What Is the Proper Way to Measure Mine, or My Property Management Company’s Management Performance?

Audience: rental property owners who want to understand how to evaluate their own performance as landlords—or their property manager’s performance—using fair, meaningful, and industry-standard metrics.

Owners sometimes judge property management performance based on things that are ultimately outside any manager’s control (such as market rent swings, unexpected repairs, or tenant personal behavior).

Here’s how to properly measure both your own performance and your property management company’s performance.

FAQs ❓

Is the number of repairs an indicator of bad management?
No. Repair frequency is mostly tied to property age, construction quality, and prior maintenance history.

Should I evaluate performance based on how much rent my property collects?
Partially but only when compared with similar properties and market conditions.

Does a tenant causing problems mean management failed?
Not necessarily. Even excellent screening cannot prevent every issue.

What are the best metrics to determine if management is performing well?
See the list below vacancy rates, communication, compliance, financial accuracy, and tenant quality are key.

The Right Way to Evaluate Property Management Performance ✔️

Below are the metrics that truly show whether your property manager and you as an owner are doing well.

1. Vacancy Rate & Days on Market (Major Performance Indicator)

A well-performing management company should consistently:

✔ Minimize vacancy time

✔ Achieve competitive rent

✔ Market efficiently

✔ Provide strong listing exposure

Healthy target:

Under 21–30 days in typical markets
Seasonal variance applies

If your home rents quickly at market rate, this is a strong indicator of effective management.

2. Tenant Quality & Placement Screening

High-quality screening leads to:

✔ Longer stays
✔ Fewer missed payments
✔ Less damage
✔ Smoother communication

Good screening doesn’t eliminate risk, but it significantly reduces it.

To assess this metric, look at:

Payment history
Number of lease violations
Renewal rates
Turnover frequency

3. Communication & Responsiveness 🗣️

Strong performance includes:

✔ Prompt replies
✔ Clear explanations
✔ Proactive updates
✔ Timely responses to owner questions
✔ Transparency about issues or delays

If communication is consistent and professional, management is performing well.

4. Maintenance Handling & Vendor Coordination 🔧

Good management demonstrates:

✔ Quick response to urgent issues

✔ Fair and transparent pricing

✔ Reliable vendors

✔ Preventative maintenance guidance

✔ Accurate diagnosis and repair management

Judge based on:

Time from request → vendor dispatched
Time to complete work
Whether repairs are resolved correctly the first time

Note: Repair quantity is NOT a performance indicator older homes need more repairs.

5. Accounting Accuracy & Financial Transparency

Quality management provides:

✔ Accurate owner statements
✔ On-time disbursements
✔ Clear repair invoices
✔ Immediate updates for unusual charges
✔ Proper trust account handling
✔ Correct security deposit processing

If accounting is consistent and error-free, that is excellent performance.

6. Compliance With State Laws & Lease Requirements

Your property manager should ensure:

✔ Smoke/CO detector compliance
✔ Fair Housing compliance
✔ Proper notice delivery
✔ Accurate documentation
✔ Legal procedures followed for move-in, renewal, and move-out

This is a major liability shield for owners.

7. Renewal Rates & Tenant Retention 🔁

High renewal rates can indicate:

✔ Good tenant relations
✔ Fast maintenance handling
✔ Proper rent pricing
✔ Clear expectations

Renewals reduce turnover expenses, vacancy periods, and risk.

8. Transparency About Market Conditions

Good managers:

✔ Provide accurate rental value assessments
✔ Adjust pricing based on seasonality
✔ Share honest feedback about competition
✔ Advise when upgrades will improve performance

Bad managers simply tell you what you want to hear.

9. Problem Resolution Ability

Evictions, conflicts, and lease violations may occur. Performance should be judged by:

✔ How quickly issues are addressed
✔ How legally compliant the processes are
✔ How well communication is documented
✔ Whether owner exposure is minimized

A skilled manager keeps your risk low even in challenging situations.

10. Long-Term Property Health & Maintenance Strategy

Great management companies advise owners on:

✔ Capital improvement needs
✔ Aging systems
✔ Preventative investment
✔ Budget planning for long-term repairs
✔ Best ROI upgrades

This helps protect the asset not just collect rent.

The Wrong Ways to Measure Performance ❌

Owners sometimes (understandably) misjudge performance using these factors:

❌ Number of repairs requested

Repairs reflect property condition, age, and tenant behavior not management quality.

❌ Whether a tenant ever complains

Even perfect homes generate maintenance requests.

❌ How “nice” tenants feel

Good management involves both empathy and enforcement not just friendliness.

❌ Rental rate alone

Market conditions heavily influence pricing.

❌ Comparing your property to a friend’s property

Homes vary drastically in age, quality, location, and layout.

How to Measure Your Own Performance as an Owner ✔️

Owners also play a role in successful property management.

Strong owner performance includes:

Approving repairs quickly
Maintaining reasonable expectations
Following Fair Housing rules
Funding reserves for major repairs
Making ROI-friendly upgrades
Keeping insurance updated
Setting market-aligned rent expectations

Good owner performance leads to fewer vacancies and happier tenants.

Summary: Key Performance Indicators (KPIs) for Property Management

Vacancy rate
Tenant quality
Response and resolution time
Accounting accuracy
Legal compliance
Renewal rate
Maintenance efficiency
Communication quality
Long-term asset planning

If your management company is strong in most or all of these, performance is excellent.