WinningKPI - Real Estate - KPI for Measuring of Average time taken to re-let empty homes posted in category Real Estate KPI details: This KPI is for measuring the average time needed to re-let empty homes. This is calculated in a given time period (e.g. one year) by dividing the total number of days the houses have been on the market for letting, by the total number of houses re-let.
The time period the homes are on the market to be let incurs a cost for the real estate in terms of electricity, taxes, costs of advertisements etc. Hence, the aim of the real estate agent is to minimise this KPI in order to lower costs, and strategies may be put in place to ensure this (e.g. let with possibility of long term contracts, start house viewings months before the end of contract etc.). Some of these terms may need to be included in the letting contract.
Formula:
Total days to re-let empty homes/ total empty homes re-let
KPI Units: days
KPI Time Frame: update annually Posted by Oana Boteanu | Help to protect community: Flag for moderation
Ideas suggested by WinningKPI community:Here are comments:
Example:
A landlord is measuring the house re-letting performance, by calculating the average time taken to re-let empty homes.
This is measured as below:
Total days to re-let empty homes/ total empty homes re-let
The landlord is measuring this over a 6 months period, when 3 of the properties available for rent have gone on the market for re-letting.
Total days to re-let empty homes: 50 days
Total number of homes re-let: 3
Average Time Taken to Re-Let Empty Homes:
50/3 = 16.7
This result shows that it took the landlord on average approximately 17 days to re-let each house.
Oana Boteanu | + | September 13, 2012 at 10:28 am
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