Net Move-Ins
What is it?
The KPI indicates whether there has been an increase or decrease in the number of tenants within a stock during a given time period. It captures changes in the number of tenants by comparing the total number of tenants moving in with the total number of tenants moving out.
A positive net occupancy figure indicates an increase in the number of tenants, while a negative figure indicates a decrease. This is valuable to real estate companies as it provides insights into rental demand and market trends and helps make informed decisions about real estate strategy and resource allocation.
How is it calculated?
Number of move-ins - Number of move-outs = Net Move-Ins
* Includes only those rental objects where the move-in date or move-out date falls within the specified time period.
Why is it important to follow?
Following the key figure is important for a real estate company for several reasons:
Market analysis: By monitoring net occupancy, the real estate company can gain a better understanding of market trends and demand for housing in its area. A positive net occupancy rate can indicate growing demand and opportunities for expansion or development of new properties.
Business Strategy: The information on net occupancy can be valuable to the real estate company when they are designing their business strategy. It can help them decide if they should invest in building more homes or if they should focus on keeping existing tenants.
Resource allocation: Net occupancy provides insights into the need for maintenance and improvements to existing properties. An increased number of occupancies may require more resources to manage and maintain the properties, while decreased occupancies may signal that some properties need to be upgraded or remarketed.
Long-term planning: Net occupancy also provides information on long-term trends. If a property company sees a steady increase in net occupancy, it may be an indication of a stable and growing property portfolio.
In summary, the key figure helps the real estate company make informed decisions about market strategy, resource allocation and long-term planning. It gives an indication of whether the real estate portfolio is growing or shrinking and can be decisive in achieving profitable results and sustainable growth.
Created by Homepal
9/1/2023
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