Accumulated rental period per agreement
What is it?
The key figure shows the average time period during which leases have been active. It measures how long, on average, tenants have stayed in their rental properties before terminating their contracts or moving out. This key figure provides insights into tenants' behavior and how long they typically stay in properties.
It can be useful for property management to assess long-term tenant loyalty and to identify areas where leases or service may need to be improved to retain tenants for a longer period of time. It can also help with vacancy planning and rental market strategies.
How is it calculated?
Number of months the lease has been active / Number of leases = months/lease
* Includes all active contracts at the specified time.
Why is it important to follow?
One should follow the key figure for the following reasons:
Tenant loyalty: It provides insights into how long tenants stay in the properties on average. Longer lease terms often indicate higher tenant loyalty and can reduce vacant periods.
Planning: It helps the leasing department plan for vacant periods and make more accurate forecasts of when the properties can expect vacancies.
Marketing strategy: The key figure can be used to develop better marketing and leasing strategies to attract and retain tenants for a longer period of time.
Level of service: A long average rental period may indicate that tenants are satisfied with the service and enjoy the properties. It is valuable for assessing the level of service and the attractiveness of the properties.
Cost control: By extending rental periods and reducing the number of vacant periods, the leasing department can reduce marketing and tenant relocation costs.
In summary, the key figure provides valuable information about tenants' behavior and loyalty. It helps the leasing department make better decisions regarding marketing, planning and service levels to create a stable and profitable property portfolio.
Created by Homepal
9/1/2023
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