Property Management KPI – Metrics Definition
These are the most important metrics to consider for your Property Management KPI tracking, and they’re quite common in other hospitality businesses and real estate.
Average Daily Rate – a key metric that shows the average price of your property. The calculation is simple: for each property, divide the total bookings revenue by the total number of nights booked. You can keep track of this metric for each year, quarter or season.
Occupancy Rate – find out your occupancy by dividing the number of nights booked with the number of nights available to be booked (then multiply by 100). For example, if 24 nights have been booked in a 30-day-month, your monthly Occupancy Rate is 0,80 or 80% (24 divided by 30, then multiplied by 100).
RevPAR – Revenue per Available Room is widely used in hotel management. One of the simple ways to calculate it is by multiplying your Occupancy Rate by your Average Rate. E.g. if your Average Rate per month is 100€ and your occupancy is 0,8 your RevPAR for that month is 80€ per night.
Total Revenue – the grand total received from all bookings during a specific period. It includes all costs paid by guests (cleaning fee, taxes etc).
Average Length of Stay – the average number of nights booked for a certain period.
Cost per Listing Site – the commissions paid to the distribution sites for each booking. Some listing sites add their commission on top of your nightly rates, whereas others charge it from your net rates.
Net Operating Profit – the actual profit when deducing all applicable expenses, such as operations, cleaning, maintenance and listing site commissions.
Beyond the numbers – why do you need the Booking Tracker?
Our Booking Tracker was created by a property manager with four vacation rental properties in Spain. Keeping under check the most important information helps her make the right decisions, such as lowering prices at the right time, offering useful extra services or advertising on new distribution sites.
Using this Excel spreadsheet, you will have an overview of the fundamental stats of your business and undertake important actions. It will be easier to answer these questions:
– What is your length of stay for each season? Should you consider offering shorter stays in high season for a higher rate?
– Which listing sites generate more bookings for you?
– Is your vacation rental attracting more families, couples or groups of friends? Can you improve their guest experience or suggest the right local activities/tour bookings?
– How do your bookings vary by season/year?
– How many days before arrival are your bookings made? When should you start dropping your price or offering discounts?