Property Management metrics

Key Performance Indicators (KPIs) can be configured within the KPIs section of a company’s Settings.

You can choose to track KPIs from Fathom’s default collection, or you can create your own custom KPIs. The KPIs you decide to track will be dependent on how you manage your portfolio of properties and the key areas you want to focus on.

KPI type	KPI suggestions
Default – select from Fathom’s pre-built financial KPIs	Operating Profit Margin Debt to Equity Ratio Return on Assets
Account Watch – track individual account lines or headings from a company’s Chart of Accounts	Recurring Revenue (or, for example, ‘Rental Income’ depending on the account's name)- this can be particularly helpful if a company’s financials has multiple recurring revenue accounts (e.g. by property or by property type) Operating Expenses e.g. maintenance costs Non-rental income, e.g. brokerage assistance fees, laundry fees – you can group relevant accounts with a heading.
Divisional – Tailor financial metrics to track by division	Revenue, Operating Profit, Operating Expenses etc. by [Property/Property Type] – if you use divisions to track individual properties or types of properties
Formula – Create custom formulas	Income per Unit Operating Expense Ratio (OER) Return on Investment (ROI)
Non-Financial - track data outside of a company’s Chart of Accounts	Number of Units, Number of Properties, or Number of Properties by Property Type – depending on how your portfolio is divided, e.g. by Property Type: residential, housing association, commercial, short-term lets, etc. Occupancy Rate Vacancy Rate Vacancy Cost Vacancy Loss Tenant Turnover / Churn Rate Tenant Satisfaction Lease Renewal Rate Rent Collection Rate

💡Smart Tip: Once created, you can easily share custom KPIs across multiple companies by saving them to your Organisation’s KPI library.

Reporting for Property Management companies

You can craft custom reports to include a combination of both financial and non-financial metrics. These can be tailored for the appropriate audience, for example, clients, shareholders, board members, banks, or internal management.

There are several ways a Property Management company can structure their financials, for example, by individual properties or by property types. Each of these can be achieved by using multiple entities within a consolidated group, or by segmenting a single entity’s financials using divisions, also referred to as Tracking Categories, Classes, or Locations.

In each instance, you can access additional report elements, enabling you to easily report by entity or by division:

💡Smart Tip: Download a sample Property Management company’s Monthly Performance Report at the bottom of this article.

Analyse the performance of a property portfolio

For management companies that have a property portfolio comprised of multiple financial entities, whether that be individual properties or groups of properties, you can make use of Fathom’s multi-entity comparative features.

💡Smart Tip: If your property portfolio is comprised of divisions, you can access additional functionality within our Analysis Tools, or you can import divisions as standalone entities to utilise our multi-entity analysis features.

Monitor with Thresholds

Thresholds enable you to quickly monitor the performance of a whole property portfolio via the Insights Dashboard. You can set custom numeric ranges for key financial metrics to gauge and highlight performance. These can be allocated by company, meaning you can personalise these thresholds, for example, by recurring revenue size, property type, property location, etc.

💡Smart Tip: You can sort and filter companies appearing on the Insights Dashboard with Custom Tags.

Example: You create a custom threshold collection titled ‘$300-500K monthly revenue’.

For Operating Profit, Operating Profit Margin, and Expenses, you set threshold numeric ranges relevant to this size of property, with the green threshold range indicating desired performance, and the red range indicating poor performance.

You then allocate the appropriate properties from your portfolio, those achieving $300-500K of monthly recurring revenue, to this threshold collection.

You repeat this process for ‘$600-800K monthly revenue’ and '$800K + monthly revenue' properties.

On the Insights Dashboard, you can then monitor the performance of all these properties across Operating Profit, Operating Profit Margin, and Expenses at once.

💡Smart Tip: If you are looking to exclusively monitor and compare entity performance via the Insights Dashboard, you can bulk import companies onto our Portfolio plan.

For more information, see here:

Benchmark properties

For large property portfolios, you can compare and share learnings across the group by segmenting companies into categories and accessing in-depth performance analysis as part of a benchmark group.

Example: You create a benchmark group comprising all the properties you manage, which have been imported into Fathom as individual companies. You create two segment categories with relevant associated values:

Property Type: short-term lets, residential rentals, commercial etc
Region Location: South West, South East, North East, North West

You assign each property/company to the appropriate segment.

Using a combination of the Compare and Rank Analysis tools, you dig into how each property is performing against its relevant counterparts and isolate areas for potential improvements.

💡Smart Tip: You can also benchmark KPI performance, including non-financial KPIs, for companies in a benchmark group.

For more information on Benchmark Groups, including setup, see here: Create a Benchmark Group

Driver-based forecasting for Property Management companies

With drivers, you can reference numeric values outside your financials to drive your forecasted figures, allowing you to tailor your forecast specifically to your portfolio of properties.

Example: You create two drivers: ‘Average Rent Per Unit’ and ‘Occupied Units’, and upload to Fathom the projected figures for the next 24 months.

Within your forecast’s Profit & Loss, you calculate the revenue baseline with a formula value rule referencing these two drivers: 'Average Rent Per Unit x Occupied Units’.

Drivers can be uploaded to Fathom via Excel, or you can set the totals by using value rules. If you are creating multiple forecasts, you could create a standardised Excel template of drivers to reuse and add in relevant data for each property or property group.

Use scenarios and drivers to map out potential risks

Scenario planning can aid you in developing contingency plans for potential future risks. This can be useful for properties with frequent occupant turnover and those influenced by seasonal demand, such as student accommodation or holiday homes.

Scenarios can be used in conjunction with drivers for additional avenues of personalisation.

Once created, you can easily compare projected performance versus scenarios within custom reports.