Skip to main content
Property management performance can be measured through specific metrics and qualitative assessments. Regular evaluation helps owners determine if their manager is delivering adequate value and identify areas for improvement. Performance should be assessed against both objective metrics and owner expectations.

​
Key Performance Metrics

Percentage of time property is unoccupied.Calculation: (Vacant days / Total days) x 100General benchmarks:
  • Under 5%: Strong performance
  • 5% to 8%: Typical
  • Over 10%: May indicate issues
Compare to local market averages. Some vacancy is normal during turnover.
Time from vacancy to new tenant move-in.Varies significantly by market conditions:
  • Hot markets: Faster
  • Average markets: Moderate
  • Slow markets: Longer
Includes marketing, showing, application processing, and move-in. Ask your manager about typical timelines in your market.
Percentage of rent collected on time.Calculation: (On-time payments / Total payments due) x 100General benchmarks:
  • 98%+ on-time: Strong
  • 95% to 98%: Typical
  • Under 95%: May indicate screening or enforcement issues
Track both on-time and total collection rates.
Percentage of tenants who renew leases.Calculation: (Renewals / Lease expirations) x 100General benchmarks:
  • Over 70%: Strong retention
  • 50% to 70%: Typical
  • Under 50%: High turnover
High retention reduces turnover costs. Some turnover is healthy for rent optimization.
Time from request to resolution.General expectations:
  • Emergency: Same day
  • Urgent: 24 to 48 hours
  • Routine: Within one week
Track both initial response and completion times.
Percentage of tenants evicted.General benchmarks:
  • Under 2%: Typical
  • Over 5%: May indicate screening issues
High eviction rates may indicate poor screening. Some evictions reflect appropriate enforcement of standards.

​
Financial Performance

Revenue minus operating expenses.Track:
  • Monthly NOI
  • Year-over-year changes
  • NOI per unit
  • Comparison to projections
NOI should grow over time or remain stable in flat markets.
Expenses as percentage of revenue.Calculation: (Operating expenses / Gross revenue) x 100Includes management fees, maintenance, insurance, taxes, utilities. Ratios vary by property type and market.
How rent compares to market.Evaluate:
  • Current rent vs market rent
  • Rent growth vs market growth
  • Renewal increase success rate
  • Time at below-market rates
Rent should track market while balancing retention.
Repair and maintenance costs.Appropriate spending varies by property age, condition, and type. Too low may indicate deferred maintenance. Too high may indicate inefficiency or aging systems.Track trends over time and compare to similar properties.

​
Service Quality Indicators

How quickly manager responds to owner.Evaluate:
  • Response time to inquiries
  • Proactive vs reactive communication
  • Quality of information provided
  • Accessibility when needed
Good managers communicate before you have to ask.
Accuracy and usefulness of reports.Good reports include:
  • Clear financial statements
  • Variance explanations
  • Property condition updates
  • Tenant status
  • Market commentary
Reports should be timely, accurate, and actionable.
How tenants perceive management.Indicators:
  • Online reviews mentioning management
  • Renewal rate
  • Complaint frequency
  • Maintenance satisfaction
  • Move-out feedback
Happy tenants stay longer and care for property better.
Quality of maintenance and contractor work.Evaluate:
  • Work quality
  • Pricing competitiveness
  • Response times
  • Repeat issue frequency
  • Tenant feedback on repairs

​
Red Flags

Warning signs:
  • Late owner disbursements
  • Unexplained expenses
  • Missing documentation
  • Reserve fund issues
  • Discrepancies in reporting
  • Resistance to audits
Warning signs:
  • Extended vacancies
  • High turnover
  • Frequent evictions
  • Recurring maintenance issues
  • Tenant complaints
  • Code violations
Warning signs:
  • Slow or no responses
  • Defensive reactions to questions
  • Lack of proactive updates
  • Incomplete information
  • Avoiding meetings
  • Blame shifting
Warning signs:
  • Fair housing complaints
  • Security deposit disputes
  • Improper notices
  • Lease violations ignored
  • Safety issues unaddressed
  • Missing required disclosures

​
Performance Reviews

Quick check on:
  • Rent collected
  • Expenses paid
  • Open maintenance items
  • Tenant issues
  • Vacancy status
Takes 15 to 30 minutes. Catches issues early.
Deeper assessment:
  • Financial performance vs budget
  • Vacancy and turnover analysis
  • Maintenance trends
  • Tenant retention
  • Market rent comparison
  • Capital needs
Schedule call or meeting with manager.
Comprehensive evaluation:
  • Full year financial review
  • Performance metrics vs goals
  • Fee analysis
  • Contract review
  • Capital planning
  • Strategy alignment
  • Relationship assessment
Decide whether to continue, renegotiate, or change managers.

​
Benchmarking

Compare your property to:
  • Similar properties in area
  • Market vacancy rates
  • Average rents
  • Typical expense ratios
Manager should provide market context.
If multiple properties or managers:
  • Compare performance across properties
  • Identify best and worst performers
  • Understand variance causes
  • Apply learnings across portfolio
Track your property over time:
  • Year-over-year changes
  • Trend analysis
  • Seasonal patterns
  • Manager tenure impact

​
When to Make Changes

Consider change when:
  • Metrics consistently below benchmarks
  • Problems persist after discussion
  • Manager unresponsive to feedback
  • Financial irregularities
  • Legal compliance failures
Consider change when:
  • Communication has broken down
  • Trust is compromised
  • Values misalignment
  • Constant conflict
  • Manager not invested in your success
First attempt:
  • Direct conversation about concerns
  • Specific improvement requests
  • Written expectations
  • Timeline for improvement
  • Document discussions
Good managers welcome feedback and improve.

Next: Comparing Property Managers

Questions to ask and what to look for

Find Property Managers

Research property managers in your area