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April 6, 2020
Arthur van de Loo
Why are real estate KPI dashboards so useful? Learn how you can implement them in your own workflows.
Whether you’re in the real estate rental or sales business (or both), chances are you’re already using KPIs to track how well you’re doing in different aspects. After all, well-defined KPIs can tell you a lot about your performance, and they might often reveal things you could otherwise have overlooked. A real estate dashboard using those KPIs can add a lot of value for relatively little effort.
In case you’re not using KPIs (or if you just want a refresher), here are a handful of reasons to use KPIs and KPI dashboards if you’re in the real estate business.
Using well chosen KPIs and implementing them in dashboards can give you a bird’s eye view of how you or your company are doing. They provide insights that normal earning reports often lack, and can reveal unexpected trends or connections between factors.
Using a data-driven approach will reveal what you’re excelling at and which specific things might be holding you back. This might confirm things you already thought, or it could also help you find out things that might not be obvious with other approaches.
Since selling a house is a major decision for most people, they want to make sure the right people are handling it. Using data analytics in real estate can help you show them that you are the person or agency they are looking for. For example, someone might want to sell their house rather quickly. If your average days on market are low, a data dashboard provides an attractive way to prove this to an interested seller.
So, KPIs are useful – but which ones should you be using? Well, that depends on your specific case. Here are a couple to get you started.
Having a clear overview of how long each of the properties you’re selling or renting out has been on the market can help you benchmark your strategy as a whole or compare properties or categories to the average. This data can be a real aid when pricing the properties, especially if you have a strong overview of it.
If you’re renting out properties it’s self-evident you want your occupancy to be as high as possible. After all, for every unrented property you’re losing money. Occupancy rate is a good measure for how well you’re doing (especially when compared to the market’s rate). In addition, you can filter out rented or unrented properties in your data dashboard and find out non-instinctive differences. Perhaps a certain area is less attractive to renters, or maybe the asking price is just too high? A data dashboard will help you figure it out.
Tracking and visualizing your inventory of properties – both for sale and for rent – can tell you a lot of things, depending on what your goal is. In a lot of cases a growing inventory will be a sign of sustainable growth, assuming of course the days on market are low enough. In addition, the value of your current inventory can also reveal signs you should be selling off or acquiring more properties in certain areas, if the value is dropping or rising notably fast.
Whether your focus is on real estate rental or sales (or on just about any other business venture), revenue is an important KPI to track. Implementing it into a data dashboard will show you your revenue and its evolution at a glance.
How you compensate your employees or how you yourself are compensated can be tricky to figure out. A fixed salary, solely based on commissions or a combination of both? A data dashboard can provide clear information on employee earnings. This includes how much everyone is getting paid, their total commissions, and how much revenue they’re bringing in. This is useful when evaluating the compensation for each agent, or perhaps the way you want to be paid yourself.
Like in any business, it is vital to evaluate the performance of employees to gauge how well they are doing. A popular metric to use in the real estate business is sales per certain timeframe, per year for example. Implementing this metric into a data dashboard enables you to compare employees or colleagues to certain benchmarks. This way you can deduce who is doing the best and who might be punching under their weight. Later, this will help understand what type of trainings and courses your team needs so that you can implement them. Maybe you'll need to get mentoring software and hire professionals, or maybe there's an online course employees can attend to perform better.
Need a little more inspiration? Check out our sample app with embedded dashboards and look for the real estate dashboard examples. Of course, a lot more is possible with dashboards, depending on your needs. At Luzmo, we are here to help you with your dashboarding needs. Learn more about our different offerings for the real estate sector, or book a demo with one of our product experts.
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