No matter what particular type of real estate your business has evolved ? residential, commercial or industrial ? a successful business model primarily focuses on real estate performance metrics, which help to streamline financial and operations processes. Monitoring the factors that affect the business particularly enhances the ability to improve the whole portfolio performance west Hollywood apts for rent.
Appropriate performance measures can include calculation of rates of return, space quality and comparison to market, unresolved transactions, monthly feedback by staff, accuracy and completeness of property records, quality assessment of properties, client surveys on staff performance and occupancy patterns.
Occupancy rates can be increased on condition of the availability of the right amount of space at the right time ? that’s what prospective customers usually await. Meeting their expectations is key to customer retention and consequently to higher performance level.
In addition to other information, the occupancy rates can be viewed by property, lease changes, rent roll, operating statements and accounts receivable information. If the company gets the actual data, from accounts payable and receivable to lease origination and occupancy patterns it manages the entire portfolio cost effectively.
Building up value oriented real estate management, property companies look forward to the optimization of the portfolio and the relevant services seeking to measure strategic orientation, structures, processes, qualifications, performances together with the costs and resources by certain benchmarks.
Benchmarking is a continuous learning process targeted at creating advantages by means of identifying the problem, whether it is realization in profit or cost reduction potential, and finding the right solution. The latter can be the result of a profound analysis of the company’s own experience as compared with others’. The points of the comparison may be standardization of properties information, a uniform performance measurement, identification of performance gaps and others.
To find the best solution to future development problems the benchmarking system known as the Balanced Scorecard (BSC) is used for measuring and monitoring business performance. Designed as an early warning system it is based on the assumption that a future-oriented consideration of value influencing factors contributes to the optimized evaluation of the company’s future progress. The benchmarks provided by the system enhance detailed controlling necessary for the further promotion of corporate processes and enable the company to evaluate the future ability of the property. The Balanced Scorecard goals may include several strategies. For instance, customer orientation means achieving client satisfaction. Financial perspective concerns providing financial management of real estate assets as well as managing and minimizing risk. Internal processes involve standardizing and organizing the tools to estimate usage efficiency. Growth projection is connected with management efficiency.
In other words the company can employ the effective instrument to measure the performance of the portfolio with regard to real estate controlling. Relevant evaluation gives information of present risks of investment and use as well as corporate rating resulting thereof. Identifying risk areas is a prerequisite for building up an effective real estate and services controlling.
Does performance measurement tools worth investing in? Actually, the question is do you realty want to measure and control real estate performance? I’m sure you will find performance measure tools to be must have to this business.