Vacant object
What is it?
The key figure is an important metric that shows how many of your rental properties are currently not rented and are therefore empty on the current day. This key figure gives you insights into how well your properties or spaces are used and can be useful for landlords, managers and management alike.
A high value of this ratio can indicate that a number of your rental properties are not rented, which can negatively affect your revenue stream and profitability. It can be a warning sign that requires measures to increase the occupancy rate, such as marketing, price adjustments or maintenance improvements to make the properties more attractive to tenants.
On the other hand, if the value of the ratio is low, it indicates that a large number of your rental properties are leased and your inventory is being fully utilized, which is positive for your revenue stream and business performance. It can still be valuable to monitor regularly to ensure that you continue to maximize the lettings of your properties and minimize vacancies.
In summary, the key figure gives you insights into how well your properties are rented out and about the necessary measures to optimize the rental rate and the income stream. It is a useful metric for effectively managing real estate portfolios and business operations.
In Homepal, vacancy is defined as non-rented. Thus, rental objects that are empty, blocked or similar are also included in this value.
How is it calculated?
Number of rental properties without an active agreement with a tenant
* Includes all rental items.
Why is it important to follow?
The following are some important reasons why you should follow the key figure:
Income monitoring: The key figure gives you a direct indication of how many rental objects does not generate rental income for the day. It helps you to monitor and ensure that you are optimizing your income stream from the real estate investments.
Profitability: Empty rental properties can be a burden on your profitability. By following the key figure, you can quickly identify areas where you can improve the occupancy rate and thereby increase your income and profitability.
Early detection of problems: A sudden increase in the number of vacant rental properties can indicate problems in the real estate market, such as reduced demand or competition from other property owners. By monitoring the key figure regularly, you can detect and deal with such problems early.
Effective resource allocation: By knowing which properties have high vacancies, you can focus your resources and efforts on filling those vacancies. It may include marketing, maintenance or pricing optimization.
Financial planning: Vacancy information is critical to making realistic financial plans and budgets for your real estate business. It helps you predict and manage income variations.
Strategic property management: By using the key figure, you can make decisions about the composition and strategy of the property portfolio. You can consider whether it is appropriate to keep or dispose of certain properties based on their occupancy rate.
In conclusion, it is important to follow the KPI as it provides an indication of the health of your property portfolio, affects your revenue stream and gives you the opportunity to take action to improve profitability and tenant satisfaction. It is a central tool for property management and business strategy in the real estate industry.
Created by Homepal
9/18/2023
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