KPIs will vary depending on your role (property developer, rental property manager, real estate investor, etc.).

Real Estate Development KPIs

• Construction Cost per Square Foot: Tracks the cost of building housing units. Managing this directly impacts profitability.
• Sales Velocity: The speed at which you sell newly developed properties. Faster is typically better for cash flow and returns.
• Time to Completion: Total time from land acquisition to finished units ready for sale or occupancy. Impacts project timing and costs.
• Return on Investment (ROI): Profit earned on a development project as a percentage of its cost. Measures project success.
• Pre-Sales: Percentage of units sold before construction is completed. Helps gauge market demand.

Rental Property Management KPIs

• Occupancy Rate: Percentage of rental units currently occupied. High occupancy is key to maximizing rental income.
• Rent Collection Rate: Percentage of rent payments received on time. Good collection rates are essential for cash flow.
• Average Rent per Unit: Average rent charged across your rental portfolio. Helps track and adjust pricing over time.
• Tenant Turnover Rate: Percentage of tenants who move out within a given period. Lower turnover means less expense in preparing units and finding new tenants.
• Maintenance Costs: Track spending on repairs, upkeep, and general maintenance of rental properties.

Real Estate Investment KPIs

• Net Operating Income (NOI): Total rental income minus operating expenses. Key measure of profitability before debt and taxes.
• Capitalization Rate (Cap Rate): NOI divided by the property’s current market value. Key metric for real estate investors.
• Cash-on-Cash Return: Annual pre-tax cash flow of a property divided by the total cash invested. Shows immediate returns.
• Vacancy Rate: Percentage of time a rental property is unoccupied. Minimizing vacancy periods is key to maximizing income.
• Appreciation: Increase in property value over time. A major component of long-term real estate investment returns.

Market-Focused KPIs

• Housing Affordability Index: Measures the ratio of median home prices to median income in a given area. Tracks whether housing costs are attainable for residents.
• Days on Market (DOM): Average number of days a property is listed for sale before it receives an accepted offer.
• Housing Starts: Tracks the number of new residential construction projects initiated. An indicator of housing supply.
• Interest Rates: Track prevailing mortgage interest rates that affect buyer affordability and overall market demand.

Additional Considerations

• Tenant Satisfaction (for rental properties): Measure satisfaction with unit quality, service, amenities, etc.
• Neighborhood-Specific KPIs: Analyze crime rates, school quality, or other factors that impact desirability and value in a neighborhood.