KPIs
Understanding key performance indicators for rentals
Key Performance Indicators (KPIs) help you measure the health and performance of your rental business. This guide explains each metric and how to interpret it.
Financial KPIs
Gross Revenue
Total income before expenses.
- Calculation: Sum of all rent collected + other income
- Good indicator: Growing or stable over time
- Action if low: Review rent rates, reduce vacancies
Net Operating Income (NOI)
Income after operating expenses.
NOI = Gross Revenue - Operating Expenses
Operating expenses include:
- Maintenance costs
- Management fees
- Insurance
- Property taxes
NOI doesn't include mortgage payments, which are financing costs, not operating costs.
Expense Ratio
Operating expenses as a percentage of revenue.
Expense Ratio = Operating Expenses / Gross Revenue × 100
| Range | Interpretation |
|---|---|
| Under 30% | Excellent |
| 30-40% | Good |
| 40-50% | Average |
| Over 50% | Needs attention |
Occupancy KPIs
Occupancy Rate
Percentage of properties currently rented.
Occupancy Rate = Rented Properties / Total Properties × 100
| Range | Interpretation |
|---|---|
| 95%+ | Excellent |
| 90-95% | Good |
| 85-90% | Average |
| Under 85% | Concerning |
Vacancy Days
Average days a property stays vacant between tenants.
Average Vacancy = Total Vacant Days / Number of Turnovers
Track vacancy days by property to identify units that are harder to rent.
Tenant Turnover Rate
How often tenants leave.
Turnover Rate = Leases Ended / Total Leases × 100 (per year)
Lower is better - turnover costs money in vacancy and preparation.
Payment KPIs
Collection Rate
Percentage of rent collected on time.
Collection Rate = On-Time Payments / Total Due × 100
| Range | Interpretation |
|---|---|
| 95%+ | Excellent |
| 90-95% | Good |
| 85-90% | Needs improvement |
| Under 85% | Serious issue |
Days to Collect
Average days from due date to payment.
| Range | Interpretation |
|---|---|
| 0-3 days | Excellent |
| 4-7 days | Good |
| 8-14 days | Average |
| Over 14 days | Concerning |
Delinquency Rate
Percentage of tenants with overdue payments.
Delinquency Rate = Overdue Accounts / Total Accounts × 100
Property KPIs
Gross Rent Multiplier (GRM)
Quick valuation metric.
GRM = Property Price / Annual Gross Rent
Lower GRM = potentially better investment.
Return on Investment (ROI)
Annual return on your investment.
ROI = Annual NOI / Total Investment × 100
ROI calculations may vary. Rentigo uses NOI for a standard comparison across properties.
Maintenance Cost per Unit
Average maintenance spending per property.
Maintenance Cost = Total Maintenance / Number of Properties
Track this over time to identify properties needing more attention.
Using KPIs Effectively
Set Benchmarks
- Track your KPIs over time
- Compare to industry averages
- Set improvement goals
- Monitor progress quarterly
Identify Problems Early
Low KPIs can indicate issues:
- Falling collection rate → Payment problems developing
- Rising vacancy → Market or property issues
- Increasing expenses → Maintenance problems
Make Data-Driven Decisions
Use KPIs to justify decisions:
- Raise rent when collection rate is high
- Invest in marketing when vacancy is rising
- Schedule preventive maintenance to reduce costs
Next Steps
- Owner Reports - Share performance with owners
- Analytics - Dashboard overview