Why Metrics Matter in Property Management
You can't improve what you don't measure. Many property owners in Kenya operate on gut feeling—they know they're making money, but they don't know how much or where the profits come from.
Tracking the right metrics transforms your property business from guesswork into a data-driven operation. Here are the five numbers you should be watching.
1. Occupancy Rate
What it is: The percentage of your units that are currently rented out.
Formula: (Occupied Units ÷ Total Units) × 100
Why it matters: An empty unit is money lost forever. If your occupancy rate drops below 90%, you have a problem that needs immediate attention—whether it's pricing, marketing, or property condition.
A good target for Kenya: 95%+ occupancy rate. Every percentage point matters when you're managing multiple units.
2. Rent Collection Rate
What it is: The percentage of billed rent that you actually collect each month.
Formula: (Rent Collected ÷ Rent Billed) × 100
Why it matters: High occupancy means nothing if tenants aren't paying. A 100% occupancy rate with 70% collection rate is worse than 85% occupancy with 98% collection.
Track this monthly and investigate any tenant whose payment pattern changes.
3. Average Days to Payment
What it is: How many days after the due date tenants typically pay their rent.
Why it matters: This metric reveals your cash flow predictability. If tenants pay on day 1, you can plan expenses with confidence. If they pay on day 15, your cash flow is constantly stressed.
Strategies to improve this:
- Early payment discounts (e.g., 5% off if paid by the 3rd)
- Automated SMS reminders before the due date
- Make payment as easy as possible (M-Pesa integration)
- Clear late payment penalties
4. Maintenance Cost per Unit
What it is: Total maintenance expenses divided by number of units.
Why it matters: This helps you identify problem properties. If one building consistently has higher maintenance costs, it might need major repairs—or you might have a contractor issue.
Track this over time to spot trends. Maintenance costs should be relatively stable; sudden spikes indicate problems.
5. Net Operating Income (NOI)
What it is: Total revenue minus operating expenses (before mortgage payments).
Formula: Rental Income - Operating Expenses = NOI
Why it matters: This is the ultimate measure of property profitability. It tells you how much money the property actually generates.
Compare NOI across properties to identify your best and worst performers. It might be time to sell underperforming properties and reinvest in better ones.
Track All These Metrics Automatically
HomeManager's dashboard gives you real-time visibility into occupancy, collections, maintenance, and profitability—across all your properties.
See HomeManager AnalyticsHow Often Should You Review These Metrics?
- Daily: Collection rate (especially in the first 10 days of the month)
- Weekly: Occupancy changes, new vacancies
- Monthly: All metrics, with month-over-month comparison
- Quarterly: Deep analysis and strategy adjustments
The Bottom Line
Property management is a numbers game. The owners who track these five metrics consistently will outperform those who don't—it's that simple.
Start with the basics: occupancy and collection rate. Once you have visibility into these, expand to the other metrics. Your properties will thank you.