Canceled leases
What is it?
The key figure shows the number of leases that have been terminated during a specific time period. It provides insights into tenant mobility and can be used to assess the loss of rental income and the need to find new tenants to fill vacant spaces.
It is an important metric for real estate companies to monitor in order to manage and plan rental management effectively.
How is it calculated?
Number of leases
* Includes only those leases that have a cancelation date within specified time period.
Why is it important to follow?
One should follow the key figure for several reasons:
Financial Planning: It provides the leasing department with information and indication of the amount of upcoming vacancies and potential lost rental income. This makes it possible to plan financially and to look for new tenants in good time.
Tenant satisfaction: An increased number of cancellations can be an indication that tenants are dissatisfied with the property or services. Monitoring this KPI can help identify issues and take action to improve satisfaction.
Market Analysis: It provides insights into market trends and demand for properties. If many leases are terminated, it may indicate changes in the housing market or in the area where the properties are located.
Negotiating position: Having information about terminated agreements gives the real estate company a stronger negotiating position when negotiating with existing or potential tenants.
Optimization of spaces: It provides the opportunity to optimize the use of spaces and to adapt the property to market needs.
In summary, the key figure helps property companies to plan financially, improve tenant satisfaction, adapt to market trends and ensure efficient management of properties. It is an important part of strategic property management.
Created by Homepal
9/1/2023
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