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KPI for Measuring of Average Profit per real estate rental property posted in category Real Estate

WinningKPI - Real Estate - KPI for Measuring of Average Profit per real estate rental property posted in category Real Estate Oana Boteanu This KPI is for measuring the average profit made per real estate rental property. This is calculated by dividing the total amount of profit made in a given time period, by the number of properties rented.
The real estate agent’s aim is to maximise this figure. However, this KPI only gives an average measure. In the case that the company wants to identify factors that influence the profit (especially if low), they may choose to look at profit per type of property, maintenance costs, rent arrears etc. When joined with those KPIs, the Average Profit KPI offers an accurate measurement, which can be used in strategic decision making.

Formula:
Total profit from property rental/ Total number of properties rented

KPI Units: money

KPI Time Frame: update annually

Posted by Oana Boteanu | Help to protect community: Flag for moderation

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KPI Expert Example:

A real estate agency wants to measure the profit made per rental property, over a year period.
This is calculated as below:
Total profit from property rental/ Total number of properties rented

Therefore, in one year the company made:
$160 000 in profit from property rental
for a number of 40 properties being rented

Profit per real estate rental property:
160 000/ 40 = $4000 per property rented

This figure will highly depend on property size, condition, rent per month, maintenance costs, period of time that the property has been rented (e.g. 8 out of 12 months) etc.

Oana Boteanu | + | September 13, 2012 at 10:31 am

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