Measuring of Average total costs per real estate rental property

WinningKPI - Real Estate - KPI for Measuring of Average total costs per real estate rental property posted in category Real Estate

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KPI details:

This KPI is for measuring the average total costs per real estate property. This is calculated by dividing all costs spent on rental properties, by the number of rental properties, in a given time period. This KPI can be compared with the Average Profit per rental property KPI for an in depth performance analysis.

The real estate agent’s aim is to minimise this KPI, in order to maximise profits. If joined with the Ratio for corrective vs. preventive maintenance costs per rental property, the real estate agent may able to identify the reason why costs are high and what can be done to lower them (e.g. spend more on maintenance to avoid corrective costs).

Formula:

Total costs for rental properties / Total number of rental properties

KPI Units: money

KPI Time Frame: update annually

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

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Example:

A real estate agency wants to measure the total costs per real estate agency, over a year period. This includes all possible costs such as the actual costs to run the agency (staff costs, rent, office supplies etc.), property maintenance costs etc.

The formula is calculated as below:
Total costs for rental properties / Total number of rental properties

The agency carries out the following calculation:

Total costs for rental properties: $250 000
Total number of rental properties: 80

Average Total Costs per Real Estate Rental Property:
$250 000/80 = $3125

The agency averaged a $3125 cost per rental property, including all costs
Oana Boteanu | September 13, 2012 at 10:32 am

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