11 core KPIs including revenue growth, occupancy rates, tenant turnover, and acquisition costs to measure performance against market benchmarks.
• Monitor properties won and lost annually, with 10-20% turnover being normal, using the formula: Total Sales & Marketing Budget ÷ New Units Acquired.
• Urban markets target 95-96% occupancy, while rates significantly above market average may signal underpriced rent.
• Property management software automates KPI tracking and provides analytics for data-driven decisions that improve retention and efficiency.

To learn more about how Buildium can help you reach your KPIs, check out our 14-day free trial, no credit card required, or schedule a demo.

Frequently Asked Questions

What are property management KPIs?

Property management KPIs are metrics that measure your business performance across operations, finances, and tenant satisfaction. They help you make data-driven decisions and identify improvement areas.

Why should property managers track KPIs?

KPI tracking helps you make data-driven decisions and spot problems before they impact profitability. Regular monitoring improves overall property performance and business growth.

Which KPIs are important for property managers to track?

Key KPIs include occupancy rate, tenant turnover, rent collection rate, maintenance response time, and net operating income. These metrics provide a complete performance picture.

How can tracking occupancy rates benefit property managers?

Tracking occupancy rates helps property managers understand how well their properties are being filled. High occupancy rates indicate strong demand and effective marketing, while low rates may highlight the need for improvement in attracting and retaining tenants.

What is the significance of tenant turnover rate?

Tenant turnover rate measures how often tenants move in and out of a property. A high turnover rate can indicate dissatisfaction among tenants or issues with the property itself. By monitoring this KPI, property managers can work on strategies to improve tenant retention and reduce vacancies.

How do maintenance KPIs impact property management?

Maintenance KPIs, such as request resolution time, gauge the efficiency of handling repair and upkeep tasks. Quick and effective maintenance leads to higher tenant satisfaction and prolongs the life of property assets, contributing to better overall management.