LETTING & ESTATE AGENT

How Well Do You Know Your KPIs?

How Well Do You Know Your KPIs?
Firstly, I would like to extend my thanks to those of you who requested my guide from last month's article, 'Simple Tax Structure Example Regarding Changes In Mortgage Interest Relief to 2020'.  It just shows how many of us are indeed responsible landlords and, as well as looking after our tenants, are also clearly interested in taking responsibility for the sustainability of our businesses. With so many changes having come into play over the last year or two (and more to follow, no doubt!), it is even more important that we step up and run our property portfolios in a business-like manner. When it comes to finding properties and/or tenants and creating cash flow from your portfolio, it pays to know exactly what your KPIs (Key Performance Indicators) are.  KPIs are the gateway to knowing how well you are doing, where you can refine your processes and perhaps, most importantly, how you can positively impact the bottom line. For example, property sourcing is a numbers game and the better you know your numbers, the more on top of your business you can be. Whenever I am searching for my next deal, or working with clients to help them find theirs, it is prudent to keep track of how many sets of property details you have trawled through, how many properties you've been to view and how many you've offered on to reach that all-important next purchase.  The most common way of keeping up to speed is by using spreadsheets, however, a simple folder and list system can also suffice. Whilst growing your business, the more you can systemise certain activities, the better.  For example, if there is a repetitive task that you do, see if there is an easier way of handling it and put it into a 'system' as you go.  For example, when researching an area and getting to know the agents, create a simple spreadsheet with estate agent contacts details, such as the one below...
Estate AgencyPhone NumberAgent Spoken WithArea CoveredNo. of Calls MadeDate of CallDate of Call...etc
       
       
  In the next example, you will find a useful template to handle the properties you view.  By collating this information, you can start to measure your ratios and therefore know how many properties you may need to search through to build up your business... Hazel Table 2   You could then create a spreadsheet with the property details of those you are interested in, any offers you make, together with dates of when you touch base with the agent to check on progress with the deal. From these sets of results, you can then set about analysing your ratios, i.e. number of agents spoken with, to number of property details given; number of properties viewed, to number of offers made; number of offers made, to number of successful conclusions, etc, etc. Of course, it depends on how many properties you wish to put into the mix as to how far you take this.  If you are serious and want to build your portfolio beyond one or two properties, then hopefully this guidance will stand you in good stead.   Happy Organising! Hazel Hazel de Kloe Property Investor | Property Mentor | Speaker | Author The contents of this article are for educational purposes only and we make no recommendation of any particular investment. The price of property can decrease as well as increase and you make any investments in property at your own risk. © Why Property Works 2016 | www.whypropertyworks.co.uk