Do you know how many properties are on your rent roll?
When I ask this question, I get a blank stare or a “I’ll just ask my property manager”.
These days, most business owners will know the number of properties on their rent roll however, when I start asking more questions about the number of properties, they are unable to answer.
Knowing your statistics helps you to know your business and to ensure that income and expenses are calculated and managed based on these numbers. Anything extra or outside the norm, should be looked in more detail.
You also want to ensure you know more than your property manager about your rent roll. I say this as I witnessed business owners who were told how many properties were managed by the business only to find out through my investigations was far less than the property manager had advised them.
When I had my agency, I knew my rent roll statistics every week. I did this so that I knew what was happening in my portfolio. Although the number of managements did not grow significantly as I would of like them too, I witnessed my average weekly rent reducing, my average commission rate increase and my vacancy and arrears rates reduce.